Marathon Oil has cut $1.1 billion from its initial 2020 capital spending budget to $1.3 billion or less in response to market conditions. In February, the company budgeted $2.4-billion for the year, down 11% from 2019 levels (OGJ Online, Feb. 24, 2020). Capital spending for the year is now expected to be 50% below actual capital spending in 2019.
The revised budget includes halting second quarter fracturing operations in the Bakken and Eagle Ford, “before transitioning to a lower and more continuous drilling and completion program over the second half of 2020 in both basins,” the company said Apr. 8.
Previously, the company said it would fully suspend resource play exploration and Oklahoma activity. The company will now also suspend further drilling activity in the northern Delaware basin, “with only a limited number of wells to sales expected through the balance of the year,” it said.
Marathon Oil plans to provide a more comprehensive update to its revised 2020 business plan as part of its first quarter earnings release in May.