Marathon Oil Selling Angola Assets, Buying Texas Acres, Repurchasing Stock

Today, Marathon Oil (NYSE: MRO  ) announced it will be repurchasing $1 billion worth of stock according to its existing share repurchase plan, while it is selling additional assets off Angola and purchasing acres in the Eagle Ford in Texas.

As it relates to the share repurchase program, $500 million has already been largely completed. The other $500 million is expected to be complete in the fourth quarter of this year following the conclusion of a  previously announced sale of the company's 10% interest in Block 31 offshore Angola. In total, its interest in Block 31 was sold for $1.5 billion in June of this year.

After the repurchases announced today are concluded, Marathon will still have approximately $800 million remaining on its existing repurchase authorization.

Marathon also announced its intent to sell its 10% interest in Block 32 offshore Angola for $590 million. The production sharing contract and joint operating agreement that Marathon held will be sold to Sonangol E.P., a state-owned organization based in Angola. Marathon says with the anticipated sale of the Block 32 interest, recent divestitures now stand at $3.5 billion, above the $3 billion three-year target for 2011-2013 that is part of "an ongoing effort to optimize the Company's portfolio for profitable growth."

Finally, Marathon said that it had acquired approximately 4,800 net acres for approximately $97 million, with a carried interest of $23 million, in the core of its south Texas Eagle Ford position.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2630717, ~/Articles/ArticleHandler.aspx, 9/29/2016 9:45:10 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,322.88 -16.36 -0.09%
S&P 500 2,167.79 -3.58 -0.16%
NASD 5,318.55 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/28/2016 4:01 PM
MRO $15.18 Up +1.12 +0.00%
Marathon Oil CAPS Rating: *****