ConocoPhillips Acquires Marathon Oil in $22.5 Billion Agreement

The oil industry is seeing a surge in mergers and acquisitions, with ConocoPhillips announcing on Wednesday that they had agreed to acquire Marathon Oil in an all-stock deal worth $22.5 billion. This acquisition follows other recent major consolidations in the oil industry, such as ExxonMobil’s $60 billion purchase of Pioneer and Chevron’s takeover of Hess for $53 billion. Occidental bought CrownRock and Diamondback Energy acquired Endeavor Energy Partners in billion-dollar cash-and-stock transactions.

The profitability of oil giants is attributed to high profits and cash reserves due to elevated prices over the years. They are utilizing those windfalls to acquire assets in the Permian basin, which has contributed to the US becoming the top producer of oil and gas in the world. These acquisitions aim to boost returns for shareholders amidst growing pressure for oil companies to invest more in renewable energy.

ConocoPhillips CEO, Ryan Lance, stated that this acquisition will deepen their portfolio and fit within their financial framework by adding high-quality, low-cost supply inventory. Earlier reports suggested that both ConocoPhillips and Devon Energy had been competing for weeks to acquire Marathon Oil, indicating a competitive market for major acquisitions in the industry.

By Sophia Gonzalez

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