Marathon Oil cuts capital budget more than 50%

HOUSTON -- Marathon Oil has set this year’s capital program at $1.4 billion, which is more than 50% below last year and more than 75% below 2014.

The Houston-based company is allocating $1.15 billion to activity in North America, with the majority focused on the company's three U.S. resource plays. The company has also earmarked $170 million for international assets, primarily to complete long-cycle projects in Equatorial Guinea and Kurdistan.

In North America, Marathon has set aside about $600 million for the Eagle Ford, about $200 million for Oklahoma, and just under $200 million for the Bakken.

"This year's capital program is designed to preserve the efficiencies we've captured in the Eagle Ford, continue delineating Oklahoma for future growth, and complete profitable long-cycle projects,” Marathon Oil President and CEO Lee Tillman said.

The company has also reduced its conventional exploration spending from $250 million last year to $30 million, while about $40 million has been allocated for the company’s oil sands mining segment.

The news came as the company reported a full-year adjusted net loss, excluding certain items, of $869 million, or $1.28 per share. The reported net loss was $2,204 million, or $3.26 per share.