Marathon Oil Corp. secured agreements to sell $950 million of assets in its latest move to raise cash to weather the worst crude market rout in a generation.
The divestitures, which include all of its Wyoming upstream and midstream assets for $870 million, brings the total amount of asset sales since last year to $1.3 billion, the Houston-based producer said in a statement Monday. That includes developments in the Big Horn and Wind River basins that averaged production of 16,500 barrels of oil equivalent a day in the first quarter, as well as the Red Butte pipeline, a 570-mile conduit that is the only export line in the area.
Marathon is among shale producers that have sought to put assets for sale, offer shares and cut spending to stay afloat as a prolonged rout has U.S. crude futures trading more than 60 percent lower from their mid-2014 peak.
The company’s sales have surpassed a target of raising $750 million to $1 billion.
“Ongoing portfolio management continues to drive the simplification and concentration of our portfolio to lower risk, higher return U.S. resource plays and support our 2016 objective of balance sheet protection,” Marathon Oil Chief Executive Officer Lee Tillman said in the statement.