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Marathon Oil Bolt-on Delaware Acreage For $700 MIllion

Announced Date
March 21,2017
Deal Value $
700,000,000
Net Acres
21,000
Location Count
440
Transaction Type
Property
Buyer
Seller
Price Per BOE $
40,000
Source Documents:
   Source Link
Location
Region
Permian - Delaware Basin

Country
United States

State
New Mexico

County
Eddy ,Lea

Play


Production
Production
400 Boe/d

Production Mix
70 % Liquid


Multiples
Production ($/boe/d)
1,750,000

$Price/Net Acre
33,333

$Price/Adj. Net Acre
32,571

$/Location
1,554,545

Adj. $/acre is based on production @40,000 Boe/d

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



Other Permian - Delaware Basin Region's Deals



Announced DateBuyerSellerDeal Value($mm)LocationCategory
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

Price History



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 DateBuyerSellerDeal Value($mm)LocationCategory
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