Marathon Oil (NYSE:MRO) Shares Surge on Plans to Spin-Off Downstream Business

The announcement by Marathon Oil Corporation (NYSE:MRO) that they're going to spin off their downstream business has the share price up over 8 percent today. At one point shares of Marathon were up at close to 12 percent.

After the action, there will be two independent energy companies, with the spin-off being named Marathon Petroleum Corporation, trading under the ticker "MPC."

Marathon Oil Corporation (MRO) will continue on as an upstream company focusing on oil production and exploration. They will continue to trade under the ticker MRO.

Marathon Petroleum Corporation will be based in Findlay, Ohio.

The spin-off is to be effective June 30, 2011, and should be a tax-free event.

Financial advisor for Marathon is Morgan Stanley (NYSE:MS).