Murphy Oil (MUR) to Spin Downstream Suabsidiary

Murphy Oil Corporation (NYSE: MUR) announced that its Board of Directors has approved a plan to spin off to its stockholders its U.S. downstream subsidiary, Murphy Oil USA, Inc. (“Murphy USA”), into an independent and separately traded company, and 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 of the company’s shares of common stock. Murphy also reaffirmed the plan to divest the U.K. downstream operations and stated that it is continuing to review possible options with respect to selected assets.

Spin-off to Create Two Distinct Companies

Murphy believes that creating two publicly traded companies would offer a number of advantages:

Each business would focus on its strategic priorities with financial targets that best fit its own market and opportunities;

Each business would be able to allocate resources and deploy capital in a manner consistent with its priorities; and

Investors, both current and prospective, would be able to value the two businesses based on their respective financial characteristics and make investment decisions based on those characteristics.

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