Energy: Shareholders approve Hess sale, Conoco to buy Marathon

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Energy: Shareholders approve Hess sale, Conoco to buy Marathon

The energy sector is witnessing several high-stakes deals, with two major transactions reaching their final stages. Shareholders of Hess (HES) have voted to approve the company’s $53 billion sale to Chevron (CVX). ConocoPhillips (COP) is also poised to acquire Marathon Oil (MRO) in a $17.1 billion all-stock deal.

Yahoo Finance’s Ines Ferré breaks down the details of each acquisition within the sector.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Angel Smith

Video Transcript

Two major deals in the energy space has shareholders officially voting in favor of the $53 billion deal to sell the company to Chevron.

And Conoco Phillips has agreed to acquire marathon oil in a $17.1 billion all stock deal.

Yahoo finances and es Farre has the breakdown on the sector.

Hey, in, hey Brad.

Yes.

So first let’s start out with the shareholders which voted to approve the buy out by Chevron that was highly anticipated.

There are still a couple of steps though to this deal in order for this deal to officially close.

First of all, the FTC regulatory approval has to go through and Chevron is expecting that to go through.

They have put out a statement.

Yes, there spoke spokesperson saying that they’re anticipating that FTC regulatory process to move through.

In conclusion in the coming weeks.

They also are anticipating that their preemption rights will be affirmed in arbitration.

This has to do with Exxon Mobil which Exxonmobil has taken these companies uh into arbitration because Exxonmobil is saying that they have the right of first refusal to that stake in Guyana, the very value crown jewel that Hess has the reason.

The big main reason as to why Chevron wants to acquire hes because of that stake in Guyana.

And that would be something that is in the coming months going to be happening with this arbitration.

And Chevron saying that they’re looking forward to completing the transaction and welcoming hes to their company still, the arbitration is pending here.

As far as the second deal is concerned, this is Marathon oil and Conocophillips.

Conocophillips would be acquiring Marathon oil for $17.1 billion in an all stock deal.

A bit more than that if you include debt.

This would also broaden Conic’s footprint domestically in the Texas region in the North Dakota region.

Now city analysts came out with their take on this.

They’re saying that this has been is not based so much on inventory and growth the way we’ve seen with this other consolidation that has taken on in the space with these bigger players.

But this looks more about optimization and also lowering costs.

I spoke to other analyst this morning saying that this deal would be unlikely to face anti trust issues concerns because these companies together would still be smaller than the big major oil companies that we’ve been talking about in recent months.

They’re both considered independent oil companies and without downstream assets without refining distribution and retail guys.

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