Deal Insight

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

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18 April 2016

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.

Table of contents

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

Tables and charts

This report includes 8 images and tables including:

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

What's included

This report contains:

  • Document

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

    PDF 5.18 MB