The deal will save ConocoPhillips $500 million in costs within the first year after the transaction closes|Fsdbb3|CC BY-SA 4.0

ConocoPhillips agreed to buy Marathon Oil for $17 billion, adding over 2 billion barrels of reserves to its portfolio.

Expected to close in the fourth quarter of 2024, the deal will save Conoco $500 million in costs within the first year after the transaction closes. The oil and gas producer plans to increase share buybacks to $7 billion next year.

The acquisition follows Exxon Mobil’s $60 billion purchase of Pioneer Natural Resources and Chevron’s $53 billion merger with Hess.

The acquisition will add to Conoco’s shale ownership.