Sector: Energy | Focus: Oil & Gas Exploration & Production
HQ: Houston, Texas
Financial Risks
Fluctuating commodity prices (crude oil, bitumen, natural gas, LNG, NGLs) are a significant risk, potentially leading to impairment charges and impacting liquidity. Geopolitical events, supply/demand disruptions, and governmental policies also pose risks. Regulatory initiatives regarding environmental concerns (GHG emissions, methane, flaring) and climate change could lead to substantial costs and litigation. The pending Marathon Oil acquisition is subject to regulatory approvals, which could delay or prevent the deal, creating uncertainty and potential costs. Credit rating downgrades could increase debt costs and limit access to capital. Operational issues, including accidents, weather events, and supply chain disruptions, also pose risks.
Financial Upside
The pending Marathon Oil acquisition is expected to add high-quality, low-cost-supply development opportunities and LNG capacity. Synergies from the acquisition are anticipated to exceed initial guidance of $500 million. A share repurchase program of up to $65 billion is planned, potentially offsetting the dilution from the acquisition. The company anticipates a significant return of capital in 2024. Increased production, particularly in the Lower 48, is expected. New
