Marathon Oil (MRO) has officially delisted from the New York Stock Exchange following its acquisition by ConocoPhillips (COP, Financial). The delisting was effective after the completion of the sale, as per the NYSE's announcement.
In May, ConocoPhillips agreed to purchase Marathon Oil for a total enterprise value of $22.5 billion, which includes $5.4 billion in net debt. This all-stock transaction is part of a significant merger and acquisition trend within the U.S. oil and gas sector, allowing ConocoPhillips to gain control over assets in Texas, North Dakota, and the Permian Basin.
The surge in M&A activity in the American oil and gas industry has been ongoing, driven by the low development costs associated with shale oil in the Permian Basin. Initially, major oil companies were hesitant to invest in the Permian Basin due to uncertainties about the long-term production potential of its wells. However, it is now evident that the low-cost, easily drillable shale wells enable oil companies to quickly increase production when needed.
This shift represents a transformative change for large oil companies, which traditionally focused on expensive offshore projects requiring extensive planning over many years. The Permian Basin has since become the most productive oil field in the Western Hemisphere, solidifying the U.S. as a leading oil producer globally.
