Marathon Oil Corp. reduced gross debt by $500 million through a recent redemption transaction on March 30 that CEO Lee Tillman said represents a “swift follow-through” on a 2021 goal.
“This action is a strong step toward ensuring at least 30% of our cash flow from operations is directed toward investor friendly purposes,” Tillman, chairman, president and CEO of Marathon Oil, said in a statement. “It is also consistent with our objective to continue improving our investment-grade balance sheet through gross debt reduction and fully addresses our next significant debt maturity.”
According to a company release on March 30, Marathon Oil had sent an irrevocable notice of its intention to fully redeem its currently outstanding $500 million aggregate principal amount of 2.8% senior notes due 2022. The company said the transaction will reduce gross debt by $500 million and annual cash interest expense by $14 million.
“We continue to believe maintaining a strong balance sheet is foundational to successfully executing our strategy of sustainable free cash flow generation and meaningful return of capital to investors across a wide range of commodity prices,” Tillman added in the statement.
Based in Houston, Marathon Oil is active in oil-rich resource plays, such as the Eagle Ford in Texas, the Bakken in North Dakota, the STACK and SCOOP in Oklahoma, and the Permian Basin in New Mexico. The company also has international operations in Equatorial Guinea.
Recommended Reading
Formentera Joins EOG in Wildcatting South Texas’ Oily Pearsall Pay
2025-01-22 - Known in the past as a “heartbreak shale,” Formentera Partners is counting on bigger completions and longer laterals to crack the Pearsall code, Managing Partner Bryan Sheffield said. EOG Resources is also exploring the shale.
Hibernia IV Joins Dawson Dean Wildcatting Alongside EOG, SM, Birch
2025-01-30 - Hibernia IV is among a handful of wildcatters—including EOG Resources, SM Energy and Birch Resources—exploring the Dean sandstone near the Dawson-Martin county line, state records show.
Shale Outlook: E&Ps Making More U-Turn Laterals, Problem-Free
2025-01-09 - Of the more than 70 horseshoe wells drilled to date, half came in the first nine months of 2024 as operators found 2-mile, single-section laterals more economic than a pair of 1-mile straight holes.
E&P Highlights: March 10, 2025
2025-03-10 - Here’s a roundup of the latest E&P headlines, from a new discovery by Equinor to several new technology announcements.
E&P Highlights: Feb. 18, 2025
2025-02-18 - Here’s a roundup of the latest E&P headlines, from new activity in the Búzios field offshore Brazil to new production in the Mediterranean.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.