Marathon Oil Reduces 2016 Capital Program By 50% - Quick Facts

(RTTNews) - Marathon Oil Corp. (MRO) announced a 2016 capital program of $1.4 billion, which is reduced more than 50% below 2015 and more than 75% below 2014. Total company production is expected to decline 6-8% on divestiture-adjusted basis. The company has increased its original target for non-core asset sales from at least $500 million to a range of $750 million to $1 billion.

President and CEO Lee Tillman said. "This year's capital program is designed to preserve the efficiencies we've captured in the Eagle Ford, continue delineating Oklahoma for future growth, and complete profitable long-cycle projects. However, given such a dynamic environment, we will continually review our capital allocation decisions throughout the year and retain flexibility through our short-cycle portfolio and limited long-term commitments to adjust as we see fit."

For full year 2016, the company forecasts production available for sale from the combined North America and International E&P segments, excluding Libya, to average 335,000 to 355,000 net boed.

Marathon Oil expects first quarter 2016 North America E&P production available for sale to average 230,000 to 240,000 net boed reflecting the impact of approximately 10,000 net boed associated with the Gulf of Mexico disposition which closed late in fourth quarter 2015. First quarter International E&P production available for sale (excluding Libya) is expected to be within a range of 90,000 to 100,000 net boed.

The company reported its full-Year 2015 capital program at $3 billion, which was $500 million below original budget. The company achieved 8% production growth from total company continuing operations (excluding Libya) and 21% from U.S. resource plays year over year.