Reported 4 months ago
ConocoPhillips is acquiring Marathon Oil in a $17.1 billion all-stock deal, a move that has surprised many in the industry. Tortoise Portfolio Manager Rob Thummel notes that Marathon Oil's disciplined capital approach has led to a high free cash flow yield, which he believes will benefit ConocoPhillips. While Marathon Oil's assets are described as good but not great, the acquisition will provide ConocoPhillips with additional cash to allocate towards future investments or shareholder returns. Regulatory scrutiny is expected for the deal, but it is seen as less high-profile compared to other recent transactions in the industry.
Source: YAHOO