Tuesday, March 21, 2017

Marathon Pays $33,000 / Permian Acre In New Deal -- March 21, 2017

See this post. Now, Marathon has bought another 21,000 acres of Permian basin for $700 million cash. Data points:
  • Marathon now has 90,000 net cares in the Permian; 70,000 concentrated in the Northern Delaware (compare with CLR and Whiting, each with around a million acres in the Bakken at one time)
  • latest acreage: largely in the Northern Delaware basin of New Mexico
  • bought from Black Mountain Oil & Gas and other private sellers
Back-of-the-envelope: $700 million / 21,000 = $33,000/acre.

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