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FTC Requests More Info On $22.5 Billion ConocoPhillips-Marathon Oil Deal

By Tsvetana Paraskova - Jul 12, 2024

The U.S. Federal Trade Commission (FTC) has requested additional information from ConocoPhillips and Marathon Oil regarding their proposed $22.5 billion merger.

ConocoPhillips and Marathon continue to cooperate with the FTC's review and expect the merger to be completed in the fourth quarter of 2024, subject to regulatory approvals.

The merger is expected to boost ConocoPhillips' market capitalization above BP and behind Shell, solidifying its position as a leading independent producer in the energy industry.



The U.S. Federal Trade Commission (FTC) has sent a second request for additional information to ConocoPhillips and Marathon Oil while reviewing their proposed $22.5 billion merger, ConocoPhillips said on Friday.

On July 11, 2024, ConocoPhillips and Marathon each received a request for additional information and documentary materials from the FTC in connection with the FTC’s review of the merger announced in May.

“ConocoPhillips and Marathon continue to work constructively with the FTC in its review of the Merger and continue to expect that the Merger will be completed in the fourth quarter of 2024, subject to the fulfillment of the closing conditions in the Merger Agreement, including receipt of required regulatory approvals and approval of Marathon’s stockholders,” ConocoPhillips said today.

At the end of May, ConocoPhillips said it had agreed to buy Marathon Oil in an all-stock deal with an enterprise value of $22.5 billion, inclusive of $5.4 billion of net debt, in one of the latest transactions announced in the U.S. oil and gas industry.

In the case of ConocoPhillips, the company “is leveraging its premium market valuation, which it shares with the majors, to strike a deal that will immediately boost its free cash flow profile and enhance its capital return program for investors,” said Andrew Dittmar, a Director on the Enverus Intelligence team.

Merging with Marathon Oil will boost ConocoPhillips’ market capitalization to more than $150 billion. The surge in market cap will extend Conoco’s lead as the largest independent producer and place it broadly in the same scale as majors, above BP and behind Shell, according to Enverus Intelligence Research.

But the Eagle Ford position of the combined ConocoPhillips-Marathon Oil company could come under closer-than-usual scrutiny from the FTC, which will be reviewing closely the whole deal, considering the increased regulatory scrutiny for oil and gas transactions and Conoco’s existing scale, according to Enverus’ Dittmar.

By Tsvetana Paraskova for Oilprice.com