Marathon Oil Shares Surge on Planned Spin-Off of Downstream Business (MRO)

Filed in dividend, Gold Investing, o, shares, Tegra by on January 13, 2011 0 Comments

Integrated oil company Marathon Oil Corporation ( MRO ) on Thursday announced a planned spin-off of its downstream business, sending its shares soaring in premarket trading. The company will spin off its refining operations into a separate entity called Marathon Petroleum Corporation, which will trade on the NYSE with symbol MPC. The new company will be headquartered in Findlay, Ohio and is expected to be the fifth-largest oil refiner in the United States. The spin-off is expected to be completed tax-free, and will be effective June 30, 2011. Marathon Oil shares jumped $4.33, or +11%, in premarket trading Thursday. The Bottom Line Shares of Marathon Oil ( MRO ) have a 2.47% dividend yield, based on last night’s closing stock price of $40.53. The stock has technical support in the $36 price area. If the shares can hold today’s rise, we see initial overhead resistance around the $45-$46 price levels. Marathon Oil Corporation ( MRO ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Marathon Oil Shares Surge on Planned Spin-Off of Downstream Business (MRO)

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