At Extreme Investor Network, we are always on the pulse of the latest news and developments in the finance world, especially when it comes to the oil and gas industry. Today, we’re diving into the exciting news that ConocoPhillips is in advanced talks to acquire Marathon Oil Corp., as reported by the Financial Times.
This potential acquisition marks a significant move in the ongoing wave of consolidation within the US oil and gas sector. The all-stock proposal being discussed would value Marathon Oil Corp. at slightly more than its current market capitalization of around $15 billion. If the deal goes through, it would not only expand Conoco’s footprint in domestic shale fields from Texas to North Dakota but also provide the company with vast reserves in locations as far-flung as Equatorial Guinea.
The energy industry has seen a flurry of megadeals in recent times as companies like ConocoPhillips, Exxon Mobil Corp., and Chevron Corp. are looking to boost their production through strategic acquisitions. Conoco has been particularly active in this regard, having made significant moves in the Permian Basin with the $13 billion acquisition of Concho Resources Inc. and the purchase of Shell Plc assets in the region.
The potential acquisition of Marathon Oil Corp. by Conoco is not happening in a vacuum. According to the Financial Times, Conoco has been competing with Devon Energy Corp. for a chance to acquire Marathon for several weeks now. This is not the first time that Devon has expressed interest in Marathon, as talks between the two companies were reportedly held last year as well.
Investors have already started reacting to this news, with Marathon Oil Corp.’s stock rising as much as 6.2% in premarket trading. On the other hand, ConocoPhillips’ stock experienced a slight dip. As with any potentially major deal, both companies have remained tight-lipped, not responding to requests for comment from Bloomberg News outside of regular business hours.
Stay tuned to Extreme Investor Network for more updates on this developing story and other important news in the finance and investment world. Our team of experts is dedicated to helping you stay informed and make sound investment decisions. Thank you for choosing Extreme Investor Network as your go-to source for all things finance.