Oil Spin-Off: Marathon to Create Separate Company for Downstream Business

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.

Source: Http://blogs.forbes.com/dividend/2011/01/13/oil-spin-off-marathon-to-create-separate-company-for-downstream-business/?boxes=Homepagechannels