ConocoPhillips is buying Marathon Oil in an all-stock deal valued at approximately $17.1 billion as energy prices soar and big oil companies reap massive profits. The deal is valued at $22.5 billion when including $5.4 billion in debt. Crude prices have jumped more than 12% this year and the cost for a barrel rose above $80 this week.
Quick Read
- ConocoPhillips buying Marathon Oil for $17.1 billion in all-stock deal as energy prices rise
- Deal Overview: ConocoPhillips is acquiring Marathon Oil in an all-stock transaction valued at approximately $17.1 billion, or $22.5 billion including debt.
- Transaction Details: Marathon Oil shareholders will receive 0.2550 shares of ConocoPhillips common stock for each share of Marathon Oil they own.
- Market Context: The acquisition comes amid soaring energy prices, with crude prices up over 12% this year, recently exceeding $80 per barrel.
- Strategic Benefits: The acquisition adds highly desired acreage to ConocoPhillips’ U.S. onshore portfolio, enhancing its low-cost supply inventory.
- Financial Moves: ConocoPhillips plans to increase its ordinary dividend by 34% to 78 cents per share starting in Q4.
- Share Buybacks: Post-transaction, ConocoPhillips aims to repurchase over $7 billion in shares in the first year and more than $20 billion over three years.
- Deal Completion: The acquisition is expected to close in the fourth quarter, pending approval from Marathon Oil stockholders.
The Associated Press has the story:
ConocoPhillips buying Marathon Oil for $17.1 billion in all-stock deal as energy prices rise
Newslooks- (AP)
ConocoPhillips is buying Marathon Oil in an all-stock deal valued at approximately $17.1 billion as energy prices soar and big oil companies reap massive profits. The deal is valued at $22.5 billion when including $5.4 billion in debt. Crude prices have jumped more than 12% this year and the cost for a barrel rose above $80 this week.
As part of the transaction, Marathon Oil shareholders will receive 0.2550 shares of ConocoPhillips common stock for each share of Marathon Oil common stock that they own, the companies said Wednesday.
ConocoPhillips said Wednesday that the transaction will add highly desired acreage to its existing U.S. onshore portfolio.
“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 Chairman and CEO Ryan Lance said in a prepared statement.
The deal is expected to close in the fourth quarter. It still needs approval from Marathon Oil stockholders.
Separate from the transaction, ConocoPhillips said that it anticipates raising its ordinary dividend by 34% to 78 cents per share starting in the fourth quarter. The company said that once the Marathon Oil deal closes and assuming recent commodity prices, ConocoPhillips plans to buy back more than $7 billion in shares in the first full year. It plans to repurchase more than $20 billion in shares in the first three years.
