ConocoPhillips to Buy Marathon Oil

ConocoPhillips , to Buy Marathon Oil.

ConocoPhillips , to Buy Marathon Oil.

On May 29, ConocoPhillips agreed to acquire Marathon Oil in an all-stock deal valued at $17 billion, CNBC reports.

The agreement will provide ConocoPhillips with an additional 2 billion barrels of U.S. inventory.

This acquisition of Marathon Oil further deepens our portfolio and fits within our financial framework, adding high-quality, low cost of supply inventory adjacent to our leading U.S. unconventional position.

, ConocoPhillips CEO Ryan Lance, via statement.

ConocoPhillips' market cap will exceed $150 billion due to the deal.

As an independent producer, ConocoPhillips will now be on the same scale as some big-time players, CNBC reports.

For example, the company will become larger than BP but still be smaller than Shell, according to Andrew Dittmar, M&A analyst at Enverus.

For example, the company will become larger than BP but still be smaller than Shell, according to Andrew Dittmar, M&A analyst at Enverus.

While the deal is likely to face FTC scrutiny, the fact that Marathon's assets encompass multiple basins supports regulatory approval, Dittmar said.

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Once the deal is complete, ConocoPhillips anticipates share buybacks worth $7 billion within the first year.

After three years, that number is expected to grow to $20 billion.

ConocoPhillips' larger rivals, Exxon Mobil and Chevron, announced blockbuster deals as well last year.

ConocoPhillips' larger rivals, Exxon Mobil and Chevron, announced blockbuster deals as well last year