Marathon Oil Reduces Gross Debt and Raises Base Dividend

Rhea-AI Summary

Marathon Oil Corporation (NYSE: MRO) has announced the full redemption of $500 million of its 2.8% Senior Notes due 2022, reducing annual cash interest expenses by $14 million. Additionally, the company declared a dividend of 4 cents per share, payable on June 10, 2021, to stockholders of record by May 19, 2021. The chairman emphasized the commitment to reduce gross debt and increase shareholder returns, aligning with their goal to enhance the investment-grade balance sheet.

Positive

• Full redemption of $500 million in Senior Notes reduces annual cash interest expenses by $14 million.
• Dividend increased to 4 cents per share, reflecting a commitment to return capital to shareholders.
• Company successfully addressed significant debt maturity, improving financial stability.

Negative

• None.

HOUSTON, April 29, 2021 /PRNewswire/ -- Marathon Oil Corporation (NYSE: MRO) announced today that the Company fully redeemed its $500 million aggregate principal amount of 2.8% Senior Notes Due 2022. This transaction will reduce annual cash interest expense by $14 million.

Marathon Oil also announced today that the Company's board of directors has declared a dividend of 4 cents per share on Marathon Oil Corporation common stock. The dividend is payable on June 10, 2021, to stockholders of record on May 19, 2021.

"We have swiftly followed through on our commitment to reduce our gross debt by at least $500MM in 2021, fully addressing our next significant debt maturity, and have also raised our quarterly base dividend by over 30%," said Chairman, President and CEO Lee Tillman. "These actions are fully consistent with our objective to both further enhance our investment-grade balance sheet and return an increasing amount of capital to shareholders."

Media Relations Contact:
Rebecca Skiba: 713-296-2584

Investor Relations Contacts:
Guy Baber: 713-296-1892
John Reid: 713-296-4380

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SOURCE Marathon Oil Corporation

FAQ

What is the dividend amount declared by Marathon Oil (MRO)?

Marathon Oil declared a dividend of 4 cents per share.

When will the dividend be paid to shareholders of Marathon Oil (MRO)?

The dividend will be payable on June 10, 2021.

What is the impact of the Senior Notes redemption on Marathon Oil's (MRO) finances?

The redemption reduces annual cash interest expenses by $14 million.

What was the total amount of Senior Notes redeemed by Marathon Oil (MRO)?

Marathon Oil fully redeemed $500 million in Senior Notes due 2022.