(Energy Analytics Institute, 31.Oct.2024) — ConocoPhillips anticipates closing the planned acquisition of Marathon Oil in the fourth-quarter 2024 (4Q:24). The Houston-based company also expects to exceed an initial synergy guidance of $500mn.
“We’re still on track to close this quarter. In the meantime, integration planning is progressing well,” ConocoPhillips chairman and CEO Ryan Lance said 31 Oct. 2024 during the company’s 3Q:24 webcast with analysts.
“The team has now fully mapped out how we plan to achieve the initial guidance of at least $500 million of synergies, primarily from the overhead and operating cost reduction categories that we have previously talked about. And we now expect to at least double the initial $500 million target, driven by capital optimization,” Lance said.
“We haven’t closed the transaction and haven’t really gotten a complete look under the hood. So I’m guessing or expecting that we’ll have additional OpEx opportunities,” Lance said, responding to a question from an analyst. “We’ll have additional capital opportunities, additional, commercial opportunities as we’re able to dive in post-close and look a little bit closer at the contracts and some of those things that we have going on.”
RELATED STORY: ConocoPhillips Reports 3Q:24 Results, Updates on Marathon
Lower 48 Production
ConocoPhillips reported record Lower 48 production of 1,147,000 barrels of oil equivalent per day (boe/d) in the 3Q:24, up 6% compared to the 3Q:23, ConocoPhillips CFO and EVP Bill Bullock said during the webcast.
“Now by basin, we produced 781,000 in the Permian, 246,000 in the Eagle Ford, and 107,000 in the Bakken,” Bullock said.
In the 4Q:24, ConocoPhillips expects production to be in the range of 1.99 MMb/d-2.03 MMb/d. For the full year 2024, the company expects production in the range of 1.94 MMb/d-1.95 MMb/d, up 10,000 b/d from prior guidance, Bullock said.
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