ConocoPhillips (COP) Receives Second FTC Request on Merger Deal

ConocoPhillips COP, a U.S.-based exploration and production player, has received a second request from the U.S. Federal Trade Commission (“FTC”) for further information on its proposed merger with Marathon Oil Corporation MRO. ConocoPhillips had announced the acquisition in May 2024 in an all-stock transaction worth $22.5 billion. Per COP’s statement, both companies received the FTC request and are jointly working with the regulatory body to review the details of the proposed merger.

Marathon shareholders would receive 0.255 shares of ConocoPhillips, for each share of Marathon Oil common stock. The merger is anticipated to create a combined entity with a production capacity of 2.26 million barrels of oil and gas per day. Furthermore, it is expected to add proved reserves of up to 1.32 billion barrels to ConocoPhillips’ existing proved reserves of 6.8 billion barrels.

COP had previously stated that the deal is anticipated to close in the fourth quarter of 2024. However, the request for additional information regarding the deal may delay its closure. The cost savings and benefits that COP expects from the acquisition will not be fully realized until the transaction is closed.

The current trends indicate that the energy sector is undergoing rapid consolidation to achieve operational efficiencies and cost-saving benefits. The announcement of ConocoPhillips’ deal with Marathon Oil followed the $60 billion acquisition of Pioneer Natural Resources by ExxonMobil Corporation and the proposed $53-billion merger of Hess Corporation with energy giant, Chevron.