ConocoPhillips in Talks to Acquire Marathon Oil, FT Reports

(Bloomberg) — ConocoPhillips is in advanced talks to acquire Marathon Oil Corp., which would continue a major wave of consolidation within the U.S. oil and gas industry, according to people familiar with the matter.

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An announcement could come as early as Wednesday morning in New York. The all-stock proposal would value the target at slightly more than its market capitalization of around $15 billion, according to the Financial Times, which earlier reported the potential deal.

The addition of Marathon, which is almost entirely U.S. focused, would expand Conoco’s presence in domestic shale fields from Texas to North Dakota. That would add to a string of recent megadeals as producers seek to cut costs and bet that demand for oil and gas will rise. remain robust for years to come.

Read more: US oil deal at Full Tilt as Chevron agrees to buy Hess

Marathon rose 6.2% in premarket trading Wednesday, while Conoco fell slightly. Neither company responded to Bloomberg News’ requests for comment outside of normal business hours.

Conoco is among major drillers, including Exxon Mobil Corp. and Chevron Corp., which are continuing to grow their production through acquisitions. The company has already expanded in the Permian Basin in recent years through a $13 billion buyout of Concho Resources Inc. and a smaller purchase of Shell Plc’s assets in the region.

It is competing with smaller rival Devon Energy Corp. to acquire Marathon for several weeks, indicated the FT. Devon had already held discussions about a possible combination last year, people familiar with the matter told Bloomberg News at the time.

–With help from Subrat Patnaik and David Stringer.

(Updated first and second paragraph with sourcing)

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Aimant les mots, Sara Smith a commencé à écrire dès son plus jeune âge. En tant qu'éditeur en chef de son journal scolaire, il met en valeur ses compétences en racontant des récits impactants. Smith a ensuite étudié le journalisme à l'université Columbia, où il est diplômé en tête de sa classe. Après avoir étudié au New York Times, Sara décroche un poste de journaliste de nouvelles. Depuis dix ans, il a couvert des événements majeurs tels que les élections présidentielles et les catastrophes naturelles. Il a été acclamé pour sa capacité à créer des récits captivants qui capturent l'expérience humaine.
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