Capital program guidance
For 2017, Marathon Oil (MRO) plans to spend ~$2.2 billion in capital expenditure, ~100% higher than its 2016 capital expenditure.
Marathon Oil plans to allocate more than 90% of its capital to high-return US resource plays, meaning that less than 10% of its capital will be allocated to its international operations and oil sands mining in Canada.
MRO plans to double its Oklahoma rig count from five to ten in 2017. STACK will drive MRO’s Oklahoma production growth in 2017.
For 2017, Marathon Oil expects full-year production (USO) (UNG) in the range of 375–405 Mboepd, a midpoint fall of ~4 Mboepd (or ~1%) from its 2016 production of 394 Mboepd. MRO’s production guidance excludes Libya.
MRO’s peer Occidental Petroleum (OXY) expects 2016 production guidance in the range of 625–645 Mboepd.
Now, let’s look at how much money MRO has returned to its shareholders in the last year.