NEW YORK (TheStreet) -- Marathon Oil (MRO - Get Report) stock is down by 5.80% to $6.98 on heavy trading volume this afternoon, after the company reported its first annual loss in 20 years as oil prices have plummeted about 70% from mid-2014 highs.
Additionally, the Houston-based energy company slashed its capital spending program by more than 50% to $1.4 billion from last year. It will focus about 70% of the budget on Texas's Eagle Ford, Oklahoma's SCOOP and North Dakota's Bakken shale plays, Reuters reports.
Marathon Oil is scaling down five more rigs in the Eagle Ford during the first quarter, running two rigs in Oklahoma through this year and reducing activity in the Bakken.
The company anticipates that total production will decrease between 6% and 8%, given the "material step-back in year-over-year investment," according to a statement. Marathon Oil now expects asset sales between $750 million and $1 billion, up from $500 million.
For the fourth quarter, Marathon Oil reported an adjusted loss of 48 cents per share on revenue of $1.48 billion, compared to analysts' estimates for a loss of 48 cents per share on revenue of $1.17 billion.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D+.
Marathon Oil's weaknesses include its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
You can view the full analysis from the report here: MRO
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.MRO data by YCharts