(Image Source: ConocoPhillips)

BY: YOUYOU ZHOU

ANCHOR: JIM FLINK

You're watching multiosurce business video news analysis from Newsy. 

The nation's third largest oil company is splitting up. ConocoPhillips announced it will split its refining and production arms into two publicly traded corporations by the first half of 2012. CEO and Chairman Jim Mulva explains why on CNBC.

"We pursued and looked at all alternatives for our gasoline refining marketing business and ultimately come to the conclusion that the value of the integrated structure no longer creates a value we’ve seen in the past. So we believe that the marketplace hikes the fewer place, we also believe that we can put more highlight on the value of our upstream E&P assets and refining assets by having two separate, publicly-traded companies."

Forbes reports -- the move makes good sense in terms of unlocking shareholder value.

“If you look at the integrated company, the downstream part was holding back on the value creation of the exploration and production business… The split will generate both the largest independent E&P player… plus the largest refiner…”

Money undoubtedly counts more. The Wall Street Journal says the decision was also made to shore up ConocoPhillips’ debt-ridden finances.

“Mulva oversaw six years of aggressive deal making… which left the company with far more debt than its competitors… Since the end of 2005, ConocoPhillips shares have risen 27.8%, compared with shares of Exxon Mobil and Chevron, which increased by 46.8% and 85.12%, respectively.”

ConocoPhillips isn’t the first major oil company to streamline operations.

MSNBC Houston explains --

"It's taking a page out of Marathon oil, another Houston based company, has decided to follow. It recently splitted into two companies, Marathon oil, which is an exploration and production company, and Marathon Petrulem, which is a refining and marketing company."

CEO Jim Mulva had another big announcement.  He will retire next year once the transaction is complete.

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Transcript by Newsy.