ConocoPhillips has announced its acquisition of Marathon Oil in an all-stock deal valued at approximately $17.1 billion, with the total value reaching $22.5 billion when accounting for $5.4 billion in debt. This move comes as energy prices continue to surge, with crude prices rising over 12% this year and surpassing $80 per barrel this week.
Under the terms of the agreement, Marathon Oil shareholders will receive 0.2550 shares of ConocoPhillips common stock for each share of Marathon Oil common stock they own. ConocoPhillips highlighted that this acquisition will enhance its existing U.S. onshore portfolio by adding valuable acreage.
ConocoPhillips' Chairman and CEO, Ryan Lance, expressed enthusiasm about the deal, stating, '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.'
The transaction is anticipated to close in the fourth quarter pending approval from Marathon Oil stockholders. Additionally, ConocoPhillips revealed plans to increase its ordinary dividend by 34% to 78 cents per share starting in the fourth quarter. Following the completion of the Marathon Oil acquisition and considering current commodity prices, ConocoPhillips aims to repurchase over $7 billion in shares within the first year and more than $20 billion in shares over the initial three years.
