Shares of (NYSE: COP) tumbled this morning and were trading 3.5% lower as of 11:30 a.m. ET on Wednesday.

With several of its peers on a buying spree in recent months, today's big announcement from ConocoPhillips shouldn't have surprised investors. The oil and gas company is acquiring a peer in a multibillion-dollar deal and expects the acquisition to create long-term value for shareholders.

ConocoPhillips will acquire Marathon Oil (NYSE: MRO) in an all-stock deal valued at $22.5 billion, including $5.4 billion of net debt. Marathon investors will receive 0.2550 shares of ConocoPhillips for each share they hold, representing a 14.7% premium to Marathon's closing price yesterday.

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Source Fool.com