(REUTERS/Chris Helgren)
The $22.5 billion acquisition of Marathon Oil Corporation by ConocoPhillips has been put to bed. It’s a done deal.
ConocoPhllips announced Friday it had completed the acquisition.
“This acquisition of Marathon Oil is a perfect fit for ConocoPhillips, adding to our deep, durable and diverse portfolio while meeting our strict financial framework,” said Ryan Lance, chairman and chief executive officer.
“Marathon Oil adds high-quality, low cost of supply inventory adjacent to our leading U.S. unconventional position. We have a strong history of seamlessly integrating assets and we expect to deliver synergies of over $1 billion on a run rate basis in the next 12 months.”
In accordance with the terms of the merger agreement, each share of Marathon Oil common stock was converted into the right to receive 0.255 shares of ConocoPhillips common stock at the effective time of the merger, with cash in lieu of fractional shares.
The two companies announced the deal in late May to form the biggest independent producer of oil and gas in the U.S. As part of the acquisition, ConocoPhillips also assumed $5.4 billion of net debt owned by Marathon. The share deal offered Marathon shareholders represented a premium of 14.7% above the closing price for Marathon Oil common stock as of the May 28, 2024 close.