HOUSTON, Dec. 27, 2022 /PRNewswire/ -- Marathon Oil
Corporation (NYSE: MRO) today announced the completion of its
acquisition of the Eagle Ford assets of Ensign Natural Resources
for a total cash consideration of $3.0
billion after taking into account closing adjustments. The
acquisition was previously announced on November 2, 2022.
"We are pleased to announce the close of our acquisition of
Ensign's high-quality assets in the core of the Eagle Ford Shale,"
said chairman, president, and CEO Lee
Tillman. "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."
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 net boepd (22 net bopd of oil) with
approximately 1 rig and 35 to 40 wells to sales per year. The
Company's valuation of the asset was based off this maintenance
level program and does not include any synergy credits or upside
redevelopment opportunity. Acquired tangible assets are eligible
for full expensing for the purpose of income tax optimization,
including potential deferral of AMT.
About Marathon Oil
Marathon Oil (NYSE: MRO) is an
independent oil and gas exploration and production (E&P)
company focused on four of the most competitive resource plays in
the U.S. - Eagle Ford, Texas, the
Bakken, North Dakota, the STACK
and SCOOP in Oklahoma and the
Permian in New Mexico,
complemented by a world-class integrated gas business in
Equatorial Guinea.
Our Framework for Success is founded in a strong balance sheet,
ESG excellence and the competitive advantages of our multi-basin
portfolio. For more information, please visit
www.marathonoil.com
Media Relations Contact:
Karina Brooks: 713-296-2191
Investor Relations Contacts:
Guy Baber: 713 296-1892
John Reid: 713 296-4380
Forward-looking Statements
This release
contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements, other than statements of
historical fact, including without limitation statements regarding
the benefits of the Ensign acquisition (including accretion to key
financial metrics and impacts to the Company's inventory and
shareholder distributions), production levels, rig count, wells to
sales and other statements regarding management's plans and
objectives for future operations, are forward-looking statements.
Words such as "anticipate," "believe," "continue," "could,"
"estimate," "expect," "forecast," "future," "guidance," "intend,"
"may," "outlook," "plan," "positioned," "project," "seek,"
"should," "target," "will," "would," or similar words may be used
to identify forward-looking statements; however, the absence of
these words does not mean that the statements are not
forward-looking. While the Company believes its assumptions
concerning future events are reasonable, a number of factors could
cause actual results to differ materially from those projected,
including, but not limited to: the ultimate amount of cash
consideration to be paid in the transaction due to closing
adjustments or otherwise; the risk that the Ensign assets do not
perform consistent with our expectations, including with respect to
future production or drilling inventory; conditions in the oil and
gas industry, including supply/demand levels for crude oil and
condensate, NGLs and natural gas and the resulting impact on price;
changes in expected reserve or production levels; changes in
political or economic conditions in the U.S. and Equatorial
Guinea, including changes in foreign currency exchange rates,
interest rates, inflation rates and global and domestic market
conditions; actions taken by the members of the Organization of the
Petroleum Exporting Countries (OPEC) and Russia affecting
the production and pricing of crude oil and other global and
domestic political, economic or diplomatic developments; capital
available for exploration and development; risks related to the
Company's hedging activities; voluntary or involuntary
curtailments, delays or cancellations of certain drilling
activities; well production timing; liabilities or corrective
actions resulting from litigation, other proceedings and
investigations or alleged violations of law or permits; drilling
and operating risks; lack of, or disruption in, access to storage
capacity, pipelines or other transportation methods; availability
of drilling rigs, materials and labor, including the costs
associated therewith; difficulty in obtaining necessary approvals
and permits; the availability, cost, terms and timing of issuance
or execution of, competition for, and challenges to, mineral
licenses and leases and governmental and other permits and
rights-of-way, and our ability to retain mineral licenses and
leases; non-performance by third parties of contractual or legal
obligations, including due to bankruptcy; unexpected events that
may impact distributions from our equity method investees; changes
in our credit ratings; hazards such as weather conditions, a health
pandemic (including COVID-19), acts of war or terrorist acts and
the government or military response thereto; security threats,
including cybersecurity threats and disruptions to our business and
operations from breaches of our information technology systems, or
breaches of the information technology systems, facilities and
infrastructure of third parties with which we transact business;
changes in safety, health, environmental, tax and other
regulations, requirements or initiatives, including initiatives
addressing the impact of global climate change, air emissions, or
water management; impacts of the Inflation Reduction Act of 2022;
other geological, operating and economic considerations; and the
risk factors, forward-looking statements and challenges and
uncertainties described in the Company's 2021 Annual Report on Form
10-K, Quarterly Reports on Form 10-Q and other public filings and
press releases, available at https://ir.marathonoil.com/.
Except as required by law, the Company undertakes no obligation to
revise or update any forward-looking statements as a result of new
information, future events or otherwise.
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SOURCE Marathon Oil Corporation