HOUSTON, Sept. 10, 2013 (GLOBE NEWSWIRE) -- Marathon Oil Corporation (NYSE: MRO) today announced it is moving forward with plans to repurchase $1 billion of the Company's common stock pursuant to its outstanding share repurchase authorization. Unrelated to the share repurchase, the Company also announced an intent to sell its interest in Block 32 offshore Angola for approximately $590 million and the acquisition of approximately 4,800 net acres in the core of its south Texas Eagle Ford position for approximately $97 million, including carried interest of approximately $23 million.
The $1 billion in share repurchases will be completed in two phases. The initial phase of $500 million in common stock repurchases is substantially complete. The second $500 million phase is anticipated to be completed after closing the previously announced sale of its 10 percent working interest in Block 31 offshore Angola. That transaction, with a total value of approximately $1.5 billion, excluding any purchase price adjustments, is anticipated to close in the fourth quarter of 2013, with an effective date of Jan. 1, 2013.
Marathon Oil has reached an agreement in principle to sell its 10 percent working interest in the Production Sharing Contract and Joint Operating Agreement in Block 32 offshore Angola to Sonangol E.P. The transaction has a total value of approximately $590 million, excluding any purchase price adjustments. Pending execution of definitive agreements and government approval, the transaction is expected to close in the fourth quarter of 2013, with an effective date of Jan. 1, 2013.
"The share repurchases underscore our commitment to financial discipline and creating long-term value for our shareholders," said Lee M. Tillman, Marathon Oil president and CEO. "With the anticipated sale of our interest in Angola Block 32, we have now completed or agreed to divestitures totaling approximately $3.5 billion, surpassing the $3 billion upper end of our stated three-year target. We continue to evaluate our portfolio for high-grading opportunities and expect that process to remain evergreen and integral to our forward business plans."
Following the $1 billion of share repurchases, Marathon Oil will have approximately $800 million remaining on the board authorized share repurchase program. The program may be changed based upon the Company's financial condition or changes in market conditions and is subject to termination prior to completion. The program's authorization does not include specific price targets or timetables.
This release contains forward-looking statements with respect to our common stock repurchase program and the sales of the Company's 10 percent working interests in Blocks 31 and 32 offshore Angola. The sale of the Company's 10 percent working interest in Block 31 offshore Angola is subject to the satisfaction of customary closing conditions and obtaining necessary government, regulatory and third-party approvals. The sale of the Company's 10 percent working interest in Block 32 offshore Angola is subject to the execution of definitive agreements, the satisfaction of customary closing conditions and obtaining necessary government, regulatory and third-party approvals. The statements about the Company's common stock repurchase program are based on current expectations, estimates and projections and are not guarantees of future performance. Some factors that could cause actual results to differ materially with respect to the common stock repurchase program are changes in prices of and demand for liquid hydrocarbons and natural gas, actions of competitors, disruptions or interruptions of our production operations due to unforeseen hazards such as weather conditions, acts of war or terrorist acts and the governmental or military response, and other operating and economic considerations. The foregoing factors (among others) could cause actual results to differ materially from those set forth in the forward-looking statements. In accordance with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, Marathon Oil Corporation has included in its Annual Report on Form 10-K for the year ended December 31, 2012, and subsequent Forms 10-Q and 8-K, cautionary language identifying other important factors, though not necessarily all such factors, that could cause actual results to differ materially from those set forth in the forward-looking statements.
CONTACT: Media Relations Contacts: John Porretto -- 713-296-4102 Lee Warren -- 713-296-4103 Investor Relations Contacts: Howard Thill -- 713-296-4140 Chris Phillips -- 713-296-3213 Source:Marathon Oil Corporation