Marathon Oil acquires Eagle Ford assets

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The Marathon Oil Corporation has announced it has entered into a definitive purchase agreement to acquire the Eagle Ford assets of Ensign Natural Resources for total cash consideration of US$3 billion in Houston, USA.

The deal involves:

  • increase in operating cash flow in 2023 by 17% 1 and increase in free cash flow by 15%;
  • anticipate raising the base dividend an additional 11% post-close;
  • increase the distribution power of shareholders by 2023 by approximately 17%;
  • expands Marathon Oil's Eagle Ford position through the addition of 130,000 net ac or over 600 undrilled fields with more than 15 years of life and 700 wells;
  • executing transactions while maintaining low leverage and investment grade balance sheet.

Morgan Stanley is acting as lead financial advisor to Marathon Oil and White & Case LLP is acting as external legal advisor. Evercore and JP Morgan Securities LLC are acting as financial advisors to Ensign Natural Resources and Sidley Austin LLP is acting as legal advisor. The transaction is expected to be closed by the end of 2022.

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