Marathon Oil Bolt-on Delaware Acreage For $700 MIllion
Multiples
Transaction Details:
Marathon Oil is acquiring 21,000 in the Northern Delaware (New Mexico) portion of the Permian Basin from Natural Gas Partners-backed Black Mountain Oil & Gas for $700 million in cash. The asset is currently producing approximately 400 boe/d. The company has boasted its position to 91,000 net acres, which includes 71,500 in the Northern Delaware. The company plans to add 2-rigs mid-year.
Black Mountain Acreage Highlights:
- Up to 10 target benches within approximately 5,000 feet of stacked pay; base case assumes up to 6 target benches
- Approximately 21,000 net acres with 20,000 net in the Northern Delaware basin; primary targets in world-class Wolfcamp and Bone Spring;
- roughly 400 boed of current production
Approximately 230 million BOE of risked resource with 440 gross Company operated locations - Approximately 550 million BOE of total resource potential with 950 total gross Company operated locations
High quality Northern Delaware inventory produces greater than 90% before-tax IRRs at $55 WTI flat and competes for capital allocation at top of Marathon Oil's portfolio
Combined Permian Acreage Highlights:
Permian - Delaware Basin Deal Activity In Last 12 Months
Announced Date | Buyer | Seller | Deal Value($mm) | Location | Category |
---|---|---|---|---|---|
Dec-15-2023 | - | - | Click here | Texas | E&P |
Sep-13-2023 | - | - | Click here | Texas | E&P |
Jun-20-2023 | - | - | Click here | New Mexico | E&P |
May-03-2023 | - | - | Click here | Texas | E&P |
Jan-24-2023 | - | - | Click here | New Mexico | E&P |
Date | Deal Headline | Price | $/acre |
---|---|---|---|
Jan-04-2024 | APA Corp to Acquire Permian Pure Player- Callon In All Stock Deal | - | - |
Nov-21-2023 | Northern Oil Acquires Additional Permian Working Interest; Enters Utica | - | - |
Aug-21-2023 | Permian Resources Acquires Earthstone Energy | - | - |
Other Marathon Oil Corp Deals
Announced Date | Buyer | Seller | Deal Value($mm) | Location | Category |
---|---|---|---|---|---|
Nov-03-2022 | - | - | Click here | Texas | E&P |
Nov-07-2019 | - | - | Click here | Texas | E&P |
Feb-25-2019 | - | - | Click here | E&P | |
Mar-02-2018 | - | - | Click here | E&P | |
Mar-09-2017 | - | - | Click here | Alberta | E&P |