NEW YORK (TheStreet) -- Shares of Marathon Oil (MRO) - Get Marathon Oil Corporation (MRO) Report are rising 3.04% to $13.56 in pre-market trading on Monday after the company said it agreed to acquire PayRock Energy for $888 million from private equity firm EnCap Investments.

PayRock has about 61,000 net surface acres and current production of about 9,000 net barrels of oil equivalent per day in Oklahoma, according to a company statement.

"Acquiring PayRock's STACK position will meaningfully expand the quality and scale of Marathon Oil's existing portfolio in one of the best unconventional oil plays in the U.S.," Marathon Oil CEO Lee Tillman said.

Oklahoma City-based PayRock is a portfolio company of EnCap Investments focused on Oklahoma and Kansas. 

The transaction is subject to customary closing conditions and is expected to close in third quarter.

TheStreet Recommends

Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.

The company's weaknesses can be seen in multiple areas, such as its poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself, disappointing return on equity and feeble growth in its earnings per share.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: MRO

Image placeholder title