Marathon Oil Selling Angola Assets, Buying Texas Acres, Repurchasing Stock
Sep 10th 2013 1:34PM
Updated Sep 10th 2013 1:36PM
Today, Marathon Oil 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.
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