- Pharrell Williams to co-chair Met Gala exploring Black dandyism
- Wall Street indices hit fresh records as Chinese shares tumble
- Taiwan's president to deliver key speech for National Day
- Sea row on the menu as ASEAN leaders meet China's Li
- Injured Kane won't start England's Nations League clash with Greece
- Discord seen as online home for renegades
- US forecasts severe solar storm starting Thursday
- Mozambique starts tallying votes in tense election
- Zelensky moves to court European leaders in drive for military aid
- Ratan Tata: Indian mogul who built a global powerhouse
- Rodgers rejects 'false' suggestions of role in Saleh dismissal
- One dead as storm Kirk tears through Spain, Portugal, France
- Indian business titan Ratan Tata dead at 86
- Lebanon facing 'catastrophic' situation as 600,000 displaced: UN
- US warns Israel not to repeat Gaza destruction in Lebanon
- Musk's X returns in Brazil after 40-day showdown with judge
- Call her savvy? Harris unleashes unconventional media blitz
- Lucian Freud 'masterpiece' fetches £13.9 million at London sale
- SoFi Stadium to hold next two CONCACAF Nations League finals
- McIlroy and DeChambeau set for PGA-LIV 'Showdown' in Vegas
- Fed minutes highlight divisions over rate cut decision
- Steve McQueen debuts new WWII film at London festival
- Run blitz edges India and South Africa closer to World Cup semi-finals
- Zelensky to court European leaders in drive for military aid
- Israel captain says 'difficult' to focus on football in time of war
- Macron to host Ukraine's Zelensky after meeting Ukrainian troops
- Root says 'many more to get' after England Test runs landmark
- India pile up World Cup high to rout Sri Lanka
- One year later, Israeli hostage family learns of loss
- Texans receiver Collins, Pats' safety Peppers out for NFL clash
- Biden-Netanyahu talk as Hezbollah, Israeli forces clash
- Musk's X available again in Brazil after 40-day ban
- Reddy stars as India crush Bangladesh to clinch T20 series
- Nobel winners hope protein work will spur 'incredible' breakthroughs
- What are proteins again? Nobel-winning chemistry explained
- Arch rivals Ghana, Nigeria drawn together in CHAN qualifying
- AI steps into science limelight with Nobel wins
- Trump lauds India's Modi as 'total killer'
- Wall Street, Europe rise as Chinese shares tumble
- Hunkering down for Hurricane Milton at Disney -- but first, a few rides
- Reddy, Rinku power India to 221-9 in second Bangladesh T20
- Overshooting 1.5C risks 'irreversible' climate impact: study
- Time running out in Florida to flee Hurricane Milton
- Demis Hassabis, from chess prodigy to Nobel-winning AI pioneer
- The long walk for water in the parched Colombian Amazon
- Biden-Netanyahu to talk as Hezbollah, Israeli forces clash
- France vows to step up drugs fight after police vehicles torched
- Air France says jet flew over Iraq during Iran attack on Israel
- Activists target Picasso work to protest Israel arms sales
- Let 'Emily in Paris' remain in Paris, Macron says
ConocoPhillips to buy Marathon for $22.5 bn in latest big oil deal
US energy giant ConocoPhillips announced Wednesday that it is acquiring competitor Marathon Oil for $22.5 billion in the latest big petroleum merger consummated in spite of rising concerns about climate change.
The all-stock transaction combines two familiar Houston-based oil players, expanding the larger ConocoPhillips' US holdings and potentially providing massive cost savings.
The acquisition "further deepens our portfolio and fits within our financial framework, adding high-quality, low cost of supply inventory," ConocoPhillips chairman and chief executive officer Ryan Lance said in a company statement.
The deal, which includes the assumption of $5.4 billion in Marathon debt, is the latest in a series of acquisitions in the US oil sector, extending the lifespan of petroleum at a time when climate change advocates are pressuring producers to transition to carbon-free energy.
It will enable ConocoPhillips to strengthen its position in shale oil and gas-rich regions such as the Bakken Basin in the northern United States, the Eagle Ford fields in Texas and the Permian Basin in Texas and New Mexico.
A company presentation highlighted the proximity of Marathon's acreage in these regions to ConocoPhillips' holdings, creating potential economies of scale.
The deal should see ConocoPhillips achieve savings of $500 million in the year after completion, according to a ConocoPhillips press release, largely due to reduced administrative and production costs.
ConocoPhillips pledged to return excess cash to shareholders, saying it plans to boost its dividend by 34 percent and expects more than $20 billion in share repurchases over the next three years.
The deal, which is expected to close in the fourth quarter of this year, gives Marathon Oil shareholders 0.255 shares of ConocoPhillips common stock for each share of Marathon Oil common stock.
That represents a 14.7 percent premium over Marathon Oil's closing price on Tuesday.
A note from JPMorgan Chase said the takeover solves a challenging outlook for Marathon, which has done "an excellent job in the field" but would have needed to do more "to address inventory renewal over time."
The 15 percent premium was an "attractive alternative", said the JPMorgan note.
Shares of Marathon jumped 9.1 percent in morning trading, while ConocoPhillips fell 3.1 percent.
- Chevron deal speed-bump -
ConcoPhillips is the third biggest US oil company by market capitalization after ExxonMobil and Chevron, both which announced major petroleum-focused takeovers last year.
The deals have come in spite of rising global recognition of climate change, resulting in a landmark agreement at December climate talks in which nearly 200 countries agreed that the world will be "transitioning away from fossil fuels" in order to achieve net-zero emissions by 2050.
However, while US oil companies have faced pressure from climate-focused NGOs and investors to accelerate climate-friendly investments, demand for conventional petroleum has remained firm.
The ConocoPhillips deal follows ExxonMobil's $60 billion takeover of Pioneer Natural Resources, which closed earlier this month.
Chevron's proposed $53 billion takeover of Hess cleared one hurdle on Monday after Hess shareholders voted to approve the transaction.
However, the Hess deal hit a speed-bump earlier this year due to a challenge by ExxonMobil over the transaction's effect on ExxonMobil's holdings in Guyana.
Chevron has indicated it could walk away from the deal if arbitration is unsuccessful.
J.Williams--AMWN