Over $830
Million of Shareholder Distributions in First Half
2023
HOUSTON, Aug. 2, 2023
/PRNewswire/ -- Marathon Oil Corporation (NYSE: MRO) reported
second quarter 2023 net income of $287
million or $0.47 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
$295 million or $0.48 per diluted share. Net operating cash flow
was $1,076 million or $1,121 million before changes in working capital
(adjusted CFO). Free cash flow was $442
million or $531
million before changes in working capital and including
Equatorial Guinea (E.G.)
distributions and other financing (adjusted FCF).
- Continued delivery on commitment to return at least 40% of
adjusted CFO to shareholders
-
- Returned $434 million to
shareholders during second quarter, an approximate 10% increase
from first quarter 2023 shareholder distributions; second quarter
return of capital included $372
million of share repurchases and $62
million base dividend
- Achieved first half 2023 shareholder distributions of
$831 million, including over
$700 million of share repurchases;
represents 40% of adjusted CFO
- Executed $4.2 billion of total
share repurchases over trailing 7 quarters, driving a 24% reduction
in outstanding share count and significant growth in all per-share
metrics
- Achieved strong second quarter financial and operational
results with no changes to full-year production or capital spending
guidance ranges
-
- Generated second quarter FCF of $442 million and adjusted FCF of $531 million
- Delivered sequential increase in total second quarter
production to 399,000 net barrels of oil equivalent per day (boed)
and 189,000 net barrels of oil per day (bopd)
- Company's full year 2023 total Company oil equivalent
production is trending above the midpoint of the annual guidance
range
"Second quarter adds to our track record of consistent execution
against our well-established Framework for Success" said Chairman,
President, and CEO Lee Tillman. "We
built on our return of capital leadership, increasing shareholder
distributions to over $430 million
during second quarter, including over $370
million of share repurchases. Second quarter financial and
operational results were again very strong, highlighted by notable
increases to our cash flow, free cash flow, and production relative
to the first quarter. We remain on track to deliver against our
full year capital spending and production guidance with oil
equivalent production trending above the midpoint. In summary, we
remain well positioned to continue offering our investors top tier
and sustainable free cash flow generation, an advantaged return of
capital profile, and differentiated per-share growth with an
investment grade balance sheet - all at an attractive valuation. I
remain confident that our 2023 business plan is both resilient and
compelling across a broad range of commodity prices and that it
benchmarks at the very top of both the E&P sector and the
S&P 500 on the metrics that matter most."
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 and protecting shareholder distributions from capital
inflation. 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 second quarter, Marathon Oil returned $434 million to shareholders, including
$372 million of share repurchases and
the $62 million base dividend.
Through the first two quarters of 2023, Marathon Oil has returned
$831 million to shareholders,
representing 40% of adjusted CFO. Shareholder distributions through
the first two quarters of 2023 include over $700 million of share repurchases and
$125 million in base dividends.
Since significantly increasing return of capital to equity
investors in fourth quarter 2021 under its current Return of
Capital Framework, Marathon Oil has returned $4.6 billion to shareholders, including
$4.2 billion of share repurchases
that have reduced outstanding share count by 24%, contributing to
significant growth in all per-share metrics.
2Q23 Financials
CASH FLOW AND CAPEX: Net cash provided by operations was
$1,076 million during second quarter
or $1,121 million before changes in
working capital. Second quarter cash additions to property, plant
and equipment totaled $634 million,
while capital expenditures (accrued) totaled $623 million.
BALANCE SHEET AND LIQUIDITY: Marathon Oil ended second quarter
with $215 million in cash and cash
equivalents. The Company redeemed $131MM of 8.125% Senior Notes in
July, bringing year-to-date gross debt reduction to $200 million. This followed the successful April
remarketing of $200 million of
tax-exempt bonds at an interest rate of 4.05% that matures in 2026.
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 as investment grade,
with Fitch and Moody's reaffirming their credit rating in
June 2023.
ADJUSTMENTS TO NET INCOME: The adjustments to net income for
second quarter increased net income by $8
million, primarily due to a small unproved property
impairment and the income impact associated with unrealized losses
on derivative instruments.
2Q23 Operations
UNITED STATES (U.S.): U.S.
production averaged 356,000 net boed for second quarter 2023, an
increase from 341,000 net boed during first quarter. Oil production
averaged 181,000 net bopd for second quarter, an increase from
176,000 net bopd during first quarter. The Company brought a total
of 80 gross Company-operated wells to sales during second quarter.
U.S. unit production costs averaged $5.88 per boe during second quarter.
Marathon Oil's second quarter Eagle Ford production averaged
156,000 net boed, including 81,000 net bopd, with 49 gross
Company-operated wells to sales. Bakken production averaged 109,000
net boed, including 68,000 net bopd, with 23 gross Company-operated
wells to sales. Oklahoma
production averaged 50,000 net boed, including 9,000 net bopd.
Permian production averaged 40,000 net boed, including 21,000 net
bopd, with eight gross Company-operated wells to sales.
INTERNATIONAL: E.G. production averaged 43,000 net boed for
second quarter 2023, including 8,000 net bopd. Unit production
costs averaged $5.72 per boe,
and net income from equity method investees totaled $22 million during second quarter. Second quarter
production, unit costs, and equity income were all negatively
impacted by a triennial turnaround completed during the month of
April. Second quarter cash distributions from equity method
companies totaled $249 million,
including $215 million of dividends
and $34 million of distributions
classified as return of capital.
2023 Guidance
Marathon Oil's originally provided 2023 production guidance
ranges remain unchanged with the Company's full year 2023 total
Company oil equivalent production trending above the midpoint of
guidance. Third quarter total Company oil and oil equivalent
production are both expected to be at or above the high end of the
annual guidance ranges. No change to the Company's 2023 capital
spending guidance range of $1.9 to
$2.0 billion with first half capital
spending (accrued) accounting for just over 60% of the full year
budget at the midpoint of guidance, consistent with the Company's
business plan.
The Company's 2023 business plan continues to benchmark at the
top of its high-quality E&P peer group, as measured by expected
shareholder distribution yield; FCF yield and FCF efficiency;
capital efficiency; FCF breakeven; and growth in production
per-share.
A slide deck and Quarterly Investor Packet will be posted to the
Company's website following this release. On Thursday, August 3, 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); business strategy; capital expenditure guidance;
production guidance; E.G. equity method income guidance; future
E.G. earnings, cash flow and cash dividends (and the timing
thereof); expected shareholder distribution yield; FCF yield and
FCF efficiency; capital efficiency; FCF breakeven; growth in
production per-share 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; 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
|
|
Jun.
30
|
Mar.
31
|
Jun.
30
|
(In millions, except
per share data)
|
2023
|
2023
|
2022
|
Revenues and other
income:
|
|
|
|
Revenues from
contracts with customers
|
$
1,484
|
$
1,567
|
$
2,168
|
Net gain (loss) on
commodity derivatives
|
3
|
15
|
(27)
|
Income from equity
method investments
|
22
|
80
|
152
|
Net gain (loss) on
disposal of assets
|
—
|
5
|
(1)
|
Other
income
|
4
|
13
|
11
|
Total revenues and
other income
|
1,513
|
1,680
|
2,303
|
Costs and
expenses:
|
|
|
|
Production
|
214
|
201
|
164
|
Shipping, handling and
other operating
|
161
|
162
|
191
|
Exploration
|
11
|
15
|
8
|
Depreciation,
depletion and amortization
|
559
|
520
|
436
|
Impairments
|
—
|
—
|
2
|
Taxes other than
income
|
43
|
95
|
140
|
General and
administrative
|
71
|
82
|
68
|
Total costs and
expenses
|
1,059
|
1,075
|
1,009
|
Income from
operations
|
454
|
605
|
1,294
|
Net interest and
other
|
(92)
|
(82)
|
(54)
|
Other net periodic
benefit credits
|
3
|
3
|
5
|
Income before income
taxes
|
$
365
|
$
526
|
$
1,245
|
Provision for income
taxes
|
78
|
109
|
279
|
Net
income
|
$
287
|
$
417
|
$
966
|
Adjusted Net
Income
|
|
|
|
Net
income
|
$
287
|
$
417
|
$
966
|
Adjustments for special
items (pre-tax):
|
|
|
|
Net (gain) loss on
disposal of assets
|
—
|
(5)
|
1
|
Proved property
impairments
|
—
|
—
|
2
|
Exploratory dry well
costs, unproved property impairments and other
|
5
|
10
|
—
|
Pension
settlement
|
—
|
1
|
—
|
Unrealized (gain) loss
on commodity derivatives
|
4
|
(2)
|
(43)
|
Unrealized loss on
interest rate swaps
|
—
|
—
|
1
|
Acquisition
transaction costs
|
—
|
1
|
—
|
Other
|
1
|
(1)
|
(2)
|
Provision (benefit) for
income taxes related to special items(a)
|
(2)
|
(1)
|
9
|
Adjustments for
special items
|
8
|
3
|
(32)
|
Adjusted net
income(b)
|
$
295
|
$
420
|
$
934
|
Per diluted
share:
|
|
|
|
Net income
|
$
0.47
|
$
0.66
|
$
1.37
|
Adjusted net
income(b)
|
$
0.48
|
$
0.67
|
$
1.32
|
Weighted average
diluted shares
|
615
|
629
|
705
|
|
|
|
|
(a)
|
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
|
|
Jun.
30
|
Mar.
31
|
Jun.
30
|
(Per
share)
|
2023
|
2023
|
2022
|
Adjusted Net Income
Per Diluted Share
|
|
|
|
Net
income
|
$
0.47
|
$
0.66
|
$
1.37
|
Adjustments for special
items (pre-tax):
|
|
|
|
Net (gain) loss on
disposal of assets
|
—
|
(0.01)
|
—
|
Proved property
impairments
|
—
|
—
|
—
|
Exploratory dry well
costs, unproved property impairments and other
|
0.01
|
0.02
|
—
|
Pension
settlement
|
—
|
—
|
—
|
Unrealized (gain) loss
on commodity derivatives
|
—
|
—
|
(0.06)
|
Unrealized loss on
interest rate swaps
|
—
|
—
|
—
|
Acquisition
transaction costs
|
—
|
—
|
—
|
Other
|
—
|
—
|
—
|
Provision (benefit) for
income taxes related to special items
|
—
|
—
|
0.01
|
Adjustments for
special items
|
0.01
|
0.01
|
(0.05)
|
Adjusted net income
per share(a)
|
$
0.48
|
$
0.67
|
$
1.32
|
|
|
|
|
(a)
|
Non-GAAP financial
measure. See "Non-GAAP Measures" above for further
discussion.
|
Supplemental Data
(Unaudited)
|
Three Months
Ended
|
|
Jun.
30
|
Mar.
31
|
Jun.
30
|
(In
millions)
|
2023
|
2023
|
2022
|
Segment
income
|
|
|
|
United
States
|
$
365
|
$
425
|
$
846
|
International
|
30
|
89
|
160
|
Not allocated to
segments
|
(108)
|
(97)
|
(40)
|
Net
income
|
$
287
|
$
417
|
$
966
|
Net operating cash
flow before changes in working capital (Adjusted
CFO)(a)
|
|
|
|
Net cash provided by
operating activities
|
$ 1,076
|
$
865
|
$ 1,678
|
Changes in working
capital
|
45
|
77
|
(92)
|
Adjusted
CFO(a)
|
$ 1,121
|
$
942
|
$ 1,586
|
Free cash
flow
|
|
|
|
Net cash provided by
operating activities
|
$ 1,076
|
$
865
|
$ 1,678
|
Cash additions to
property, plant and equipment
|
(634)
|
(532)
|
(355)
|
Free cash
flow
|
$
442
|
$
333
|
$ 1,323
|
Adjusted free cash
flow(a)
|
|
|
|
Adjusted
CFO(a)
|
$ 1,121
|
$
942
|
$ 1,586
|
Adjustments:
|
|
|
|
Capital expenditures
(accrued)(a)
|
(623)
|
(601)
|
(375)
|
EG return of capital
and other financing(b)
|
33
|
(32)
|
2
|
Adjusted free cash
flow(a)
|
$
531
|
$
309
|
$ 1,213
|
Reinvestment
rate(a)
|
54 %
|
66 %
|
24 %
|
Capital expenditures
(accrued)(a)
|
|
|
|
Cash additions to
property, plant and equipment
|
$
(634)
|
$
(532)
|
$
(355)
|
Change in capital
accrual
|
11
|
(69)
|
(20)
|
Capital
expenditures (accrued)(a)
|
$
(623)
|
$
(601)
|
$
(375)
|
|
|
|
|
(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
and includes tax withholding for employee stock-
based compensation of $30 million for the first quarter
2023.
|
Supplemental
Statistics (Unaudited)
|
Three Months
Ended
|
|
Jun.
30
|
Mar.
31
|
Jun.
30
|
Net
Production
|
2023
|
2023
|
2022
|
Equivalent
Production (mboed)
|
|
|
|
United
States
|
356
|
341
|
283
|
International
|
43
|
55
|
60
|
Total net
production
|
399
|
396
|
343
|
Oil Production
(mbbld)
|
|
|
|
United
States
|
181
|
176
|
157
|
International
|
8
|
10
|
10
|
Total net
production
|
189
|
186
|
167
|
Supplemental
Statistics (Unaudited)
|
Three Months
Ended
|
|
Jun.
30
|
Mar.
31
|
Jun.
30
|
|
2023
|
2023
|
2022
|
United States - net
sales volumes
|
|
|
|
Crude oil and
condensate (mbbld)
|
181
|
176
|
157
|
Eagle Ford
|
81
|
74
|
54
|
Bakken
|
68
|
63
|
75
|
Oklahoma
|
9
|
12
|
14
|
Permian
|
21
|
25
|
10
|
Other United
States(a)
|
2
|
2
|
4
|
Natural gas liquids
(mbbld)
|
91
|
78
|
65
|
Eagle Ford
|
39
|
33
|
15
|
Bakken
|
25
|
18
|
25
|
Oklahoma
|
17
|
17
|
18
|
Permian
|
10
|
10
|
5
|
Other United
States(a)
|
—
|
—
|
2
|
Natural gas
(mmcfd)
|
504
|
522
|
365
|
Eagle Ford
|
218
|
222
|
90
|
Bakken
|
90
|
84
|
81
|
Oklahoma
|
141
|
153
|
146
|
Permian
|
53
|
61
|
31
|
Other United
States(a)
|
2
|
2
|
17
|
Total United States
(mboed)
|
356
|
341
|
283
|
International - net
sales volumes
|
|
|
|
Crude oil and
condensate (mbbld)
|
8
|
11
|
10
|
Equatorial
Guinea
|
8
|
11
|
10
|
Natural gas liquids
(mbbld)
|
5
|
6
|
7
|
Equatorial
Guinea
|
5
|
6
|
7
|
Natural gas
(mmcfd)
|
186
|
232
|
256
|
Equatorial
Guinea
|
186
|
232
|
256
|
Total International
(mboed)
|
44
|
56
|
60
|
Total Company - net
sales volumes (mboed)
|
400
|
397
|
343
|
Net sales volumes of
equity method investees
|
|
|
|
LNG (mtd)
|
1,716
|
2,112
|
2,601
|
Methanol
(mtd)
|
1,047
|
1,378
|
964
|
Condensate and LPG
(boed)
|
6,614
|
8,817
|
10,363
|
|
|
|
|
(a)
|
Includes sales volumes
from certain non-core proved properties in our United States
segment.
|
Supplemental
Statistics (Unaudited)
|
Three Months
Ended
|
|
Jun.
30
|
Mar.
31
|
Jun.
30
|
|
2023
|
2023
|
2022
|
United States -
average price realizations(a)
|
|
|
|
Crude oil and
condensate ($ per bbl)(b)
|
$
72.49
|
$
74.69
|
$
110.10
|
Eagle Ford
|
71.32
|
73.90
|
110.16
|
Bakken
|
73.51
|
75.81
|
110.67
|
Oklahoma
|
73.57
|
73.37
|
108.85
|
Permian
|
73.42
|
75.25
|
108.59
|
Other United
States
|
69.34
|
69.23
|
107.15
|
Natural gas liquids
($ per bbl)
|
$
18.72
|
$
24.27
|
$
40.32
|
Eagle Ford
|
18.01
|
24.36
|
39.90
|
Bakken
|
18.00
|
22.45
|
39.29
|
Oklahoma
|
20.99
|
25.95
|
43.28
|
Permian
|
19.39
|
24.39
|
36.88
|
Other United
States
|
18.07
|
24.50
|
38.80
|
Natural gas ($ per
mcf)
|
$
1.89
|
$
2.95
|
$
6.84
|
Eagle Ford
|
1.86
|
2.83
|
6.92
|
Bakken
|
1.69
|
4.65
|
6.21
|
Oklahoma
|
2.16
|
2.64
|
7.06
|
Permian
|
1.59
|
1.86
|
7.14
|
Other United
States
|
2.45
|
3.27
|
7.02
|
International -
average price realizations
|
|
|
|
Crude oil and
condensate ($ per bbl)
|
$
53.64
|
$
58.57
|
$
79.74
|
Equatorial
Guinea
|
53.64
|
58.57
|
79.74
|
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)
|
$
73.56
|
$
75.99
|
$
108.52
|
Brent (Europe) crude
oil (per bbl)(d)
|
$
78.32
|
$
81.17
|
$
113.54
|
Mont Belvieu NGLs (per
bbl)(e)
|
$
20.49
|
$
25.33
|
$
41.73
|
Henry Hub natural gas
(per mmbtu)(f)
|
$
2.10
|
$
3.42
|
$
7.17
|
TTF natural gas (per
mmbtu)
|
$
11.34
|
$
16.72
|
$
31.64
|
|
|
|
|
(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 $4.43 for the
second 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 July 31, 2023, and the weighted
average prices for those contracts:
|
2023
|
|
Third
Quarter
|
|
Fourth
Quarter
|
Crude
Oil
|
|
|
|
NYMEX WTI
Three-Way Collars
|
|
|
|
Volume
(Bbls/day)
|
10,000
|
|
10,000
|
Weighted average price
per Bbl:
|
|
|
|
Ceiling
|
$
97.59
|
|
$
97.59
|
Floor
|
$
60.00
|
|
$
60.00
|
Sold put
|
$
45.00
|
|
$
45.00
|
Natural
Gas
|
|
|
|
Henry Hub
Three-Way Collars
|
|
|
|
Volume
(MMBtu/day)
|
50,000
|
|
50,000
|
Weighted average price
per MMBtu:
|
|
|
|
Ceiling
|
$
11.14
|
|
$
11.14
|
Floor
|
$
4.00
|
|
$
4.00
|
Sold put
|
$
2.50
|
|
$
2.50
|
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SOURCE Marathon Oil Corporation