ConocoPhillips has hit on a neat trick for dealing with its unwanted oil refineries at a time when plenty of plants are on the block and there are few buyers: it has decided to give them away. Conoco (COP.N) announced on Thursday it would spin off its downstream arm to shareholders by mid-2012, arguing that owning refineries was no longer an advantage in gaining access to new opportunities to explore for, and produce oil and gas. Stock markets applauded the move, which comes less than four months after the company's strategy meeting when it said its downstream focus was solely on shedding less profitable refineries. Clearly the outperformance of the shares of smaller rival Marathon Oil (MRO.N) following its own decision to lop off its refining arm focused Conoco managers' thoughts. (See Chart 1)
ConocoPhillips is an international, integrated energy company. Shares of COP traded higher by 3.48% or $2.59/share to $76.99. In the past year, the shares have traded as low as $48.06 and as high as $81.80. On average, 8350620 shares of COP exchange hands on a given day and today's volume is recorded at 28272804.
Marathon Oil Corporation (Marathon) is an integrated international energy company engaged in exploration and production; oil sands mining; integrated gas, and refining, marketing and transportation. Shares of MRO fell by 0.06% or $-0.02/share to $31.69. In the past year, the shares have traded as low as $30.04 and as high as $54.33. On average, 7816050 shares of MRO exchange hands on a given day and today's volume is recorded at 3198177.
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