In a significant development in the energy sector, ConocoPhillips has successfully completed its acquisition of Marathon Oil Corporation (MRO, Financial). The merger, initially announced on May 28, 2024, was finalized on November 22, 2024, with Marathon Oil becoming a wholly-owned subsidiary of ConocoPhillips. This strategic move was executed through the merger of Puma Merger Sub Corp., a wholly-owned subsidiary of ConocoPhillips, with Marathon Oil, allowing Marathon to continue as the surviving corporation.
As part of the merger agreement, each share of Marathon Oil's common stock was converted into the right to receive 0.2550 shares of ConocoPhillips' common stock, along with cash in lieu of fractional shares. This exchange ratio was a key component of the merger consideration, reflecting the value alignment between the two energy giants.
Following the merger, Marathon Oil has initiated the process to delist its common stock from the New York Stock Exchange (NYSE). The company has requested the NYSE to suspend trading and filed an application with the Securities and Exchange Commission (SEC) to delist and deregister its common stock. This delisting will become effective 10 days after the filing, marking a significant transition in Marathon Oil's corporate structure.
Additionally, all outstanding commitments under Marathon Oil's Amended and Restated Credit Agreement have been terminated, with all obligations for principal, interest, and fees paid off in full. The merger also led to the termination of Marathon's commercial paper program, with all outstanding obligations settled.
In a noteworthy financial arrangement, ConocoPhillips has agreed to unconditionally guarantee $1 billion in aggregate principal amount of the Parish of St. John the Baptist, State of Louisiana Revenue Refunding Bonds, which were previously issued for the benefit of Marathon Oil. This guarantee underscores ConocoPhillips' commitment to fulfilling Marathon Oil's financial obligations post-merger.
The completion of this merger marks a pivotal moment for both companies, as they aim to leverage their combined strengths to enhance operational efficiencies and drive growth in the competitive energy market. For more detailed insights and analysis on this merger, visit GuruFocus.com.
Should you invest in Marathon Oil Corp (MRO, Financial) right now? Before you do it, it’s important to understand the business profitability and stock valuations, and find out what the warning signs are about. See the in-depth Marathon Oil Corp (MRO) stock research here.
