Marathon Oil Corporation (NYSE:MRO) will now channel $1.4 billion to capital budget in 2016. That marks a more than 59% step-down in capital spending compared to 2015. The company has also increased its target for asset sales, now seeking to unlock up to $1 billion through asset divestment.Marathon finished 4Q2015 with cash and short-term investments of $2.4 billion offset by $7.3 billion in long-term debt.

2016 capex fall 75%

Marathon’s $1.4 billion capex plan for 2016 is more than 50% below what it spent on similar activities in 2015 and 75% below 2014 capex. According to the management, the capex step-down is a part of the efforts to preserve cash and drive efficiency in the business. Energy companies are facing pressure from falling oil prices amid a supply glut in the global market.

$160 million labor saving

In 2015, Marathon Oil Corporation (NYSE:MRO) reduced its workforce by 20%, allowing it to save $160 million in annualized basis. Additionally, the company spent less on capital projects that it initially planned for the year. The $3 billion in capex for 2015 was $500 million below the initial capex target.

Areas of 2016 capital spending

Among other things, Marathon Oil Corporation (NYSE:MRO) intends to direct $40 million of the $1.4 billion capital program for 2016 to mining of oil sands. Additionally, the company will funnel $40 million to corporate spending and related items.

Lion’s share for North America

Most of Marathon’s 2016 capital spending will be in North America where the company intends to funnel $1.15 billion to Eagle Ford and other fields in the region.

Raising funds

The management is no clear whether Marathon will be borrowing some money to fund its capital programs. However, the company is looking to raise more money from the sale of noncore assets than previously anticipated. The management is looking to unlock between $750 million and $1 billion from selling of certain assets that aren’t core to the company.

Earnings report

Marathon Oil Corporation (NYSE:MRO) posted adjusted EPS loss of $0.48 on revenue of $1.48 billion in 4Q2015. Analysts were looking for EPS loss of $0.50 on revenue of $1.17 billion.