ConocoPhillips (NYSE: COP) announced its acquisition of Marathon Oil (NYSE: MRO) in an all-stock deal valued at $22.5 billion, including $5.4 billion of net debt. Marathon Oil shareholders will receive 0.2550 shares of ConocoPhillips stock per share, representing a 14.7% premium to Marathon Oil's closing price on May 28, 2024. The transaction is expected to close in Q4 2024, delivering $500 million in cost and capital savings within the first year. ConocoPhillips plans a 34% increase in its base dividend to 78 cents per share in Q4 2024. It also projects over $20 billion in share buybacks within three years, with $7 billion in the first year. The acquisition is set to enhance ConocoPhillips' U.S. portfolio by adding over 2 billion barrels with a supply cost of less than $30 per barrel WTI.
Marathon Oil (NYSE: MRO) reported first quarter 2024 net income of $297 million or $0.52 per diluted share. Adjusted net income was $317 million or $0.55 per diluted share. The company returned $349 million or 41% of adjusted CFO to shareholders, including $285 million of share repurchases and $64 million base dividend. Marathon Oil's first quarter operations included delivering oil production of 181,000 net bopd and enhancing capital efficiency through extended laterals and refrac opportunities. The company sanctioned two Alba infill wells and achieved financial flexibility through a successful $1.2 billion bond offering.
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