2024-05-29 12:37:13 ET
Summary
- ConocoPhillips shares fell over 3% after announcing the acquisition of Marathon Oil Corporation.
- The deal is likely to be positive due to complementary assets and strong capital returns.
- ConocoPhillips expects $500 million in cost synergies, plans to repurchase $7 billion of stock, and raise its dividend by 34%.
- The combined company has a strong oil focus, scaled-up assets in key plays, and LNG upside exposure.
Shares of ConocoPhillips ( COP ) fell over 3% on Wednesday after it announced an acquisition of Marathon Oil Corporation (MRO). Shares are now more than 10% off their highs, though still up 16% from a year ago. Back in September, I rated shares of Conoco a “ buy ,” but since then, they have been dead money, losing 2% as the market rallied over 20%. Given their complementary assets and strong capital returns, I view this deal positively, and it can be a catalyst to lift shares over time....
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ConocoPhillips' Marathon Oil Purchase Is An Accretive Action