From Investing.com: 2024-05-29 13:26:22

ConocoPhillips has agreed to buy Marathon Oil for $22.5 billion in an all-stock deal. The acquisition is expected to close in the fourth quarter of 2024, adding over 2 billion barrels of reserves to ConocoPhillips’ portfolio. The deal aims to create cost savings of $500 million within the first full year.

Shares of Marathon Oil surged 9%, while ConocoPhillips fell 3.8% in morning trading. The deal is seen as operationally sound, with significant overlap in key regions like the Eagle Ford and Bakken. ConocoPhillips plans to dispose of nearly $2 billion worth of assets and increase share buybacks to $7 billion next year.

The U.S. oil and gas industry has seen a surge in consolidation as companies seek to boost reserves and achieve economies of scale. Last year, the industry witnessed around $250 billion in deals, with the momentum continuing into 2024. ConocoPhillips CEO Ryan Lance referred to this as “Shale 2.0,” focusing on technology, efficiencies, data analytics, and refracking potential.



Read more at Investing.com: ConocoPhillips to buy Marathon Oil in $22.5 billion deal in latest energy merger By Reuters