OAN’s James Meyers
8:26 AM – Wednesday, May 29, 2024
ConocoPhillips agreed to buy Marathon Oil for $17.1 billion on Wednesday in an all-stock transaction, which will increase the company’s assets as the broader oil and gas industry undergoes a major wave of unification.
Advertisement
The all-stock deal is valued at $22.5 billion when including the $5.4 billion of debt.
This move will bolster ConocoPhillips’ assets significantly, adding two billion barrels of resources to its U.S. inventory and expanding its presence in key shale fields in New Mexico, North Dakota, and Texas.
“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 said in a statement.
Companies are scrambling to snap up remaining prime acres in the prolific Permian Basin in Texas and New Mexico.
Meanwhile, the deal is expected to close in the fourth quarter and still needs approval from Marathon Oil stockholders.
Additionally, the company stated that once the Marathon Oil deal closes and assuming recent commodity prices, ConocoPhillips is planning on buying back more than $7 billion in shares in the first full year. It also plans to repurchase over $20 billion in shares in the first three years.
Furthermore, energy companies spent $234 billion in merging with or buying competitors in 2023, which is the highest number in over 10 years, according to the U.S. Energy Information Administration.
Crude oil prices have increased over 12% this year and the cost per barrel went above $80 this week.
Stay informed! Receive breaking news blasts directly to your inbox for free. Subscribe here. https://www.oann.com/alerts
Be the first to comment