Marathon Oil Corp
MRO: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$57.00 | Rqpb | Yfcdgrpp |
Marathon Oil: Conoco’s Proposed Acquisition Appears To Be a Win for Marathon Shareholders
ConocoPhillips announced an all-stock acquisition of Marathon Oil, which its management expects to close by the end of the year. The transaction would see 0.255 shares of ConocoPhillips exchanged for every 1 share of Marathon Oil, roughly corresponding to an offer of $29 per share of Marathon, or a 22% premium to our fair value. We assign a 100% probability that the deal will close, and therefore raise our Marathon fair value estimate to $29 from $24.