Marathon Oil Corporation (NYSE:MRO) today reported
a third quarter 2016 net loss of $192 million, or $0.23 per diluted
share. The net loss 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 for the quarter was $97 million or $0.11 per diluted
share.
Highlights
- Third quarter total Company production averaged 402,000 net
boed, above the top end of guidance and up 5% sequentially
- Oklahoma Resource Basins' production up more than 50%
sequentially and nearly 80% over year-ago quarter
- Strong well results across all three resource plays,
highlighted by: STACK volatile oil well 30-day rate of 2,845 boed
(69% oil); Bakken Three Forks well 30-day rate of 2,635 boed (80%
oil); Lower Eagle Ford well 30-day rate of 2,285 boed (81%
oil)
- 8% sequential production increase in Equatorial Guinea driven
by Alba B3 compression project brought online in early July
- Production costs reduced sequentially more than 10% for North
America E&P and nearly 20% for International E&P (excluding
Libya)
- Closed sale of non-operated CO2 and waterflood assets in West
Texas and New Mexico for $235 million; more than $1.5 billion in
non-core asset sales announced or closed since August 2015
- 2016 capital program remains at $1.3 billion including planned
50% increase in rig activity by year end
"Strong execution across our entire business led to third
quarter production above the top end of our guidance and cash flow
neutrality," said Marathon Oil President and CEO Lee Tillman.
"We're increasing our rig count by 50 percent in the fourth quarter
while remaining within our existing $1.3 billion capital program.
This acceleration will have us well positioned to resume sequential
production growth in the resource plays by the second half of 2017.
Our planning process continues, but the preliminary five-year view
for the resource plays supports compounded annual growth rate of 15
to 20 percent within cash flows at flat $55 WTI."
North America E&PNorth America Exploration
and Production (E&P) production available for sale averaged
216,000 net barrels of oil equivalent per day (boed) for third
quarter 2016 compared to 224,000 net boed in second quarter 2016.
On a divestiture-adjusted basis, production was up 3 percent over
the prior quarter and down 7 percent from the year-ago period.
Third quarter North America production costs were 12 percent lower
than the previous quarter and 37 percent lower than the year-ago
period. Unit production costs were $5.70 per barrel of oil
equivalent (boe), down 9 percent and 23 percent for the previous
and year-ago quarters, respectively.
OKLAHOMA RESOURCE BASINS: The Company's unconventional Oklahoma
production averaged 41,000 net boed during third quarter 2016, an
increase of 52 percent compared to 27,000 net boed in the prior
quarter and up 78 percent compared to 23,000 net boed in the
year-ago quarter. During third quarter 2016, Marathon Oil brought
online 10 gross Company-operated STACK Meramec wells and two SCOOP
Woodford wells. The Marjorie and Lloyd volatile oil wells, both
extended lateral (XL) Meramec wells in eastern Blaine County,
achieved 30-day production rates of 2,845 boed (69 percent oil) and
2,010 boed (73 percent oil), respectively. Both wells were
completed with 2,900 pounds of proppant per lateral foot. The
Firestone well, a standard lateral black oil well in Kingfisher
County, achieved a 30-day production rate of 1,810 boed (47 percent
oil). In Canadian County, the Hrdy single lateral well had a 30-day
rate of 1,870 boed (56 percent oil). The Company is further
increasing activity from four to five rigs in the fourth quarter,
with activity focused in the STACK.
EAGLE FORD: In third quarter 2016, Marathon Oil's production in
the Eagle Ford averaged 97,000 net boed, compared to 109,000 net
boed in the prior quarter and 128,000 net boed in the year-ago
quarter. The sequential production decrease was in line with
expectations due to base declines and activity levels. During third
quarter 2016, the Company brought 36 gross (24 net) operated wells
to sales, of which 20 were lower Eagle Ford, 15 upper Eagle Ford
and one Austin Chalk. The unbounded Hausmann Lower Eagle Ford oil
well, completed with a more intense stimulation and 200-foot stage
spacing, averaged 2,285 boed (81 percent oil) over 30 days. The
Bailey Retzloff 508 Upper Eagle Ford condensate well achieved a
30-day rate of 2,345 boed (50 percent oil). Third quarter completed
well costs were below $4 million, down approximately 20 percent
from the year-ago quarter. The Company expects to increase activity
from four to six rigs in the fourth quarter.
BAKKEN: Marathon Oil averaged 54,000 net boed of production in
the Bakken during third quarter 2016, compared to 53,000 net boed
in the prior quarter and 61,000 net boed in the year-ago quarter as
strong well productivity from the Clarks Creek pad and high
reliability continued supporting the base production. Three gross
wells in East Myrmidon were brought to sales in the third quarter,
all performing at or above expectations with completions ranging
from 600 to 1,500 pounds per lateral foot of proppant and 45 to 50
stages per well. The Rufus well in the first bench of the Three
Forks achieved a 30-day production rate of 2,635 boed (80 percent
oil), and the Hannah Three Forks first bench well achieved 2,100
boed (80 percent oil). Additionally, the Maggie Middle Bakken well
achieved 2,190 boed (80 percent oil) over 30 days. Completed well
costs averaged below $6 million per well. The Company plans to
return to drilling in the Bakken with one rig to be added in the
fourth quarter.
International E&PInternational E&P
production available for sale (excluding Libya) averaged 128,000
net boed for third quarter 2016, an increase of 7 percent compared
to the prior quarter and up 12 percent compared to the year-ago
quarter. Third quarter 2016 production benefited from the Alba B3
compression project in Equatorial Guinea, which came online in
early July. Equatorial Guinea production available for sale
averaged 110,000 net boed in third quarter 2016 compared to 102,000
net boed in the previous quarter and 99,000 net boed in the
year-ago quarter. U.K. production available for sale averaged
18,000 net boed in third quarter 2016, flat compared to the
previous quarter and up compared to 15,000 net boed in the year-ago
quarter.
Third quarter International E&P production costs (excluding
Libya) were 19 percent lower than the previous quarter and 43
percent below the year-ago quarter. Unit production costs
(excluding Libya) were $3.31 per boe, down 24 percent and 46
percent for the previous and year-ago quarters, respectively.
Oil Sands MiningOil Sands Mining (OSM)
production available for sale for third quarter 2016 averaged
58,000 net barrels per day (bbld) compared to 40,000 net bbld in
the prior quarter and 57,000 net bbld in the year-ago quarter.
Record production in third quarter 2016 was due to strong
reliability at the mines and upgrader and less downtime compared to
second quarter 2016 when wildfires caused disruptions. Operating
expense per synthetic barrel (before royalties) was $20.69, 20
percent lower than the year-ago quarter due primarily to cost
reduction efforts. It was the lowest per unit cost performance by
OSM to date.
GuidanceMarathon Oil expects fourth quarter
2016 North America E&P production available for sale to average
205,000 to 215,000 net boed. Fourth 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. While force majeure
was lifted in September at the Es Sider terminal in Libya, Marathon
Oil continues to exclude Libya volumes from its production
forecasts. OSM synthetic crude oil production is expected to range
from 40,000 to 45,000 net bbld.
The Company is raising the low end of its full-year 2016 E&P
production guidance range, resulting in a new range of 335,000 to
345,000 net boed. Full-year production guidance for OSM was
narrowed to 45,000 to 50,000 net bbld.
Corporate and Special ItemsNet cash provided by
operating activities was $366 million during third quarter 2016,
and net cash provided by operations before changes in working
capital was $288 million. Cash additions to property, plant and
equipment were $230 million in third quarter 2016. Total liquidity
as of September 30 was $5.3 billion, which consists of $2 billion
in cash and cash equivalents and an undrawn revolving credit
facility of $3.3 billion.
In late October, the Company closed on the sale of certain
non-operated CO2 and waterflood assets in West Texas and New Mexico
for $235 million. Since August 2015, Marathon Oil has announced or
closed non-core asset sales in excess of $1.5 billion. The Company
is on track to close the remaining portion of the Wyoming asset
sale by year-end.
The adjustments to net loss for third quarter 2016 total $148
million before tax and largely consist of: a Gulf of Mexico rig
termination payment of $113 million and impairments to proved
property of $47 million, partially offset by a net gain on the sale
of assets of $38 million and an unrealized gain on commodity
derivatives of $25 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 and to its mobile app as soon as
practicable following this release today, Nov. 2. The Company will
conduct a question and answer webcast/call on Thursday, Nov. 3, 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 Nov. 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, reserve estimates,
compound annual growth rate, asset quality, production guidance,
drilling plans, capital plans, cost and expense estimates, asset
acquisitions and sales, future financial position, 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 economic conditions in the jurisdictions in which the
Company operates, including changes in foreign currency exchange
rates, interest rates, inflation rates, and global and domestic
market conditions; risks related to the Company's hedging
activities; the Company's level of success in integrating
acquisitions; capital available for exploration and development;
drilling and operating risks; well production timing; availability
of materials and labor; difficulty in obtaining necessary approvals
and permits; non-performance by third parties of contractual
obligations; unforeseen hazards such as weather conditions;
political conditions and developments, including political
instability, acts of war or terrorism, and the governmental 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 2015 Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q and other public filings and press
releases, available at www.marathonoil.com. 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 |
|
Sept. 30 |
June 30 |
Sept. 30 |
(In
millions, except per share data) |
2016 |
2016 |
2015 |
Revenues and
other income: |
|
|
|
Sales and other
operating revenues, including related party |
$ |
1,020 |
|
$ |
870 |
|
$ |
1,300 |
|
Marketing
revenues |
80 |
|
89 |
|
84 |
|
Income from
equity method investments |
59 |
|
37 |
|
36 |
|
Net gain (loss)
on disposal of assets |
47 |
|
294 |
|
(109 |
) |
Other
income |
23 |
|
12 |
|
12 |
|
Total revenues and
other income |
1,229 |
|
1,302 |
|
1,323 |
|
Costs and
expenses: |
|
|
|
Production |
295 |
|
350 |
|
406 |
|
Marketing,
including purchases from related parties |
80 |
|
88 |
|
84 |
|
Other
operating |
189 |
|
95 |
|
93 |
|
Exploration |
83 |
|
189 |
|
585 |
|
Depreciation,
depletion and amortization |
594 |
|
561 |
|
717 |
|
Impairments |
47 |
|
— |
|
337 |
|
Taxes other than
income |
39 |
|
39 |
|
46 |
|
General and
administrative |
105 |
|
132 |
|
125 |
|
Total costs and
expenses |
1,432 |
|
1,454 |
|
2,393 |
|
Income (loss)
from operations |
(203 |
) |
(152 |
) |
(1,070 |
) |
Net interest and
other |
(87 |
) |
(86 |
) |
(75 |
) |
Income (loss)
before income taxes |
(290 |
) |
(238 |
) |
(1,145 |
) |
Benefit for
income taxes |
(98 |
) |
(68 |
) |
(396 |
) |
Net income
(loss) |
$ |
(192 |
) |
$ |
(170 |
) |
$ |
(749 |
) |
Adjustments for special
items (pre-tax): |
|
|
|
Net (gain) loss
on dispositions |
(38 |
) |
(296 |
) |
109 |
|
Proved property
impairments |
47 |
|
— |
|
333 |
|
Unproved
property impairments |
— |
|
118 |
|
553 |
|
Loss on Equity
Method Investment |
— |
|
— |
|
12 |
|
Pension
settlement |
14 |
|
31 |
|
18 |
|
Unrealized
(gain) loss on commodity derivative instruments |
(25 |
) |
91 |
|
(80 |
) |
Reduction in
workforce |
— |
|
1 |
|
4 |
|
Rig termination
payment |
113 |
|
— |
|
— |
|
Other |
37 |
|
14 |
|
— |
|
Provision (benefit) for
income taxes related to special items |
(53 |
) |
15 |
|
(338 |
) |
Adjusted net income (loss) (a) |
$ |
(97 |
) |
$ |
(196 |
) |
$ |
(138 |
) |
Per diluted
share: |
|
|
|
Net Income
(loss) |
$ |
(0.23 |
) |
$ |
(0.20 |
) |
$ |
(1.11 |
) |
Adjusted net
income (loss) (a) |
$ |
(0.11 |
) |
$ |
(0.23 |
) |
$ |
(0.20 |
) |
Weighted
average diluted shares |
847 |
|
848 |
|
677 |
|
(a) Non-GAAP financial measure. See "Non-GAAP Measures"
above for further discussion.
Supplemental Statistics (Unaudited) |
Three Months Ended |
|
Sept. 30 |
June 30 |
Sept. 30 |
(in millions) |
2016 |
2016 |
2015 |
Segment income
(loss) |
|
|
|
North America E&P |
$ |
(59 |
) |
$ |
(70 |
) |
$ |
(61 |
) |
International E&P |
59 |
|
55 |
|
29 |
|
Oil Sands Mining |
15 |
|
(38 |
) |
(11 |
) |
Segment income
(loss) |
15 |
|
(53 |
) |
(43 |
) |
Not allocated to
segments |
(207 |
) |
(117 |
) |
(706 |
) |
Net income (loss) |
$ |
(192 |
) |
$ |
(170 |
) |
$ |
(749 |
) |
Exploration
expenses |
|
|
|
North America E&P |
$ |
35 |
|
$ |
37 |
|
$ |
22 |
|
International E&P |
10 |
|
4 |
|
10 |
|
Oil Sands Mining |
— |
|
7 |
|
— |
|
Segment exploration
expenses |
45 |
|
48 |
|
32 |
|
Not allocated to
segments |
38 |
|
141 |
|
553 |
|
Total |
$ |
83 |
|
$ |
189 |
|
$ |
585 |
|
Cash
flows |
|
|
|
Net cash provided by
operating activities |
$ |
366 |
|
$ |
178 |
|
$ |
496 |
|
Minus: changes in
working capital |
78 |
|
(112 |
) |
29 |
|
Net cash provided by
operations before changes in working capital (a) |
$ |
288 |
|
$ |
290 |
|
$ |
467 |
|
|
|
|
|
Cash
additions to property, plant and equipment |
$ |
(230 |
) |
$ |
(299 |
) |
$ |
(628 |
) |
(a) Non-GAAP financial measure. See "Non-GAAP Measures"
above for further discussion.
|
Three Months Ended |
Guidance(a) |
|
Sept. 30 |
June 30 |
Sept. 30 |
Q4 |
Full Year |
(mboed) |
2016 |
2016 |
2015 |
2016 |
2016 |
Net production
available for sale |
|
|
|
|
|
North America E&P
(b) |
216 |
|
224 |
|
263 |
|
205-215 |
|
International E&P
excluding Libya (c) |
128 |
|
120 |
|
114 |
|
120-130 |
|
Combined North America
& International E&P, excluding Libya (c) |
344 |
|
344 |
|
377 |
|
325-345 |
335-345 |
Oil Sands Mining
(d) |
58 |
|
40 |
|
57 |
|
40-45 |
45-50 |
Total Company excluding
Libya |
402 |
|
384 |
|
434 |
|
|
|
Libya |
— |
|
— |
|
— |
|
|
|
Total Company |
402 |
|
384 |
|
434 |
|
|
|
(a) Guidance includes the effect of acquisitions and
divestitures closed to date.(b) The Company closed on asset sales
of certain fields within New Mexico and West Texas in July and
August 2016. Certain Wyoming assets closed in June 2016. East
Texas, North Louisiana and Wilburton, Oklahoma natural gas assets
closed in August 2015.(c) Libya is excluded because of timing of
future production and sales levels.(d) Upgraded bitumen excluding
blendstocks.
|
Three Months Ended |
|
Sept. 30 |
June 30 |
Sept. 30 |
(mboed) |
2016 |
2016 |
2015 |
Net production
available for sale |
|
|
|
North America E&P |
216 |
|
224 |
|
263 |
|
Less: Divestitures
(a) |
— |
|
(14 |
) |
(30 |
) |
Divestiture-adjusted North America E&P |
216 |
|
210 |
|
233 |
|
(a) Divestitures include the sale of certain New Mexico and West
Texas assets in July and August 2016; Wyoming assets closed in June
2016; East Texas, North Louisiana and Wilburton, Oklahoma assets
closed in August 2015; and the sale of certain Gulf of Mexico
assets closed in December 2015 and 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.
Supplemental Statistics (Unaudited) |
Three Months Ended |
|
Sept. 30 |
June 30 |
Sept. 30 |
|
2016 |
2016 |
2015 |
North America
E&P - net sales volumes |
|
|
|
Liquid
hydrocarbons (mbbld) |
164 |
|
173 |
|
205 |
|
Bakken |
50 |
|
49 |
|
58 |
|
Eagle Ford |
76 |
|
84 |
|
100 |
|
Oklahoma resource
basins |
22 |
|
14 |
|
10 |
|
Other North America
(a) |
16 |
|
26 |
|
37 |
|
Crude oil and
condensate (mbbld) |
122 |
|
135 |
|
166 |
|
Bakken |
44 |
|
44 |
|
53 |
|
Eagle Ford |
54 |
|
61 |
|
74 |
|
Oklahoma resource
basins |
11 |
|
6 |
|
4 |
|
Other North America
(a) |
13 |
|
24 |
|
35 |
|
Natural gas
liquids (mbbld) |
42 |
|
38 |
|
39 |
|
Bakken |
6 |
|
5 |
|
5 |
|
Eagle Ford |
22 |
|
23 |
|
26 |
|
Oklahoma resource
basins |
11 |
|
8 |
|
6 |
|
Other North America
(a) |
3 |
|
2 |
|
2 |
|
Natural gas
(mmcfd) |
315 |
|
310 |
|
338 |
|
Bakken |
25 |
|
24 |
|
19 |
|
Eagle Ford |
127 |
|
150 |
|
161 |
|
Oklahoma resource
basins |
116 |
|
82 |
|
76 |
|
Other North America
(a) |
47 |
|
54 |
|
82 |
|
Total North America E&P (mboed) |
216 |
|
224 |
|
261 |
|
International
E&P - net sales volumes |
|
|
|
Liquid
hydrocarbons (mbbld) |
44 |
|
44 |
|
46 |
|
Equatorial
Guinea |
38 |
|
30 |
|
31 |
|
United
Kingdom |
6 |
|
14 |
|
15 |
|
Crude oil and
condensate (mbbld) |
32 |
|
33 |
|
35 |
|
Equatorial
Guinea |
26 |
|
19 |
|
21 |
|
United
Kingdom |
6 |
|
14 |
|
14 |
|
Natural gas
liquids (mbbld) |
12 |
|
11 |
|
11 |
|
Equatorial
Guinea |
12 |
|
11 |
|
10 |
|
United
Kingdom |
— |
|
— |
|
1 |
|
Natural gas
(mmcfd) |
489 |
|
457 |
|
441 |
|
Equatorial
Guinea |
462 |
|
430 |
|
418 |
|
United Kingdom
(b) |
27 |
|
27 |
|
23 |
|
Total International E&P (mboed) |
126 |
|
120 |
|
119 |
|
Oil Sands
Mining - net sales volumes |
|
|
|
Synthetic
crude oil (mbbld) (c) |
65 |
|
49 |
|
65 |
|
|
|
|
|
Total Company - net sales volumes (mboed) |
407 |
|
393 |
|
445 |
|
Net sales
volumes of equity method investees |
|
|
|
LNG (mtd) |
6,620 |
|
5,797 |
|
5,700 |
|
Methanol
(mtd) |
1,529 |
|
1,303 |
|
1,125 |
|
Condensate and LPG (boed) |
16,766 |
|
11,306 |
|
13,427 |
|
(a) Includes Gulf of Mexico, Wyoming and other conventional
onshore U.S. production. The sale of certain Gulf of Mexico assets
closed in December 2015 and February 2016, and Wyoming in June
2016.(b) Includes natural gas acquired for injection and subsequent
resale of 5 mmcfd, 5 mmcfd, and 8 mmcfd in the third and second
quarter of 2016, and third quarter of 2015, respectively.(c)
Includes blendstocks.
Supplemental Statistics (Unaudited) |
Three Months Ended |
|
Sept. 30 |
June 30 |
Sept. 30 |
|
2016 |
2016 |
2015 |
North America
E&P - average price realizations (a) |
|
|
|
Liquid
hydrocarbons ($ per bbl) |
$ |
34.00 |
|
$ |
35.07 |
|
$ |
35.75 |
|
Bakken |
37.33 |
|
38.38 |
|
37.41 |
|
Eagle Ford |
32.81 |
|
34.31 |
|
34.87 |
|
Oklahoma
resource basins |
27.60 |
|
25.57 |
|
22.70 |
|
Other North
America (b) |
37.91 |
|
36.27 |
|
39.25 |
|
Crude oil
and condensate ($ per bbl) (c) |
$ |
41.35 |
|
$ |
40.77 |
|
$ |
41.37 |
|
Bakken |
41.25 |
|
42.00 |
|
40.18 |
|
Eagle Ford |
41.67 |
|
41.21 |
|
42.74 |
|
Oklahoma
resource basins |
42.04 |
|
41.55 |
|
40.48 |
|
Other North
America (b) |
39.89 |
|
37.27 |
|
40.37 |
|
Natural
gas liquids ($ per bbl) |
$ |
12.44 |
|
$ |
14.84 |
|
$ |
11.88 |
|
Bakken |
10.63 |
|
7.73 |
|
5.07 |
|
Eagle Ford |
11.45 |
|
15.68 |
|
12.15 |
|
Oklahoma
resource basins |
13.87 |
|
14.88 |
|
11.38 |
|
Other North
America (b) |
22.50 |
|
23.64 |
|
23.21 |
|
Natural
gas ($ per mcf) |
$ |
2.67 |
|
$ |
1.96 |
|
$ |
2.75 |
|
Bakken |
1.95 |
|
1.77 |
|
1.96 |
|
Eagle Ford |
2.72 |
|
2.02 |
|
2.85 |
|
Oklahoma
resource basins |
2.74 |
|
1.92 |
|
2.82 |
|
Other North America (b) |
2.73 |
|
1.95 |
|
2.70 |
|
International
E&P - average price realizations |
|
|
|
Liquid
hydrocarbons ($ per bbl) |
$ |
30.40 |
|
$ |
32.11 |
|
$ |
35.88 |
|
Equatorial
Guinea |
27.44 |
|
27.28 |
|
28.03 |
|
United
Kingdom |
48.01 |
|
42.32 |
|
52.36 |
|
Crude oil
and condensate ($ per bbl) |
$ |
41.45 |
|
$ |
42.21 |
|
$ |
46.18 |
|
Equatorial
Guinea |
39.70 |
|
41.46 |
|
41.24 |
|
United
Kingdom |
49.82 |
|
43.25 |
|
53.48 |
|
Natural
gas liquids ($ per bbl) |
$ |
1.93 |
|
$ |
2.65 |
|
$ |
2.69 |
|
Equatorial
Guinea (d) |
1.00 |
|
1.00 |
|
1.00 |
|
United
Kingdom |
26.36 |
|
25.99 |
|
28.81 |
|
Natural
gas ($ per mcf) |
$ |
0.46 |
|
$ |
0.53 |
|
$ |
0.59 |
|
Equatorial
Guinea (d) |
0.24 |
|
0.24 |
|
0.24 |
|
United Kingdom |
4.19 |
|
5.06 |
|
6.92 |
|
Oil Sands
Mining - average price realizations |
|
|
|
Synthetic crude oil ($ per bbl) |
$ |
39.59 |
|
$ |
40.88 |
|
$ |
39.49 |
|
|
|
|
|
Benchmark |
|
|
|
WTI crude oil
(per bbl) |
$ |
44.94 |
|
$ |
45.64 |
|
$ |
46.50 |
|
Brent (Europe)
crude oil (per bbl)(e) |
$ |
45.79 |
|
$ |
45.52 |
|
$ |
50.23 |
|
Henry Hub
natural gas (per mmbtu)(f) |
$ |
2.81 |
|
$ |
1.95 |
|
$ |
2.77 |
|
WCS crude oil (per bbl)(g) |
$ |
31.44 |
|
$ |
32.29 |
|
$ |
33.16 |
|
(a) Excludes gains or losses on derivative instruments.(b)
Includes Gulf of Mexico and other conventional onshore U.S.
production. The sale of certain Gulf of Mexico assets closed in
December 2015 and February 2016.(c) Inclusion of realized gains on
crude oil derivative instruments would have increased average price
realizations by $1.55, $0.12, and $1.87 for third and second
quarters of 2016 and third quarter of 2015.(d) 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.(e) Average of monthly prices
obtained from Energy Information Administration ("EIA") website.(f)
Settlement date average per mmbtu.(g) Monthly pricing based upon
average WTI adjusted for differentials unique to western
Canada.
Media Relations Contact:
Lee Warren: 713-296-4103
Investor Relations Contact:
Zach Dailey: 713-296-4140
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