August 18, 2022

DealBook: ConocoPhillips to Split Into Two Businesses

A ConocoPhillips refinery in Wilmington, Calif. The nation's third-largest oil company is spinning off its refining and marketing segment.Jonathan Alcorn/Bloomberg NewsA ConocoPhillips refinery in Wilmington, Calif. James Mulva, chief of ConocoPhillips, plans to retire once the transaction is complete.J. Scott Applewhite/Associated PressJames J. Mulva, chief of ConocoPhillips, plans to retire once the transaction is complete.

ConocoPhillips said on Thursday that it would break itself into two companies, spinning off its refining business to shareholders by the first half of next year.

ConocoPhillips would hold onto its higher-margin exploration operations, and would seek acquisitions to expand that business.

The plan is to let each division focus on its core businesses as a way to bolster the ConocoPhillips stock price.

Shares in the company have risen 42.3 percent in the last 12 months.

“We have concluded that two independent companies focused on their respective industries will be better positioned to pursue their individually focused business strategies,” James J. Mulva, the ConocoPhillips chairman and chief executive, said in a statement.

Mr. Mulva plans to retire once the split is completed.

The plan does not require approval from shareholders.

Article source: http://feeds.nytimes.com/click.phdo?i=12ff61789ed712a709819f9236cddd26

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