Cash-strapped Marathon Oil sells Gulf of Mexico assets

Marathon Oil Corporation reported Q3 2015 adjusted net loss of $138 million ($0.20 per diluted share)

Marathon Oil Corporation announced it has signed an agreement for the sale of its operated producing properties in the greater Ewing Bank area and non-operated producing interests in the Petronius and Neptune fields in the Gulf of Mexico for $205 million.

According to Marathon, the buyer will assume all future abandonment obligations for the acquired assets.

The assets represent a majority of the company’s operated and non-operated producing properties in the Gulf of Mexico.

The effective date of the transaction is Jan. 1, 2015. Closing is expected before year end.

Marathon Oil will retain its interests in certain other producing assets and acreage in the Gulf of Mexico, as well as interests in the Gunflint development and Shenandoah discovery.

“In an environment where we expect oil prices to remain low for a longer period of time, Marathon Oil continues to take strong action to deliver meaningful cost reductions and efficiency gains, while we remain on target to achieve the high end of our original total Company production growth targets,” said Marathon Oil President and CEO Lee M. Tillman.

Marathon Oil Corporation reported a third quarter 2015 adjusted net loss of $138 million, or $0.20 per diluted share, excluding the impact of certain items not typically represented in analysts’ earnings estimates and that would otherwise affect comparability of results.

Platforms in the Gulf of Mexico.

Marathon’s third quarter capital, investment and exploration program is at approximately $623 million, down 7% from second quarter; full-year 2015 program $3.1 billion.

U.S. resource plays featured solid performance from the early development of upper Eagle Ford, encouraging results from the SCOOP Smith infill pilot and continued strong contribution from the Bakken’s West Myrmidon.

Marathon also closed non-core asset sales in East Texas, North Louisiana and Wilburton, Oklahoma for approximately $100 million; signed agreement for sale of East Africa exploration acreage.