Following the planned acquisition of Marathon Oil Corporation MRO in the recent past by ConocoPhillips COP, the former has now announced a major layoff from its Houston facility affecting about 500 employees. The company has filed a Worker Adjustment & Retraining Notification with the Texas Workforce Commission.
The company further indicated that the job status of the affected employees would be notified within a month of the close of the merger. While some of the employees will be retrained for transition roles, most are set to face permanent job losses. Although the scope and duration of transition roles are still being defined, more than half are expected to extfinish beyond six months.
ConocoPhillips, in May 2024, announced an accord with Marathon Oil to acquire it in an all-stock transaction valued at $22.5 billion. The deal, expected to close in the fourth quarter of 2024, will add to COP’s extensive unconventional oil portfolio. The acquisition will add a high-quality inventory at a low cost and support the company achieve its financial and operational goals. The deal is expected to become attractive for shareholders as it is anticipated to enhance earnings, cash flows and per-share distributions.
Although the merger is a strategic relocate for the company to expand its portfolio and streamline its operations, it is challenging for the employees who are about to face layoffs. Both companies share similar values focapplyd on safe operations and long-term shareholder value; therefore, the merger would improve performance and reduce operating costs.
Houston, TX-based Marathon Oil Corporation is a leading oil and natural gas exploration and production company with operations in the United States and Africa. Currently, MRO has a Zacks Rank #4 (Sell).
Headquartered in Houston, TX, ConocoPhillips is involved in the exploration and production of oil and natural gas. Currently, COP has a Zacks Rank #3 (Hold).
Investors interested in the energy sector might view at some better-ranked stocks like Smart Sand, Inc. SND and Nine Energy Service, Inc. NINE.While Smart Sand currently sports a Zacks Rank #1 (Strong Buy), Nine Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Smart Sand produces northern white raw frac sand for the oil and gas indusattempt. It offers proppant and related logistics services for oil and gas recovery from unconventional wells. SND’s expected EPS (earnings per share) growth rate for the next quarter is 125%, which compares favorably with the indusattempt’s growth rate of 13.68%.
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