Post by
red2000 on Nov 23, 2022 10:41am
Marathon bought Eagle Ford shale assets...
https://www.oilandgas360.com/is-the-eagle-ford-shale-play-getting-a-second-wind/
Over the last year, the Eagle Ford Shale play has seen a lot of renewed interest in investment as well as M&A activity.
Just this November, Marathon Oil Company, (NYSE:MRO) announced in their quarterly earnings call they had acquired the Eagle Ford assets of privately held Ensign Natural Resources.
For a sales price of ~$3.0 bn in a combination of cash and debt instruments, MRO got 67,000 BOEPD of production, 130,000 bolt-on acres, and 600 new derisked drilling locations.
Not a bad deal at ~$23,000 per acre on its face, but what drove the deal in the Eagle Ford as opposed to other shale plays?
Just for the fun of it :
Simple Math Value
Baytex produce 27,700 boe/d . roughly 44% of 67,000 boe/d.
Value : 1,32B$ US = 1,8B$ CDN
Proven and probable reserves of 201mmboe at Eagle Ford for Baytex.
81% Oil 19% gas.
Enough to clean the LT debt, reduce yearly CAPEX of 140M$ + no more interest cost !
Enough to make a SIB for 100M shares at 7$ and more for shareholders...
Sound interesting, especially if Clearwater still fly high !!!
A lot of opportunity for Baytex !!!
Please do your DD, it's your money !!!
Comment by
dllscwbysfn on Nov 23, 2022 10:59am
Math looks wrong. 67,000 -44%=37520