Marathon Oil says it will split into two companies, separating its business of exploring for and producing oil from its lower-margin refining operation. The company says the move will allow it to be more flexible in operational decisions. Analysts say it’s a good time to divest less profitable businesses as energy markets recover. The firm’s Garyville refinery, which recently expanded, is one of the lowest-cost plants in the country, say analysts at Deutsche Bank. The Houston company had considered a spin-off two years ago but shelved the idea as prices for oil and gas plummeted in the recession. The refining company will be known as Marathon Petroleum Corp. and will be based in Findlay, Ohio. It’s expected to be the nation’s fifth-largest refiner, with refineries in the Midwest, Gulf Coast and Southeast.
Marathon Oil to spin off refining business
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