ConocoPhillips (NYSE: COP), the nation's third-largest oil company, announced today that its board of directors has approved the company's pursuit of a split into two separate, publicly traded companies. The split of ConocoPhillips would result in one company built around oil refining and marketing, while the other would be based on exploration and production.
ConocoPhillips' CEO and Chairman Jim Mulva said: "Consistent with our strategy to create industry-leading shareholder value, we have concluded that two independent companies focused on their respective industries will be better positioned to pursue their individually focused business strategies. Both companies will continue to benefit from the size and scale of their significant high-quality asset bases and free cash flow generation, allowing them to invest and create shareholder value in a changing environment."
The company expects the separation to be completed in the first half of 2012; once that milestone is reached, Mr. Mulva intends to retire
According to the company, the separation of ConocoPhillips will not require a shareholder vote, but is subject to other forces, including "market conditions, customary regulatory approvals, the receipt of an affirmative IRS ruling, the execution of separation and intercompany agreements, and final board approval."
Houston, Texas-based ConocoPhillips employs nearly 30,000, and had $160 billion in assets and $226 billion in annualized revenues as of March 31, 2011.
