Marathon Oil Shares Surge on Planned Spin-Off of Downstream Business (MRO)

By
A A A
Share |

Integrated oil company Marathon Oil Corporation ( MRO ) on Thursday announced a planned spin-off of its downstream business, sending its shares soaring in premarket trading.

The company will spin off its refining operations into a separate entity called Marathon Petroleum Corporation, which will trade on the NYSE with symbol MPC. The new company will be headquartered in Findlay, Ohio and is expected to be the fifth-largest oil refiner in the United States.

The spin-off is expected to be completed tax-free, and will be effective June 30, 2011.


Marathon Oil shares jumped $4.33, or +11%, in premarket trading Thursday.

The Bottom Line
Shares of Marathon Oil ( MRO ) have a 2.47% dividend yield, based on last night's closing stock price of $40.53. The stock has technical support in the $36 price area. If the shares can hold today's rise, we see initial overhead resistance around the $45-$46 price levels.

Marathon Oil Corporation ( MRO ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Created by Dividend.com


This article appears in: Investing , Stocks

Referenced Stocks: MRO

Dividend.com

Dividend.com

More from Dividend.com:

Related Videos

Stocks

Referenced

80%

Most Active by Volume

33,974,386
  • $17.98 ▲ 0.28%
20,763,901
  • $91.29 ▲ 2.06%
19,110,793
  • $7.26 ▼ 1.22%
18,528,869
    $8.33 unch
18,014,920
  • $4.19 ▼ 1.18%
16,448,919
  • $25.83 ▼ 0.19%
14,748,190
  • $7.60 ▼ 1.43%
14,144,383
  • $112.01 ▼ 0.47%
As of 12/24/2014, 02:12 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com