Deal insight

Marathon acquires 70 000 net Delaware Basin acres in the Permian for US$1.1 billion

Loading current market price

Get this report

Loading current market price

Get this report as part of a subscription

Enquire about Subscriptions

Already have subscription? Sign In

Further information

Pay by Invoice or Credit Card FAQs

Contact us

Contact us about this report

Report summary

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.

What's included

This report contains

  • Document

    Marathon acquires 70 000 net Delaware Basin acres in the Permian for US$1.1 billion

    PDF 409.90 KB

Table of contents

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions

Tables and charts

This report includes 10 images and tables including:

Images

  • Delaware Basin wells since 2015

Tables

  • Executive summary: Table 1
  • Upstream assets: Table 1
  • Upstream assets: Table 2
  • Upstream assets: Table 3
  • Deal analysis: Table 1
  • Deal analysis: Table 2
  • Deal analysis: Table 3
  • Oil & gas pricing and assumptions: Table 1
  • Oil & gas pricing and assumptions: Table 2

Questions about this report?

  • Europe:
    +44 131 243 4699
  • Americas:
    +1 713 470 1900
  • Asia Pacific:
    +61 2 8224 8898