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7 Pages

Marathon Oil sells Big Horn and Wind River assets for US$870 million

Marathon Oil sells Big Horn and Wind River assets for US$870 million

Report summary

Situated in Wyoming, the assets include waterflood and EOR properties in the mature Big Horn and Wind River Basins, along with the 570-mile Red Butte pipeline. The Wyoming sale was announced alongside an additional US$80 million divestment, to undisclosed buyers, that included Marathon's 10% stake in the Anadarko-operated Shenandoah discovery (deepwater GoM), operated gas assets in the Piceance Basin, and undeveloped acreage in West Texas, bringing total divestments to US$950 million. The divestments come as no surprise, with Marathon taking strong action to shore up its balance sheet. The onshore US assets were viewed as non-core in comparison to key tight oil plays in the Eagle Ford, Bakken and Mid-Con, while the deepwater position is being steadily sold off. We think continued high grading is likely.

What's included?

This report includes 1 file(s)

  • Marathon Oil sells Big Horn and Wind River assets for US$870 million PDF - 5.18 MB 7 Pages, 6 Tables, 2 Figures


The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

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

In this report there are 8 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Marathon and Merit Energy wells in the Big Horn and Wind River Basins
    • Upstream assets: Table 1
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
  • Upsides and risks
    • Lower 48 operating cost distribution
  • Strategic rationale
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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