EL DORADO, Ark. -- Murphy Oil Corp. said Wednesday that its board of directors has approved the spinoff of its U.S. retail marketing business, Murphy USA Inc. It also announced that the board has named Roger Jenkins to the position of president and CEO, effective Aug. 30, 2013. Jenkins will succeed Steven A. Cosse who is stepping down effective the same date.
"Today's announcement signals an exciting new beginning for both Murphy Oil Corp. and Murphy USA Inc. as separating these two businesses will allow each to unlock its own potential for growth," Cosse said.
As reported in a Raymond James/CSP Daily News Flash, Murphy USA, to be based in El Dorado, Ark., will be a retail marketer of fuel products and convenience merchandise operating a network of 1,179 retail fuel stations as of June 30, 2013, almost all of which are in proximity to Walmart stores, in 23 states, primarily in the South and Midwest.
In January, Murphy Oil announced that it had appointed R. Andrew Clyde as president and chief executive officer of the upcoming spinoff.
In February, it announced that John Rudolfs, currently executive vice president marketing for Murphy Oil USA, will lead the marketing operations including fuel, merchandise and asset development. He has been with the company since 2009; Jeff Goodwin, currently senior vice president field operations for Murphy Oil USA, will be responsible for all field operations; and Marn Cheng, currently senior vice president field operations for for Murphy Oil USA, will be responsible for retail operations support.
Murphy Oil, which will also remain headquartered in El Dorado, will be an independent exploration and production company with a strong portfolio of global offshore and onshore assets delivering oil-weighted growth with upside to our exploration program.
The spinoff will be achieved through the distribution of 100% of the shares of Murphy USA to holders of Murphy Oil common stock. The company said it expects the distribution of shares to be completed after the market close on Aug. 30, 2013.
Following the distribution of common stock, Murphy USA will be an independent, publicly traded company. It has received approval for the listing of its common stock on the New York Stock Exchange (NYSE) under the symbol "MUSA."
The completion of the distribution is subject to a number of customary conditions, including U.S. Securities & Exchange Commission (SEC) declarations.
Jenkins has also been elected to the board and the executive committee effective Aug. 30, 2013. Cosse will remain a member of both the board and the executive committee. Murphy Oil also announced the election of T. Jay Collins to Murphy's board, effective Aug. 7, 2013.
"We owe a debt of gratitude to Steve for his leadership over the last year as we transitioned both our upstream and downstream businesses," said Murphy Oil chairman Claiborne Deming. "The board looks forward to working with Roger as he leads us into a new phase as an independent exploration and production company. I am pleased to add Jay to our board with his depth of professional experience and look forward to his contributions to our business."
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