ConocoPhillips to Split in Two, Names CEOs
ConocoPhillips announced that its board of directors has chosen the leaders for the two independent energy companies that will result from the previously announced strategic repositioning of ConocoPhillips. Ryan M. Lance will become the chairman and chief executive officer of ConocoPhillips, the upstream company, and Greg C. Garland will become the chairman and chief executive officer of the downstream company. Jim Mulva, the current chairman and chief executive officer of ConocoPhillips will retire subsequent to completion of the separation. The repositioning is expected to be completed in the second quarter of 2012.
Lance is currently senior vice president, Exploration and Production, International for ConocoPhillips. A petroleum engineer, he has over 26 years of oil and natural gas industry experience in senior management and technical positions with ConocoPhillips, predecessor Phillips Petroleum and various divisions of ARCO.
"I am honored to lead the highly skilled and dedicated people at ConocoPhillips into the next chapter of its distinguished history as a pure-play exploration and production company," said Lance. "ConocoPhillips will retain the size, scale and capability to pursue any project globally, with the additional benefit of greater focus. With our enhanced balance sheet and strong capabilities, we will pursue the goals of the repositioning plan, including investing in good opportunities, maintaining capital discipline, and continuing to return available cash to shareholders."
Garland is currently senior vice president, Exploration and Production, Americas for ConocoPhillips. He began his career as a project engineer with Phillips Petroleum and has been associated with ConocoPhillips, its predecessors and affiliated companies for over 31 years. From 2008 to 2010, he was president and chief executive officer of Chevron Phillips Chemical Company, the 50-50 joint venture of ConocoPhillips and Chevron. ConocoPhillips' interest in the joint venture will be transferred to the downstream company following the separation.
"The repositioning will create a standalone company with a unique, diverse and highly competitive portfolio of segment-leading businesses," said Garland. "I look forward to the opportunity to drive superior shareholder value in the downstream company by operating world-class assets with ConocoPhillips' philosophy of capital discipline and a strong dividend policy."
"The selection of Ryan and Greg as chairmen and CEOs following the separation is great news for all ConocoPhillips stakeholders," said Mulva. "Ryan and Greg are exceptionally well qualified to lead the respective companies. I look forward to working with Ryan and Greg and all our other colleagues in the months ahead to complete the separation and to position both companies for success."
Garland said, "Jim Mulva's vision and leadership have built the ConocoPhillips of today." Lance added, "Jim has been a mentor to both Greg and me over the years. We now look forward to building on his standard of excellence as we lead these two new independent companies."
Both appointments will become effective at the completion of ConocoPhillips' repositioning transaction next year. Lance and Garland will continue in senior management roles until that time, while also directing transition plans, including appointment of their executive management teams.
The repositioning of ConocoPhillips into two independent companies is subject to market conditions, customary regulatory approvals, the receipt of an affirmative ruling from the U.S Internal Revenue Service, the execution of separation and intercompany agreements, and final board approval.
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