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FINDLAY, Ohio — Marathon Petroleum Corp.'s (MPC) decision to spin off from Marathon Oil Co. in 2011 is paying off.
The company's board of directors declared a dividend of 50 cents per share on common stock on a pre-split basis. The dividend is payable on June 10 to shareholders of record as of the close of business May 20.
MPC's board also declared a two-for-one stock split in the form of a stock dividend to be distributed June 10 to MPC shareholders of record as of the close of business May 20. Shareholders will receive one share of MPC common stock for each share held as of the close of business on the record date. The shares are expected to begin trading on the split-adjusted basis June 11, according to the company.
MPC's stock has more than doubled in value since the spinoff four years ago, according to Bloomberg Business.
"MPC has performed very well for its owners since we became an independent company in mid-2011," said President and CEO Gary R. Heminger. "Our share price has increased substantially since the spinoff, and we believe the stock split will make our shares more affordable for a wider range of investors, and reflects our confidence that the value proposition for MPC shareholders remains very strong."
MPC will release its first-quarter 2015 earnings on Thursday, April 30.
"It is definitely reflective of how well the stock has done, and management may see the $100 level as the point where people may think the stock looks expensive," Brad Heffern, an analyst for RBC Capital Markets, said in an email to Bloomberg Business.
Findlay-based MPC is the nation's fourth-largest refiner. Marathon brand gasoline is sold through approximately 5,500 independently owned retail outlets across 19 states. In addition, Speedway LLC, an MPC subsidiary, owns and operates the nation's second-largest convenience store chain with approximately 2,750 convenience stores in 22 states.