EL DORADO, Ark. -- Murphy Oil Corp. will spin off its downstream division, including its entire retail division, in 2013, the company announced this morning.

The downstream company will be a separately traded company called Murphy Oil USA Inc.

"Separating these two businesses will allow each to unlock its own potential for growth," said Claiborne Deming, Murphy Oil Corp.'s chairman of the board. "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."

In addition, Murphy Oil Corp. said splitting into two companies would allow each business to focus on its "strategic priorities with financial targets that best fit its own market and opportunities;" and "allocate resources and deploy capital in a manner consistent with its priorities."

"We look forward to these two separate well positioned companies growing and prospering in their respective industries," commented Steven Cossé, Murphy Oil Corp.'s CEO.

Also, as part of the transaction, Murphy Oil Corp. authorized a special dividend of $2.50 per share and plans to buy up to $1 billion of the company's shares via a share buyback.

The spinoff of Murphy USA is subject to customary conditions, including regulatory approval and confirmation from the Internal Revenue Service that it can be tax-free transaction.