OilWorldWide @OilWorldWide: "ConocoPhillips to acquire Marathon Oil..."

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ConocoPhillips to acquire Marathon Oil in $17.1 billion All-Stock Deal. 👉 $COP (ConocoPhillips Co) has agreed to acquire $MRO (Marathon Oil Corp) in an all-stock deal valued at $17.1 billion in a bid to catch up with rivals as drillers race to secure new oil and gas wells. 👉 Under the terms of the agreement, Marathon Oil stockholders will exchange each share for 0.255 shares of ConocoPhillips, representing a nearly 15% premium based on Marathon Oil’s closing share price on Tuesday 28 May. The deal allows ConocoPhillips to expand its presence in several key U.S. shale basins including in Texas and North Dakota. 👉 Houston-based ConocoPhillips in recent months saw competitors $XOM (Exxon-Mobil) , $CVX (Chevron) , $OXY (Occidental Petroleum Corp) and $FANG (Diamondback Energy Inc) beef up their oil and gas properties with deals totaling about $150 billion. Most of these deals were focused on the prolific Permian Basin of West Texas and New Mexico. 👉 With Marathon Oil, ConocoPhillips is picking a company with assets adjacent to its properties in Texas’ Eagle Ford, North Dakota’s Bakken and the Permian. The deal also strengthens ConocoPhillips’ international presence with Marathon Oil’s offshore assets in Equatorial Guinea. 👉 ConocoPhillips CEO Ryan Lance told analysts that the opportunity to acquire Marathon Oil came on ConocoPhillips’ radar a few weeks ago. He said the company saw a significant overlap with Marathon and that it was hoping to use technology and efficiencies to extend Marathon’s shale inventory in the Eagle Ford and the Bakken. 👉 The transaction is expected to close in the fourth quarter, subject to approval from regulators and Marathon Oil stockholders. The deal has an enterprise value of $22.5 billion that includes $5.4 billion of debt. 👉 ConocoPhillips in recent months had hoped to augment its presence in the Permian. It considered acquiring private producer Endeavor Energy Resources, according to people familiar with the matter. Endeavor ended up selling to Diamondback Energy for $26 billion in February. ConocoPhillips also considered buying CrownRock, which sold itself to Occidental for nearly $11 billion in December, the people said. 👉 The deal marks ConocoPhillips’ largest U.S. acquisition since its purchase of $SHEL.L (Shell PLC) ’s Permian assets for $9.5 billion in 2021. The deal came a year after ConocoPhillips bought Permian producer Concho Resources for $9.7 billion as the Covid-19 pandemic lockdown caused oil prices to crash. 👉 In recent years, ConocoPhillips also bolstered its gas assets by taking stakes in Sempra’s Port Arthur LNG terminal in Southeast Texas, as well as in QatarEnergy’s sprawling North Field LNG project. Lance earlier this month signaled ConocoPhillips was open to selling its stake in Port Arthur LNG. Read more ❓ www.wsj.com/business/energy-oil/conocophillips-to-acquire-marathon-oil-in-22-5b-all-stock-deal-743cc8ba ✨ $COP , $CVX , $XOM and $SHEL.L are part of @OilWorldWide Smart Portfolio. This portfolio offers investors diversified exposure to the oil industry, spanning its various stages of production. It comprises some of the largest oil companies in the world, alongside direct oil derivatives, to provide cross-industry, diversified exposure to this sector. The minimum investment amount for the @OilWorldWide Smart Portfolio is $500. Smart Portfolios is a product that may include CFDs. 51% of retail investor accounts lose money when trading CFDs with this provider. Past performance is not an indication of future results.