ConocoPhillips Wraps Up $22.5B Marathon Oil Acquisition
November 26, 2024
U.S. oil and gas company ConocoPhillips has completed the acquisition of Marathon Oil Corporation in a $22.5 billion takeover deal.
The $22.5 billion acquisition was first announced in May 2024 as an all-stock transaction, which includes $5.4 billion of Marathon's debt.
Marathon Oil has been operating in the Bakken basin in North Dakota, the Permian basin in West Texas and South Texas' Eagle Ford basin, the regions deemed prime targets for producers looking to increase their production assets.
In accordance with the terms of the merger agreement, each share of Marathon Oil common stock was converted into the right to receive 0.255 shares of ConocoPhillips common stock at the effective time of the merger, with cash in lieu of fractional shares.
“This acquisition of Marathon Oil is a perfect fit for ConocoPhillips, adding to our deep, durable which and diverse portfolio while meeting our strict financial framework.
“Marathon Oil adds high-quality, low cost of supply inventory adjacent to our leading U.S. unconventional position. We have a strong history of seamlessly integrating assets and we expect to deliver synergies of over $1 billion on a run rate basis in the next 12 months,” said Ryan Lance, chairman and chief executive officer.
