Marathon Oil Expansion in South Texas Shale

Marathon Oil is announcing it will spend $3.5 billion to expand its oil and gas holdings in the Eagle Ford Shale formation in south Texas. Andrew Schneider has the story.

Eagle Ford ShaleThe deal with Houston-based Hilcorp Resources, a partnership that includes buyout firm KKR, would add 141 thousand net acres to Marathon’s holdings in Eagle Ford. That will nearly double the firm’s existing stake, much of that acquired in the past year.

Marathon president and CEO Clarence Cazalot.

“We see the Eagle Ford as perhaps the premier resource play in the United States, in large part because it is a primarily liquids-prone play with very strong profitability.”

The purchase cuts across Atascosa, Karnes, Gonzales and DeWitt Counties in south Texas.

Cazalot expects Marathon’s combined Eagle Ford holdings to produce the equivalent of 100,000 barrels of oil per day by 2016.


Andrew Schneider

Andrew Schneider

Business Reporter

Andrew Schneider joined News 88.7 in January 2011. Since arriving in Houston, he has reported on the many changes wrought on the region’s economy by the revolution in domestic oil and gas production. His non-energy reporting runs the gamut from white-collar crime to cattle ranching. His work has aired on...

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