ConocoPhillips to acquire Marathon Oil for $22 billion

ConocoPhillips to acquire Marathon Oil for $17 billion

USA

HOUSTON, May 29, 2024 – ConocoPhillips will acquire Marathon Oil Corporation in an all-stock transaction worth USD 17 billion, the two companies announced on Wednesday.

Via the deal, ConocoPhillips expects to add more than 2 billion barrels of oil resources with an estimated average production cost of USD 30 per barrel.

Marathon Oil brings with it producing assets in Eagle Ford, Texas; Bakken, North Dakota; Permian in New Mexico and Texas, and STACK and SCOOP in Oklahoma, as well as an integrated gas business in Equatorial Guinea comprising majority stakes in the Alba field and Block D along with a downstream business.

The merger marks the latest in a trend of consolidation among US oil majors, as seen in Chevron‘s ongoing merger with Hess, ExxonMobil’s planned acquisition of Pioneer Natural Resources and Occidental’s purchase of CrownRock.

“This acquisition of Marathon Oil further deepens our portfolio and fits within our financial framework, adding high-quality, low cost of supply inventory adjacent to our leading U.S. unconventional position,” ConocoPhillips chairman and CEO Ryan Lance said.

“The transaction is immediately accretive to earnings, cash flows and distributions per share, and we see significant synergy potential.”

Photo courtesy of ConocoPhillips.

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