Marathon deal to accelerate production
US energy firm Marathon Oil (MRO) plans to acquire Hilcorp?s Eagle Ford Shale (EFS) portfolio for US$3.5bn: The purchase price for the 141,000 net acres equates to US$25,000/acre. This is the highest price paid to date in the EFS, but this valuation should not be used to infer AUT?s net worth; our detailed DCF analysis concludes AUT interest in the Sugarkane field is worth closer to US$110,000/acre. We downgrade our rating to NEUTRAL.
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