Marathon Oil Announces $ 500 Million Gross Debt Reduction


HOUSTON, March 30, 2021 / PRNewswire / – Marathon Oil Corporation (NYSE: MRO) announced today that it has sent irrevocable notice of its intention to fully repurchase its $ 500 million total principal amount of 2.8% of the senior bonds maturing in 2022 (the “bonds”) on April 29, 2021 (the “Redemption Date”). This transaction will reduce gross debt by $ 500 million and annual interest expense in cash by $ 14 million.

“Today’s announcement represents a rapid follow-up on our commitment to reduce our gross debt by at least $ 500 million in 2021, ”said Lee Tillman, Chairman, President and CEO. “This action is an important step in ensuring that at least 30% of our cash flow from operations is intended for investor-friendly purposes. It is also in line with our goal of continuing to improve our quality balance sheet through a reduction in gross debt and fully meets our next major debt maturity. We continue to believe that maintaining a strong balance sheet is essential to successfully execute our strategy of generating sustainable free cash flow and meaningful return of capital to investors across a wide range of commodity prices. “

This press release does not constitute an offer to sell or a solicitation of an offer to buy securities, and there will be no sale of securities in any state or jurisdiction in which such an offer, solicitation or sale would be. illegal before registration or qualification. under the securities laws of any such state or jurisdiction.

Forward-looking statements

This press release contains forward-looking statements. All statements, other than statements of historical fact, including, without limitation, statements regarding the redemption and the future performance and business strategy of the Company, are forward-looking statements. Words such as “anticipate”, “believe”, “might”, “estimate”, “expect”, “foresee”, “the future”, “guide”, “intend”, ” can “,” consider “,” plan, “” positioned “,” project “,” seek “,” should “,” target “,” will “,” want “or similar words can be used to identify statements prospective; however, the absence of these words does not mean that the statements are not forward-looking. Although the Company believes that its assumptions regarding future events are reasonable, a number of factors could cause actual results to differ materially from those projected, including, but not limited to: conditions in the industry oil and gas, including levels of supply and demand for crude oil and condensates, NGLs and natural gas and the resulting impact on price; changes in reserves or expected production levels; changes in political or economic conditions in the United States and Equatorial Guinea, including changes in exchange rates, interest rates and inflation rates; measures taken by the members of the Organization of the Petroleum Exporting Countries and Russia affecting the production and price of crude oil; other global and national political, economic or diplomatic developments; capital available for exploration and development; risks related to the Company’s hedging activities; voluntary or involuntary reductions, delays or cancellations of certain drilling activities; the production schedule of the wells; liability resulting from litigation; drilling and exploitation risks; lack of or disruption of access to storage capacity, pipelines or other methods of transportation; the availability of drilling rigs, materials and labor, including associated costs; difficulty obtaining necessary approvals and permits; non-performance by third parties of contractual obligations; unforeseen dangers such as weather conditions, a health pandemic (including COVID-19), acts of war or terrorist acts and the government or military response to them; cyber attacks; changes in safety, health, environment, taxation and other regulations, requirements or initiatives, including initiatives dealing with the impact of global climate change, air emissions or water management ; other geological, operational and economic considerations; and risk factors, forward-looking statements and challenges and uncertainties described in the company’s 2020 annual report on Form 10-K and other public documents and press releases, available at https://ir.marathonoil.com/. Unless required by law, the Company assumes no obligation to revise or update any forward-looking statements resulting from new information, future events or otherwise.

Contact person for media relations:
Stephanie Gentry: 832-206-3746

Investor Relations Contacts:
Guy Baber: 713-296-1892
John reid: 713-296-4380

SOURCE Marathon Oil Corporation

Related links

https://www.marathonoil.com

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