Special Dividend and Share Buyback
The Board of Directors of Murphy also approved a special dividend of $2.50 per share for a total dividend of approximately $500 million. The dividend is payable on December 3, 2012 to holders of record as of November 16, 2012. This is in addition to the dividend of $0.3125 per share previously announced and also payable on December 3, 2012 to holders of record on November 16, 2012.
Furthermore, the Board of Directors has authorized a share repurchase program of up to $1 billion of the company’s shares of common stock. Murphy may utilize a number of different methods to effect the repurchases, including but not limited to, open market purchases, accelerated share repurchases and negotiated block purchases, and some of the repurchases may be effected through Rule 10b5-1 plans. The timing and amount of repurchases will depend upon several factors, including market, financing and business conditions, and the repurchases may be discontinued at any time.
“Today’s announcements are consistent with our commitment to creating value for shareholders,” commented Claiborne Deming, Chairman of the Board of Murphy. With regard to the spin-off, he added: “Separating these two businesses will allow each to unlock its own potential for growth. We have built two strong but distinct businesses. Murphy will be a pure-play exploration and production company with strong returns and attractive investment opportunities, while Murphy USA will be a leading retailer with over 1,100 retail gasoline outlets. Given its existing positioning in the market, I am confident that Murphy USA will continue to grow the business and drive shareholder value.”Steven Cossé, Murphy’s President and Chief Executive Officer, said, “We look forward to these two separate well positioned companies growing and prospering in their respective industries.” Cossé added, “Our strong balance sheet provides the opportunity to enhance value to our shareholders through this special dividend and share repurchase program.”