| Marathon Oil Inks Agreement to Divest GoM Assets for $205M | |
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Upstream energy firm Marathon Oil Corp. MRO announced that it has entered into an agreement to divest its Gulf of Mexico (GoM) assets for a total price of $205 million. The name of the buyer has not been disclosed.
The assets under sale include acreage in the greater Ewing Bank area, which is operated by Marathon. Also, acreage in the Petronius and Neptune fields, in which the company holds non-operated producing interests, are being sold.
The deal is expected to close by the end of this year and will have an effective date of Jan 1, 2015.
These assets comprise the majority of Marathon’s operating and non-operating interest in the GoM. However, Marathon will continue to hold stakes in other producing assets and properties in the area. The company will also retain its stake in the Gunflint development and Shenandoah discovery.
Marathon is a leading energy firm with a large and geographically-diverse reserve base and solid project pipeline. Additionally, it possesses a healthy balance sheet, which helps it to capitalize on investment opportunities.
However, Marathon’s earnings and cash flows are bound to be affected by the ongoing oil price slump. This has, in fact, been reflected on the company’s recently released results as well. Marathon posted third-quarter adjusted loss from continuing operations of 20 cents per share that compared unfavorably with the year-ago quarter profit of 57 cents per share. The year-over-year fall stemmed from lower liquid price realizations.
Other firms from the oil and gas exploration and production industry like Apache Corp. APA, Chesapeake Energy Corporation CHK and Anadarko Petroleum Corporation APC were also affected by this weakness in commodity prices. With oil prices anticipated to remain weak in the near term, financials for upstream firms are expected to be under pressure.
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Marathon Oil Corporation
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CODE : MRO |
ISIN : US5658491064 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Marathon Oil is a oil exploration company based in United states of america. Marathon Oil is listed in United States of America. Its market capitalisation is US$ 23.7 billions as of today (€ 22.2 billions). Its stock quote reached its lowest recent point on August 13, 1982 at US$ 0.70, and its highest recent level on April 26, 2024 at US$ 27.92. Marathon Oil has 849 755 866 shares outstanding. |