ConocoPhillips acquires Marathon Oil in $22.5bn deal
The deal will add 2 billion barrels of resources to ConocoPhillips’ inventory in the U.S.
Top U.S. independent oil and gas producer ConocoPhillips on Wednesday agreed to buy Marathon Oil for $22.5 billion, the latest in a series of mega-deals in the energy industry.
The deal will add 2 billion barrels of resources to ConocoPhillips’ inventory in the U.S., extending the company’s reach across shale fields in Texas, New Mexico and North Dakota.
“This acquisition 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,” said Ryan Lance, ConocoPhillips chairman and chief executive officer.
ConocoPhillips expects to achieve at least $500 million of run rate cost and capital savings within the first full year following the closing of the transaction.
“ConocoPhillips is the right home to build on that legacy, offering a truly unique combination of added scale, resilience and long-term durability,” said Lee Tillman, Marathon Oil chairman, president and chief executive officer.
Last year, Chevron acquired Hess Corporation in a deal valued at $53 billion, and Exxon acquired Pioneer Natural Resources in a deal worth approximately $64.5 billion.
