Marathon's corporate separation decision on hold
Marathon Oil Corp. announced that more evaluation is needed before the company decides whether it will separate into two independent, publicly traded companies.
By OGJ editors
HOUSTON, Dec. 15 -- Marathon Oil Corp. announced that more evaluation is needed before the company decides whether it will separate into two independent, publicly traded companies.
Marathon said its board needs additional time to evaluate the possible corporate separation because of recent changes in the global economic environment and financial markets.
Marathon in late July indicated it was considering a split of the company, and a decision had been expected in the fourth quarter.
"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," said Clarence P. Cazalot, Marathon president and chief executive officer, in a Dec. 11 news release.
"Concluding this evaluation remains a high priority with timing of a decision largely dependent on external market factors," he said, adding, "Marathon is in a strong financial and operational position and we will maintain flexibility in our spending plans to adjust to market conditions."