Marathon Oil to Sell Stock to Shore Up Balance Sheet

By Josh Beckerman 

Marathon Oil Corp. plans to sell as much as about $1.23 billion of stock, based on Monday's closing price, intending to use proceeds to strengthen its balance sheet and fund part of its capital program.

While the industry has suffered from a severe, prolonged downturn in energy prices, several energy producers have been successful in their efforts to raise cash in stock offerings.

Within the past two weeks, Energen Corp., QEP Resources Inc., Cabot Oil & Gas Corp. and Devon Energy Corp. have increased public stock offerings.

In after-hours trading, Marathon shares fell 4% to $7.88. Shares of the company have declined by more than half over the past three months.

The company intends to sell 135 million shares, plus up to 20.25 million additional shares in an overallotment.

In February, Marathon reported its first annual loss in 20 years. The Houston exploration and production company announced a $1.4 billion capital program for 2016, compared with $3 billion in 2015.

Write to Josh Beckerman at [e-mail]

(END) Dow Jones Newswires

February 29, 2016 17:44 ET (22:44 GMT)

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