NorthAmOil: Marathon buys Eagle Ford assets from Ensign for $3 billion


Marathon Oil agreed to acquire the shale assets of Eagle Ford from Natural Resources sign for $3 billion cash. Assets – the heart of the game – nearly doubled Marathon’s Eagle Ford position and are adjacent to the existing Marathon Eagle Ford well.

The transaction, which is expected to close by the end of the year, will add 526.1 net square km with a 97% working interest. The acreage is expected to produce 67,000 barrels of oil equivalent per day (boepd) in the fourth quarter of 2022.

Assets being acquired include over 600 undrilled locations, representing an inventory life of over 15 years, and 700 existing wells. Most of the existing wells were drilled before 2015 and offer redevelopment potential, Marathon said.

The acreage is located primarily within the area’s prolific condensate and wet gas phase windows, Marathon said.

In total, the purchase increases the value of Marathon Eagle Ford assets to 1,173.6 km2 and will contribute to optimizing supply chain accessibility and cost control. The services market is tight.

Purchased inventory immediately competes for capital in Marathon’s portfolio, the company said. But the immediate double-digit increase in key financial metrics and shareholder distributions will be in line with Marathon’s capital repayment plans and is expected to increase its base dividend by 11% after the transaction closes.

“This acquisition in the heart of the Eagle Ford satisfies all elements of our rigorous acquisition criteria, uniquely striking the right balance between immediate cash flow growth and future development opportunities,” said the Chairman. – managing director of Marathon, Lee Tilman.

©2022 bne IntelliNews , source Magazine


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