Another Major Acquisition Among US Oil Companies

ConocoPhillips is the protagonist of a $22.5 billion maxi operation

ConocoPhillips, one of the world’s largest oil companies, has agreed to acquire Marathon Oil in a stock deal valued at $22.5 billion, including $5.4 billion in net debt.

Thus, major M&A operations to consolidate the US oil sector will continue into 2024: the year 2023 was a record year, according to Enverus data presented to the Italian economic newspaper Il Sole 24 Ore, with transactions amounting to 290 billion dollars in 2023, while in 2024 they have already reached 90 billion.

“This acquisition of Marathon Oil further deepens our portfolio and fits within our financial structure, adding high-quality and low-cost supplier inventory along with our leading position in the US in the unconventional sector,” explained ConocoPhillips President and CEO Ryan Lance. “We share similar values and culture and are committed to operating safely and responsibly, creating long-term value for our shareholders. The deal will immediately increase earnings, cash flow, and distribution per share, and we see significant synergy potential.”

With this deal, ConocoPhillips adds more than 2 billion barrels of resources with an average estimated cost of supply of less than $30 per barrel of WTI.