We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Marathon (MRO) Shareholder Contests Merger With ConocoPhillips
Read MoreHide Full Article
Marathon Oil (MRO - Free Report) shareholder Martin Siegel has filed a lawsuit to stall the proposed acquisition of the company by ConocoPhillips (COP - Free Report) , one of the largest exploration and production companies globally. The investor argued that the proposed acquisition deal significantly undervalues Marathon.
The acquisition was announced in May 2024, with ConocoPhillips agreeing to buy Marathon for approximately $22.5 billion. The price includes $5.4 billion of net debt. Siegel stated that the shareholders of Marathon could lose about $6 billion in company value if the proposed acquisition takes place.
He also accused MRO’s management and financial advisor of misrepresenting the deal to the company’s shareholders while seeking their approval. Siegel claimed that management of Marathon and the advisors have a conflict of interest in this deal. The CEO of MRO stands to gain $70 million in stock grants on the deal’s closure, and the company’s financial advisor would gain a hefty amount in fees.
ConocoPhillips emphasized that the acquisition of Marathon would a strategic move toward expanding its business. The company anticipates that the deal would contribute positively to its earnings, cash flows and overall performance. Furthermore, the combined entity’s market value is expected to reach more than $150 billion.
The increase in the market capitalization for ConocoPhillips is expected to further solidify its position as one of the largest exploration and production players, per a report by Enverus Intelligence Research.
However, both ConocoPhillips and Marathon received a request from the U.S. Federal Trade Commission (“FTC)” for providing more details regarding the proposed deal. COP had stated that both parties are working together and cooperating with the FTC’s request to finalize the acquisition deal by the end of 2024.
Zacks Rank and Key Picks
Currently, MRO and COP carry a Zacks Rank #3 (Hold) each.
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.
TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. The company’s total backlog witnessed a record high of $13.9 million in the second quarter of 2024, indicating a year-over-year increase of 4.51%. This growing backlog ensures strong revenue growth for the company in the future.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Marathon (MRO) Shareholder Contests Merger With ConocoPhillips
Marathon Oil (MRO - Free Report) shareholder Martin Siegel has filed a lawsuit to stall the proposed acquisition of the company by ConocoPhillips (COP - Free Report) , one of the largest exploration and production companies globally. The investor argued that the proposed acquisition deal significantly undervalues Marathon.
The acquisition was announced in May 2024, with ConocoPhillips agreeing to buy Marathon for approximately $22.5 billion. The price includes $5.4 billion of net debt. Siegel stated that the shareholders of Marathon could lose about $6 billion in company value if the proposed acquisition takes place.
He also accused MRO’s management and financial advisor of misrepresenting the deal to the company’s shareholders while seeking their approval. Siegel claimed that management of Marathon and the advisors have a conflict of interest in this deal. The CEO of MRO stands to gain $70 million in stock grants on the deal’s closure, and the company’s financial advisor would gain a hefty amount in fees.
ConocoPhillips emphasized that the acquisition of Marathon would a strategic move toward expanding its business. The company anticipates that the deal would contribute positively to its earnings, cash flows and overall performance. Furthermore, the combined entity’s market value is expected to reach more than $150 billion.
The increase in the market capitalization for ConocoPhillips is expected to further solidify its position as one of the largest exploration and production players, per a report by Enverus Intelligence Research.
However, both ConocoPhillips and Marathon received a request from the U.S. Federal Trade Commission (“FTC)” for providing more details regarding the proposed deal. COP had stated that both parties are working together and cooperating with the FTC’s request to finalize the acquisition deal by the end of 2024.
Zacks Rank and Key Picks
Currently, MRO and COP carry a Zacks Rank #3 (Hold) each.
Some better-ranked stocks in the energy sector are SM Energy (SM - Free Report) and TechnipFMC plc (FTI - Free Report) . SM Energy presently sports a Zacks Rank #1 (Strong Buy), while TechnipFMC 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.
TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. The company’s total backlog witnessed a record high of $13.9 million in the second quarter of 2024, indicating a year-over-year increase of 4.51%. This growing backlog ensures strong revenue growth for the company in the future.