ConocoPhillips Makes An Intelligent Move With Marathon Oil

Summary

• ConocoPhillips announced the acquisition of Marathon Oil to create a combined company with a potential valuation of over $150 billion.
• The transaction is expected to be immediately accretive to FCF per share, with $500 million in identified savings.
• The combined company will have strong shale assets and a dividend yield of over 3.3%, expected to increase by 34% by year-end.
• The Retirement Forum members get exclusive access to our real-world portfolio. See all our investments here »

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ConocoPhillips (NYSE: NYSE:COP) is a more than $130 billion company that just announced an acquisition of Marathon Oil (NYSE: NYSE:MRO) to build a combined company with a potential valuation of more than $150 billion. This new megacorporation

Analyst’s Disclosure: I/we have a beneficial long position in the shares of COP, MRO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.