Marathon Oil Corporation (NYSE:MRO) today reported a first quarter
2017 net loss from continuing operations of $50 million, or $0.06
per diluted share.
During the quarter, Marathon Oil entered into an agreement to
sell its Canadian oil sands business, which is now reflected as
discontinued operations. The net loss of $4,957 million, or $5.84
per diluted share, includes the impact of certain items not
typically represented in analysts' earnings estimates and that
would otherwise affect comparability of results, including a
non-cash, after-tax impairment charge of $4,962 million from
discontinued operations. The adjusted net loss was $57 million, or
$0.07 per diluted share.
Highlights
- E&P production averaged 338,000 net boed, including 8,000
net boed from Libya
- North America E&P production averaged 208,000 net boed,
flat sequentially on a divestiture-adjusted basis and above the top
end of guidance
- Increased production guidance ranges for 2017 E&P to
340,000 - 360,000 net boed and 2017 resource play exit rate to
20-25% (oil and boe) due primarily to the recent Northern Delaware
acquisitions
- Average 30-day IP rate of 990 boed from STACK Meramec Yost
spacing pilot (4,650 foot average lateral length), in line with
expectations
- Eagle Ford production up 5% sequentially with average completed
well costs of $4 million
- Four Bakken East Myrmidon wells brought to sales with average
30-day IP rates of 1,875 boed (78% oil)
- Announced acquisitions totaling 91,000 net surface acres and
5,000 net boed of production in the Permian basin, primarily in the
Northern Delaware, for $1.8 billion, excluding closing
adjustments
- Announced divestiture of Canadian oil sands business for $2.5
billion, excluding closing adjustments
- Ended the quarter with $2.5 billion of cash on the balance
sheet
"We’re off to a strong start in 2017, highlighted by our
transformative portfolio moves to enter the Northern Delaware basin
and exit the Canadian oil sands," said Marathon Oil President and
CEO Lee Tillman. “With solid operational execution and strong well
results in the first quarter, we held production flat sequentially
in the resource plays, and are well positioned to resume
high-return production growth there in the second quarter. We're on
track to deliver our 2017 capital program, having ramped up
resource play activity from 12 to 20 rigs in the first quarter.
We've also raised production guidance to reflect our Northern
Delaware acquisitions.”
North America E&PNorth America Exploration
and Production (E&P) production available for sale averaged
208,000 net barrels of oil equivalent per day (boed) for first
quarter 2017 with unit production costs of $5.79 per barrel of oil
equivalent (boe). On a divestiture-adjusted basis, production was
flat with the prior quarter and down 4 percent from the year-ago
period.
OKLAHOMA RESOURCE BASINS: The Company's unconventional Oklahoma
production averaged 44,000 net boed during first quarter 2017,
compared to 45,000 net boed in the prior quarter and up more than
60 percent from the year-ago quarter. Of the 12 gross operated
wells brought to sales in the first quarter, five were part of the
Company's first operated STACK infill spacing test, the Yost pilot,
and the others were focused primarily on STACK lease retention and
delineation. The Yost pilot, located in the normally pressured
black oil window in central Kingfisher County, successfully tested
107-acre well spacing with completions of approximately 2,500
pounds of proppant per lateral foot. The 30-day initial production
(IP) rates from the five new standard-lateral (SL) Yost wells and
parent well averaged 990 boed (57% oil). The Company ended the
quarter running seven rigs, and plans to average approximately 10
rigs in 2017.
EAGLE FORD: Marathon Oil's production in the Eagle Ford averaged
99,000 net boed in first quarter 2017, up 5 percent compared to
94,000 net boed in the prior quarter, with oil production up 7
percent sequentially. The Company brought 47 gross Company-operated
wells to sales in the first quarter with average completed well
costs of $4 million, compared to 52 wells to sales in the previous
quarter. More than 60 percent of the new wells targeted the Lower
Eagle Ford in the high-margin oil window, and those wells continue
to deliver outstanding results. The Guajillo South four-well Lower
Eagle Ford pad achieved 30-day IP rates averaging 1,690 boed (76%
oil), and the Medina Jonas pad had 30-day IP rates that averaged
1,450 boed (84% oil). During the quarter, wells were drilled at an
average rate of 2,500 feet per day and a new Company-record was set
at more than 4,000 feet per day. Marathon Oil ended the quarter
with six rigs and expects to maintain an average of six in
2017.
BAKKEN: In first quarter 2017, Marathon Oil's Bakken production
averaged 48,000 net boed compared to the prior quarter's average of
52,000 net boed. The Company brought online four gross
Company-operated wells in the quarter from a pad in East Myrmidon,
with 30-day IP rates averaging 1,875 boed (78% oil). Three of the
wells were completed in the Three Forks formation, with one in the
Middle Bakken. The Company ended the quarter running seven rigs,
and plans to average approximately six rigs in the Bakken in
2017.
NORTHERN DELAWARE: Marathon Oil closed on its acquisition from
BC Operating, Inc. and other entities on May 1, and expects to
close its acquisition from Black Mountain Oil & Gas in the
second quarter. The two deals combined add 91,000 net surface acres
in the Permian Basin, primarily in the Northern Delaware, and
production that averaged approximately 5,000 net boed in the first
quarter. BC Operating brought five gross wells to sales during the
quarter. Marathon Oil currently has one rig drilling in the
Northern Delaware and is ramping up to three rigs by mid-year.
International E&PInternational E&P
production available for sale (excluding Libya) averaged 122,000
net boed for first quarter 2017, down 5 percent from the prior
quarter primarily due to planned and unplanned downtime in E.G. and
the U.K., but up more than 20 percent over the year-ago quarter.
First quarter 2017 unit production costs (excluding Libya) were
lower at $3.20 per boe primarily due to timing of liftings.
Equatorial Guinea production available for sale averaged 105,000
net boed in first quarter 2017 compared to 109,000 net boed in the
previous quarter. U.K. production available for sale averaged
15,000 net boed in first quarter 2017, down from 19,000 net boed in
the previous quarter. Marathon Oil had two liftings in Libya, with
production available for sale averaging 8,000 net boed in the first
quarter.
GuidanceMarathon Oil expects second quarter
2017 North America E&P production available for sale to average
210,000 to 220,000 net boed. Second quarter International E&P
production available for sale, excluding Libya, is expected to be
within a range of 120,000 to 130,000 net boed.
The Company is raising its full-year 2017 E&P production
guidance range primarily due to the inclusion of production from
the Northern Delaware acquisitions. For full year 2017, the Company
forecasts production available for sale from the combined North
America and International E&P segments, excluding Libya, to
average 340,000 to 360,000 net boed, about 6 percent higher than
2016 at the midpoint on a divestiture-adjusted basis. U.S. resource
plays are expected to return to sequential growth in second quarter
2017, and exit the year with oil and BOE production 20 to 25
percent higher than fourth quarter 2016, providing significant
operational momentum into 2018.
Corporate and Special ItemsNet cash provided by
operating activities from continuing operations was $501 million
during first quarter 2017, and net cash provided by continuing
operations before changes in working capital was $513 million. Cash
additions to property, plant and equipment were $283 million in
first quarter 2017. The Company paid $180 million in deposits into
escrow related to acquisitions during the quarter. Total liquidity
as of March 31 was $5.8 billion, which consists of $2.5 billion in
cash and cash equivalents and an undrawn revolving credit facility
of $3.3 billion.
The adjustments to net loss from continuing operations for first
quarter 2017 total a gain of $62 million before tax, and primarily
consist of an unrealized gain on commodity derivatives of $77
million.
Marathon Oil added new derivative positions during the quarter.
The Company has now hedged an average 51,000 barrels a day (bpd) in
2017 through a combination of three-way collars with an average
weighted floor price of $53.31 and ceiling of $59.70, indexed to
NYMEX WTI.
The Company's webcast commentary and associated slides related
to Marathon Oil's financial and operational review, as well as the
Quarterly Investor Packet, will be posted to the Company's website
at http://ir.marathonoil.com as soon as practicable following
this release today, May 4. The Company will conduct a question and
answer webcast/call on Friday, May 5, at 9:00 a.m. ET. The
associated commentary and answers to questions will include
forward-looking information. To listen to the live webcast, visit
the Marathon Oil website at http://www.marathonoil.com. The audio
replay of the webcast will be posted by May 8.
Non-GAAP MeasuresIn analyzing and
planning for its business, Marathon Oil supplements its use of GAAP
financial measures with non-GAAP financial measures, including
adjusted net income (loss) and net cash provided by operations
before changes in working capital, to evaluate the Company's
financial performance between periods and to compare the Company's
performance to certain competitors. Management also uses net cash
provided by operations before changes in working capital to
demonstrate the Company's ability to internally fund capital
expenditures, pay dividends and service debt. The Company considers
adjusted net income (loss) as another way to meaningfully represent
our operational performance for the period presented; consequently,
it excludes the impact of mark-to-market accounting, impairment
charges, dispositions, pension settlements, and other items that
could be considered “non-operating” or “non-core” in nature. These
non-GAAP financial measures reflect an additional way of viewing
aspects of the business that, when viewed with GAAP results may
provide a more complete understanding of factors and trends
affecting the business and are a useful tool to help management and
investors make informed decisions about Marathon Oil's financial
and operating performance. These measures should not be considered
substitutes for their most directly comparable GAAP financial
measures. See the tables below for reconciliations between each
non-GAAP financial measure and its most directly comparable GAAP
financial measure. Marathon Oil strongly encourages investors to
review the Company's consolidated financial statements and publicly
filed reports in their entirety and not rely on any single
financial measure.
Forward-looking StatementsThis release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. All statements, other than statements of historical
fact, including without limitation statements regarding the
Company's future performance, business strategy, asset quality,
drilling plans, production guidance, capital plans and other plans
and objectives for future operations, are forward-looking
statements. Words such as "anticipate," "believe," "could,"
"estimate," "expect," "forecast," "guidance," "intend," "may,"
"plan," "project," "seek," "should," "target," "will," "would," or
similar words may be used to identify forward-looking statements;
however, the absence of these words does not mean that the
statements are not forward-looking. While the Company believes its
assumptions concerning future events are reasonable, a number of
factors could cause actual results to differ materially from those
projected, including, but not limited to: conditions in the oil and
gas industry, including supply/demand levels and the resulting
impact on price; changes in expected reserve or production levels;
changes in political or economic conditions in the jurisdictions in
which the Company operates; risks related to the Company's hedging
activities; capital available for exploration and development; the
inability for any party to satisfy closing conditions with respect
to acquisitions and disposition; drilling and operating risks; well
production timing; availability of drilling rigs, materials and
labor, including associated costs; difficulty in obtaining
necessary approvals and permits; non-performance by third parties
of contractual obligations; unforeseen hazards such as weather
conditions, acts of war or terrorist acts and the government or
military response thereto; cyber-attacks; changes in safety,
health, environmental, tax and other regulations; other geological,
operating and economic considerations; and the risk factors,
forward-looking statements and challenges and uncertainties
described in the Company’s 2016 Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q and other public filings and press
releases, available at www.marathonoil.com. Except as required by
law, the Company undertakes no obligation to revise or update any
forward-looking statements as a result of new information, future
events or otherwise.
|
|
Consolidated Statements of Income (Unaudited) |
Three Months Ended |
|
Mar. 31 |
Dec. 31 |
Mar. 31 |
(In
millions, except per share data) |
2017 |
2016 |
2016 |
Revenues and
other income: |
|
|
|
Sales and other operating revenues, including related party |
$ |
954 |
|
$ |
898 |
|
$ |
566 |
|
Marketing revenues |
34 |
|
38 |
|
46 |
|
Income from equity method investments |
69 |
|
65 |
|
14 |
|
Net gain (loss) on disposal of assets |
1 |
|
107 |
|
(60 |
) |
Other income |
14 |
|
16 |
|
4 |
|
Total revenues and
other income |
1,072 |
|
1,124 |
|
570 |
|
Costs and
expenses: |
|
|
|
Production |
151 |
|
180 |
|
187 |
|
Marketing, including purchases from related parties |
34 |
|
44 |
|
46 |
|
Other operating |
89 |
|
111 |
|
103 |
|
Exploration |
28 |
|
34 |
|
24 |
|
Depreciation, depletion and amortization |
556 |
|
573 |
|
549 |
|
Impairments |
4 |
|
19 |
|
1 |
|
Taxes other than income |
39 |
|
38 |
|
43 |
|
General and administrative |
109 |
|
95 |
|
151 |
|
Total costs and
expenses |
1,010 |
|
1,094 |
|
1,104 |
|
Income (loss)
from operations |
62 |
|
30 |
|
(534 |
) |
Net interest and other |
(78 |
) |
(76 |
) |
(79 |
) |
Income (loss)
from continuing operations before income taxes |
(16 |
) |
(46 |
) |
(613 |
) |
Provision
(Benefit) for income taxes |
34 |
|
1,337 |
|
(253 |
) |
Income (loss)
from continuing operations |
(50 |
) |
(1,383 |
) |
(360 |
) |
Discontinued operations
(a) |
(4,907 |
) |
12 |
|
(47 |
) |
Net income
(loss) |
$ |
(4,957 |
) |
$ |
(1,371 |
) |
$ |
(407 |
) |
Adjustments for special
items from continuing operations (pre-tax): |
|
|
|
Net
(gain) loss on dispositions |
— |
|
(108 |
) |
63 |
|
Pension
settlement |
14 |
|
10 |
|
48 |
|
Unrealized (gain) loss on derivative instruments |
(77 |
) |
21 |
|
23 |
|
Other |
1 |
|
(4 |
) |
7 |
|
Provision (benefit) for
income taxes related to special items from continuing
operations |
— |
|
23 |
|
(51 |
) |
Valuation
Allowance |
— |
|
1,346 |
|
— |
|
Adjustments for special
items from continuing operations: |
$ |
(62 |
) |
$ |
1,288 |
|
$ |
90 |
|
Adjusted net
income (loss) from continuing operations (b) |
$ |
(112 |
) |
$ |
(95 |
) |
$ |
(270 |
) |
Adjustments for special
items from discontinued operations (pre-tax): |
|
|
|
Canada oil sands
business impairment (a) |
6,636 |
|
— |
|
— |
|
Provision (benefit) for
income taxes related to special items from discontinued
operations |
(1,674 |
) |
— |
|
— |
|
Adjusted net income (loss) (b) |
$ |
(57 |
) |
$ |
(83 |
) |
$ |
(317 |
) |
Per diluted
share: |
|
|
|
Income
(loss) from continuing operations |
$ |
(0.06 |
) |
$ |
(1.63 |
) |
$ |
(0.49 |
) |
Net
Income (loss) |
$ |
(5.84 |
) |
$ |
(1.62 |
) |
$ |
(0.56 |
) |
Adjusted
net income (loss) from continuing operations (b) |
$ |
(0.13 |
) |
$ |
(0.11 |
) |
$ |
(0.37 |
) |
Adjusted
net income (loss) (b) |
$ |
(0.07 |
) |
$ |
(0.10 |
) |
$ |
(0.43 |
) |
Weighted
average diluted shares |
849 |
|
847 |
|
730 |
|
(a) The Company entered into an agreement to sell its Canadian
oil sands business in first quarter 2017. The Canadian oil
sands business is reflected as discontinued operations in all
periods presented. The discontinued operations presentation has not
yet been audited; therefore, reported values are
preliminary.(b) Non-GAAP financial measure. See "Non-GAAP
Measures" above for further discussion.
|
|
Supplemental Statistics (Unaudited) |
Three Months Ended |
|
Mar. 31 |
Dec. 31 |
Mar. 31 |
(in
millions) |
2017 |
2016 |
2016 |
Segment income
(loss) |
|
|
|
North America
E&P |
$ |
(79 |
) |
$ |
(91 |
) |
$ |
(195 |
) |
International
E&P |
93 |
|
110 |
|
4 |
|
Segment
income (loss) |
14 |
|
19 |
|
(191 |
) |
Not
allocated to segments |
(64 |
) |
(1,402 |
) |
(169 |
) |
Loss from
continuing operations |
(50 |
) |
(1,383 |
) |
(360 |
) |
Discontinued operations (a) |
(4,907 |
) |
12 |
|
(47 |
) |
Net income (loss) |
$ |
(4,957 |
) |
$ |
(1,371 |
) |
$ |
(407 |
) |
Exploration
expenses |
|
|
|
North America
E&P |
$ |
26 |
|
$ |
37 |
|
$ |
18 |
|
International
E&P |
2 |
|
(3 |
) |
6 |
|
Segment
exploration expenses |
28 |
|
34 |
|
24 |
|
Not
allocated to segments |
— |
|
— |
|
— |
|
Total |
$ |
28 |
|
$ |
34 |
|
$ |
24 |
|
Cash
flows |
|
|
|
Net cash provided by
operating activities from continuing operations |
$ |
501 |
|
$ |
375 |
|
$ |
69 |
|
Minus: changes in
working capital |
(12 |
) |
12 |
|
3 |
|
Total net cash provided
from continuing operations before changes in working capital
(b) |
$ |
513 |
|
$ |
363 |
|
$ |
66 |
|
Net cash provided by
operating activities from discontinued operations (a) |
95 |
|
80 |
|
5 |
|
|
|
|
|
Cash
additions to property, plant and equipment |
$ |
(283 |
) |
$ |
(255 |
) |
$ |
(441 |
) |
(a) The Company entered into an agreement to sell its Canadian
oil sands business in first quarter 2017. The Canadian oil sands
business is reflected as discontinued operations in all periods
presented. The discontinued operations presentation has not yet
been audited; therefore, reported values are
preliminary.(b) Non-GAAP financial measure. See "Non-GAAP
Measures" above for further discussion.
|
|
|
|
Three Months Ended |
Guidance(a) |
|
Mar. 31 |
Dec. 31 |
Mar. 31 |
Q2 |
Full Year |
(mboed) |
2017 |
2016 |
2016 |
2017 |
2017 |
Net production
available for sale |
|
|
|
|
|
North America E&P
(a) |
208 |
|
212 |
|
239 |
|
210 -
220 |
|
International E&P
excluding Libya (b) |
122 |
|
129 |
|
100 |
|
120 - 130 |
|
Total continuing
operations, excluding Libya (b) |
330 |
|
341 |
|
339 |
|
|
340 -
360 |
Libya |
8 |
|
8 |
|
— |
|
|
|
Total
continuing operations |
338 |
|
349 |
|
339 |
|
|
|
(a) The Company closed on asset sales of certain fields within
New Mexico and West Texas in July, August, and October 2016.
Certain Wyoming assets closed in June and November 2016 and the
sale of certain Gulf of Mexico assets closed in February 2016.(b)
Libya is excluded because of the timing of future production and
sales levels.
|
|
|
Three Months Ended |
|
Mar. 31 |
Dec. 31 |
Mar. 31 |
(mboed) |
2017 |
2016 |
2016 |
Net production
available for sale |
|
|
|
North America
E&P |
208 |
|
212 |
|
239 |
|
Less:
Divestitures (a) |
— |
|
(3 |
) |
(22 |
) |
Divestiture-adjusted North America E&P |
208 |
|
209 |
|
217 |
|
Divestiture-adjusted total continuing
operations |
338 |
|
346 |
|
317 |
|
Discontinued operations (b) |
45 |
|
47 |
|
49 |
|
(a) Divestitures include the sale of certain New Mexico and West
Texas assets in July, August, and October 2016; Wyoming assets
closed in June and November 2016 and the sale of certain Gulf of
Mexico assets closed in February 2016. These production volumes
have been removed from all periods shown in arriving at
divestiture-adjusted North America E&P net production available
for sale.(b) The Company entered into an agreement to sell its
Canadian oil sands business in first quarter 2017. The Canadian oil
sands business is reflected as discontinued operations in all
periods presented. The discontinued operations presentation has not
yet been audited; therefore, reported values are preliminary.
|
|
Supplemental Statistics (Unaudited) |
Three Months Ended |
|
Mar. 31 |
Dec. 31 |
Mar. 31 |
|
2017 |
2016 |
2016 |
North America
E&P - net sales volumes |
|
|
|
Liquid
hydrocarbons (mbbld) |
158 |
|
160 |
|
186 |
|
Bakken |
44 |
|
47 |
|
53 |
|
Eagle Ford |
79 |
|
74 |
|
95 |
|
Oklahoma resource basins |
25 |
|
24 |
|
12 |
|
Other North America (a) |
10 |
|
15 |
|
26 |
|
Crude
oil and condensate (mbbld) |
118 |
|
121 |
|
147 |
|
Bakken |
39 |
|
41 |
|
47 |
|
Eagle Ford |
59 |
|
54 |
|
70 |
|
Oklahoma resource basins |
12 |
|
13 |
|
5 |
|
Other North America (a) |
8 |
|
13 |
|
25 |
|
Natural
gas liquids (mbbld) |
40 |
|
39 |
|
39 |
|
Bakken |
5 |
|
6 |
|
6 |
|
Eagle Ford |
20 |
|
20 |
|
25 |
|
Oklahoma resource basins |
13 |
|
11 |
|
7 |
|
Other North America (a) |
2 |
|
2 |
|
1 |
|
Natural
gas (mmcfd) |
304 |
|
315 |
|
315 |
|
Bakken |
21 |
|
26 |
|
25 |
|
Eagle Ford |
122 |
|
119 |
|
154 |
|
Oklahoma resource basins |
115 |
|
123 |
|
89 |
|
Other North America (a) |
46 |
|
47 |
|
47 |
|
Total North America E&P (mboed) |
208 |
|
212 |
|
239 |
|
International
E&P - net sales volumes |
|
|
|
Liquid
hydrocarbons (mbbld) |
50 |
|
64 |
|
32 |
|
Equatorial Guinea |
29 |
|
32 |
|
25 |
|
United Kingdom |
7 |
|
22 |
|
7 |
|
Libya |
12 |
|
10 |
|
— |
|
Crude
oil and condensate (mbbld) |
37 |
|
52 |
|
23 |
|
Equatorial Guinea |
18 |
|
20 |
|
16 |
|
United Kingdom |
6 |
|
22 |
|
7 |
|
Libya |
12 |
|
10 |
|
— |
|
Natural
gas liquids (mbbld) |
13 |
|
12 |
|
9 |
|
Equatorial Guinea |
12 |
|
12 |
|
9 |
|
United Kingdom |
1 |
|
— |
|
— |
|
Natural
gas (mmcfd) |
461 |
|
482 |
|
382 |
|
Equatorial Guinea |
438 |
|
454 |
|
351 |
|
United Kingdom (b) |
23 |
|
28 |
|
31 |
|
Total International E&P (mboed) |
126 |
|
145 |
|
96 |
|
Total continuing operations - net sales volumes
(mboed) |
334 |
|
357 |
|
335 |
|
Discontinued operations - net sales volumes
(mboed)(c) |
60 |
|
62 |
|
59 |
|
Total Company - net sales volumes (mboed) |
394 |
|
419 |
|
394 |
|
Net sales
volumes of equity method investees |
|
|
|
LNG (mtd) |
6,147 |
|
6,743 |
|
4,322 |
|
Methanol (mtd) |
1,307 |
|
1,316 |
|
1,280 |
|
Condensate and LPG (boed) |
14,546 |
|
15,381 |
|
10,208 |
|
(a) Includes Gulf of Mexico, Wyoming, New Mexico, and other
conventional onshore U.S. production. The sale of certain Gulf of
Mexico assets closed in February 2016, Wyoming in June 2016 and
November 2016, New Mexico and West Texas in July, August, and
October 2016.(b) Includes natural gas acquired for injection and
subsequent resale of 7 mmcfd, 5 mmcfd, and 5 mmcfd in the first
quarter of 2017, fourth and first quarters of 2016,
respectively.(c) Includes blendstocks. The Company entered into an
agreement to sell its Canadian oil sands business in first quarter
2017. The Canadian oil sands business is reflected as discontinued
operations in all periods presented. The discontinued operations
presentation has not yet been audited; therefore, reported values
are preliminary.
|
|
Supplemental Statistics (Unaudited) |
Three Months Ended |
|
Mar. 31 |
Dec. 31 |
Mar. 31 |
|
2017 |
2016 |
2016 |
North America
E&P - average price realizations (a) |
|
|
|
Liquid
hydrocarbons ($ per bbl) |
$ |
41.13 |
|
$ |
39.00 |
|
$ |
24.00 |
|
Bakken |
44.79 |
|
41.96 |
|
26.00 |
|
Eagle Ford |
40.49 |
|
38.16 |
|
23.02 |
|
Oklahoma resource basins |
35.47 |
|
34.28 |
|
19.41 |
|
Other North America (b) |
43.81 |
|
41.69 |
|
25.51 |
|
Crude
oil and condensate ($ per bbl) (c) |
$ |
48.46 |
|
$ |
45.89 |
|
$ |
28.21 |
|
Bakken |
48.75 |
|
46.28 |
|
28.78 |
|
Eagle Ford |
48.18 |
|
45.96 |
|
28.65 |
|
Oklahoma resource basins |
49.07 |
|
46.30 |
|
29.74 |
|
Other North America (b) |
48.24 |
|
43.78 |
|
25.66 |
|
Natural
gas liquids ($ per bbl) |
$ |
19.33 |
|
$ |
17.31 |
|
$ |
8.12 |
|
Bakken |
15.35 |
|
11.97 |
|
3.47 |
|
Eagle Ford |
18.12 |
|
16.34 |
|
7.05 |
|
Oklahoma resource basins |
22.59 |
|
20.79 |
|
11.86 |
|
Other North America (b) |
21.52 |
|
24.56 |
|
23.47 |
|
Natural
gas ($ per mcf) (d) |
$ |
3.02 |
|
$ |
2.87 |
|
$ |
2.02 |
|
Bakken |
3.27 |
|
2.63 |
|
2.09 |
|
Eagle Ford |
2.85 |
|
2.91 |
|
1.98 |
|
Oklahoma resource basins |
3.16 |
|
2.90 |
|
2.03 |
|
Other North America (b) |
3.03 |
|
2.82 |
|
2.10 |
|
International
E&P - average price realizations |
|
|
|
Liquid
hydrocarbons ($ per bbl) |
$ |
38.64 |
|
$ |
37.85 |
|
$ |
22.66 |
|
Equatorial Guinea |
26.52 |
|
26.60 |
|
20.43 |
|
United Kingdom |
53.98 |
|
45.02 |
|
30.20 |
|
Libya |
58.36 |
|
57.69 |
|
— |
|
Crude
oil and condensate ($ per bbl) |
$ |
50.41 |
|
$ |
46.14 |
|
$ |
30.95 |
|
Equatorial Guinea |
43.27 |
|
41.60 |
|
30.93 |
|
United Kingdom |
56.51 |
|
45.18 |
|
30.72 |
|
Libya |
58.36 |
|
57.69 |
|
— |
|
Natural
gas liquids ($ per bbl) |
$ |
3.86 |
|
$ |
1.72 |
|
$ |
2.20 |
|
Equatorial Guinea (e) |
1.00 |
|
1.00 |
|
1.00 |
|
United Kingdom |
38.99 |
|
32.58 |
|
23.56 |
|
Natural
gas ($ per mcf) |
$ |
0.55 |
|
$ |
0.53 |
|
$ |
0.60 |
|
Equatorial Guinea (e) |
0.24 |
|
0.24 |
|
0.24 |
|
United Kingdom |
6.33 |
|
5.39 |
|
4.61 |
|
Discontinued
Operations - Average Price Realizations ($ per
boe)(f) |
|
|
|
Oil Sands Mining - Synthetic crude oil ($ per bbl) |
$ |
47.63 |
|
$ |
43.35 |
|
$ |
26.41 |
|
Benchmark |
|
|
|
WTI crude oil (per bbl) |
$ |
51.78 |
|
$ |
49.29 |
|
$ |
33.63 |
|
Brent (Europe) crude oil (per bbl)(g) |
$ |
53.68 |
|
$ |
49.19 |
|
$ |
33.70 |
|
Henry Hub natural gas (per mmbtu)(h) |
$ |
3.32 |
|
$ |
2.98 |
|
$ |
2.09 |
|
(a) Excludes gains or losses on derivative instruments.(b)
Includes Gulf of Mexico, Wyoming, New Mexico, and other
conventional onshore U.S. production. The sale of certain Gulf of
Mexico assets closed in February 2016, Wyoming in June 2016 and
November 2016, New Mexico and West Texas in July, August, and
October 2016.(c) Inclusion of realized gains on crude oil
derivative instruments would have increased average price
realizations by $0.34, $0.32, and $1.64, for the first quarter of
2017, and fourth and first quarters of 2016, respectively. (d)
Inclusion of realized gains (losses) on natural gas derivative
instruments would have a de minimus impact on average price
realizations for the periods presented.(e) Represents fixed
prices under long-term contracts with Alba Plant LLC, Atlantic
Methanol Production Company LLC and/or Equatorial Guinea LNG
Holdings Limited, which are equity method investees. The Alba Plant
LLC processes the NGLs and then sells secondary condensate,
propane, and butane at market prices. Marathon Oil includes its
share of income from each of these equity method investees in the
International E&P segment.(f) The Company entered into an
agreement to sell its Canadian oil sands business in first quarter
2017. The Canadian oil sands business is reflected as discontinued
operations in all periods presented. The discontinued operations
presentation has not yet been audited; therefore, reported values
are preliminary.(g) Average of monthly prices obtained from Energy
Information Administration ("EIA") website.(h) Settlement date
average per mmbtu.
Media Relations Contact:
Lee Warren: 713-296-4103
Investor Relations Contact:
Zach Dailey: 713-296-4140
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