Marathon Oil to divest $950 million of non-core assets

High finance - composition
Source: DollarPhotoClub

Houston-based Marathon Oil Corporation (NYSE: MRO) announced today it has signed agreements for the sale of certain non-core assets for $950 million, bringing the total to approximately $1.3 billion since last year.

In the largest transaction, the Company will divest all of its Wyoming upstream and midstream assets for $870 million, excluding closing adjustments. The upstream properties, comprised primarily of waterflood developments in the Big Horn and Wind River basins, averaged 16,500 barrels of oil equivalent per day in first quarter 2016. The assets sold also include the Red Butte pipeline, a 570-mile pipeline that is the only export line in the area. The effective date of this transaction is Jan. 1, 2016, and closing is expected mid-year 2016.

In separate transactions, Marathon Oil has signed agreements for the sale of its 10 percent working interest in the outside-operated Shenandoah discovery in the Gulf of Mexico, operated natural gas assets in the Piceance basin in Colorado, and certain undeveloped acreage in West Texas for a combined total of approximately $80 million.

“Since August 2015, we have now announced or closed non-core asset sales of approximately $1.3 billion, surpassing our targeted range of $750 million to $1 billion,” said Marathon Oil president and CEO Lee Tillman. “Ongoing portfolio management continues to drive the simplification and concentration of our portfolio to lower risk, higher return U.S. resource plays and support our 2016 objective of balance sheet protection.”

Marathon Oil Corporation is a global exploration and production company with end-of-2015 proven reserves of 2.2 billion barrels of oil equivalent in North America, Europe and Africa.

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