Marathon Oil’s Capital Budget Favors the Eagle Ford in 2013

South Texas Gets 40% of Marathon's 2013 Capital Budget
Marathon Oil Core Eagle Ford Acreage

Marathon Oil Core Acreage | Click to Enlarge

M arathon Oil’s Eagle Ford assets will be the beneficiary of $1.9 billion in spending in 2013. Marathon released plans to spend $5.2 billion in 2013, with almost 40% of the total earmarked for South Texas.

Approximately 65% of the company’s budget is allocated to “Growth” assets and you guessed it. The Eagle Ford is a “Growth” asset for the company. That’s why $1.9 billion is allocated toward the Eagle Ford. Current plans call for the drilling of 275-320 gross (215-250 net) operated wells in 2013.

Ten percent of the budget, $190 million, will be spent on midstream infrastructure: central batteries and pipelines.

“About one-third of our overall budget, or $1.9 billion, is allocated to the Eagle Ford shale play in South Texas.” Clarence P. Cazalot Jr., CEO

The company has also increased its production guidance in the Eagle Ford to 85,000 boe/d in 2013. Marathon has mentioned multiple times that economics in the play make it very attractive and the shear size of the company’s operations make it ripe for operational improvements over time.

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R.T. Dukes

R.T. Dukes

Managing Editor at
R.T. is the managing editor of In prior roles, he advised major oil companies on strategy, the macro business environment, and opportunity screening. 2503 Robinhood, Houston, TX, 77005, U.S.A. | Telephone: 832.429.4790

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