ConocoPhillips in final negotiations to acquire Marathon Oil

ConocoPhillips is reportedly in advanced talks to acquire Marathon Oil in an all-stock deal that could value the Houston-based company slightly above its current market value of US$15 billion. According to the Financial Times, sources familiar with the matter revealed that negotiations were progressing, but there was still a possibility of the deal falling through or another bidder entering the scene.

The US oil and gas industry has been experiencing a wave of consolidation, with companies engaging in mergers and acquisitions totaling around US$250 billion in 2023. This trend has continued into the current year, although it has attracted increased antitrust scrutiny.

Previous reports indicated that Devon Energy had also expressed interest in merging with Marathon Oil, but ConocoPhillips appears to be the frontrunner in the current discussions. Marathon Oil’s first-quarter oil production saw a slight decline of 2.7% to 181,000 barrels per day compared to the previous year.

Both Marathon Oil and ConocoPhillips have not yet responded to requests for comments from Reuters regarding the potential deal. The outcome of these negotiations could have significant implications for the oil and gas industry, as well as for the companies involved. Stay tuned for further updates on this developing story.