Marathon announced the US$1.1 billion acquisition of 70,000 net acres in the Delaware Basin and Northwest Shelf from private equity-backed BC Operating alongside the US$2.5 billion sale of its stake in the Athabasca Oil Sands Project in Canada. The US$1.1 billion purchase price is on par with our base case valuation. Marathon's Delaware Basin entry cost is on the low end of recent deals in the basin, largely due to the fragmented acreage position and large concentration of acreage on the fringe of the play. However, the deal includes considerable upside from downspacing and developing additional prospective intervals, as well as extending the core of the play. A key risk to the valuation is the potential for service cost inflation. Marathon's entry into the Permian elevates the company to a unique standing amongst its peers: the company is now the only operator with material positions in the top four oil plays in the Lower 48.