ConocoPhillips to buy Marathon Oil in $17.1 billion all-stock deal that bolsters shale assets

ConocoPhillips on Wednesday agreed to purchase Marathon Oil in an all-stock transaction worth $17.1 billion that would strengthen the company’s shale assets.

“This acquisition of Marathon Oil further deepens our portfolio and fits within our financial framework, adding high-quality, low cost of supply inventory adjacent to our leading U.S. unconventional position,” said ConocoPhillips CEO Ryan Lance in a statement.

The deal, which is expected to close in the fourth quarter, would immediately grow ConocoPhillips’ earnings, cash flow and shareholder returns, Lance said. ConocoPhillips’ stock was down 3.3% in early trading following the announcement while Marathon Oil shares surged 7.3%.

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