ConocoPhillips in Advanced Talks to Acquire Marathon Oil

ConocoPhillips in Advanced Talks to Acquire Marathon Oil in All-Stock Deal

In a potentially game-changing move for the oil and gas industry, ConocoPhillips is reportedly in advanced talks to acquire Marathon Oil in an all-stock deal. The deal, which could value Marathon Oil at slightly over its US$15 billion market value, is said to be on the verge of completion, according to a report by the Financial Times.

While negotiations were said to be nearing a conclusion late on Tuesday night, there is still a possibility of the deal falling through or another bidder swooping in to disrupt Conoco’s takeover plans. Both Marathon Oil and ConocoPhillips have yet to respond to requests for comments from Reuters.

The US oil and gas sector has been experiencing a wave of consolidation, with companies engaging in a US$250 billion buying spree in 2023. This trend has continued into this year, although it has attracted increased antitrust scrutiny.

Reports indicate that ConocoPhillips has been vying with Devon Energy to acquire Marathon Oil for several weeks. Bloomberg News previously reported that Devon Energy had held preliminary talks about merging with Marathon Oil.

Marathon Oil’s first quarter oil production was down 2.7% to 181,000 barrels per day compared to the previous year. The potential acquisition of Marathon Oil by ConocoPhillips could have significant implications for the industry and the market as a whole.

As the negotiations unfold, industry experts and stakeholders will be closely watching to see how this deal shapes the future of the oil and gas sector. Stay tuned for further updates on this developing story.