UPDATE: Murphy Oil to Spin Off Downstream Unit, Shares Spike 9%

By MidnightTrader.com Staff,

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Murphy Oil ( MUR ) is up 9% to $64.25 after announcing a plan to spin off to its stockholders its U.S. downstream subsidiary, Murphy Oil USA, Inc.

The unit will become an independent and separately traded company. MUR has also authorized a special dividend of $2.50 per share for a total dividend of approximately $500 million and a share buyback program of up to $1 billion of the company's shares of common stock.

Murphy also reaffirmed the plan to divest the U.K. downstream operations and stated that it is continuing to review possible options with respect to selected assets.

MUR is trading at $64.28 in a 52-week range of $43.29 - $65.60. Shares have increased 22% in the last 12 months.

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

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This article appears in: Investing Commodities
Referenced Stocks: MUR

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