ConocoPhillips Completes $22.5B Marathon Oil Acquisition
Deal News | Nov 26, 2024 | EIN
U.S. oil and gas giant ConocoPhillips has finalized its acquisition of Marathon Oil Corporation in a deal valued at $22.5 billion. Announced in May 2024, this high-profile transaction was structured as an all-stock deal, inclusive of Marathon’s $5.4 billion debt. Marathon Oil, known for its operations in strategic U.S. regions like the Bakken, Permian, and Eagle Ford basins, is now part of ConocoPhillips’ expansive portfolio. According to the terms of the merger, Marathon shareholders received 0.255 shares of ConocoPhillips stock for each Marathon share. Ryan Lance, ConocoPhillips' CEO, highlighted that the acquisition aligns with the company's financial framework and enhances its inventory of high-quality, low-cost supply assets. Lance also conveyed expectations of generating over $1 billion in synergies annually within the next year, underscoring the strategic fit of this acquisition.
Sectors
- Oil & Gas
- Energy
Geography
- United States – Both ConocoPhillips and Marathon Oil have significant operations in key U.S. oil basins such as the Bakken, Permian, and Eagle Ford, making the U.S. a central geography for this acquisition.
Industry
- Oil & Gas – The primary industry of the involved companies, focusing on exploration, production, and marketing of oil and gas resources.
- Energy – A broader sector encompassing the production and sale of energy, including fossil fuels like oil and gas, emphasizing the deal’s significant impact on U.S. energy production capabilities.
Financials
- $22.5 billion – The total value of ConocoPhillips’ acquisition of Marathon Oil, including $5.4 billion of Marathon's debt.
- $5.4 billion – The debt included in the total transaction value of the acquisition.
- 0.255 shares of ConocoPhillips per Marathon share – The exchange ratio for Marathon Oil common stockholders in the acquisition.
- $1 billion – Expected annual synergies resulting from the acquisition, to be realized over the next 12 months.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| ConocoPhillips | Bidding Company | Company | A major U.S. oil and gas company, which has acquired Marathon Oil to expand its asset portfolio. |
| Marathon Oil Corporation | Target Company | Company | An independent international energy company primarily focused on oil exploration and production. |
| Ryan Lance | CEO of ConocoPhillips | Person | The chairman and CEO of ConocoPhillips, leading the acquisition and integration efforts of Marathon Oil. |