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April 8, 2020, 7:22 a.m. EDT

Marathon Oil cuts capex budget further, plans 'frac holidays' in the second quarter

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By Tomi Kilgore

Marathon Oil Corp. /zigman2/quotes/205031829/composite MRO -0.84% announced Wednesday a further cut to its 2020 capital expenditures budget to $1.3 billion, which is now about 50% below what it spent in 2019. Last month, the natural gas exploration and production company said it was cutting its 2020 capex budget to $1.9 billion. The new capex budget includes the implementation of second-quarter "frac holidays" in the Bakken and Eagle Ford basins. The company also said it plans to suspend further drilling activity in the North Delaware, in addition to previously announced actions to fully suspend Resource Play Exploration (REx) and Oklahoma activity. The stock, surged 4.6% in premarket trading, after closing Tuesday 18% above its April 1 record low of $3.12. It has plunged 72.3% over the past three months through Tuesday, while the SPDR Energy Select Sector ETF /zigman2/quotes/206420077/composite XLE -0.62% has dropped 46.3% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.24% has slid 18.3%.

/zigman2/quotes/205031829/composite
US : U.S.: NYSE
$ 5.89
-0.05 -0.84%
Volume: 19.18M
May 22, 2020 4:00p
P/E Ratio
18.39
Dividend Yield
0.00%
Market Cap
$4.65 billion
Rev. per Employee
$2.46M
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/zigman2/quotes/206420077/composite
US : U.S.: NYSE Arca
$ 38.48
-0.24 -0.62%
Volume: 19.25M
May 22, 2020 4:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
2,955.45
+6.94 +0.24%
Volume: 2.19B
May 22, 2020 5:09p
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