HOUSTON - Marathon Oil Corporation (NYSE: NYSE:MRO), an independent exploration and production company, announced the pricing of a $1.2 billion offering of senior notes. The offering comprises $600 million of 5.300% senior notes due in 2029 and $600 million of 5.700% senior notes due in 2034.
The company stated that the net proceeds from the offering, along with available cash, will be utilized to fully repay the outstanding borrowings under its term loan facility. The transaction is anticipated to be completed on March 28, 2024, pending customary closing conditions.
Joint Book-Running Managers for the offering include J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc., and SMBC Nikko Securities America, Inc.
Marathon Oil has filed the necessary documentation with the Securities and Exchange Commission (SEC), which includes a registration statement and a prospectus supplement. Before making any investments, the company advises potential investors to read these documents for more comprehensive information about Marathon Oil and this particular offering.
This news release does not represent an offer to sell or a solicitation of an offer to buy any securities, and there will be no sale of the securities in any jurisdiction where such offer, solicitation, or sale would be illegal before registration or qualification under the securities laws of that jurisdiction.
Marathon Oil is primarily engaged in oil and gas exploration and production in the United States, with significant operations in the Eagle Ford (NYSE:F), Bakken, STACK and SCOOP, and Permian regions, and it also has a major integrated gas business in Equatorial Guinea.
The company's forward-looking statements in the press release are based on current expectations and are subject to various risks and uncertainties that could cause actual results to differ materially from those projected.
The information presented in this article is based on a press release statement from Marathon Oil Corporation.
InvestingPro Insights
As Marathon Oil (NYSE: MRO) positions itself for the future with its recent senior notes offering, investors are looking closely at the company's financial health and market performance. With a solid market capitalization of $15.83 billion and an attractive price-to-earnings (P/E) ratio that stands at 10.27 for the last twelve months as of Q4 2023, Marathon Oil presents a compelling picture to those interested in the energy sector.
One of the key InvestingPro Tips for Marathon Oil is the company's commitment to returning value to shareholders, as evidenced by its history of raising its dividend for three consecutive years. This is indicative of management's confidence in the company's financial stability and future cash flows.
Moreover, Marathon has maintained dividend payments for an impressive 54 consecutive years, which is a testament to its long-standing policy of shareholder returns.
In terms of performance metrics, Marathon Oil has shown a strong return over the last month with a 14.16% price total return, and it's trading near its 52-week high at 93.27% of the peak price. Additionally, the company has demonstrated a robust gross profit margin of 76.49% over the last twelve months as of Q4 2023, highlighting its efficiency in generating earnings relative to its revenue.
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As Marathon Oil navigates the challenges and opportunities ahead, these InvestingPro insights serve as valuable tools for those monitoring the company's progress and considering its potential as an investment.
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