ConocoPhillips to buy Marathon Oil in $22.5 billion deal
ConocoPhillips will buy Marathon Oil for $22.5 billion, marking the latest merger in the oil and gas industry.
TheStreet’s Conway Gittens brings the latest business headlines from the floor of the New York Stock Exchange as markets open for trading Wednesday, May 29.
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Full Video Transcript Below:
CONWAY GITTENS: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Stocks are off to a mixed start to the week with the tech heavy Nasdaq blowing past a record high Tuesday thanks to Nvidia’s recent rally. All three major averages are set to close out the month with solid gains as a better than expected earnings season comes to a close.
Meanwhile, investors are looking ahead to Fed speakers and a key inflation report due out Friday for hints into the Federal Reserve’s next move.
In other news - Another mega merger has been announced in the oil industry. ConocoPhillips is acquiring Marathon Oil in a $22.5 billion deal. If the deal clears regulatory hurdles, ConocoPhillips will take over Marathon’s operations in North Dakota, Texas, and Delaware — and will see its stockpile increase by about two billion barrels. Marathon Oil stockholders will receive about a one-quarter share of ConocoPhillips for every one share of Marathon they hold.
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ConocoPhillips CEO Ryan Lance released a statement saying, “This acquisition of Marathon Oil further deepens our portfolio and fits within our financial framework, adding high-quality, low cost of supply inventory adjacent to our leading U.S. unconventional position.”
This deal is just the latest in a string of big mergers in the industry. In October of 2023, ExxonMobile acquired Pioneer Natural Resources for $60 billion. And earlier this week, Hess shareholders voted to finalize the company’s $53 billion merger with Chevron.
That’ll do it for your daily briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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