Marathon Oil may split its oil and gas production business and its refining and marketing operations into separate entities, the company said, sending its shares higher.

Such a move would be a bid by Marathon to drive up the value of the company, analysts said. Its current market capitalisation of about $32 billion makes it the sixth-largest US-based oil company.
“When we look at Marathon, we think that the sum of the parts valuation is much, much more than what is getting rated in the market,” said analyst Derek Butter of Wood Mackenzie in Edinburgh.
“You’re effectively getting refining for free” by owning the stock, he said.
Marathon said it was likely to decide during the fourth quarter whether to put its exploration and production, oils sands mining, and natural gas businesses into one entity and its refining, marketing and transportation operations into another. 
Should Marathon decide to proceed with the split, “You can rest assured that we will do it on a basis that both companies would not just be operationally strong, but financially strong and able to take care of again all of their funding requirements,” Clarence Cazalot, president and chief executive, told a conference call.