On May 29, local time, ConocoPhillips announced the acquisition of Marathon Oil for an enterprise value of $22.5 billion, including $5.4 billion in net debt. Under the terms of the transaction, Marathon Oil shareholders will exchange 0.255 shares of ConocoPhillips common stock for each share of Marathon Oil common stock, a premium of 14.7% over the closing price on May 28.

Through the acquisition, ConocoPhillips' domestic shale oil production footprint in the United States will expand from Texas to North Dakota, and oil and gas reserves will extend as far as Equatorial Guinea.

ConocoPhillips said the acquisition will add highly complementary areas to its existing U.S. onshore portfolio, adding more than 2 billion barrels of resources, with an expected average supply cost of less than $30 per barrel.

The acquisition is expected to be completed in the fourth quarter of 2024. ConocoPhillips said it expects to achieve a cost and capital synergy rate of $500 million in the first year after the transaction is completed.