ConocoPhillips to buy Marathon Oil in all-stock deal

ConocoPhillips is set to acquire Marathon Oil in an all-stock agreement valued at around $17.1 billion. The total transaction size, including assumed debt, reaches $22.5 billion, Associated Press (AP) reported.

This acquisition comes amidst a notable surge in crude prices, which have climbed over 12 per cent this year, with the cost per barrel surpassing $80 recently.

Under the terms of the deal, Marathon Oil shareholders will receive 0.2550 shares of ConocoPhillips common stock for each share of Marathon Oil common stock they hold, as announced by both companies on Wednesday.

ConocoPhillips highlighted that this acquisition will expand its US onshore portfolio with strategically compatible acreage. The transaction is slated for closure in the fourth quarter, pending approval from Marathon Oil stockholders.

In addition to the acquisition, ConocoPhillips revealed plans to raise its regular dividend by 34 per cent to 78 cents per share, starting in the fourth quarter.