Page 6 - NorthAmOil Week 44 2022

NorthAmOil INVESTMENT NorthAmOil

Marathon to buy Ensign’s

Eagle Ford assets for $3bn

TEXAS MARATHON Oil has agreed to acquire the The inventory purchased immediately com-
Eagle Ford shale assets of Ensign Natural petes for capital in Marathon’s portfolio, the
Resources for $3bn cash. The assets – in the core company said. But the immediate double-digit
of the play – nearly double Marathon’s Eagle accretion to key financial metrics and share- The inventory
Ford position and are adjacent to its existing holder distributions will be consistent with Mar-
wells in the formation. athon’s return of capital plans and is expected to purchased
The transaction, expected to close by the end raise its base dividend by 11% after the transac-
of the year, will add 130,000 net acres (526.1 tion closes. immediately
square km) with a 97% working interest. The “This acquisition in the core of the Eagle
acreage is expected to produce 67,000 barrels Ford satisfies every element of our exacting competes
of oil equivalent per day (boepd) in the fourth acquisition criteria, uniquely striking the right for capital in
quarter of 2022. balance between immediate cash flow accre-
The assets being acquired include more than tion and future development opportunity,” said Marathon’s
600 undrilled locations, representing an inven- Marathon’s chairman, president and CEO, Lee
tory life greater than 15 years, and 700 existing Tillman. portfolio, the
wells. Most of the existing wells were drilled “The transaction … offers compelling indus-
before 2015 and offer redevelopment potential, trial logic by nearly doubling our position in a company said.
said Marathon. basin where we have a tremendous track record
The acreage is located primarily in the pro- of execution excellence,” he said.
lific condensate and wet gas phase windows of “Over the past four years, Ensign has become
the play, said Marathon. one of the largest producers in the Eagle Ford
In total, the purchase will raise Marathon’s basin, operating more high-quality drilling
Eagle Ford assets to 290,000 acres (1,173.6 inventory than nearly all other private opera-
square km) and is expected to contribute to opti- tions in the basin, with strong drilling results,”
mised supply chain accessibility and cost control. said Ensign Natural Resources’ president and
The service market is tight. CEO, Brett Pennington.™

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