ConocoPhillips , to Buy Marathon Oil.
ConocoPhillips , to Buy Marathon Oil.
On May 29, ConocoPhillips agreed to acquire Marathon Oil in an all-stock deal valued at $17 billion, CNBC reports.
The agreement will provide ConocoPhillips with an additional 2 billion barrels of U.S. inventory.
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 CEO Ryan Lance, via statement.
ConocoPhillips' market cap will exceed $150 billion due to the deal.
As an independent producer, ConocoPhillips will now be on the same scale as some big-time players, CNBC reports.
For example, the company will become larger than BP but still be smaller than Shell, according to Andrew Dittmar, M&A analyst at Enverus.
For example, the company will become larger than BP but still be smaller than Shell, according to Andrew Dittmar, M&A analyst at Enverus.
While the deal is likely to face FTC scrutiny, the fact that Marathon's assets encompass multiple basins supports regulatory approval, Dittmar said.
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Once the deal is complete, ConocoPhillips anticipates share buybacks worth $7 billion within the first year.
After three years, that number is expected to grow to $20 billion.
ConocoPhillips' larger rivals, Exxon Mobil and Chevron, announced blockbuster deals as well last year.
ConocoPhillips' larger rivals, Exxon Mobil and Chevron, announced blockbuster deals as well last year
