Marathon Oil ( NYSE: MRO ) said Wednesday it agreed to acquire assets from the Eagle Ford shale in south Texas from Ensign Natural Resources for $3B, nearly doubling its position in the basin near the company's legacy holdings.
Marathon ( MRO ) expects the deal will be "immediately and significantly accretive to key financial metrics," expected to drive a 17% increase to 2023 operating cash flow and a 15% increase to free cash flow, immediately enhaninge shareholder distributions.
The company said the acquisition significantly expands its Eagle Ford position through the addition of 130K net acres with 97% working interest located primarily in the prolific condensate and wet gas phase windows of the play.
Citing "the cash flow accretive nature of the transaction," Marathon ( MRO ) said it expects to raise its quarterly base dividend an additional 11% after the deal closes to $0.10/share.
Marathon ( MRO ) also reported Q3 adjusted earnings and revenues that came in ahead of analyst expectations .
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Marathon Oil to buy Eagle Ford assets from Ensign in $3B deal