Marathon cuts 2015 budget amid ‘current price environment’

Marathon Oil Corp. expects to spend $4.3-4.5 billion in its capital, investment, and exploration budget for 2015. That total represents a 20% decline from its 2014 budget—excluding the company’s recently sold Norway business (OGJ Online, June 2, 2014)—which the company attributes to “the current price environment.”

Lower exploration spending and “high-return investment opportunities” in the company’s US resource plays underscore the focus of the capital program.

"We remain confident in our investment opportunities in the three US resource plays,” said Lee M. Tillman, Marathon Oil president and chief executive officer. “Our 2015 capital program is not opportunity constrained but will reflect sound discipline in managing cash flows in the current price environment."

The capital program can be adjusted higher or lower depending on market conditions. The company notes that the “continuing dynamic change in crude oil markets” and “expected impacts to oilfield service costs” will be taken into account before the budget is finalized.

Marathon expects total annual production growth—excluding Libya— to be in the high single digits in 2015.