Marathon Oil’s capital expenditure
In 2Q16, Marathon Oil (MRO) spent ~$232 million in capital expenditure (excluding its PayRock acquisition deposit), which was ~65% lower than in 2Q15. In 2Q16, Marathon Oil allocated ~78% of its capital expenditure, or capex, to US resource plays—higher than what it allocated to US resource plays in 2Q15. This figure indicates that MRO’s 2016 capital expenditure is more focused on US resource plays.
Capital expenditure guidance
On August 28, 2016, Marathon Oil reduced its 2016 capital budget by $100 million to ~$1.3 billion, which is ~57% lower than what MRO spent in 2015. Investors should note that lower capex has a negative impact on future production volumes.
In 2016, MRO plans to spend ~$600 million for Eagle Ford operations, ~$270 million for its Oklahoma resource basins operations, and ~$140 million for its Bakken operations.