Oil giant ConocoPhillips to buy Marathon Oil in $17.1bn deal

ConocoPhillips is to buy Marathon Oil in an all-stock deal valued at about $17.1bn as profits at big oil giants surge on rising energy prices.

It is the latest American energy conglomerate to place a vast bet on fossil fuel production. Oil giant ExxonMobil completed its $59.5bn acquisition of the shale group Pioneer Natural Resources earlier this month, and Chevron is vying to get its $53bn deal for the oil producer Hess Corporation across the line. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Environmental campaigners have been quick to criticize such transactions – warning that they risk exacerbating the climate crisis by enabling big oil operators to grow even larger.

ConocoPhillips’s takeover of Marathon Oil – valued at $22.5bn, when including $5.4bn in debt – comes amid climbing oil prices. Crude prices have jumped more than 12% this year, and the cost of a barrel rose above $80 this week.

Ryan Lance, ConocoPhillips chairman and CEO, said the deal would add “high-quality, low cost of supply inventory” to the firm’s operations. “Importantly”, he added, ConocoPhillips and Marathon Oil “share similar values and cultures with a focus on operating safely and responsibly to create long-term value for our shareholders”.

Lee Tillman, Marathon Oil chairman, president and CEO, hailed a “proud moment” for his company, which he claimed had remained “true to our core values of safety and environmental excellence” while generating “compelling” returns for its shareholders.

The deal, which requires approval from Marathon Oil stockholders, is expected to close in the fourth quarter.

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Associated Press contributed reporting

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