Marathon Oil receives FTC request in ConocoPhillips merger By Investing.com

Marathon Oil Corporation (NYSE:) and ConocoPhillips (NYSE:NYSE:) have received a request for additional information from the Federal Trade Commission (FTC) concerning their planned merger, according to a filing with the Securities and Exchange Commission (SEC) on Friday.

The request, issued on Thursday, extends the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. This period will now continue until 30 days after both companies have complied with the FTC’s request, unless the FTC concludes its review earlier.

This development follows the initial announcement of the merger agreement on May 28, 2024, where ConocoPhillips agreed to acquire Marathon Oil, with the latter becoming a wholly owned subsidiary of ConocoPhillips.

The completion of the merger is contingent upon various conditions, including Marathon Oil shareholder approval and the expiration or termination of the waiting period under antitrust laws. Despite this regulatory hurdle, both companies expect the transaction to close in the fourth quarter of 2024.

The merger is part of a strategic effort to combine the strengths of both oil companies to enhance operational efficiencies and shareholder value. The combined entity is expected to capitalize on synergies and create a more competitive global energy player.

This news is based on the latest SEC filing and is not an endorsement of any company’s claims or business strategies.

In other recent news, Marathon Oil Corp has agreed to a settlement of $64.5 million with the Environmental Protection Agency (EPA) and the Department of Justice for alleged Clean Air Act violations. The company plans to undertake mitigation projects and implement specific injunctive relief measures, with the estimated cost of the relief approximately $177 million.

A considerable portion of this cost has already been accounted for in Marathon Oil’s 2024 capital budget. The company has also initiated early compliance with the injunctive requirements and expects to complete the necessary work by 2025.

This settlement comes amidst Marathon’s ongoing acquisition by ConocoPhillips, a deal valued at $22.5 billion. In relation to the acquisition, Mizuho Securities has increased its price target for Marathon Oil shares to $34.00, maintaining a neutral rating. However, RBC Capital has maintained its outperform rating on Marathon Oil shares with a steady price target of $33.00.

InvestingPro Insights

As Marathon Oil Corporation (NYSE:MRO) navigates the regulatory process of its merger with ConocoPhillips, investors are considering the financial health and performance metrics of the company. According to real-time data from InvestingPro, Marathon Oil boasts a solid market capitalization of $16.01 billion and an attractive P/E ratio of 11.23 based on the last twelve months as of Q1 2024. Additionally, the company has a strong gross profit margin of 75.91%, reflecting efficient operations and cost management.

InvestingPro Tips highlight that Marathon Oil has been proactive in returning value to shareholders, with a notable dividend growth of 10.0% and a consistent dividend yield of 1.54%. The company’s management has also shown confidence in its stock through aggressive share buybacks. For those interested in exploring further, there are additional InvestingPro Tips available, offering insights such as the company’s stock price stability and predictions for profitability this year. To discover more, visit https://www.investing.com/pro/MRO and consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

With 9 additional tips listed on InvestingPro, investors can gain a comprehensive understanding of Marathon Oil’s financial trajectory and strategic moves in the context of the impending merger.

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