This article is from the source 'guardian' and was first published or seen on . The next check for changes will be

You can find the current article at its original source at https://www.theguardian.com/business/article/2024/may/29/conocophillips-buy-marathon-oil

The article has changed 3 times. There is an RSS feed of changes available.

Version 1 Version 2
Oil giant ConocoPhillips to buy Marathon Oil in $17.1bn deal ExxonMobil and Chevron gather investors after latest big oil mega deal
(about 2 hours later)
Takeover is latest by a US conglomerate gambling on fossil fuel production as profits surge on rising energy pricesTakeover is latest by a US conglomerate gambling on fossil fuel production as profits surge on rising energy prices
ConocoPhillips is to buy Marathon Oil in an all-stock deal valued at about $17.1bn as profits at big oil giants surge on rising energy prices. Shareholders in ExxonMobil and Chevron gathered for the big oil giants’ annual meetings on Wednesday amid scrutiny from lawmakers and climate activists.
It is the latest American energy conglomerate to place a vast bet on fossil fuel production. Oil giant ExxonMobil completed its $59.5bn acquisition of the shale group Pioneer Natural Resources earlier this month, and Chevron is vying to get its $53bn deal for the oil producer Hess Corporation across the line. Hours before they convened, another American energy conglomerate, ConocoPhillips, announced plans to buy Marathon Oil in an all-stock deal worth about $17.1bn rendering it the latest firm to place a vast bet on the future of fossil fuel production.
Environmental campaigners have been quick to criticize such transactions warning that they risk exacerbating the climate crisis by enabling big oil operators to grow even larger. The meetings come as both Exxon and Chevron are under investigation by Democrats for a recent dinner with Trump, where he reportedly made a quid-pro-quo offer to oil bosses.
Both Chevron and Exxon have also come under fire for promoting doubt about global warming despite knowledge of its harms, and for reneging on previous climate pledges as gas prices have risen.
In October, ExxonMobil agreed to buy the shale group Pioneer Natural Resources, while Chevron announced plans to acquire the Texas oil company Hess – two of the country’s largest oil and gas deals in decades. ExxonMobil completed its acquisition earlier this month, while Chevron is vying to get its deal across the line.
Environmental campaigners have condemned these deals, warning that they risk exacerbating the climate crisis by enabling big oil operators to grow even larger despite scientific consensus that fossil fuel must be phased out to avert climate catastrophe.
ConocoPhillips’s takeover of Marathon Oil – valued at $22.5bn, when including $5.4bn in debt – comes amid climbing oil prices. Crude prices have jumped more than 12% this year, and the cost of a barrel rose above $80 this week.ConocoPhillips’s takeover of Marathon Oil – valued at $22.5bn, when including $5.4bn in debt – comes amid climbing oil prices. Crude prices have jumped more than 12% this year, and the cost of a barrel rose above $80 this week.
Ryan Lance, ConocoPhillips chairman and CEO, said the deal would add “high-quality, low cost of supply inventory” to the firm’s operations. “Importantly”, he added, ConocoPhillips and Marathon Oil “share similar values and cultures with a focus on operating safely and responsibly to create long-term value for our shareholders”. “As oil and gas companies continue to merge and acquire one another, it raises serious questions about the industry’s commitment to reducing emissions and transitioning to cleaner forms of energy,” said Cassidy DiPaola, communications director for the Make Polluters Pay campaign, which focuses on oil industry accountability. “These deals, worth tens of billions of dollars, suggest that major players are still betting heavily on a future dominated by fossil fuels.”
Lee Tillman, Marathon Oil chairman, president and CEO, hailed a “proud moment” for his company, which he claimed had remained “true to our core values of safety and environmental excellence” while generating “compelling” returns for its shareholders. While oil giants remain under pressure over their climate impact, Exxon shareholders voted to re-elect the firm’s chair Darren Woods, lead director Joseph Hooley, and all 12 directors to the company’s board. The firm had been grappling with a “vote no” campaign, launched in response to a lawsuit Exxon filed against investors pushing to curb the company’s greenhouse gas emissions.
The deal, which requires approval from Marathon Oil stockholders, is expected to close in the fourth quarter. The largest public pension manager in the US, the California Public Employment Retirement System, voted against every board member’s re-election in response to the company’s lawsuit against Arjuna Capital and Follow This, activist investor groups that submitted a shareholder proposal earlier this year to commit Exxon to curb its greenhouse gas emissions. Exxon claims the shareholder proposal seeks to undermine the company’s business.
Chevron, meanwhile, has faced criticism amid the war in Gaza for extracting gas claimed by Israel in the eastern Mediterranean. As shareholders gathered in the Bay Area on Wednesday morning, dozens of protesters blockaded the entrance to the oil company’s headquarters to call for it to divest from operations in Israel and for consumers to boycott the company.
“Chevron is literally fueling the genocide being waged against Palestinians,” said Matt Leonard of the Oil and Gas Action Network.
.
Sign up to Business TodaySign up to Business Today
Get set for the working day – we'll point you to all the business news and analysis you need every morningGet set for the working day – we'll point you to all the business news and analysis you need every morning
after newsletter promotionafter newsletter promotion
Ryan Lance, ConocoPhillips chair and CEO, declared that its deal for Marathon Oil would add “high-quality, low cost of supply inventory” to the firm’s operations. “Importantly”, he added, ConocoPhillips and Marathon Oil “share similar values and cultures with a focus on operating safely and responsibly to create long-term value for our shareholders”.
Lee Tillman, Marathon Oil chair, president and CEO, hailed a “proud moment” for his company, which he claimed had remained “true to our core values of safety and environmental excellence” while generating “compelling” returns for its shareholders.
The deal, which requires approval from Marathon Oil stockholders and clearance by regulators, is expected to close in the fourth quarter.
The recently approved Exxon-Pioneer merger has also faced FTC scrutiny after the regulatory body claimed that Pioneer’s former CEO Scott Sheffield had attempted to privately coordinate with Opec+ officials to keep fuel prices high.
Associated Press contributed reportingAssociated Press contributed reporting