HOUSTON, March 30, 2021 /PRNewswire/ -- Marathon Oil
Corporation (NYSE: MRO) announced today that it sent an irrevocable
notice of its intention to fully redeem its currently outstanding
$500 million aggregate principal
amount of 2.8% Senior Notes Due 2022 (the "Notes") on April 29, 2021 (the "Redemption Date").
This transaction will reduce gross debt by $500
million and annual cash interest expense by $14
million.
"Today's announcement represents swift follow through on our
commitment to reduce our gross debt by at least $500 million in 2021," said Chairman,
President and CEO Lee Tillman. "This action is a strong step
toward ensuring at least 30% of our cash flow from operations is
directed toward investor friendly purposes. It is also consistent
with our objective to continue improving our investment-grade
balance sheet through gross debt reduction and fully addresses our
next significant debt maturity. We continue to believe maintaining
a strong balance sheet is foundational to successfully executing
our strategy of sustainable free cash flow generation and
meaningful return of capital to investors across a wide range of
commodity prices."
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy any securities, nor shall there be
any sale of securities in any state or jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state or
jurisdiction.
Forward-Looking Statements
This release contains forward-looking statements. All
statements, other than statements of historical fact, including,
without limitation, statements regarding the redemption and the
Company's future performance and business strategy, are
forward-looking statements. Words such as "anticipate," "believe,"
"could," "estimate," "expect," "forecast," "future," "guidance,"
"intend," "may," "outlook," "plan," "positioned," "project,"
"seek," "should," "target," "will," "would," or similar words may
be used to identify forward-looking statements; however, the
absence of these words does not mean that the statements are not
forward-looking. While the Company believes its assumptions
concerning future events are reasonable, a number of factors could
cause actual results to differ materially from those projected,
including, but not limited to: conditions in the oil and gas
industry, including supply/demand levels for crude oil and
condensate, NGLs and natural gas and the resulting impact on price;
changes in expected reserve or production levels; changes in
political or economic conditions in the U.S. and Equatorial
Guinea, including changes in foreign currency exchange rates,
interest rates, and inflation rates; actions taken by the
members of the Organization of the Petroleum Exporting Countries
and Russia affecting the production and
pricing of crude oil; other global and domestic political, economic
or diplomatic developments; capital available for exploration and
development; risks related to the Company's hedging activities;
voluntary or involuntary curtailments, delays or cancellations of
certain drilling activities; well production timing; liability
resulting from litigation; drilling and operating risks; lack of,
or disruption in, access to storage capacity, pipelines or other
transportation methods; availability of drilling rigs, materials
and labor, including the costs associated therewith; difficulty in
obtaining necessary approvals and permits; non-performance by third
parties of contractual obligations; unforeseen hazards such as
weather conditions, a health pandemic (including COVID-19), acts of
war or terrorist acts and the government or military response
thereto; cyber-attacks; changes in safety, health, environmental,
tax and other regulations, requirements or initiatives, including
initiatives addressing the impact of global climate change, air
emissions, or water management; other geological, operating and
economic considerations; and the risk factors, forward-looking
statements and challenges and uncertainties described in the
Company's 2020 Annual Report on Form 10-K and other public filings
and press releases, available
at https://ir.marathonoil.com/. Except as required by
law, the Company undertakes no obligation to revise or
update any forward-looking statements as a result of
new information, future events or otherwise.
Media Relations Contact:
Stephanie Gentry: 832-206-3746
Investor Relations Contacts:
Guy Baber: 713-296-1892
John Reid: 713-296-4380
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SOURCE Marathon Oil Corporation