European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

<ul>
<li>Conocophillips is set to acquire Marathon Oil in an all-stock deal (0.2550 COP US per 1 MRO US) valued at $22.5 billion ($30.33/share), including $5,379 million in net debt.</li>
<li>Most of the frenzy in the US oil industry has focused on the consolidation within the Permian Basin, a maturing region that offers opportunities to reduce costs and increase profitability.</li>
<li>The acquisition of Marathon will add highly complementary acreage to ConocoPhillips’ existing U.S. onshore portfolio. Spread as of 4 June is 2.6%/4.7% (gross/annualised, assuming settlement by late Q4).</li>
</ul>


Conocophillips is set to acquire Marathon Oil in an all-stock deal (0.2550 COP US per 1 MRO US) valued at $22.5 billion ($30.33/share), including $5,379 million in net debt.
Most of the frenzy in the US oil industry has focused on the consolidation within the Permian Basin, a maturing region that offers opportunities to reduce costs and increase profitability.
The acquisition of Marathon will add highly complementary acreage to ConocoPhillips’ existing U.S. onshore portfolio. Spread as of 4 June is 2.6%/4.7% (gross/annualised, assuming settlement by late Q4).


ConocoPhillips/Marathon Oil and Shale Consolidation

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Marathon Oil Corporation witnessed a strong financial and operational performance in the first quarter of 2024.</li><li>Despite not receiving any cash distributions from equity affiliates for timing reasons, the company was able to generate 41% or $350 million from its operations which were returned to investors.</li><li>The catch up for EG cash distributions is anticipated for the second quarter.</li></ul>

Marathon Oil Corporation witnessed a strong financial and operational performance in the first quarter of 2024.Despite not receiving any cash distributions from equity affiliates for timing reasons, the company was able to generate 41% or $350 million from its operations which were returned to investors.The catch up for EG cash distributions is anticipated for the second quarter.

Marathon Oil Corporation: How Is Their Multi-basin U.S. Portfolio and Market Position Evolving? - Major Drivers

<ul><li>Marathon Oil's Q4 and full year 2023 results and full year 2024 outlook have highlighted some of the successes and challenges faced by the company.</li><li>The company's Chairman, President, and CEO, Lee Tillman, emphasized on the company's commitment to safety, environmental responsibility, and ongoing work to achieve zero routine flaring.</li><li>The company has continued to prioritize providing safe working conditions and has achieved a record safety year in 2023.</li></ul>

Marathon Oil's Q4 and full year 2023 results and full year 2024 outlook have highlighted some of the successes and challenges faced by the company.The company's Chairman, President, and CEO, Lee Tillman, emphasized on the company's commitment to safety, environmental responsibility, and ongoing work to achieve zero routine flaring.The company has continued to prioritize providing safe working conditions and has achieved a record safety year in 2023.

Marathon Oil Corporation: Is Its Capital Efficiency Sustainable? - Major Drivers

<ul><li>Marathon Oil Corporation delivered an all-around beat in the previous quarter.</li><li>With an impressive $718 million adjusted free cash flow and a remarkable reinvestment rate of just 38%, the company anticipates further enhancing free cash flow in the fourth quarter.</li><li>Looking ahead, Marathon Oil's team is confident in delivering benchmark performance in free cash flow generation, reinvestment rate, capital efficiency, free cash flow breakeven, and production growth per share.</li></ul>

Marathon Oil Corporation delivered an all-around beat in the previous quarter.With an impressive $718 million adjusted free cash flow and a remarkable reinvestment rate of just 38%, the company anticipates further enhancing free cash flow in the fourth quarter.Looking ahead, Marathon Oil's team is confident in delivering benchmark performance in free cash flow generation, reinvestment rate, capital efficiency, free cash flow breakeven, and production growth per share.

Marathon Oil Corporation: A New Era of Oil and Gas Dominance! - Major Drivers

<ul><li>Marathon Oil delivered a mixed set of results for the previous quarter, with revenues below the analyst consensus.</li><li>The company reported a strong adjusted free cash flow of $531 million and returned $434 million to shareholders, marking a 10% increase in distributions compared to the previous quarter.</li><li>In the third quarter, Marathon Oil's management team expects total company oil and oil equivalent production to either meet or surpass the upper limit of its annual guidance range.</li></ul>

Marathon Oil delivered a mixed set of results for the previous quarter, with revenues below the analyst consensus.The company reported a strong adjusted free cash flow of $531 million and returned $434 million to shareholders, marking a 10% increase in distributions compared to the previous quarter.In the third quarter, Marathon Oil's management team expects total company oil and oil equivalent production to either meet or surpass the upper limit of its annual guidance range.

Marathon Oil Corporation: Projected Capital Program - Are They Aiming Too High? - Major Drivers

United States

Marathon Oil Corporation is an independent international energy company engaged in exploration and production, oil sands mining and integrated gas. The Company's operations are focused in North America, Africa and Europe.

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Marathon Oil (MRO US)

ConocoPhillips/Marathon Oil and Shale Consolidation

Conocophillips to acquire Marathon Oil in $22.5 billion all-stock deal, focusing on consolidation in Permian Basin for cost reduction and...

Jesus Rodriguez Aguilar

Marathon Oil Corporation: How Is Their Multi-basin U.S. Portfolio and Market Position Evolving? - Major Drivers

Marathon Oil Corporation witnessed a strong financial and operational performance in the first quarter of 2024. Despite not receiving any cash...

Baptista Research

Marathon Oil Corporation: Is Its Capital Efficiency Sustainable? - Major Drivers

Marathon Oil's Q4 and full year 2023 results and full year 2024 outlook have highlighted some of the successes and challenges faced by the...

Baptista Research

Marathon Oil Corporation: A New Era of Oil and Gas Dominance! - Major Drivers

Marathon Oil Corporation delivered an all-around beat in the previous quarter. With an impressive $718 million adjusted free cash flow and a...

Baptista Research

Marathon Oil Corporation: Projected Capital Program - Are They Aiming Too High? - Major Drivers

Marathon Oil delivered a mixed set of results for the previous quarter, with revenues below the analyst consensus. The company reported a strong...

Baptista Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

ConocoPhillips/Marathon Oil and Shale Consolidation

​Conocophillips to acquire Marathon Oil in $22.5 billion all-stock deal, focusing on consolidation in Permian Basin for cost reduction and...

Jesus Rodriguez Aguilar

Marathon Oil Corporation: How Is Their Multi-basin U.S. Portfolio and Market Position Evolving? - Major Drivers

Marathon Oil Corporation witnessed a strong financial and operational performance in the first quarter of 2024. Despite not receiving any cash...

Baptista Research

Marathon Oil Corporation: Is Its Capital Efficiency Sustainable? - Major Drivers

Marathon Oil's Q4 and full year 2023 results and full year 2024 outlook have highlighted some of the successes and challenges faced by the...

Baptista Research

Marathon Oil Corporation: A New Era of Oil and Gas Dominance! - Major Drivers

Marathon Oil Corporation delivered an all-around beat in the previous quarter. With an impressive $718 million adjusted free cash flow and a...

Baptista Research

Marathon Oil Corporation: Projected Capital Program - Are They Aiming Too High? - Major Drivers

Marathon Oil delivered a mixed set of results for the previous quarter, with revenues below the analyst consensus. The company reported a strong...

Baptista Research

Conocophillips to acquire Marathon Oil in $22.5 billion all-stock deal, focusing on consolidation in Permian Basin for cost reduction and...