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  • Data analysis Marathon Acquires Permian Acreage for $1.1 Billion

    Marathon Oil has signed a definitive agreement to acquire approximately 70,000 net surface acres in the Permian basin from BC Operating and other entities for $1.1 billion in cash. The acquisition includes 51,500 acres in the Northern Delaware basin of New Mexico, and current production of approximately 5...

    Marathon Acquires Permian Acreage for $1.1 BillionData analysis
    Headlines, Global Deals

    Marathon Oil has signed a definitive agreement to acquire approximately 70,000 net surface acres in the Permian basin from BC Operating and other entities for $1.1 billion in cash. The acquisition includes 51,500 acres in the Northern Delaware basin of New Mexico, and current production of approximately 5 MBOE/d.

    Permian Basin Acquisition Highlights:

    • Up to 10 target benches within approximately 5,000 feet of stacked pay; base case assumes up to 6 target benches
    • 70,000 total net acres with 51,500 net acres in the Northern Delaware basin
    • Total implied acreage cost of approximately $13,900/Acre, adjusting for existing production
    • High quality Northern Delaware inventory produces greater than 90% before-tax IRRs at $55 WTI flat and competes for capital allocation at top of Marathon Oil's portfolio
    • Primary targets in world-class Wolfcamp and Bone Spring
    • Approximately 350 MMBOE of risked resource at a cost of about $2.80 per BOE with 630 gross Company operated locations
    • Approximately 900 MMBOE of total resource potential with 1,700 total upside locations from both tighter density and secondary targets
    • Further growth opportunities from acquired acreage in Northwest Shelf as well as further bolt-on acquisitions
    • One operated rig drilling with plans to add a second rig mid-year; one rig required to hold term lease

    The BC acquisition is expected to close in Q2-2017.

    View Marathon press release

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