Marathon Oil Announces $500 Million Gross Debt Reduction

HOUSTON, TX (STL.News) 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 before registration or qualification under the securities laws of any such state or jurisdiction.