Under the terms of the agreement, Marathon Oil shareholders will receive 0.2550 shares of ConocoPhillips common stock for each share of Marathon Oil common stock, representing a 14.7% premium to the closing share price of Marathon Oil on May 28, 2024, and a 16.0% premium to the prior 10-day volume-weighted average price, the companies said in a statement.

“This acquisition of Marathon Oil further deepens our portfolio and fits within our financial framework, adding high-quality, low cost of supply inventory adjacent to our leading US unconventional position,” said ConocoPhillips CEO Ryan Lance.

“When combined with the global ConocoPhillips portfolio, I’m confident our assets and people will deliver significant shareholder value over the long term,” said Lee Tillman, CEO of Marathon Oil.

Given the adjacent nature of the acquired assets and a common operating philosophy, ConocoPhillips expects to realize $500 million in cost and capital synergies within the first full year of closing. The identified savings will come from reduced general and administrative costs, lower operating costs and improved capital efficiencies, the company said.