AssetID: 53803509
Headline: UNCAPTIONED: ConocoPhillips to Buy Marathon Oil
Caption: ConocoPhillips to Buy Marathon Oil. On May 29, ConocoPhillips agreed to acquire Marathon Oil in an all-stock deal valued at $17 billion, CNBC reports. The agreement will provide ConocoPhillips with an additional 2 billion barrels of U.S. inventory. "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." , ConocoPhillips CEO Ryan Lance, via statement. ConocoPhillips' market cap will exceed $150 billion due to the deal. As an independent producer, ConocoPhillips will now be on the same scale as some big-time players, CNBC reports. For example, the company will become larger than BP but still be smaller than Shell, according to Andrew Dittmar, M&A analyst at Enverus. While the deal is likely to face FTC scrutiny, the fact that Marathon's assets encompass multiple basins supports regulatory approval, Dittmar said. Once the deal is complete, ConocoPhillips anticipates share buybacks worth $7 billion within the first year. After three years, that number is expected to grow to $20 billion. ConocoPhillips' larger rivals, Exxon Mobil and Chevron, announced blockbuster deals as well last year. THIS VIDEO MUST NOT BE EDITED FOR LENGTH TO COMBINE WITH OTHER CONTENT
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