ConocoPhillips To Acquire Marathon Oil In All-Stock Deal At 14.7% Premium: Details
Portfolio Pulse from Lekha Gupta
ConocoPhillips (NYSE:COP) is set to acquire Marathon Oil (NYSE:MRO) in an all-stock deal valued at $22.5 billion, offering a 14.7% premium to MRO's closing price on May 28, 2024. The deal is expected to close in Q4 2024, subject to shareholder approval. The acquisition will add significant resources to COP's portfolio and is projected to be immediately accretive to earnings and cash flow. COP plans to increase its dividend and share buybacks post-deal.
May 29, 2024 | 12:09 pm
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POSITIVE IMPACT
ConocoPhillips is acquiring Marathon Oil in an all-stock deal valued at $22.5 billion, expected to close in Q4 2024. The acquisition will add over 2 billion barrels of resource and is projected to be immediately accretive to earnings and cash flow. COP plans to increase its dividend by 34% and repurchase over $7 billion in shares in the first year post-deal.
The acquisition is expected to be immediately accretive to ConocoPhillips' earnings and cash flow, and the company plans to increase its dividend and share buybacks, which are positive signals for investors.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100
POSITIVE IMPACT
Investors can gain exposure to Marathon Oil through the First Trust Energy AlphaDEX Fund (FXN). The ETF may see increased interest due to MRO's acquisition by ConocoPhillips.
The ETF holds Marathon Oil, which is being acquired by ConocoPhillips. This acquisition could lead to increased interest in the ETF.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
Investors can gain exposure to ConocoPhillips through the iShares U.S. Oil & Gas Exploration & Production ETF (IEO). The ETF may see increased interest due to COP's acquisition of Marathon Oil.
The ETF holds ConocoPhillips, which is acquiring Marathon Oil. This acquisition could lead to increased interest in the ETF.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
Marathon Oil is being acquired by ConocoPhillips in an all-stock deal valued at $22.5 billion, offering a 14.7% premium to MRO's closing price on May 28, 2024. The deal is expected to close in Q4 2024, subject to shareholder approval.
The acquisition offers a significant premium to Marathon Oil's recent share price, which is likely to be viewed positively by MRO shareholders.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100
POSITIVE IMPACT
Investors can gain exposure to Marathon Oil through the Invesco S&P 500 Equal Weight Energy ETF (RSPG). The ETF may see increased interest due to MRO's acquisition by ConocoPhillips.
The ETF holds Marathon Oil, which is being acquired by ConocoPhillips. This acquisition could lead to increased interest in the ETF.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
Investors can gain exposure to ConocoPhillips through the Westwood Salient Enhanced Energy Income ETF (WEEI). The ETF may see increased interest due to COP's acquisition of Marathon Oil.
The ETF holds ConocoPhillips, which is acquiring Marathon Oil. This acquisition could lead to increased interest in the ETF.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50