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Marathon Oil sets 2015 budget of $3.5 billion; 20 percent down

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Staff writer ▼ | February 19, 2015
Marathon Oil
Capital spending and investment   Oil giant is to spend less

Marathon Oil Corporation announced a $3.5 billion capital, investment and exploration budget for 2015, a further 20 percent decrease since the company's December capital budget update.

By reducing exploration spending by more than half and continuing to focus on the company's three high-quality U.S. resource plays, Marathon Oil's budget will support profitable investments that are expected to generate a total Company production growth rate, excluding Libya, of 5 to 7 percent year-over-year.

"With continued uncertainty in commodity pricing, Marathon Oil has taken decisive action to protect our optionality and position us to be a stronger E&P in the long term. Our commitment to portfolio management means we're well prepared to respond to the current environment, with an opportunity set concentrated on higher-margin assets that compete across a broad range of commodity prices," Marathon Oil president and CEO Lee Tillman said.

"Nearly 70 percent of our 2015 capital spending will be directed toward our three core U.S. resource plays, which continue to be among our highest-return investment opportunities," he noted.

"This budget reflects an emphasis on investment selectivity, balance sheet flexibility and positioning for price recovery."

"We're resolutely focused on the fundamentals of capital efficiency, expense management and operating reliability along with service cost reductions to protect and expand our margins.

"We're also prepared to exercise further flexibility in our spend levels as pricing and the macro environment warrant. Our objective is clear--to deliver long-term shareholder value, regardless of the commodity price cycle, by focusing on those elements of our business which we control."


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