ConocoPhillips is buying Marathon Oil for $17.1 billion, continuing a pattern of consolidation in the energy sector since the end of the pandemic.
The all-stock deal is valued at $22.5 billion, including $5.4 billion in debt.
“This acquisition of Marathon Oil further deepens our portfolio and fits within our financial framework, adding high-quality inventory at low delivery costs, adjacent to our leading U.S. unconventional position,” Ryan Lance, CEO of ConocoPhillips, said in a statement.
The deal is expected to close in the fourth quarter. It still needs approval from Marathon Oil shareholders.
Energy companies spent $234 billion merging with or buying competitors in 2023, the highest figure in more than a decade, according to the U.S. Energy Information Administration.
In another recent deal, federal regulators earlier this month approved Exxon Mobil’s purchase of Pioneer Natural Resources for about $60 billion.
