ConocoPhillips is in advanced negotiations to acquire Marathon Oil, the Financial Times reported citing undisclosed sources.   

The all-stock bid would value Marathon Oil at somewhat more than its market capitalisation of roughly $15bn, the sources told the publication.    

The transaction is on the brink of completion, although there remains a possibility that the talks could fail or a competing offer could emerge. 

ConocoPhillips’ potential acquisition is part of a trend of large-scale mergers and acquisitions reshaping the US energy sector.  

In the last few months, significant deals have been made as major oil companies consolidate to control the nation’s prime shale resources.  

This follows substantial acquisitions by ExxonMobil and Chevron in October 2023, valued at $60bn and $53bn, respectively, which set off a flurry of activity in the sector. 

ConocoPhillips, with a market capitalisation of around $139bn, has been contending with Devon Energy for several weeks to secure Marathon Oil, according to sources familiar with the discussions.  

Devon Energy had engaged in early-stage discussions with Marathon Oil, reported Bloomberg in October 2023. 

No comments have been provided by ConocoPhillips or Marathon on the potential merger, the FT said. 

Earlier in 2024, ConocoPhillips was outbid by Diamondback Energy in acquiring Endeavor Energy Resources for $26bn, a coveted independent producer in the Permian Basin.  

If successful, the acquisition of Marathon would be ConocoPhillips' largest since its $10bn purchase of Concho Resources in 2020, capitalising on the downturn caused by the Covid-19 pandemic.  

Marathon Oil's assets include operations in North Dakota's Bakken oilfield, Oklahoma, Texas, and the New Mexico side of the Permian Basin, as well as an integrated gas business in Equatorial Guinea.  

The company's history dates back to 1887 and it underwent a transformation in 2011 when it spun off its refining arm, Marathon Petroleum.