ConocoPhillips to buy Marathon Oil for $17.1bn

Market: Crude oil, Natural gas, Oil products
29/05/24

ConocoPhillips will buy fellow US oil and gas producer Marathon Oil in an all-stock deal worth $17.1bn.

The deal, which will also include ConocoPhillips taking on $5.4bn in existing Marathon debt, adds more than 2bn bls of reserves with cost of supply of less than $30/bl, the company said.

"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 US unconventional position," said Ryan Lance, ConocoPhillips chairman and chief executive officer.

ConocoPhillips said today it also plans to increase its dividend by 34pc to 78¢/share starting in the fourth quarter. After the Marathon deal closes ConocoPhillips will repurchase over $7bn in shares in the next year, up from the current $5bn rate, with a goal of repurchasing over $20bn in shares in the first three years.

The transaction is expected to close in the fourth quarter, subject to regulatory and shareholder approvals, ConocoPhillips said.

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

11/09/26

Saudi East-West oil pipeline shut after attack: Update

Updates with changes throughout New York, 11 September (Argus) — State-owned Saudi Aramco has shut down its 7mn b/d East-West crude pipeline, Saudi Arabia's primary conduit for exporting crude since the start of the US-Iran war, following drone attacks originating in Iraq, Riyadh said on Friday. The pipeline, which moves crude from Saudi fields near the Mideast Gulf to the Red Sea port of Yanbu, came under multiple attacks on Thursday morning, according to the Saudi energy ministry. Saudi Aramco shut down the pipeline as a precautionary measure, while several people have been injured by the attacks. The attacks likely targeted pumping stations that facilitate the flow of oil in the pipeline. Riyadh did not provide details of damage or a timeline for restoring the pipeline's operations. The Saudi foreign ministry said the attacks originated in Iraq. Riyadh in July had blamed Iran-backed groups in Iraq for drone attacks on oil fields in its eastern and central regions. Saudi Arabia then carried out retaliatory air strikes against Iran-affiliated Iraqi militia installations in Iraq. But Riyadh on Friday clarified that — at Baghdad's request — it is not planning retaliatory attacks on Iraqi soil. Iraq's central government confirmed that the attack originated in Iraq, condemned the unnamed perpetrators and vowed to investigate the attack and to take "legal measures against anyone proven to be involved". A September 2019 drone attack on Saudi Aramco's Abqaiq processing facility also originated in Iraq. In the wake of the US-Israeli attack on Iran on 28 February and the de facto closure of the strait of Hormuz by Iran, Saudi Arabia quickly diverted crude through the East-West pipeline. While the line could not replace all the volumes that moved through the strait before the war, it has helped relieve pressure on global crude markets. A pumping station at the terminus of the pipeline on the Red Sea coast came under direct Iranian missile attack in April, reducing the throughput capacity. The Saudis repaired that damage. But since mid-July, Houthi militants in Yemen have conducted their own attacks. Houthis captured the Red Sea port city of Mocha on Friday , bringing the group closer to the Bab el-Mandeb strait, a key outlet for Saudi oil exports to Asia. By Charlotte Bawol and Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Find out more

News

Saudi East-West oil pipeline shut following attacks

11/09/26

News

11/09/26

Saudi East-West oil pipeline shut following attacks

New York, 11 September (Argus) — Saudi Arabia's 7mn b/d East-West crude pipeline has been shut down following attacks by Yemen's Houthis, stopping flows on what has been a key conduit for oil out of the Mideast Gulf region since the start of the US-Iran war. The pipeline, which moves crude from Saudi fields near the Mideast Gulf to the Red Sea port of Yanbu, was subject to multiple attacks on the morning of 10 September, according to the Saudi energy ministry. The pipeline was shut down as a precautionary measure, while several people have been injured by the attacks. Emergency and technical teams are responding to the attacks, according to the ministry. Following the late February breakout of war between the US and Iran and the defacto closure of the strait of Hormuz by Iran, Saudi Arabia quickly diverted crude through the East-West pipeline. While the line could not replace all the volumes that moved through the strait before the war, it helped relieve pressure on global crude markets. The viability of crude flows throug the pipeline and Yanbu has been undermined by a series of Houthi attacks on Saudi facilities since mid-July. Houthis captured the Red Sea port city of Mocha on Friday , bringing the group closer to the Bab el-Mandeb strait, a key outlet for Saudi oil exports to Asia. By Charlotte Bawol Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

News

Hormuz vessel traffic at 10 Thursday: Windward

11/09/26

News

11/09/26

Hormuz vessel traffic at 10 Thursday: Windward

New York, 11 September (Argus) — Vessel traffic through the strait of Hormuz fell to a one-week low on Thursday while Iran continues to crack down on shipping in the southern traffic lane. Vessel traffic through the strait of Hormuz on Thursday fell to 10 crossings, with four inbound transits on the southern US-assisted lane and two on the northern Iranian-controlled lane, according to data from vessel tracking firm Windward. The four remaining trips were outbound, with all but one taking place on the southern lane, Windward data shows. This was the lowest daily traffic volume through the strait since 4 September, and was near 7.5pc of levels prior to the joint US-Israeli attacks on Iran that prompted the "closure" of the strait of Hormuz. Iran has stepped up attacks on vessels in the southern lane, including two attacks on Thursday reported by the UK Maritime Trade Organisation. By Charlotte Bawol Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

News

Houthis capture key city close to Bab el-Mandeb: Update

11/09/26

News

11/09/26

Houthis capture key city close to Bab el-Mandeb: Update

adds Houthi statement Antalya, 11 September (Argus) — Yemen's Iran-backed Houthi rebels have captured the Red Sea port city of Mocha, UN special envoy for Yemen Hans Grundberg said. The advance brings the group closer to the Bab el-Mandeb strait, a key outlet for Saudi oil exports to Asia since the US-Iran war disrupted shipments through the strait of Hormuz. The capture of Mocha gives the Houthis "a direct presence on the approaches to one of the world's most vital straits", Grundberg said. "This development is raising serious concerns within the international community about the threat to freedom of navigation." Mocha lies around 75km north of Bab el-Mandeb, the chokepoint linking the Red Sea and Gulf of Aden. The offensive is part of Yemen's civil war, which re-erupted in July and pits the Houthis against Yemen's Saudi-backed government. Saudi Arabia has increasingly relied on its Red Sea export route since the US-Iran conflict disrupted shipping through the strait of Hormuz. Crude transported across the kingdom through the 7mn b/d East-West pipeline can load at Yanbu on the Red Sea coast without passing through Hormuz, although tankers heading from there to Asia must still transit Bab el-Mandeb. The Houthis have sought to disrupt the Bab el-Mandeb route by attacking Saudi oil tankers and targeting infrastructure including the East-West pipeline, facilities at Yanbu and the 400,000 b/d Jizan refinery. As a result, Saudi Red Sea oil exports through Bab el-Mandeb fell from almost 4mn b/d in June to just over 200,000 b/d in August, according to Kpler. Saudi Arabia is now seeking to send more Red Sea crude north through the Suez Canal and Egypt's Sumed pipeline, as well as through the strait of Hormuz. The scope for an immediate further decline in Saudi flows is limited, as shipments through Bab el-Mandeb have already fallen sharply before the capture of Mocha. The broader impact will depend on how other shipowners respond. The Houthis' military spokesman Yahya Saree has since issued a statement saying that the group had expelled Saudi-backed forces from six districts in the governorates of Taiz and Hodeidah, which are now "secure and stable." The port city of Mocha is part of Taiz. The Houthis have been pushing south along Yemen's western coast in recent days and appear to be seeking control of Dhubab and Perim island, which sits at the narrowest point of the Bab el-Mandeb strait. Analysts said the capture of territory around the chokepoint would allow the Houthis to disrupt shipping more easily and help Iran put further pressure on international shipping as part of the US-Iran war. But the Houthis have been saying their offensive is not aimed at constraining international shipping, and that maritime navigation remains safe for all vessels, except Saudi ships. "Maritime navigation remains safe for all companies ꟷ with the exception of Saudi vessels, which have previously been banned," Saree said, reaffirming its policy of "blockade for blockade" until what he described as the aggression against Yemen ends, and restrictions on the country are lifted. Mahdi al-Mashat, the head of the Houthis' executive body, the Supreme Political Council, said separately that "there is no source of danger to navigation security except from the reckless actions of the Saudi enemy." The group previously caused major disruption to shipping through the Bab el-Mandeb strait between 2023 and 2025 in solidarity with Palestinians during the Gaza war. By Aydin Calik and Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

News

US inflation holds steady, energy rises in August

11/09/26

News

11/09/26

US inflation holds steady, energy rises in August

Houston, 11 September (Argus) — US headline inflation held steady in August while energy prices ticked up, maintaining pressure on the Federal Reserve for a likely rate hike next week as it battles to stem inflationary pressures uncorked by the Mideast Gulf war. The consumer price index (CPI) rose at an annual 3.4pc pace in August, according to Labor Department data released today. That followed a 3.4pc pace in July that was down from 3.5pc in June. Core inflation, which strips out volatile food and energy, eased to a 2.4pc annual pace, compared with a 2.5pc rate in July. "A September rate hike is now very likely, but a tightening cycle looks unwarranted," Pantheon Macroeconomics said in a note after the report. "We think the most likely outcome is that September's rate hike will be a one-time tightening." Prior to the report, the CME FedWatch tool showed a greater than 70pc probability Federal Reserve policymakers will raise the target rate by a quarter point at its meeting on 16 September. The Fed has kept its target rate unchanged through five meetings this year amid mounting tariff and Gulf war uncertainty after lowering it three times late last year. The energy index rose by an annual 16.3pc in August, compared with 14.7pc in July. Energy commodities rose by 28pc in August compared with 24.7pc in July. Gasoline rose by 27.4pc on the year, up from 24.6pc the prior month. Fuel oil rose by 52pc following a 39.1pc gain in July. Piped gas services rose by 4.4pc on the year, following 4.3pc in July. The food index rose at an annual 2.7pc in August following a 3pc pace in July. Shelter rose at a 3pc pace, slowing from 3.2pc in July. Services less energy services, considered a core reading of service prices, was unchanged at a 3pc pace. New vehicle prices rose by 0.6pc in August on the year, compared with a 0.5pc rate in July, while used vehicles prices fell by 2.4pc in August compared with a 1.9pc decline in July. Medical care services rose at a 2.5pc annual rate in August compared with a 2.7pc pace in July. Transportation services rose by 2.4pc in August, slowing from 2.9pc. Airline fares rose by an annual 23pc in August, compared with 25.5pc the prior month. On a monthly basis, CPI rose by 0.4pc in August, after creeping up by 0.1pc in July, while the core index rose by 0.3pc for the month after a 0.2pc gain the month prior. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more