Davis Polk is advising Murphy Oil Corporation in connection with the spinoff to its stockholders of Murphy Oil USA, Inc., its U.S. downstream subsidiary, into an independent and separately traded company. Murphy Oil has also authorized a special dividend of $2.50 per share for a total dividend of approximately $500 million and a share buyback program of up to $1 billion. The spinoff of Murphy Oil USA will be subject to customary conditions, including confirmation of the tax-free nature of the transaction and receipt of customary regulatory approvals.

Murphy Oil will become an independent exploration and production company with principal activities focused in the United States, Canada and Malaysia. Murphy Oil USA will continue to be a flexible, low-price, high-volume fuel seller with key strategic relationships and experienced management.

The Davis Polk corporate team includes partner William L. Taylor and associates Kristen L. Haase and Christina Henderson. Partner Joseph A. Hall is providing capital markets advice. The derivatives team includes partner Mark M. Mendez and law clerk Gary Pong. The tax team includes partner Kathleen L. Ferrell, associate Kay Ng and law clerk Catherine Paskoff Chang. Members of the Davis Polk team are located in the New York and Menlo Park offices.



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