Marathon (MRO) To Divest Non-Core Assets Worth $235 Million
Zacks Investment Research | Oct 05, 2016 09:52PM ET
Leading upstream energy player, Marathon Oil Corporation (NYSE:MRO) recently reported that it has signed a deal to sell some of its non-core assets in West Texas and New Mexico for $235 million.
Marathon Oil is expected to divest its non-operated, conventional CO2 and waterflood assets to an unidentified buyer by the end of this year. These assets produced about 4,000 barrels of oil equivalent per day in the first half of 2016.
Marathon Oil is in the midst of a massive divestment program. Since Aug 2015, the company has announced non-core asset sales of more than $1.5 billion.
In August 2015, the company divested its Wilburton, OK assets for an amount of $102 million. Later, Marathon entered into an agreement to divest its Gulf of Mexico (GoM) assets for a total price of $205 million. The deal was closed at the end of 2015. Marathon’s largest divestment deal to date was the sale of all its Wyoming upstream and midstream assets for roughly $870 million. This deal was closed in mid-2016.
With oil prices remaining low for a long time now and the commodity mostly still hovering below the $50 a barrel level, exploration and production companies like Marathon Oil have been finding it difficult to borrow funds from lenders. Hence, most of these firms have been compelled to sell their non-core properties to meet their expenses.
MARATHON OIL CP Price
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.