Marathon Oil Slashes Spending A Second Time, Profit Rises
Feb 18 (Reuters) - Marathon Oil Corp on Wednesday said it would cut its 2015 capital budget by another 20 percent to $3.5 billion, and reported that fourth-quarter profit rose, on a gain related to the sale of oil and gas properties in Angola and Norway.
Oil companies have made drastic budget cuts in response to a collapse in the price of crude oil. Since June, oil prices have fallen by about half, whipsawed by growing supplies and waning demand.
"Though our U.S. resource plays generate competitive returns at current pricing, we're taking action to materially reduce our 2015 capital program relative to 2014 to protect our financial flexibility," Marathon Chief Executive Lee Tillman said in a statement.
Marathon, which said in December it was slashing 2015 spending about 20 percent, stated it would make a second budget cut of another 20 percent to $3.5 billion.
Profit in the quarter was $926 million, or $1.37 per share, compared with $375 million, or 54 cents, in the year-ago period.
Adjusting for one-time items including $932 million related to the sale of its operations in Norway and Angola, Marathon had an adjusted loss from continuing operations of 13 cents per share as prices for oil fell sharply.
Analysts on average had expected a profit of 3 cents per share, according to Thomson/Reuters/I/B/E/S.
The company said its output, excluding Libya, would rise 5 percent to 7 percent this year. By comparison, in 2014 Marathon's total company production increased 8 percent.
Shares of Marathon edged slightly lower to $29 in after-hours trading, down 2 cents from a New York Stock Exchange close of $29.02.
(Reporting by Anna Driver; Editing by Terry Wade; EDiting by Seve Orlofsky)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Rooftop Solar Now 4th Largest Source of Electricity in Australia
- US Confirms Reimposition of Oil Sanctions against Venezuela
- EU, Industry Players Ink Charter to Meet Solar Energy Targets
- Analyst Says USA Influence on Middle East Seems to be Fading
- Russian Ships to Remain Banned from US Ports
- Brazil Court Reinstates Petrobras Chair to Divided Board
- EIB Lends $425.7 Million for Thuringia's Grid Upgrades
- Var Energi Confirms Oil Discovery in Ringhorne
- Seatrium, Shell Strengthen Floating Production Systems Collaboration
- An Already Bad Situation in the Red Sea Just Got Worse
- What's Next for Oil? Analysts Weigh In After Iran's Attack
- USA Regional Banks Dramatically Step Up Loans to Oil and Gas
- EIA Raises WTI Oil Price Forecasts
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Venezuela Authorities Arrest Two Senior Energy Officials
- Namibia Expects FID on Potential Major Oil Discovery by Yearend
- Oil Markets Were Already Positioned for Iran Attack
- Is The Iran Nuclear Deal Revival Project Dead?
- Petrobras Chairman Suspended
- Oil and Gas Executives Predict WTI Oil Price
- An Already Bad Situation in the Red Sea Just Got Worse
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil and Gas Execs Reveal Where They See Henry Hub Price Heading
- Equinor Makes Discovery in North Sea
- Macquarie Strategists Warn of Large Oil Price Correction
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Standard Chartered Reiterates $94 Brent Call
- Chevron, Hess Confident Embattled Merger Will Close Mid-2024
- Analysts Flag 'Remarkable Feature' of 2024 Oil Price Rally