KKR to Sell Principal Unit of Hilcorp to Marathon Oil, Total Transaction Valuation of $3.5B

Kohlberg Kravis Roberts & Co. L.P. today announced the exit of its investment in Hilcorp Resources Holdings LP , with the signing of a definitive agreement to sell the principal subsidiary of Hilcorp Resources for a total transaction valuation of $3.5 billion to Marathon Oil Corporation MRO. The sale includes all of the oil and gas interests and operations of Hilcorp Resources. In connection with the sale to Marathon, KKR's stake in the enterprise will be valued at approximately $1.13 billion and Hilcorp will receive the remaining proceeds associated with the transaction. The sale to Marathon is subject to customary terms and conditions for transactions of this type. Last June, KKR KKR and affiliates of Hilcorp Energy Company formed a partnership to acquire, own and develop oil and gas assets within the Eagle Ford shale in South Central Texas. At the outset, KKR made a $400 million initial capital commitment to the partnership to accelerate drilling and development activity across Hilcorp Resources' acreage position and in return received a 40% minority ownership interest in the company, subject to certain performance adjustments.