Second FTC application for ConocoPhillips’ acquisition of Marathon Oil

ConocoPhillips has received a second request for information from the Federal Trade Commission (FTC) regarding its $22.5 billion acquisition of Marathon Oil. Both companies are working with the FTC to examine the merger.

Share:

Fusion ConocoPhillips Marathon Oil

In May, ConocoPhillips announced its intention to buy Marathon Oil for $22.5 billion in shares, with the aim of boosting production and achieving economies of scale in shale fields and liquefied natural gas (LNG) in the USA. This transaction is part of a series of major mergers in the sector, including Exxon Mobil ‘s $60 billion acquisition of Pioneer Natural Resources, Chevron’s $53 billion merger with Hess, Chesapeake Energy’s $7.4 billion purchase of Southwestern Energy, and Occidental Petroleum’s $12 billion bid for CrownRock.

Implications of the FTC request

The FTC’s additional request for information could delay finalization of the agreement. ConocoPhillips had originally expected the agreement to close in the fourth quarter of this year. This delay could postpone the full realization of the cost savings and benefits expected from shared equipment and personnel.

Operations and key figures

The Conoco-Marathon combination would create a company producing 2.26 million barrels of oil and gas per day, adding 1.32 billion barrels of proven reserves to ConocoPhillips’ 6.8 billion. The offer of 0.255 ConocoPhillips shares for each Marathon share represented a premium of 14.7% to Marathon’s closing price prior to the announcement of the agreement.
Both companies have operations in the shale fields of West Texas, South Texas and North Dakota, key regions for oil and gas exploration and production in the USA.
This major acquisition, in line with other consolidations in the energy sector, is being closely monitored by the FTC to ensure that it complies with antitrust regulations and does not harm competition in the market.

Outlook and analysis

Investors and stakeholders in the energy sector are closely monitoring the implications of this merger, which could redefine the competitive landscape. If approved, this transaction could strengthen ConocoPhillips’ market position, increasing its ability to compete with other giants in the sector. However, the FTC’s stringent regulations and scrutiny are major hurdles to overcome in finalizing this ambitious agreement.

The expansion of the global oil and gas fishing market is accelerating on the back of offshore projects, with annual growth estimated at 5.7% according to The Insight Partners.
The Competition Bureau has required Schlumberger to divest major assets to finalise the acquisition of ChampionX, thereby reducing the risks of market concentration in Canada’s oilfield services sector. —
Saturn Oil & Gas Inc. confirms the acquisition of 1,608,182 common shares for a total amount of USD3.46mn, as part of its public buyback offer in Canada, resulting in a reduction of its free float.
OPEC slightly adjusts its production forecasts for 2025-2026 while projecting stable global demand growth, leaving OPEC+ significant room to increase supply without destabilizing global oil markets.
Talks between European Union member states stall on the adoption of the eighteenth sanctions package targeting Russian oil, due to ongoing disagreements over the proposed price ceiling.
Three new oil fields in Iraqi Kurdistan have been targeted by explosive drones, bringing the number of affected sites in this strategic region to five in one week, according to local authorities.
An explosion at 07:00 at an HKN Energy facility forced ShaMaran Petroleum to shut the Sarsang field while an inquiry determines damage and the impact on regional exports.
The Canadian producer issues USD 237 mn in senior notes at 6.875 % to repay bank debt, repurchase USD 73 mn of 2027 notes and push most of its maturity schedule to 2030.
BP revised upwards its production forecast for the second quarter of 2025, citing stronger-than-expected results from its US shale unit. However, lower oil prices and refinery maintenance shutdowns weighed on overall results.
Belgrade is engaged in complex negotiations with Washington to obtain a fifth extension of sanctions relief for the Serbian oil company NIS, which is majority-owned by Russian groups.
European Union ambassadors are close to reaching an agreement on a new sanctions package aimed at reducing the Russian oil price cap, with measures impacting several energy and financial sectors.
Backbone Infrastructure Nigeria Limited is investing $15bn to develop a 500,000-barrel-per-day oil refinery in Ondo State, a major project aimed at boosting Nigeria’s refining capacity.
The Central Energy Fund’s takeover of the Sapref refinery introduces major financial risks for South Africa, with the facility still offline and no clear restart strategy released so far.
PetroTal Corp. records production growth in the second quarter of 2025, improves its cash position and continues replacing key equipment at its main oil sites in Peru.
An explosion caused by a homemade explosive device in northeastern Colombia has forced Cenit, a subsidiary of Ecopetrol, to temporarily suspend operations on the strategic Caño Limón-Coveñas pipeline, crucial to the country's oil supply.
U.S. legislation eases access to federal lands for oil production, but fluctuations in crude prices may limit concrete impacts on investment and medium-term production, according to industry experts.
Permex Petroleum Corporation has completed a US$2mn fundraising by issuing convertible debentures, aimed at strengthening its cash position, without using intermediaries, and targeting a single institutional investor.
Petróleos de Venezuela S.A. (PDVSA) recorded $17.52bn in export sales in 2024, benefiting from increased volumes due to U.S. licences granted to foreign partners, according to an internal document seen by Reuters.
The detection of zinc in Mars crude extracted off the coast of Louisiana forced the US government to draw on its strategic reserves to support Gulf Coast refineries.
Commissioning of a 1.2-million-ton hydrocracking unit at the TANECO site confirms the industrial expansion of the complex and its ability to diversify refined fuel production.