Marathon Oil Corporation announced the completion of its acquisition of Ensign Natural Resources' Eagle Ford assets for a total cash consideration of $3.0 billion. The acquisition was announced earlier, on November 2, 2022.
Lee Tillman, Chairman, President, and CEO, said, "We are pleased to announce the close of our acquisition of Ensign's high-quality assets in the core of the Eagle Ford Shale." He further added, "This acquisition satisfies every element of our disciplined acquisition criteria. It's immediately accretive to our key financial metrics; it will drive higher shareholder distributions consistent with our operating cash flow-driven Return of Capital framework, it’s accretive to our inventory life with attractive locations that immediately compete for capital, and it offers truly compelling industrial logic given our existing Eagle Ford footprint and our track record of execution excellence in the play."
(Source – Cision PR Newswire)
The acquired assets from Ensign Natural Resources (99% operated, 97% working interest) spread across Bee, Live Oak, Karnes, and Dewitt Counties spanning the condensate, dry and wet gas phase windows of the Eagle Ford. Marathon Oil estimates that it can provide maintenance-level production of 67,000 net BOEPD (22,000 net BOPD of oil) from the acquired asset with around about one rig and around 35 to 40 wells to sales each year.
The company's asset value is based on this maintenance-level program and does not account for synergy credits or upside redevelopment opportunities. Acquired tangible assets are eligible for full expensing for income tax optimization purposes, including potential AMT deferral.
About Marathon Oil Corporation
Houston, Texas-based
Marathon Oil Corporation, is an independent natural gas and oil exploration and production (E&P) firm. It focuses on four of the most competitive resource plays in the United States—the Eagle Ford in Texas, the STACK and SCOOP in Oklahoma, the Bakken in North Dakota, and the Permian in New Mexico—and is supported by a globally integrated gas business in Equatorial Guinea.