One-Page Deal Sheet
Marathon Oil Bolt-on Delaware Acreage For $700 MIllion
Not Disclosed Not Disclosed
Announced Date
March 21,2017
Effective Date
March 01,2017
Close Date
June 01,2017
Transaction Type
Property
Enterprise Value (EV)($MM)
700
Asset/Basin:
{"Permian - Delaware Basin"}
TargetZones:
{Wolfcamp,"Bone Spri
Net Acres
21,000
Source Documents:
Location
Calculated Metrics( EV/Category)
Region
Permian - Delaware Basin
Country
United States
State
New Mexico
County
Eddy ,Lea
Play
Production Production
400 Boe/d
Production Mix
70 % Liquid
Calculated Metrics( EV/Category)
$/ Flowing
1,750,000
$/ Acre
33,333
$/Location
1,590,909
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 $55 WTI flat and competes for capital allocation at top of Marathon Oil's portfolio
Combined Permian Acreage Highlights:
| Announced Date | Buyer | Seller | Deal Value($mm) | Location | Category |
|---|---|---|---|---|---|
| Mar-10-2026 |
-  |
- |
Click here | Texas | E&P |
| Sep-02-2025 |
- |
- |
Click here | Texas | E&P |
| May-07-2025 |
- |
- |
Click here | New Mexico | E&P |
| May-03-2025 |
- |
- |
Click here | New Mexico | E&P |
| Nov-13-2024 |
- |
- |
Click here | New Mexico | E&P |
| Date | Deal Headline | Price | $/acre |
|---|---|---|---|
| Jul-30-2024 | Permian Resources Acquires More Delaware Basin Property | - |
- |
| Jul-28-2024 | Vital Energy Acquires Delaware Basin Property From PE-Backed E&P | - |
- |
| Jun-12-2024 | Matador Resources Acquires PE-Backed Ameredev For $1.9 Billion | - |
- |