Comprehensive Energy Data Intelligence
Information About Energy Companies, Their Assets, Market Deals, Industry Documents and More...
$22.5 Billion Shake-Up: ConocoPhillips Acquires Marathon Oil and Gains Major Influence in the Eagle Ford
05/30/2024
The purchase of Marathon Oil adds 2,600 new drilling spots to ConocoPhillips' operations, boosting their total to over 13,000 across the U.S.
After the deal, ConocoPhillips is set to significantly increase its production in the Eagle Ford region, potentially exceeding its current output in the Delaware basin.
ConocoPhillips announced the acquisition of Marathon Oil for $22.5 billion. This deal comes in a period where the U.S. oil industry has seen massive consolidation, with last year alone witnessing mergers and acquisitions totaling $250 billion. The transaction is slated for completion in the fourth quarter of 2024.
The Houston-based company is poised to become the top producer in the Eagle Ford Shale, targeting an output of 400,000 barrels of oil equivalent per day and planning to upgrade 1,000 wells. Currently, EOG leads the region with 300,000 barrels per day of production.
"We’ve refined our techniques for enhancing old wells in Eagle Ford to match the economics of our top drilling sites, and we'll apply these methods to the Marathon properties."
- Andy O’Brien, senior vice president at ConocoPhillips
ConocoPhillips will rank as the third-largest oil producer in the Permian region, just behind industry giants Exxon Mobil and Chevron. This acquisition follows closely behind significant industry deals such as Exxon's purchase of Pioneer Natural Resources and Chevron's $53 billion merger with Hess.
Following the announcement, Marathon Oil’s stock climbed by 8.7%, whereas ConocoPhillips saw a 3% dip. The merger is expected to generate $500 million in cost savings in the first year and augment ConocoPhillips' reserves by over 2 billion barrels.
Marathon Oil brings valuable assets from North Dakota’s Bakken basin, the Permian basin in West Texas, and the Eagle Ford basin in South Texas, enhancing ConocoPhillips’ already strong U.S. presence.
Additionally, ConocoPhillips intends to divest about $2 billion in assets and enhance its share repurchase program. The plan is to increase buybacks to $7 billion next year from the $5 billion scheduled for this year, aiming to buy back $20 billion of its shares in the three years following the merger.
This approach mirrors Devon Energy’s 2022 strategy when it acquired Validus Energy for $1.8 billion, securing 350 new drilling locations and up to 150 high-potential wells for enhancement.
With oil prices staying high, big oil companies are making huge profits. They're using this money to buy more assets in the Permian Basin, which has made the U.S. a top oil and gas producer.
If you are looking for more information about energy companies, their assets, and energy deals, please, contact our sales office mapping@hartenergy.com, Tel. 619-349-4970 or SCHEDULE A DEMO to learn how Rextag can help you leverage energy data for your business.
Who's Next after Diamondback? Potential Takeover Targets in the Permian Basin
The $26 billion purchase of Endeavor Energy Resources by Diamondback Energy, with its stock up 2.6%, is the newest big deal combining oil and gas production in the Permian Basin under a few big companies
Energy Giant Baytex Makes a Bold Move: Snaps Up Ranger Oil in $2.5 Billion Deal
Baytex Energy Group has announced that it will acquire Eagle Ford exploration and production company, Ranger Oil, for approximately $2.5 billion in cash and stock, which includes taking over the company's existing debt. Upon the successful closure of the acquisition, Baytex will have a controlling stake of approximately 63% in the newly merged company, leaving Ranger shareholders with around 37%. This significant move is in line with a trend of substantial mergers and acquisitions in the Eagle Ford area, with Marathon Oil, Devon Energy, and Chesapeake Energy among the companies involved in recent transactions.
The 2024 Atlantic hurricane season has hit Florida hard, with Hurricanes Helene and Milton exposing the vulnerabilities in the state's energy infrastructure. As Florida grapples with the aftermath of these back-to-back storms, the damage to oil, gas, and energy supplies has created severe disruptions, leaving residents and industries struggling to recover.
California has long been at the forefront of renewable energy in the United States, from its vast solar farms to its growing battery storage capacities. But beneath the headlines of a "clean energy revolution" lies a complex reality—one shaped by ambitious targets, grid challenges, and the everyday experiences of Californians grappling with rising energy costs and increasing grid instability. As California pushes towards its 100% clean energy goal, the road is full of both promise and pitfalls.
Can Oil-Rich Texas Be a Clean Energy Titan: Sugary Sweet Attempt at Leading the Renewable Revolution
Texas is taking bold steps toward a future powered by clean energy. Once known mainly for its oil and gas, the state is now a leader in wind, solar, and battery storage. But as electricity demand grows, so do the challenges of balancing energy needs with infrastructure limits. Here’s a look at how Texas is transforming and what hurdles lie ahead + find out who works with Facebook’s parent company Meta on new technology across the U.S.