Marathon Oil Loses 5%, Company Announces Offering Of 135 Million Shares

Shares of Marathon Oil Corporation (NYSE: MRO) were trading lower by more than 5 percent early Tuesday morning after the company announced a public offering of 145 million shares of its stock.

Marathon Oil said after Monday's market close that it will offer 145 million shares of its common stock at a price of $7.65 per share. In connection with the offering, the company has granted its underwriters the option to buy up to 21.75 million additional shares.

Marathon Oil noted it will use the proceeds to strengthen its balance sheet and for general corporate purposes, including funding a portion of its capital program.