Had the decision been made to separate, the split would likely have occurred during first-quarter 2009. One entity would have [image-nocss] consisted of the company's exploration and production, integrated gas and oil sands mining businesses; and the other entity would have consisted of the company's refining, marketing and transportation business.
"Our review thus far indicates that a separation of the businesses may enhance shareholder value; however, the recent extreme volatility in the capital and commodity markets requires further evaluation before a decision can be reached. Concluding this evaluation remains a high priority with timing of a decision largely dependent on external market factors," said Clarence P. Cazalot Jr., Marathon president and CEO.
"Our primary focus through this challenging economic environment is delivering value to our shareholders through disciplined investment in profitable growth and a solid, competitive dividend. Marathon is in a strong financial and operational position and we will maintain flexibility in our spending plans to adjust to market conditions," added Cazalot.
As reported in CSP Daily News, the company said in early August that while this evaluation had been underway internally for several months, the company was taking the additional step of engaging financial advisors Morgan Stanley, and the law firms of Baker Botts LLP and McKee Nelson LLP, as external advisors.
In late October, Marathon completed the sale of its 50% ownership interest in Pilot Travel Centers LLC (PTC) to Knoxville, Tenn.-based Pilot Corp. and CVC Capital Partners, a private-equity firm, in a transaction valued at approximately $700 million.
Marathon's decision to sell its interest in PTC was part of its ongoing review of the company's global asset portfolio, it said at the time.
PTC operates 305 locations in 40 states and one in Ontario, Canada. More than 300 Pilot facilities feature branded foodservice, including Subway, Wendy's, Arby's, Taco Bell, Denny's and McDonald's. In addition to its travel centers, Pilot Corp. also owns and operates 37 convenience stores in Knoxville, Tenn., where it is headquartered.
Houston-based Marathon is the fourth largest U.S.-based integrated oil company and the nation's fifth largest refiner.
(Click here for previous CSP Daily News coverage.)
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