Marathon Oil tags $ 4.82 bn for 2012 capital expenditures
Marathon Oil plans to spend about $ 4.82 bn next year for its capital, investment and exploration expenses as the company continues to focus on its liquids-rich, growth assets. Nearly half of the company's 2012 capital budget is designated for ramping up its operations in the Eagle Ford shale, a promising natural-gas and oil-bearing rock formation in south Texas.
Chairman and Chief Executive Clarence P. Cazalot Jr said the budget “highlights our continued focus on the liquids-rich US resource plays that will provide the greatest amount of the company's projected 5 % to 7 % compound average production growth from 2010 to 2016."
Marathon had set its 2011 capital, investment and exploration budget in February at $ 5.27 bn and said in August it would spend $ 3.9 bn, excluding discontinued operations, asset acquisitions and associated development capital.
In 2012, the company plans to spend about $ 900 mm on its base exploration and production assets and $ 3 bn on exploration and production growth projects, such as the Eagle Ford shale, North Dakota's Bakken shale and the Anadarko Woodford shale in Oklahoma.
Marathon has also budgeted $ 275 mm for its oil sands mining segment and $ 160 mm for corporate expenses.
In November, the company reported its third-quarter profit soared as favourable crude oil acquisition costs contributed to a 30 % revenue increase.