ConocoPhillips to acquire Marathon Oil in a $17.1 billion deal

ConocoPhillips is buying Marathon Oil for about $17.1 billion in a deal where they exchange stocks. This is happening because energy prices are going up, and big oil companies are making a lot of money. The total value of the deal is $22.5 billion, including $5.4 billion in debt. The price of crude oil has gone up by more than 12% this year, with a barrel costing over $80 this week. The U.S. government, under President Biden, is closely looking at these acquisitions to make sure they are not against the law. ConocoPhillips plans to increase its dividend by 34% to 78 cents per share after the deal. They also plan to buy back over $7 billion in shares in the first year and more than $20 billion in shares in the first three years. This deal will make ConocoPhillips one of the biggest owners of oil assets in the U.S., especially in places like Texas, New Mexico, and North Dakota. The company expects its production to grow significantly in these areas, which will lead to higher earnings and returns for its shareholders. ConocoPhillips is the third-largest oil company in the U.S., with a value of $137 billion, while Marathon Oil is valued at $14.4 billion.