Marathon Oil Inks Deal to Buy Ensign Natural Resources’ Eagle Ford US Assets for $3B

Marathon Oil, a US-based oil and gas firm, has agreed to purchase natural gas assets from private equity-backed Ensign Natural Resources for $3 billion in an all-cash deal expected to be completed by the end of the year.

The acquisition is expected to double the oil and gas firm’s position in the Eagle Ford shale basin in South Texas.

Ensign owns and operates 130,000 net acres in the core of the Eagle Ford with estimated fourth quarter 2022 production of 67,000 barrels of oil equivalent per day, making it one of the premier private operators in the basin.

Marathon Oil said it will gain access to over 600 undrilled locations through the deal. The undrilled locations have an inventory life of more than 15 years. The acquisition also includes 700 existing wells.

Ensign was formed in 2017 with capital provided by private equity firm Warburg Pincus.

The company also secured an equity commitment from the Kayne Private Energy Income Funds, the energy private equity platform of Kayne alternative investment manager Anderson Capital Advisors in 2019.