Marathon Oil Corporation
2007 Stock Split
Thrift Plan Participants’ Frequently Asked Questions
On April 25, 2007, the Marathon Oil Corporation Board of Directors approved a two-for-one split of the Company’s common stock. The questions and answers set forth below are intended to provide Thrift Plan participants with general information about the stock split and how it may impact their Thrift Plan accounts. For more detailed information about the stock split, stockholders are encouraged to visit the Investor Center section of the Company’s external web site at www.marathon.com.
General Stock Split Q&As
1. What is a stock split?
The Marathon stock split will be effected as a 100% stock dividend. Therefore, each holder of Marathon stock will receive one additional share for each share he or she owns. Following the split, each Marathon share will be trading at approximately half the value of its price immediately prior to the split. The following example shows a hypothetical illustration of how the split will occur:
|
|
Shares Owned |
Share Price |
Total Value |
|
Pre-Split |
100 |
$100 |
$10,000 |
|
Post-Split |
200 |
$50 |
$10,000 |
2. Why is Marathon splitting its shares?
The Board of Directors decided to split Marathon’s stock to place its trading price in a range that the Board believes is more attractive and affordable to investors.
3. When will the stock split happen?
The record date for the split will be on May 23, 2007. If you own shares at the close of business on that date, your shares will be included in the split. The payment date for the additional shares will be on June 18, 2007. On June 19, 2007, Marathon shares will begin trading on the NYSE at the new split-adjusted price.
Thrift Plan Q&As
1. What will happen to my Thrift Plan account as a result of the stock split?
Shares of Marathon stock held within the Thrift Plan will be split in the same manner as all outstanding shares of Marathon common stock. Each Thrift Plan participant who holds Marathon stock in their account will receive one additional share for each share he or she owns. This adjustment in the number of shares, along with the adjustment in share price, will result in the total value of your Marathon stock within the Thrift Plan being the same as it was before the adjustments until the stock price moves up or down.
2. When will I be able to see these adjustments in my Thrift account?
The adjustments will be reflected in the Plan’s records and in your Plan account on June 20, 2007.
3. Will I be prevented from initiating transactions involving Marathon stock in my Thrift Plan account?
Yes. In order to facilitate the adjustments described above, no exchanges into or out of Marathon stock will be allowed during a “blackout” period that will begin at the close of business on June 18, 2007, and end when the market opens on June 20, 2007. During this “blackout” period, you will continue to have the ability to make exchanges in and out of all other active Thrift Plan investment options.
4. Will the stock split have any impact on open orders I may have in place for my Thrift account?
Yes. Any “Good ‘til Cancelled” orders that have not been executed by on the close of business on June 18, 2007, will be cancelled. If you desire to have a “Good ‘til Cancelled” order in place for your account after that date, you will have to contact Fidelity on or after June 20, 2007, to place a new order.
5. Will I be receiving more information specific to my Thrift account and the impact of the stock split?
Yes. A letter will be mailed to all Thrift participants on or about May 15.
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