Returned Over $475
Million to Shareholders
Raised Quarterly Base Dividend and Increased
Share Repurchase Authorization
HOUSTON, Nov. 1, 2023
/PRNewswire/ -- Marathon Oil Corporation (NYSE: MRO) reported third
quarter 2023 net income of $453
million or $0.75 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. Adjusted net income was
$466 million or $0.77 per diluted share. Net operating cash flow
was $1,066 million or $1,144 million before changes in working capital
(adjusted CFO). Free cash flow was $573
million or $718 million before
changes in working capital and including Equatorial Guinea (E.G.) distributions and
other financing (adjusted FCF).
- Reported another quarter of strong financial performance and
consistent operational execution
- Generated $718 million of
adjusted free cash flow during third quarter, up 35% sequentially,
at a 38% reinvestment rate
- Delivered sequential increase in total third quarter production
to 421,000 net barrels of oil equivalent per day (boed) and 198,000
net barrels of oil per day (bopd), both above the high end of
annual guidance ranges
- Continued delivery on sector-leading commitment to return at
least 40% of adjusted CFO to shareholders
- Returned $476 million or 42% of
adjusted CFO to shareholders during third quarter through
$415 million of share repurchases and
$61 million of base dividend
- Returned $1.3 billion of capital
to shareholders through first three quarters of 2023, including
over $1.1 billion of share
repurchases
- Further enhanced investment grade balance sheet through gross
debt reduction
- Achieved year-to-date gross debt reduction of $451 million, including $250 million prepayment on its Term Loan Facility
in October
- Expect additional gross debt reduction in fourth quarter while
continuing to return at least 40% of adjusted CFO to equity
holders
- Remain committed to Return of Capital Framework featuring
sustainable and competitive base dividend and significant share
repurchases
- Announced 10% quarterly base dividend increase to $0.11/share which is expected to be funded by
share count reduction through the Company's share repurchase
program
- Board of Directors approved increase in share repurchase
authorization to $2.5 billion as of
Nov. 1
- As previously announced, the signed LNG sales agreement linked
to the European natural gas market (TTF) is expected to drive
significant improvement in 2024 financial performance for E.G.
Integrated Gas Business
"Third quarter results are a continuation of our track record of
consistent operational execution, strong financial results, and
peer-leading return of capital to our shareholders," said chairman,
president, and CEO Lee Tillman. "We
expect to finish the year strong with free cash flow generation
growing sequentially again in the fourth quarter, contributing to
both peer- and market-leading shareholder distributions. Not only
are we leading the peer group in shareholder returns, consistent
with our differentiated cash flow driven Return of Capital
Framework where our shareholder gets the first call on cash flow,
we're doing so while further enhancing our already investment grade
balance sheet through additional gross debt reduction. Looking
ahead to 2024, while the macro environment is sure to remain
volatile, our commitment to our Framework for Success remains
steadfast. We'll continue to prioritize strong corporate returns on
every dollar we invest while striving to deliver peer-leading free
cash flow generation, return of capital to shareholders, and
per-share growth across a broad range of commodity prices.
Additionally, we will work to further bolster our investment grade
balance sheet through continued gross debt reduction and maximize
value from our unique E.G. integrated gas operations, which are set
to realize a substantial financial uplift through our increasing
exposure to the global LNG market, while we also progress the next
phase of opportunities in support of the E.G. Gas Mega Hub."
Return of Capital
Marathon Oil's percentage of CFO
framework provides clear visibility to significant return of
capital to equity investors, ensuring the shareholder gets the
first call on cash flow generation. In a $60/bbl WTI or higher price environment, the
Company targets returning a minimum of 40% of CFO to equity
investors. The Company remains on track to meet or exceed this
minimum objective in 2023.
During third quarter, Marathon Oil returned $476 million to shareholders, including
$415 million of share repurchases and
$61 million of base dividend. Through
the first three quarters of 2023, Marathon Oil has returned
$1,307 million to shareholders,
representing 41% of adjusted CFO. Shareholder distributions through
the first three quarters of 2023 include $1,121 million of share repurchases and
$186 million in base dividends.
Over the trailing eight quarters, since significantly increasing
return of capital to equity investors under its current Return of
Capital Framework, Marathon Oil has returned $5.1 billion to shareholders, equivalent to
approximately 30% of the Company's current market capitalization.
Over this same timeframe, Marathon Oil has executed $4.6 billion of share repurchases that have
reduced outstanding share count by 26%, contributing to significant
growth in per-share metrics.
Marathon Oil expects to continue returning significant capital
to shareholders through the combination of a competitive and
sustainable base dividend and significant share repurchases.
Consistent with this objective, the Company's Board of Directors
recently approved a 10% increase to the quarterly base dividend to
11 cents per share, which is expected
to be funded by share count reduction through the Company's share
repurchase program. This is the ninth increase to the Company's
base dividend in the last 13 quarters. The Board also approved an
increase in total share repurchase authorization to $2.5
billion as of Nov. 1.
3Q23 Financials
CASH FLOW AND CAPEX: Net cash provided
by operations was $1,066 million
during third quarter or $1,144
million before changes in working capital. Third quarter
cash additions to property, plant and equipment totaled
$493 million, while capital
expenditures (accrued) totaled $449
million.
BALANCE SHEET AND LIQUIDITY: Marathon Oil ended third quarter
with $174 million in cash and cash
equivalents. The Company redeemed $131
million of 8.125% Senior Notes in July and pre-paid
$250 million on its Term Loan
Facility in October, bringing year-to-date total gross debt
reduction to $451 million. At quarter
end, Marathon Oil had $2.1 billion of available borrowing
capacity on its revolving credit facility that matures in 2027. All
three primary credit rating agencies continue to rate Marathon Oil
investment grade.
ADJUSTMENTS TO NET INCOME: The adjustments to net income for
third quarter increased net income by $13
million, primarily due to an unproved property impairment
and the income impact associated with unrealized losses on
derivative instruments.
3Q23 Operations
UNITED
STATES (U.S.): U.S. production averaged 369,000 net boed for
third quarter 2023, an increase from 356,000 net boed during second
quarter. Oil production averaged 189,000 net bopd for third
quarter, an increase from 181,000 net bopd during second quarter.
The Company brought a total of 65 gross Company-operated wells to
sales during third quarter, excluding joint venture wells. U.S.
unit production costs declined sequentially to average $5.07 per boe during third quarter.
Marathon Oil's third quarter Eagle Ford production averaged
158,000 net boed, including 80,000 net bopd, with 38 gross
Company-operated wells to sales. Bakken production averaged 121,000
net boed, including 77,000 net bopd, with 25 gross Company-operated
wells to sales. Oklahoma
production averaged 46,000 net boed, including 9,000 net bopd.
Permian production averaged 42,000 net boed, including 22,000 net
bopd, with two gross Company-operated wells to sales.
INTERNATIONAL: E.G. production averaged 52,000 net boed for
third quarter 2023, including 9,000 net bopd. Unit production costs
declined sequentially to average $3.99 per boe during third quarter. Net income
from equity method investees totaled $38
million during third quarter. Third quarter cash
distributions from equity method companies totaled $47 million, including $24
million of dividends and $23
million of distributions classified as return of
capital.
In a separate press release published Oct. 16, Marathon Oil announced that through its
wholly-owned subsidiaries it entered into a five-year firm LNG
sales agreement for a portion of its equity natural gas produced
from the Alba Field (Alba Unit, MRO 64% working interest),
effective Jan.1, 2024. The pricing structure for the LNG sales
agreement is linked to the Dutch Title Transfer (TTF) Index,
providing Marathon Oil with significant incremental exposure to the
European LNG market. The new LNG sales agreement is expected to
contribute to a significant year-on-year EBITDA increase in 2024
for the Company's E.G. integrated gas business.
Separately, due to the expected arbitrage between LNG and
methanol pricing, Marathon Oil announced it expects to optimize its
E.G. integrated gas operations in 2024 by redirecting a portion of
Alba Unit natural gas from the local methanol facility (MRO 45%
working interest) to the LNG facility (MRO 56% working
interest).
2023 Guidance
Marathon Oil's originally provided 2023
production and capital expenditure (accrued) guidance ranges remain
unchanged. For the full year 2023, the Company is trending to the
high end of its annual 2023 total oil-equivalent production
guidance range, the midpoint of its annual oil production guidance
range, and the high end of its annual capital spending guidance
range (accrued).
A slide deck and Quarterly Investor Packet will be posted to the
Company's website following this release. On Thursday, Nov. 2, at 9
a.m. ET, the Company will conduct a question-and-answer
webcast/call, which will include forward-looking information. The
live webcast, replay and all related materials will be available at
https://ir.marathonoil.com/.
About Marathon Oil
Marathon Oil (NYSE: MRO) is an
independent oil and gas exploration and production (E&P)
company focused on four of the most competitive resource plays in
the U.S. - Eagle Ford, Texas;
Bakken, North Dakota; STACK and
SCOOP in Oklahoma and Permian in
New Mexico and Texas, complemented by a world-class
integrated gas business in Equatorial
Guinea. The Company's Framework for Success is founded in a
strong balance sheet, ESG excellence and the competitive advantages
of a high-quality multi-basin portfolio. For more information,
please visit www.marathonoil.com.
Media Relations Contact:
Karina Brooks: 713-296-2191
Investor Relations Contacts:
Guy Baber: 713-296-1892
John Reid: 713-296-4380
Non-GAAP Measures
In 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), adjusted
net income (loss) per share, net cash provided by operating
activities before changes in working capital (adjusted CFO), free
cash flow, adjusted free cash flow, capital expenditures (accrued)
and reinvestment rate.
Our presentation of adjusted net income (loss) and adjusted
net income (loss) per share is a non-GAAP measure. Adjusted net
income (loss) is defined as net income (loss) adjusted for gains or
losses on dispositions, impairments of proved and certain unproved
properties, changes in our valuation allowance, unrealized
derivative gains or losses on commodity and interest rate
derivative instruments, effects of pension settlements and
curtailments and other items that could be considered
"non-operating" or "non-core" in nature. Management believes this
is useful to investors as another tool to meaningfully represent
our operating performance and to compare Marathon to certain
competitors. Adjusted net income (loss) and adjusted net income
(loss) per share should not be considered in isolation or as an
alternative to, or more meaningful than, net income (loss) or net
income (loss) per share as determined in accordance with U.S.
GAAP.
Our presentation of adjusted CFO is defined as net cash
provided by operating activities adjusted for changes in working
capital and is a non-GAAP measure. Management believes this is
useful to investors as an indicator of Marathon's ability to
generate cash quarterly or year-to-date by eliminating differences
caused by the timing of certain working capital items. Adjusted CFO
should not be considered in isolation or as an alternative to, or
more meaningful than, net cash provided by operating activities as
determined in accordance with U.S. GAAP.
Our presentation of free cash flow is a non-GAAP measure.
Free cash flow is defined as net cash provided by operating
activities and cash additions to property, plant and equipment.
Management believes this is useful to investors as a measure of
Marathon's ability to fund its capital expenditure programs,
service debt, and fund other distributions to stockholders. Free
cash flow should not be considered in isolation or as an
alternative to, or more meaningful than, net cash provided by
operating activities as determined in accordance with U.S.
GAAP.
Our presentation of adjusted free cash flow is a non-GAAP
measure. Adjusted free cash flow before dividend ("adjusted free
cash flow") is defined as adjusted CFO, capital expenditures
(accrued), and EG return of capital and other financing. Management
believes this is useful to investors as a measure of Marathon's
ability to fund its capital expenditure programs, service debt, and
fund other distributions to stockholders. Adjusted free cash flow
should not be considered in isolation or as an alternative to, or
more meaningful than, net cash provided by operating activities as
determined in accordance with U.S. GAAP.
Our presentation of capital expenditures (accrued) is a
non-GAAP measure. Capital expenditures (accrued) is defined as cash
additions to property, plant and equipment adjusted for the change
in capital accrual and additions to other assets. Management
believes this is useful to investors as an indicator of Marathon's
commitment to capital expenditure discipline by eliminating
differences caused by the timing of capital accrual and other
items. Capital expenditures (accrued) should not be considered in
isolation or as an alternative to, or more meaningful than, cash
additions to property, plant and equipment as determined in
accordance with U.S. GAAP.
Our presentation of reinvestment rate is a non-GAAP measure.
The reinvestment rate in the context of adjusted free cash flow is
defined as capital expenditures (accrued) divided by adjusted CFO.
The reinvestment rate in the context of free cash flow is defined
as cash additions to property, plant and equipment divided by net
cash provided by operating activities. Management believes the
reinvestment rate is useful to investors to demonstrate the
Company's commitment to generating cash for use towards
investor-friendly purposes (which includes balance sheet
enhancement, base dividend and other return of capital).
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 in isolation or as an alternative to their most
directly comparable GAAP financial measures. A reconciliation
to their most directly comparable GAAP financial measures can be
found in our investor package on our website at
https://ir.marathonoil.com/ and in the tables below.
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 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 capital budgets and allocations; future
performance (both absolute and relative); expected free cash flow;
reinvestment rates; returns to investors (including dividends and
share repurchases, and the timing thereof); the funding of
dividends; future gross debt reduction; per share growth; business
strategy; capital expenditure guidance; production guidance; future
E.G. financial performance; progress of the E.G. Gas Mega Hub; the
expected relationship between LNG and methanol pricing;
optimization of E.G. integrated gas operations; and other
statements regarding management's plans and objectives for future
operations, are forward-looking statements. Words such as
"anticipate," "believe," "continue," "could," "estimate," "expect,"
"forecast," "future," "guidance," "intend," "may," "outlook,"
"plan," "positioned," "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 for crude oil and condensate, NGLs and natural gas and the
resulting impact on price; changes in expected reserve or
production levels; changes in political or economic conditions in
the U.S. and Equatorial Guinea,
including changes in foreign currency exchange rates, interest
rates, inflation rates and global and domestic market conditions;
actions taken by the members of the Organization of the Petroleum
Exporting Countries (OPEC) and Russia affecting the production and pricing of
crude oil and other global and domestic political, economic or
diplomatic developments; capital available for exploration and
development; risks related to the Company's hedging activities;
voluntary or involuntary curtailments, delays or cancellations of
certain drilling activities; well production timing; liabilities or
corrective actions resulting from litigation, other proceedings and
investigations or alleged violations of law or
permits; drilling and operating risks; lack of, or disruption in,
access to storage capacity, pipelines or other transportation
methods; availability of drilling rigs, materials and labor,
including the costs associated therewith; difficulty in obtaining
necessary approvals and permits; the availability, cost, terms and
timing of issuance or execution of, competition for, and challenges
to, mineral licenses and leases and governmental and other permits
and rights-of-way, and our ability to retain mineral licenses and
leases; non-performance by third parties of contractual or legal
obligations, including due to bankruptcy; administrative
impediments or unexpected events that may impact dividends or other
distributions, and the timing thereof, from our equity method
investees; changes in our credit ratings; hazards such as weather
conditions, a health pandemic (including COVID-19), acts of war or
terrorist acts and the government or military response thereto;
security threats, including cybersecurity threats and disruptions
to our business and operations from breaches of our information
technology systems, or breaches of the information technology
systems, facilities and infrastructure of third parties with which
we transact business; changes in safety, health, environmental, tax
and other regulations, requirements or initiatives, including
initiatives addressing the impact of global climate change, air
emissions, or water management; impacts of the Inflation Reduction
Act of 2022; other geological, operating and economic
considerations; our ability to increase exposure to the global LNG
market and progress the E. G. Gas Mega Hub; and the risk factors,
forward-looking statements and challenges and uncertainties
described in the Company's 2022 Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q and other public filings and press
releases, available at https://ir.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
|
|
Sept.
30
|
Jun.
30
|
Sept.
30
|
(In millions, except
per share data)
|
2023
|
2023
|
2022
|
Revenues and other
income:
|
|
|
|
Revenues from
contracts with customers
|
$
1,771
|
$
1,484
|
$
2,008
|
Net gain on commodity
derivatives
|
1
|
3
|
41
|
Income from equity
method investments
|
38
|
22
|
190
|
Net gain on disposal
of assets
|
1
|
—
|
2
|
Other
income
|
2
|
4
|
6
|
Total revenues and
other income
|
1,813
|
1,513
|
2,247
|
Costs and
expenses:
|
|
|
|
Production
|
192
|
214
|
193
|
Shipping, handling and
other operating
|
164
|
161
|
199
|
Exploration
|
20
|
11
|
73
|
Depreciation,
depletion and amortization
|
583
|
559
|
460
|
Impairments
|
—
|
—
|
2
|
Taxes other than
income
|
113
|
43
|
137
|
General and
administrative
|
72
|
71
|
79
|
Total costs and
expenses
|
1,144
|
1,059
|
1,143
|
Income from
operations
|
669
|
454
|
1,104
|
Net interest and
other
|
(94)
|
(92)
|
(52)
|
Other net periodic
benefit credits
|
5
|
3
|
5
|
Income before income
taxes
|
$
580
|
$
365
|
$
1,057
|
Provision for income
taxes
|
127
|
78
|
240
|
Net
income
|
$
453
|
$
287
|
$
817
|
Adjusted Net
Income
|
|
|
|
Net
income
|
$
453
|
$
287
|
$
817
|
Adjustments for special
items (pre-tax):
|
|
|
|
Net loss on disposal
of assets
|
(1)
|
—
|
(2)
|
Proved property
impairments
|
—
|
—
|
2
|
Exploratory dry well
costs, unproved property impairments and other
|
11
|
5
|
62
|
Unrealized (gain) loss
on commodity derivatives
|
6
|
4
|
(67)
|
Acquisition
transaction costs
|
1
|
—
|
—
|
Other
|
—
|
1
|
23
|
Benefit for income
taxes related to special items(a)
|
(4)
|
(2)
|
(3)
|
Adjustments for
special items
|
13
|
8
|
15
|
Adjusted net
income(b)
|
$
466
|
$
295
|
$
832
|
Per diluted
share:
|
|
|
|
Net income
|
$
0.75
|
$
0.47
|
$
1.22
|
Adjusted net
income(b)
|
$
0.77
|
$
0.48
|
$
1.24
|
Weighted average
diluted shares
|
604
|
615
|
672
|
|
|
(a)
|
In both 2023 and 2022,
we applied the estimated U.S. and state statutory rate of 22% to
our special items.
|
(b)
|
Non-GAAP financial
measure. See "Non-GAAP Measures" above for further
discussion.
|
Supplemental Data
(Unaudited)
|
Three Months
Ended
|
|
Sept.
30
|
Jun.
30
|
Sept.
30
|
(Per
share)
|
2023
|
2023
|
2022
|
Adjusted Net Income
Per Diluted Share
|
|
|
|
Net
income
|
$
0.75
|
$
0.47
|
$
1.22
|
Adjustments for special
items (pre-tax):
|
|
|
|
Net loss on disposal
of assets
|
—
|
—
|
—
|
Proved property
impairments
|
—
|
—
|
—
|
Exploratory dry well
costs, unproved property impairments and other
|
0.01
|
0.01
|
0.09
|
Unrealized (gain) loss
on commodity derivatives
|
0.01
|
—
|
(0.10)
|
Acquisition
transaction costs
|
—
|
—
|
—
|
Other
|
—
|
—
|
0.03
|
Benefit for income
taxes related to special items
|
—
|
—
|
—
|
Adjustments for
special items
|
0.02
|
0.01
|
0.02
|
Adjusted net income
per share(a)
|
$
0.77
|
$
0.48
|
$
1.24
|
|
|
(a)
|
Non-GAAP financial
measure. See "Non-GAAP Measures" above for further
discussion.
|
|
|
Supplemental Data
(Unaudited)
|
Three Months
Ended
|
|
Sept.
30
|
Jun.
30
|
Sept.
30
|
(In
millions)
|
2023
|
2023
|
2022
|
Segment
income
|
|
|
|
United
States
|
$
505
|
$
365
|
$
723
|
International
|
62
|
30
|
181
|
Not allocated to
segments
|
(114)
|
(108)
|
(87)
|
Net
income
|
$
453
|
$
287
|
$
817
|
Net operating cash
flow before changes in working capital (Adjusted
CFO)(a)
|
|
|
|
Net cash provided by
operating activities
|
$ 1,066
|
$ 1,076
|
$ 1,556
|
Changes in working
capital
|
78
|
45
|
(116)
|
Adjusted
CFO(a)
|
$ 1,144
|
$ 1,121
|
$ 1,440
|
Free cash
flow
|
|
|
|
Net cash provided by
operating activities
|
$ 1,066
|
$ 1,076
|
$ 1,556
|
Cash additions to
property, plant and equipment
|
(493)
|
(634)
|
(430)
|
Free cash
flow
|
$
573
|
$
442
|
$ 1,126
|
Adjusted free cash
flow(a)
|
|
|
|
Adjusted
CFO(a)
|
$ 1,144
|
$ 1,121
|
$ 1,440
|
Adjustments:
|
|
|
|
Capital expenditures
(accrued)(a)
|
(449)
|
(623)
|
(413)
|
EG return of capital
and other financing(b)
|
23
|
33
|
4
|
Adjusted free cash
flow(a)
|
$
718
|
$
531
|
$ 1,031
|
Reinvestment
rate(a)
|
38 %
|
54 %
|
29 %
|
Capital expenditures
(accrued)(a)
|
|
|
|
Cash additions to
property, plant and equipment
|
$
(493)
|
$
(634)
|
$
(430)
|
Change in capital
accrual
|
44
|
11
|
17
|
Capital
expenditures (accrued)(a)
|
$
(449)
|
$
(623)
|
$
(413)
|
|
|
(a)
|
Non-GAAP financial
measure. See "Non-GAAP Measures" above for further
discussion.
|
(b)
|
Excludes approximately
$2 million of debt issuance costs for the second quarter of 2023.
|
Supplemental
Statistics (Unaudited)
|
Three Months
Ended
|
|
Sept.
30
|
Jun.
30
|
Sept.
30
|
Net
Production
|
2023
|
2023
|
2022
|
Equivalent
Production (mboed)
|
|
|
|
United
States
|
369
|
356
|
295
|
International
|
52
|
43
|
57
|
Total net
production
|
421
|
399
|
352
|
Oil Production
(mbbld)
|
|
|
|
United
States
|
189
|
181
|
166
|
International
|
9
|
8
|
10
|
Total net
production
|
198
|
189
|
176
|
|
Supplemental
Statistics (Unaudited)
|
Three Months
Ended
|
|
Sept.
30
|
Jun.
30
|
Sept.
30
|
|
2023
|
2023
|
2022
|
United States - net
sales volumes
|
|
|
|
Crude oil and
condensate (mbbld)
|
189
|
181
|
166
|
Eagle Ford
|
80
|
81
|
61
|
Bakken
|
77
|
68
|
75
|
Oklahoma
|
9
|
9
|
12
|
Permian
|
22
|
21
|
13
|
Other United
States(a)
|
1
|
2
|
5
|
Natural gas liquids
(mbbld)
|
90
|
91
|
69
|
Eagle Ford
|
40
|
39
|
16
|
Bakken
|
27
|
25
|
27
|
Oklahoma
|
13
|
17
|
19
|
Permian
|
10
|
10
|
5
|
Other United
States(a)
|
—
|
—
|
2
|
Natural gas
(mmcfd)
|
539
|
504
|
363
|
Eagle Ford
|
229
|
218
|
82
|
Bakken
|
103
|
90
|
94
|
Oklahoma
|
143
|
141
|
140
|
Permian
|
61
|
53
|
34
|
Other United
States(a)
|
3
|
2
|
13
|
Total United States
(mboed)
|
369
|
356
|
295
|
International - net
sales volumes
|
|
|
|
Crude oil and
condensate (mbbld)
|
11
|
8
|
11
|
Equatorial
Guinea
|
11
|
8
|
11
|
Natural gas liquids
(mbbld)
|
6
|
5
|
7
|
Equatorial
Guinea
|
6
|
5
|
7
|
Natural gas
(mmcfd)
|
217
|
186
|
241
|
Equatorial
Guinea
|
217
|
186
|
241
|
Total International
(mboed)
|
53
|
44
|
58
|
Total Company - net
sales volumes (mboed)
|
422
|
400
|
353
|
Net sales volumes of
equity method investees
|
|
|
|
LNG (mtd)
|
1,670
|
1,716
|
2,536
|
Methanol
(mtd)
|
1,208
|
1,047
|
956
|
Condensate and LPG
(boed)
|
8,264
|
6,614
|
7,060
|
|
(a) Includes
sales volumes from certain non-core proved properties in our United
States segment.
|
|
Supplemental
Statistics (Unaudited)
|
Three Months
Ended
|
|
Sept.
30
|
Jun.
30
|
Sept.
30
|
|
2023
|
2023
|
2022
|
United States -
average price realizations(a)
|
|
|
|
Crude oil and
condensate ($ per bbl)(b)
|
$
80.90
|
$
72.49
|
$
93.67
|
Eagle Ford
|
79.70
|
71.32
|
94.05
|
Bakken
|
81.97
|
73.51
|
94.01
|
Oklahoma
|
80.48
|
73.57
|
92.48
|
Permian
|
81.86
|
73.42
|
91.81
|
Other United
States
|
78.54
|
69.34
|
91.70
|
Natural gas liquids
($ per bbl)
|
$
21.37
|
$
18.72
|
$
34.00
|
Eagle Ford
|
21.60
|
18.01
|
34.25
|
Bakken
|
19.24
|
18.00
|
33.06
|
Oklahoma
|
24.52
|
20.99
|
35.92
|
Permian
|
21.97
|
19.39
|
31.85
|
Other United
States
|
18.94
|
18.07
|
32.63
|
Natural gas ($ per
mcf)
|
$
2.28
|
$
1.89
|
$
7.84
|
Eagle Ford
|
2.33
|
1.86
|
7.35
|
Bakken
|
2.10
|
1.69
|
7.74
|
Oklahoma
|
2.35
|
2.16
|
8.25
|
Permian
|
2.18
|
1.59
|
7.39
|
Other United
States
|
3.03
|
2.45
|
8.31
|
International -
average price realizations
|
|
|
|
Crude oil and
condensate ($ per bbl)
|
$
64.30
|
$
53.64
|
$
74.01
|
Equatorial
Guinea
|
64.30
|
53.64
|
74.01
|
Natural gas liquids
($ per bbl)
|
$
1.00
|
$
1.00
|
$
1.00
|
Equatorial
Guinea(c)
|
1.00
|
1.00
|
1.00
|
Natural gas ($ per
mcf)
|
$
0.24
|
$
0.24
|
$
0.24
|
Equatorial
Guinea(c)
|
0.24
|
0.24
|
0.24
|
Benchmark
|
|
|
|
WTI crude oil (per
bbl)
|
$
82.22
|
$
73.56
|
$
91.43
|
Brent (Europe) crude
oil (per bbl)(d)
|
$
86.66
|
$
78.32
|
$
100.71
|
Mont Belvieu NGLs (per
bbl)(e)
|
$
23.13
|
$
20.49
|
$
36.08
|
Henry Hub natural gas
(per mmbtu)(f)
|
$
2.55
|
$
2.10
|
$
8.20
|
TTF natural gas (per
mmbtu)
|
$
10.80
|
$
11.34
|
$
60.68
|
|
|
(a)
|
Excludes gains or
losses on commodity derivative instruments.
|
(b)
|
Inclusion of realized
gains (losses) on crude oil derivative instruments would have
decreased average price realizations by $0.85 for the third quarter
2022.
|
(c)
|
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 segment.
|
(d)
|
Average of monthly
prices obtained from Energy Information Administration
website.
|
(e)
|
Bloomberg Finance LLP:
Y-grade Mix NGL of 55% ethane, 25% propane, 5% butane, 8% isobutane
and 7% natural gasoline.
|
(f)
|
Settlement date average
per mmbtu.
|
|
|
The following table sets forth outstanding derivative
contracts as of October 31, 2023, and
the weighted average prices for those contracts:
|
2023
|
2024
|
|
Fourth
Quarter
|
First
Quarter
|
Second
Quarter
|
Third
Quarter
|
Fourth
Quarter
|
Crude
Oil
|
|
|
|
|
|
NYMEX WTI
Three-Way Collars
|
|
|
|
|
|
Volume
(Bbls/day)
|
10,000
|
40,000
|
40,000
|
20,000
|
20,000
|
Weighted average price
per Bbl:
|
|
|
|
|
|
Ceiling
|
$
97.59
|
$
101.01
|
$
101.01
|
$
101.95
|
$
101.95
|
Floor
|
$
60.00
|
$
66.25
|
$
66.25
|
$
65.00
|
$
65.00
|
Sold put
|
$
45.00
|
$
51.25
|
$
51.25
|
$
50.00
|
$
50.00
|
Natural
Gas
|
|
|
|
|
|
Henry Hub
Three-Way Collars
|
|
|
|
|
|
Volume
(MMBtu/day)
|
50,000
|
—
|
—
|
—
|
—
|
Weighted average price
per MMBtu:
|
|
|
|
|
|
Ceiling
|
$
11.14
|
$
—
|
$
—
|
$
—
|
$
—
|
Floor
|
$
4.00
|
$
—
|
$
—
|
$
—
|
$
—
|
Sold put
|
$
2.50
|
$
—
|
$
—
|
$
—
|
$
—
|
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SOURCE Marathon Oil Corporation