El Dorado-based Murphy Oil Corp. on Wednesday (Dec. 26) announced it will build more than 200 new fuel stations at existing Walmart Supercenter locations in the midwest and southeast United States.
The new stations could see Murphy Oil with more than 1,300 such stations.
According to Murphy, construction of the new stations will be completed during the next three years. The work is managed by Murphy Oil USA, a subsidiary of Murphy Oil Corp.
“This agreement represents a significant step forward in our long-term relationship with Wal-Mart as we pursue our business plan to separate the U.S. retail business into a stand-alone entity,” Steven Cossé, Murphy Oil president and CEO, said in a statement.
Murphy Oil execs announced in October that the company would spin off Murphy Oil USA as an independent and publicly traded company. As part of the transaction, Murphy Oil will pay a special dividend of $2.50 per share for a total dividend of approximately $500 million and a share buyback program of up to $1 billion of the company’s shares of common stock.
The deal, which is subject to customary regulatory and shareholder scrutiny, is expected to finalize in 2013.
“Separating these two businesses will allow each to unlock its own potential for growth. We have built two strong but distinct businesses,” Board Chairman Claiborne Deming said in a statement. “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.”