Marathon Oil To BuyBack $1 Bln Of Stock - Quick Facts

(RTTNews) - Marathon Oil Corp. (MRO) is moving forward with plans to repurchase $1 billion of its stock. Unrelated to the share buyback, the firm also announced its intention to sell its stake in Block 32 offshore Angola for about $590 million and the acquisition of nearly 4,800 net acres in the core of its south Texas Eagle Ford position for some $97 million, including carried interest of about $23 million.

The $1 billion share buyback would be completed in two phases. The initial phase of $500 million in common stock repurchases is substantially complete, whereas the second $500 million phase is likely to be completed after closing the prior announced sale of its 10 percent working stake in Block 31 offshore Angola. That transaction, with a total value of roughly $1.5 billion, excluding any purchase price adjustments, is expected to close in the fourth quarter of 2013, with an effective date of January 1, 2013.

The Texas-based energy company has inked a deal in principle to sell its 10 percent working interest in the Production Sharing Contract and Joint Operating Agreement in Block 32 offshore Angola to Sonangol E.P. The total value of the transaction was nearly $590 million, excluding any purchase price adjustments. Pending execution of definitive deals and government approval, the transaction may close in the fourth quarter of 2013, with an effective date of January 1, 2013.

Following the $1 billion of share buybacks, Marathon Oil would have about $800 million remaining on the board authorized repurchase program.