ConocoPhillips (COP, Financial) has announced plans to implement layoffs as part of its ongoing efforts to streamline operations and control costs following its $23 billion acquisition of Marathon Oil. A company spokesperson indicated that they are exploring ways to more efficiently utilize existing resources, with layoffs expected to occur in the fourth quarter. The exact scale of the layoffs has not been determined.
ConocoPhillips, headquartered in Houston, Texas, is the world's largest independent exploration and production company based on oil and gas reserves and annual production. As of September 30, 2024, the company had 10,300 employees and assets totaling $97 billion.
In May 2023, ConocoPhillips reached a definitive agreement to acquire Marathon Oil in an all-stock transaction valued at $22.5 billion. This acquisition is expected to enhance their U.S. onshore portfolio by adding over 2 billion barrels of resources, with an average supply cost of less than $30 per barrel. The deal is projected to deliver $500 million in cost and capital synergies in the first full year post-completion.
Additionally, ConocoPhillips is considering selling oil and gas assets in Oklahoma acquired from Marathon Oil, aiming to raise $2 billion through non-core asset sales. Discussions are in early stages, and a transaction is not guaranteed.
Financially, ConocoPhillips reported a revenue of $56.953 billion for the year ending December 31, 2024, a 2.77% decrease year-over-year, with net income dropping 15.62% to $9.245 billion.
