The acquisition worth $22.5 billion is completed, and Marathon Petroleum will delist on Friday

According to Zhitong Finance APP, Marathon Petroleum (MRO.US) will be delisted from the New York Stock Exchange on Friday after completing its sale to ConocoPhillips (COP.US).

According to the delisting notice from the New York Stock Exchange on Thursday, the effective date of Marathon Petroleum's delisting is Friday.

ConocoPhillips agreed to acquire Marathon Petroleum for an enterprise value of $22.5 billion at the end of May, which includes $5.4 billion in net debt.

This all-stock transaction is part of a wave of mergers and acquisitions in the major oil and gas industry in the United States, which will give ConocoPhillips control over assets in Texas, North Dakota, and the Permian Basin. Mergers and acquisitions in the U.S. oil and gas industry have been busy, with the wave of mergers that began in 2023 continuing into this year.

The hot mergers and acquisitions are due to the low development costs of shale oil in the Permian Basin. Major oil companies initially avoided the Permian Basin because they were skeptical about whether the wells there could produce enough crude oil over a long enough period to generate substantial profits. It is now clear that low-cost, easily drillable shale wells allow oil companies to quickly ramp up production when needed. This marks a revolutionary change for major oil companies away from large offshore projects, which typically cost billions of dollars and require a decade of planning. The Permian Basin later became the most productive oil field in the Western Hemisphere, making the United States the largest oil-producing country in the world