Marathon Oil (NYSE:MRO) shares jumped 1.7% in pre-market trading on Thursday after Bloomberg News reported that Devon Energy (NYSE:DVN) is exploring acquisition targets, with Marathon Oil being one of the potential options.
The report said that the move is part of Devon Energy's efforts to expand its presence and gain scale in the U.S. shale sector.
In addition to Marathon Oil, Devon is also considering other acquisition options, including CrownRock LP, which is a privately held company operating in the Permian Basin.
Oil stocks are on the rise in recent days amid increasing Middle East tensions.
Marathon Oil stock is up 6.6% year-to-date through Wednesday’s close.