Marathon Oil Corporation (NYSE:MRO) today reported a second quarter
2017 net loss of $139 million, or $0.16 per diluted share, which
includes the impact of certain items not typically represented in
analysts' earnings estimates and that would otherwise affect
comparability of results. The adjusted net loss was $145 million,
or $0.17 per diluted share. Net operating cash flow was $422
million, or $471 million before changes in working capital.
Highlights
- Total Company production from continuing operations increased
6% sequentially to 349,000 net boed, excluding 11,000 net boed from
Libya; oil grew 7% excluding Libya
- U.S. resource play production grew 6% sequentially, averaging
202,000 net boed
- Oklahoma Resource Basin production grew 11% sequentially with
continued focus on leasehold, delineation and infill spacing; 6 new
standard lateral wells from the high-density Hansens STACK pilot
delivered average 30-day IPs of 915 boed (55% oil)
- Eagle Ford production up sequentially with fewer wells to sales
due to outstanding new well performance; top 10 wells to sales had
30-day IPs averaging 2,340 boed (69% oil)
- First two Bakken Hector wells with enhanced completion designs
achieved 30-day IPs averaging 2,500 boed (85% oil)
- Successful first MRO-designed completion in Northern Delaware
achieved 30-day IP of 1,500 boed (72% oil), pushing delineation
farther west in Eddy County
- Ended the quarter with $2.6 billion of cash on the balance
sheet, up from the previous quarter
"With outstanding operational results across all our assets in
the second quarter, we delivered on our commitment to resume
sequential growth with total Company production, excluding Libya,
and the U.S. resource plays increasing 6 percent," said Marathon
Oil President and CEO Lee Tillman. "We also made important progress
on several key strategic objectives in the resource plays, while
exceeding expectations on efficiency, base performance and new well
productivity.
"As a result, we're increasing our full-year total Company oil
and BOE production growth guidance of 6 percent at the midpoint,
adjusted for divestitures, to 7 percent, as well as increasing our
20 to 25 percent exit rate growth in the U.S. resource plays to 23
to 27 percent growth, all within a 10 percent lower capital
budget.
"Our operational momentum has us well positioned to continue our
sequential growth in the resource plays into 2018, with an
objective to live within cash flows."
U.S. E&P U.S. E&P production available
for sale averaged 222,000 net barrels of oil equivalent per day
(boed) for second quarter 2017, up 7 percent compared to 208,000
net boed in the prior quarter and up 9 percent from the year-ago
quarter, adjusted for dispositions. Second quarter unit production
costs were $5.86 per barrel of oil equivalent (boe).
OKLAHOMA RESOURCE BASINS: The Company's unconventional Oklahoma
production increased 11 percent to 49,000 net boed during second
quarter 2017, compared to 44,000 net boed in the prior quarter and
up more than 80 percent from the year-ago quarter. Marathon Oil's
second STACK infill spacing pilot, the Hansens pad located in the
normally pressured Meramec black oil window east of the Yost pad,
tested a tighter well spacing design. The six new standard lateral
wells had 30-day initial production (IP) rates averaging 915 boed
(55% oil). The Company also continued delineation and leasehold
activity with strong results, including a STACK Meramec
extended-lateral well, the Chapman, which achieved a 30-day IP
averaging 3,185 boed (52% oil) expanding the volatile oil window
farther west in Blaine County.
EAGLE FORD: Marathon Oil's production in the Eagle Ford averaged
100,000 net boed in second quarter 2017, up from 99,000 net boed in
the prior quarter. The Company brought 41 gross Company-operated
wells to sales in the second quarter, compared to 47 wells to sales
in the previous quarter. The top 10 wells to sales had 30-day IP
rates averaging 2,340 boed (69% oil). During the quarter, a new
Company record was set again for the fastest well drilled in the
Eagle Ford at a rate of more than 4,200 feet per day.
BAKKEN: In second quarter 2017, Marathon Oil's Bakken production
averaged 49,000 net boed, compared to 48,000 net boed in the prior
quarter. The Company's first two Hector wells with enhanced
completion designs are performing above expectations with 30-day IP
rates averaging 2,500 boed (85% oil). Seven Myrmidon wells were
brought to sales in July with 24-hour IP rates averaging over 4,000
net boed (78% oil).
NORTHERN DELAWARE: The Company's Northern Delaware production
averaged 4,000 net boed in second quarter 2017, reflecting the May
1 closing of BC Operating assets and June 1 closing of Black
Mountain assets. During the second quarter, the Company brought
online its first well with a Marathon Oil-designed completion. The
Cypress 1H well, a Wolfcamp X-Y well in Eddy County, was a western
delineation test that achieved a 30-day IP rate averaging 1,500
boed (72% oil) from a 4,600-foot lateral. The Black River well, a
Wolfcamp X-Y well with a 9,400-foot lateral, was brought online in
early second quarter and has a 90-day IP rate of 1,275 boed (73%
oil).
International E&PInternational E&P
production available for sale (excluding Libya) averaged 127,000
net boed for second quarter 2017, up 4 percent compared to 122,000
net boed in the prior quarter, and up 6 percent over the year-ago
quarter. Second quarter 2017 unit production costs (excluding
Libya) were $4.03 per boe. Equatorial Guinea production available
for sale averaged 107,000 net boed in second quarter 2017 compared
to 105,000 net boed in the previous quarter. U.K. production
available for sale averaged 18,000 net boed in second quarter 2017,
up 20 percent compared to 15,000 net boed in the previous quarter.
Marathon Oil had two liftings in Libya, with production available
for sale averaging 11,000 net boed in the second quarter.
GuidanceMarathon Oil expects third quarter 2017
U.S. E&P production available for sale to average 230,000 to
240,000 net boed. Third quarter International E&P production
available for sale, excluding Libya, is expected to be within a
range of 115,000 to 125,000 net boed including scheduled
turnarounds in the U.K.
Marathon Oil expects its 2017 capital program to be in a range
of $2.1 to $2.2 billion, down from $2.4 billion. The Company raised
its full-year 2017 production available for sale forecast from the
combined U.S. and International E&P segments, excluding Libya,
to a range of 345,000 to 360,000 net boed, an increase to 7 percent
at the midpoint on a divestiture-adjusted basis. U.S. resource
plays are expected to exit the year with both oil and BOE
production 23 to 27 percent higher than fourth quarter 2016, up
from the previous estimate of 20 to 25 percent growth.
CorporateNet cash provided by operating
activities from continuing operations was $422 million during
second quarter 2017, and net cash provided by continuing operations
before changes in working capital was $471 million. Cash additions
to property, plant and equipment were $492 million in second
quarter 2017. In the second quarter, adjusted net loss and
operating cash flow before working capital included expenses of
approximately $26 million due to accruals for a legal matter, and
sales-and-use tax assessments related to previous tax periods.
Total liquidity as of June 30 was $5.9 billion, which consists
of $2.6 billion in cash and cash equivalents and an undrawn
revolving credit facility of $3.3 billion. In June, the Company
extended the maturity of its undrawn revolving credit facility by
one year to 2021, and in July it upsized the credit facility from
$3.3 billion to $3.4 billion.
In July the Company priced an offering of $1 billion of 4.4
percent Senior Notes due in 2027. The net proceeds from the
offering plus existing cash on hand will be used to redeem Senior
Notes due in 2017, 2018 and 2019. The redemption of these notes
will be completed on Aug. 14, 2017. The offering and redemption
will result in a reduction in total gross debt of approximately
$750 million, generate annual cash interest savings of
approximately $60 million, and extend the maturity schedule. In
July, Marathon Oil also terminated $750 million in interest rate
hedges for cash proceeds of $54 million.
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, Aug. 2. The Company will conduct a question and
answer webcast/call on Thursday, Aug. 3, at 10:00 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 Aug. 4.
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, use of proceeds
from the Company's debt offering, 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 the 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 |
|
June 30 |
Mar. 31 |
June 30 |
(In
millions, except per share data) |
2017 |
2017 |
2016 |
Revenues and
other income: |
|
|
|
Sales and
other operating revenues, including related party |
$ |
958 |
|
$ |
954 |
|
$ |
685 |
|
Marketing
revenues |
35 |
|
34 |
|
76 |
|
Income
from equity method investments |
51 |
|
69 |
|
37 |
|
Net gain
(loss) on disposal of assets |
6 |
|
1 |
|
294 |
|
Other
income |
9 |
|
14 |
|
11 |
|
Total revenues and
other income |
1,059 |
|
1,072 |
|
1,103 |
|
Costs and
expenses: |
|
|
|
Production |
176 |
|
151 |
|
185 |
|
Marketing, including purchases from related parties |
38 |
|
34 |
|
75 |
|
Other
operating |
111 |
|
89 |
|
87 |
|
Exploration |
30 |
|
28 |
|
182 |
|
Depreciation, depletion and amortization |
592 |
|
556 |
|
512 |
|
Impairments |
— |
|
4 |
|
— |
|
Taxes
other than income |
45 |
|
39 |
|
35 |
|
General
and administrative |
93 |
|
109 |
|
131 |
|
Total costs and
expenses |
1,085 |
|
1,010 |
|
1,207 |
|
Income (loss)
from operations |
(26 |
) |
62 |
|
(104 |
) |
Net
interest and other |
(86 |
) |
(78 |
) |
(88 |
) |
Income (loss)
from continuing operations before income taxes |
(112 |
) |
(16 |
) |
(192 |
) |
Provision
(Benefit) for income taxes |
41 |
|
34 |
|
(54 |
) |
Income (loss)
from continuing operations |
(153 |
) |
(50 |
) |
(138 |
) |
Discontinued operations
(a) |
14 |
|
(4,907 |
) |
(32 |
) |
Net income
(loss) |
$ |
(139 |
) |
$ |
(4,957 |
) |
$ |
(170 |
) |
Adjustments for special
items from continuing operations (pre-tax): |
|
|
|
Net
(gain) loss on dispositions |
(6 |
) |
— |
|
(296 |
) |
Unproved
property impairments |
— |
|
— |
|
118 |
|
Pension
settlement |
3 |
|
14 |
|
31 |
|
Unrealized (gain) loss on derivative instruments |
(43 |
) |
(77 |
) |
91 |
|
Other |
(3 |
) |
1 |
|
15 |
|
Provision (benefit) for
income taxes related to special items from continuing
operations |
— |
|
— |
|
15 |
|
Adjustments for special
items from continuing operations: |
$ |
(49 |
) |
$ |
(62 |
) |
$ |
(26 |
) |
Adjusted net
income (loss) from continuing operations (b) |
$ |
(202 |
) |
$ |
(112 |
) |
$ |
(164 |
) |
Adjustments for special
items from discontinued operations (pre-tax): |
|
|
|
Canadian
oil sands business impairment (a) |
— |
|
6,636 |
|
— |
|
Net
(gain) loss on disposition (a) |
43 |
|
— |
|
— |
|
Provision (benefit) for
income taxes related to special items from discontinued operations
(a) |
— |
|
(1,674 |
) |
— |
|
Adjusted net income (loss) (b) |
$ |
(145 |
) |
$ |
(57 |
) |
$ |
(196 |
) |
Per diluted
share: |
|
|
|
Income
(loss) from continuing operations |
$ |
(0.18 |
) |
$ |
(0.06 |
) |
$ |
(0.16 |
) |
Net
Income (loss) |
$ |
(0.16 |
) |
$ |
(5.84 |
) |
$ |
(0.20 |
) |
Adjusted
net income (loss) from continuing operations (b) |
$ |
(0.24 |
) |
$ |
(0.13 |
) |
$ |
(0.19 |
) |
Adjusted
net income (loss) (b) |
$ |
(0.17 |
) |
$ |
(0.07 |
) |
$ |
(0.23 |
) |
Weighted
average diluted shares |
850 |
|
849 |
|
848 |
|
(a) The
Company closed on its sale of the Canadian oil sands business in
the second quarter of 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 |
|
June 30 |
Mar. 31 |
June 30 |
(in
millions) |
2017 |
2017 |
2016 |
Segment income
(loss) |
|
|
|
United States
E&P |
$ |
(107 |
) |
$ |
(79 |
) |
$ |
(70 |
) |
International
E&P |
59 |
|
93 |
|
55 |
|
Segment
income (loss) |
(48 |
) |
14 |
|
(15 |
) |
Not
allocated to segments |
(105 |
) |
(64 |
) |
(123 |
) |
Loss from
continuing operations |
(153 |
) |
(50 |
) |
(138 |
) |
Discontinued operations (a) |
14 |
|
(4,907 |
) |
(32 |
) |
Net income (loss) |
$ |
(139 |
) |
$ |
(4,957 |
) |
$ |
(170 |
) |
Exploration
expenses |
|
|
|
United States
E&P |
$ |
30 |
|
$ |
26 |
|
$ |
37 |
|
International
E&P |
— |
|
2 |
|
4 |
|
Segment
exploration expenses |
30 |
|
28 |
|
41 |
|
Not
allocated to segments |
— |
|
— |
|
141 |
|
Total |
$ |
30 |
|
$ |
28 |
|
$ |
182 |
|
Cash
flows |
|
|
|
Net cash provided by
operating activities from continuing operations |
$ |
422 |
|
$ |
501 |
|
$ |
198 |
|
Minus: changes in
working capital |
(49 |
) |
(12 |
) |
(93 |
) |
Total net cash provided
from continuing operations before changes in working capital
(b) |
$ |
471 |
|
$ |
513 |
|
$ |
291 |
|
Net cash provided by
operating activities from discontinued operations (a) |
46 |
|
95 |
|
(16 |
) |
|
|
|
|
Cash
additions to property, plant and equipment |
$ |
(492 |
) |
$ |
(283 |
) |
$ |
(287 |
) |
|
|
|
|
|
|
|
|
|
|
(a) The
Company closed on its sale of the Canadian oil sands business in
the second quarter of 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) |
|
June 30 |
Mar. 31 |
June 30 |
Q3 |
Full Year |
(mboed) |
2017 |
2017 |
2016 |
2017 |
2017 |
Net production
available for sale |
|
|
|
|
|
United States E&P
(a) |
222 |
208 |
224 |
230-240 |
|
International E&P
excluding Libya (b) |
127 |
122 |
120 |
115-125 |
|
Total continuing
operations, excluding Libya (b) |
349 |
330 |
344 |
|
345-360 |
Libya |
11 |
8 |
— |
|
|
Total
continuing operations |
360 |
338 |
344 |
|
|
|
|
|
|
|
|
(a) The
Company closed on asset sales of certain fields within New Mexico
and West Texas in July, August, and October 2016, and certain
Wyoming assets closed in June and November 2016. |
(b) Libya
is excluded because of the timing of future production and sales
levels. |
|
Three Months Ended |
|
June 30 |
Mar. 31 |
June 30 |
(mboed) |
2017 |
2017 |
2016 |
Net production
available for sale |
|
|
|
United States
E&P |
222 |
208 |
224 |
|
Less: Divestitures
(a) |
— |
— |
(21 |
) |
Divestiture-adjusted United States E&P |
222 |
208 |
203 |
|
Divestiture-adjusted total continuing
operations |
360 |
338 |
323 |
|
Discontinued operations (b) |
29 |
45 |
40 |
|
|
|
|
|
|
(a)
Divestitures include the sale of certain New Mexico and West Texas
assets in July, August, and October 2016, and Wyoming assets closed
in June and November 2016. These production volumes have been
removed from all periods shown in arriving at divestiture-adjusted
United States E&P net production available for sale. |
(b) The
Company closed on its sale of the Canadian oil sands business on
May 31, 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 |
|
June 30 |
Mar. 31 |
June 30 |
|
2017 |
2017 |
2016 |
United States
E&P - net sales volumes |
|
|
|
Liquid
hydrocarbons (mbbld) |
165 |
158 |
173 |
Oklahoma
resource basins |
26 |
25 |
14 |
Eagle
Ford |
79 |
79 |
84 |
Bakken |
45 |
44 |
49 |
Northern
Delaware |
3 |
— |
— |
Other
United States (a) |
12 |
10 |
26 |
Crude oil and condensate (mbbld) |
125 |
118 |
135 |
Oklahoma
resource basins |
14 |
12 |
6 |
Eagle
Ford |
59 |
59 |
61 |
Bakken |
39 |
39 |
44 |
Northern
Delaware |
2 |
— |
— |
Other
United States (a) |
11 |
8 |
24 |
Natural gas liquids (mbbld) |
40 |
40 |
38 |
Oklahoma
resource basins |
12 |
13 |
8 |
Eagle
Ford |
20 |
20 |
23 |
Bakken |
6 |
5 |
5 |
Northern
Delaware |
1 |
— |
— |
Other
United States (a) |
1 |
2 |
2 |
Natural gas (mmcfd) |
341 |
304 |
310 |
Oklahoma
resource basins |
138 |
115 |
82 |
Eagle
Ford |
127 |
122 |
150 |
Bakken |
25 |
21 |
24 |
Northern
Delaware |
7 |
— |
— |
Other
United States (a) |
44 |
46 |
54 |
Total United States E&P (mboed) |
222 |
208 |
224 |
International
E&P - net sales volumes |
|
|
|
Liquid
hydrocarbons (mbbld) |
55 |
50 |
44 |
Equatorial Guinea |
30 |
29 |
30 |
Libya |
11 |
12 |
— |
United
Kingdom |
13 |
7 |
14 |
Other
International |
1 |
2 |
— |
Crude oil and condensate (mbbld) |
43 |
37 |
33 |
Equatorial Guinea |
18 |
18 |
19 |
Libya |
11 |
12 |
— |
United
Kingdom |
13 |
6 |
14 |
Other
International |
1 |
1 |
— |
Natural gas liquids (mbbld) |
12 |
13 |
11 |
Equatorial Guinea |
12 |
12 |
11 |
United
Kingdom |
— |
1 |
— |
Natural gas (mmcfd) |
478 |
461 |
457 |
Equatorial Guinea |
452 |
438 |
430 |
United
Kingdom (b) |
26 |
23 |
27 |
Total International E&P (mboed) |
135 |
126 |
120 |
Total Company continuing operations - net sales volumes
(mboed) |
357 |
334 |
344 |
Net sales
volumes of equity method investees |
|
|
|
LNG
(mtd) |
6,243 |
6,147 |
5,797 |
Methanol
(mtd) |
1,182 |
1,307 |
1,303 |
Condensate and LPG (boed) |
11,608 |
14,546 |
11,306 |
|
|
|
|
(a)
Includes Wyoming, New Mexico, and other conventional onshore U.S.
production. The sale of certain Wyoming assets closed 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. |
Supplemental Statistics (Unaudited) |
Three Months Ended |
|
June 30 |
Mar. 31 |
June 30 |
|
2017 |
2017 |
2016 |
United States
E&P - average price realizations (a) |
|
|
|
Liquid
hydrocarbons ($ per bbl) |
$ |
39.00 |
$ |
41.13 |
$ |
35.07 |
Oklahoma
resource basins |
33.78 |
35.47 |
25.57 |
Eagle
Ford |
38.35 |
40.49 |
34.31 |
Bakken |
42.22 |
44.79 |
38.38 |
Northern
Delaware |
37.58 |
— |
— |
Other
United States (b) |
42.72 |
43.81 |
36.27 |
Crude oil and condensate ($ per bbl) (c) |
$ |
45.81 |
$ |
48.46 |
$ |
40.77 |
Oklahoma
resource basins |
45.42 |
49.07 |
41.55 |
Eagle
Ford |
45.75 |
48.18 |
41.21 |
Bakken |
46.20 |
48.75 |
42.00 |
Northern
Delaware |
43.38 |
— |
— |
Other
United States (b) |
45.71 |
48.24 |
37.27 |
Natural gas liquids ($ per bbl) |
$ |
17.61 |
$ |
19.33 |
$ |
14.84 |
Oklahoma
resource basins |
19.63 |
22.59 |
14.88 |
Eagle
Ford |
16.63 |
18.12 |
15.68 |
Bakken |
15.16 |
15.35 |
7.73 |
Northern
Delaware |
17.54 |
— |
— |
Other
United States (b) |
23.78 |
21.52 |
23.64 |
Natural gas ($ per mcf) (d) |
$ |
3.05 |
$ |
3.02 |
$ |
1.96 |
Oklahoma
resource basins |
3.07 |
3.16 |
1.92 |
Eagle
Ford |
3.06 |
2.85 |
2.02 |
Bakken |
3.14 |
3.27 |
1.77 |
Northern
Delaware |
2.72 |
— |
— |
Other United States (b) |
2.92 |
3.03 |
1.95 |
International
E&P - average price realizations |
|
|
|
Liquid
hydrocarbons ($ per bbl) |
$ |
37.11 |
$ |
38.64 |
$ |
32.11 |
Equatorial Guinea |
24.30 |
26.52 |
27.28 |
Libya |
50.94 |
58.36 |
— |
United
Kingdom |
53.66 |
53.98 |
42.32 |
Other
International |
40.64 |
44.70 |
— |
Crude oil and condensate ($ per bbl) |
$ |
47.04 |
$ |
50.41 |
$ |
42.21 |
Equatorial Guinea |
39.73 |
43.27 |
41.46 |
Libya |
50.94 |
58.36 |
— |
United
Kingdom |
54.15 |
56.51 |
43.25 |
Other
International |
40.64 |
44.70 |
— |
Natural gas liquids ($ per bbl) |
$ |
1.77 |
$ |
3.86 |
$ |
2.65 |
Equatorial Guinea (e) |
1.00 |
1.00 |
1.00 |
United
Kingdom |
32.33 |
38.99 |
25.99 |
Natural gas ($ per mcf) |
$ |
0.57 |
$ |
0.55 |
$ |
0.53 |
Equatorial Guinea (e) |
0.24 |
0.24 |
0.24 |
United Kingdom |
6.27 |
6.33 |
5.06 |
Benchmark |
|
|
|
WTI crude
oil (per bbl) |
$ |
48.15 |
$ |
51.78 |
$ |
45.64 |
Brent
(Europe) crude oil (per bbl)(f) |
$ |
49.67 |
$ |
53.68 |
$ |
45.52 |
Henry Hub natural gas (per mmbtu)(g) |
$ |
3.18 |
$ |
3.32 |
$ |
1.95 |
|
|
|
|
|
|
|
(a)
Excludes gains or losses on derivative instruments. |
(b)
Includes Wyoming, New Mexico, and other conventional onshore U.S.
production. The sale of certain Wyoming assets closed 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 liquid hydrocarbons average price realizations
by $1.07, $0.34, and $0.12, for the second and first quarter of
2017, and second quarter of 2016, respectively. |
(d)
Inclusion of realized gains (losses) on natural gas derivative
instruments would have a minimal 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) Average
of monthly prices obtained from Energy Information Administration
("EIA") website. |
(g)
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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