According to multiple media reports, ConocoPhillips (COP) is planning to acquire Marathon Oil (MRO) in a deal valued at $15 billion U.S.
The Financial Times newspaper was the first to report that Marathon Oil is in negotiations to be acquired by ConocoPhillips, with an announcement to be made as soon as today (May 29).
It will reportedly be an all-stock deal and value Marathon Oil at around $15 billion U.S.
An acquisition of Marathon Oil by ConocoPhillips would be the latest consolidation in the U.S. energy sector.
Currently, Chevron Corp. (CVX) is in the process of buying rival Hess Corp. (HES) for $53 billion U.S., and Occidental Petroleum (OXY) is buying privately held CrownRock for $12 billion U.S.
Much of the consolidation is being driven by oil companies desire to increase their holdings in the oil-rich Permian Basin of Texas where drilling for crude is rising.
Shares of Marathon Oil are up 6% on news of the potential acquisition. Prior to today, the share price had increased 8% this year.
The stock of ConocoPhillips is down 0.70% on reports of the Marathon Oil purchase. So far this year, the company’s share price had risen 1%.
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