SEATTLE (Oil Monster): Marathon Oil announced that it has received the necessary shareholder approval for its proposed merger with ConocoPhillips. The merger transaction is expected to close before end-2024, subject to regulatory approval and other customary closing conditions. The vote results of the special shareholder meeting will be filed with the U.S. Securities and Exchange Commission (SEC) in a Form 8-K.
The $22.5 billion deal to acquire Marathon Oil was announced by ConocoPhillips in May this year. The all-stock offer equated to $30.33 per Marathon share. The transaction includes $5.4 billion of Marathon Oil's debt.
ConocoPhillips expects the transaction to add over 2 billion barrels of reserves to its portfolio. The company foresees cost savings of approximately $500 million within the first full year after the closing of the transaction.
Marathon Oil has operations in the Bakken basin in North Dakota, the Permian basin in West Texas and South Texas' Eagle Ford basin. The acquisition will help ConocoPhillips to add high-quality, low cost of supply inventory to its existing U.S. portfolio. As per analysts, the merger will see Conoco’s production out of Eagle Ford surpassing its legacy assets in the Delaware basin.
