The Company's board also has authorized the extension of Marathon's share repurchase program by an additional $500 million. Based upon the closing market price of $88.82 per common share on Friday, January 26, this would amount to approximately 1.6 percent of current shares outstanding.
In January 2006, Marathon announced a $2 billion share repurchase program. As of December 31, 2006, the Company has repurchased approximately 21 million of its common shares at a cost of $1.7 billion. Marathon currently anticipates completing share repurchases covered under this initial $2 billion share repurchase program during the first quarter of 2007, with the additional $500 million in share repurchases completed during the balance of this year. This program may be changed based on the Company's financial condition or changes in market conditions and is subject to termination prior to completion.
Such purchases would be made during this period as the Company's financial condition and market conditions warrant. Any purchases under the program may be in either open market transactions, including block purchases, or in privately negotiated transactions. The repurchase program does not include specific price targets or timetables. Marathon will use cash on hand, cash generated from operations, or cash from available borrowing to acquire shares. At year-end 2006, Marathon had cash on hand of approximately $2.6 billion. Shares of stock repurchased under the program will be held as treasury shares.
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