ConocoPhillips to Acquire Marathon Oil in $22.5 Billion All-Stock Deal, Including $5.4 Billion Debt

May 29, 2024, 11:42 AM

ConocoPhillips has agreed to acquire Marathon Oil in an all-stock transaction valued at approximately $22.5 billion, including $5.4 billion in net debt. The deal, which values Marathon Oil at around $30.3 per share, represents a 14.7% premium over its current market value. Marathon Oil shareholders will receive 0.2550 ConocoPhillips shares for each Marathon share. This acquisition is part of a broader consolidation trend in the US oil and gas industry, with ConocoPhillips aiming to bolster its shale assets, including Bakken, Eagle Ford, Permian, and Oklahoma output. The transaction is expected to be immediately accretive to earnings and cash flows, with ConocoPhillips targeting $500 million in synergies. Additionally, ConocoPhillips plans to increase its ordinary base dividend by 34% to 78 cents per share starting in Q4 2024. Marathon Oil shares have risen in premarket trading following the announcement.