Marathon Oil fresh of its purchase agreement to acquire the Eagle Ford assets of Ensign Natural Resources for total cash consideration of $3.0 billion has been approved by the Railroad Commission of Texas (RRC) (Permit#10045) for the addition of 247 miles on new pipeline in the Eagle Ford.
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Marathon Oil Wells Drilled 2023
Texas Pipeline Permits
Detailed list of all Texas RRC pipeline permits
Permit #10045 Map
Marathon Oil Eagle Ford Overview
Existing Eagle Ford Assests
We have been operating in the South Texas Eagle Ford play since 2011. Our acreage is located in the high-return Atascosa, Bee, Dewitt, Gonzales, Karnes, Lavaca, Live Oak and McMullen Counties. Our focus is capital efficient development with a goal of maximizing returns and free cash flow generation.
We operate more than 30 central gathering and treating facilities across the play that support more than 2,800 producing wells. We also own and operate the Sugarloaf gathering system, a 42-mile natural gas pipeline through the heart of our acreage in Karnes and Atascosa Counties.
Marathon Oil Ensign Natural Resources Purchase
The 130,000 net acres (99% operated, 97% working interest) Marathon Oil is acquiring from Ensign Natural Resources span Live Oak, Bee, Karnes, and Dewitt Counties across the condensate, wet gas, and dry gas phase windows of the Eagle Ford. Estimated fourth quarter 2022 oil equivalent production is 67,000 net boed (22,000 net bopd of oil). Marathon Oil believes it can hold fourth quarter production flat with approximately 1 rig and 35 to 40 wells to sales per year. The Company’s valuation of the asset was based off this maintenance level program and does not include any synergy credits or upside redevelopment opportunity. The transaction is expected to close by year-end 2022 with an effective date of Oct. 1, 2022. Acquired tangible assets are eligible for full expensing for the purpose of income tax optimization.
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