ConocoPhillips Chairman and CEO Ryan Lance speaks at the CERAWeek Oil Summit in Houston, Texas, on March 19, 2024.
Mark Felix | AFP | Getty Images
ConocoPhillips agreed on Wednesday to acquire Marathon Petroleum Corp in an all-stock deal worth $17.1 billion that will bolster the third-largest U.S. oil company’s shale assets at a time when the industry is undergoing major consolidation.
“This acquisition of Marathon Petroleum further deepens our portfolio and is consistent with our financial framework, adding high-quality, high-quality, high-quality oil and gas near our leading U.S. unconventional position,” ConocoPhillips CEO Ryan Lance said in a statement. Low cost supply inventory.
The acquisition of Marathon Oil would add 2 billion barrels of resources to ConocoPhillips’ portfolio, expanding the company’s presence in shale fields in Texas, New Mexico and North Dakota.
Lance said the deal will be immediately accretive to ConocoPhillips’ earnings, cash flow and shareholder returns when completed in the fourth quarter. ConocoPhillips expects to repurchase $7 billion worth of stock in the first year after the deal closes, and $20 billion worth of stock in the first three years.
After the news was announced, ConocoPhillips’ shares fell 3.3% in early trading, while Marathon Oil’s shares rose 7.3%.
ConocoPhillips, the last major U.S. oil company to launch a major acquisition, has gone through a wave of transformational consolidation.
ExxonMobil’s $60 billion acquisition of Pioneer Natural Resources recently received approval from the Federal Trade Commission. Hess shareholders voted Tuesday to move forward with the company’s $53 billion merger with Chevron.
This is breaking news. Please check back for updates.
About The Author
