Marathon Oil Provides Post Harvey Operational Update
October 03 2017 - 04:30PM
Marathon Oil Corporation (NYSE:MRO) today announced that the
Company expects third quarter 2017 U.S. E&P production
available for sale to average toward the high end of its guidance
of 230,000 to 240,000 net barrels of oil equivalent per day (boed),
despite the temporary impacts experienced from Hurricane Harvey.
In late August, the Company suspended operations and shut-in
production across its entire Eagle Ford position in
south Texas just before the hurricane made landfall.
Subsequent inspections indicated that Marathon Oil’s producing
assets and facilities sustained very minimal damage. Drilling and
completions activity resumed several days later, followed by a
progressive resumption of operations until pre-storm production
rates were achieved. With the efficient ramp-up of production and
strong early rates from new wells brought to sales, the Company
expects third quarter Eagle Ford production to average
approximately 100,000 net boed, in-line with second quarter
levels.
"I’m extremely proud of our Eagle Ford team and how they safely
and efficiently managed through Hurricane Harvey," said Marathon
Oil president and CEO Lee Tillman. "All credit to their
responsiveness, collaboration and teamwork in managing the
production from approximately 1,500 producing wells that we operate
in south Texas. Our thoughts continue to be with everyone
affected by this season’s hurricane activity in the U.S. and
Caribbean, and we continue to support various relief efforts
through volunteer efforts and philanthropy.
“With consistent execution and continued stronger than expected
well performance across our entire Company, including the Eagle
Ford, we expect to deliver third quarter production toward the high
end of our guidance ranges for both U.S. and International
segments.”
Marathon Oil still expects its 2017 capital program to be in a
range of $2.1 to $2.2 billion, with full-year 2017 production
available for sale forecast from the combined U.S. and
International E&P segments, excluding Libya, in a range of
345,000 to 360,000 net boed. 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.
The Company plans to issue its complete third quarter 2017
earnings news release on Wednesday, Nov. 1, after the close of U.S.
financial markets. Prepared remarks along with accompanying slides
will be available on the Company's website after the earnings news
release is issued. The Company will conduct a conference call,
which will be webcast live, on Thursday, Nov. 2, at 9 a.m. ET. Zach
Dailey, vice president of Investor Relations, will host the call.
Also participating from Marathon Oil will be Lee Tillman, president
and CEO; Dane Whitehead, executive vice president and CFO; and
Mitch Little, executive vice president, Operations. The call will
include forward-looking information.
# # #
Forward-looking Statements
This 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 estimates and
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 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.
Media Relations Contact:
Lee Warren: 713-296-4103
Investor Relations Contact:
Zach Dailey: 713-296-4140
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