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ConocoPhillips (COP) Receives Second FTC Request on Merger Deal
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ConocoPhillips (COP - Free Report) , 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 - Free Report) . 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.
SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
Chevron is one of the largest publicly traded oil and gas companies in the world, with its operations spread around the globe. It is currently in the process of acquiring Hess Corporation. The acquisition is seen as a major win for Chevron, as it will give the company access to Hess' high-quality assets in Guyana and the Bakken Formation.
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ConocoPhillips (COP) Receives Second FTC Request on Merger Deal
ConocoPhillips (COP - Free Report) , 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 - Free Report) . 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.
Zacks Rank and Key Picks
Currently, COP carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector areSM Energy (SM - Free Report) and Chevron Corporation (CVX - Free Report) . SM Energy presently sports a Zacks Rank #1 (Strong Buy), while Chevron carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
Chevron is one of the largest publicly traded oil and gas companies in the world, with its operations spread around the globe. It is currently in the process of acquiring Hess Corporation. The acquisition is seen as a major win for Chevron, as it will give the company access to Hess' high-quality assets in Guyana and the Bakken Formation.