ConocoPhillips has completed its $22.5 billion all-stock acquisition of Marathon Oil, consolidating two of the largest independent US shale operators and adding a significant Eagle Ford and Bakken footprint to ConocoPhillips's existing Permian-heavy portfolio.
Management guided to more than $500 million of annual cost and capital efficiency synergies within a year of close, with the bulk expected from overlapping corporate functions and drilling programme optimisation.
Consolidation wave
The deal is the latest in a multi-year wave of US shale consolidation that has also included ExxonMobil's acquisition of Pioneer Natural Resources and Diamondback Energy's combination with Endeavor Energy Resources.