(WO) — Marathon Oil Corporation completed its acquisition of the Eagle Ford assets of Ensign Natural Resources for a total cash consideration of $3 billion after considering closing adjustments. The acquisition was previously announced on Nov. 2.
The assets acquired from Ensign Natural Resources (99% operated, 97% working interest) span Live Oak, Bee, Karnes, and Dewitt Counties across the condensate, wet gas, and dry gas phase windows of the Eagle Ford.
Marathon Oil believes it can deliver maintenance level production from the acquired asset of 67,000 net boed (22,000 net bopd of oil) with approximately one rig and 35 to 40 wells to sales per year. The Company's valuation of the asset was based on this maintenance level program and does not include any synergy credits or upside redevelopment opportunity.
Chairman, president, and CEO Lee Tillman said, "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."
