Marathon Oil Announces 2024 Capital Budget and Reports Fourth Quarter and Full-Year 2023 Results
- Marathon Oil reported full-year 2023 net income of $1,554 million and adjusted net income of $1,587 million.
- The company delivered $1.7 billion of shareholder returns and reduced gross debt by $500 million in 2023.
- Marathon Oil announced a 2024 capital budget of $1.9 to $2.1 billion, prioritizing corporate returns and free cash flow generation.
- The company expects to deliver total Company oil production of 190,000 net bopd at the midpoint of its 2024 guidance range.
- None.
Insights
Marathon Oil Corporation's announcement of a robust financial performance for the full year 2023 is indicative of a healthy balance sheet and a strong return on capital strategy. The company's net income and adjusted net income figures, coupled with significant shareholder returns and debt reduction, paint a picture of a company that is not only generating substantial free cash flow but also effectively allocating it to enhance shareholder value. A 9% reduction in outstanding share count through share repurchases is a bullish signal for existing shareholders, as it typically leads to an increase in earnings per share and can be seen as a management vote of confidence in the company's future prospects.
The 22% increase in the base dividend without affecting the free cash flow breakeven point is particularly noteworthy as it suggests a sustainable dividend policy that does not compromise the company's financial health. Furthermore, the reduction in gross debt by $500 million strengthens Marathon Oil's investment-grade balance sheet, which is crucial for maintaining favorable borrowing costs and financial flexibility. Investors would also be reassured by the company's consistent delivery against its capital allocation framework, which emphasizes disciplined spending and shareholder returns.
The operational highlights, including consistent oil production and oil-equivalent production figures, reflect Marathon Oil's ability to meet production targets, which is essential for investor confidence. Achieving the 2025 GHG Intensity reduction goal two years ahead of schedule demonstrates a commitment to environmental responsibility, which is increasingly important to socially conscious investors and can impact the company's reputation positively.
Looking ahead, the 2024 capital expenditure budget aligns with the company's strategic focus on free cash flow generation and return of capital, suggesting a continued emphasis on financial discipline. The projected free cash flow for 2024, based on certain commodity price assumptions, indicates confidence in the company's ability to maintain profitability even in a potentially volatile market. This forward-looking statement provides valuable insight into management's expectations and the company's potential financial trajectory.
The energy sector is characterized by its sensitivity to commodity prices and Marathon Oil's cash flow sensitivities to WTI, Henry Hub and TTF commodity prices offer a transparent view of how fluctuations in these markets could affect the company's financial performance. The assumption of AMT cash tax payments and the offset through R&D tax credits reveal the company's tax planning strategies and potential impacts on net income.
Marathon Oil's positioning within its E&P peer group, with strong capital efficiency and a low reinvestment rate, is significant. It indicates a competitive edge in generating returns on investments, which is critical in the capital-intensive energy sector. The reference to the company's multi-basin portfolio and E.G. integrated gas business highlights diversification as a key strength, potentially mitigating risks associated with reliance on a single region or resource.
Delivered
Marathon Oil reported fourth quarter 2023 net income of
Highlights
- Returned
41% of adjusted CFO to shareholders in 2023, consistent with Return of Capital Framework- Distributed
$1.7 billion 12% distribution yield on current market capitalization; includes$417 million - Executed
$1.5 billion 9% reduction to outstanding share count; includes$352 million - Raised per share base dividend
22% from year-end 2022 level, with no impact to peer-leading post-dividend free cash flow breakeven
- Distributed
- Reduced gross debt by
$500 million $300 million - Delivered strong full-year 2023 and fourth quarter financial and operational results
- Full-year 2023 adjusted FCF of
$2.2 billion $624 million - Full-year 2023 oil production of 190,000 net bopd, consistent with midpoint of annual guidance; includes fourth quarter oil production of 189,000 net bopd
- Full-year 2023 oil-equivalent production of 405,000 net boed, consistent with high end of annual guidance; includes fourth quarter oil-equivalent production of 404,000 net boed
- Full-year 2023 adjusted FCF of
- Achieved another year of comprehensive safety and environmental excellence
- Reported record annual safety performance, as measured by TRIR1
- Achieved 2025 GHG Intensity reduction goal of
50% 2 two years ahead of schedule - Improved total Company gas capture rate to
99.5%
- Announced 2024 capital budget that again prioritizes corporate returns, FCF generation, and meaningful return of capital to shareholders
- Expect
$2.0 billion - Expect to return at least
40% of adjusted CFO to shareholders in 2024 under differentiated CFO-driven framework that continues to provide investors with first call on cash flow
- Expect
"2023 marked another year of impressive delivery against every dimension of our Framework for Success," said chairman, president, and CEO Lee Tillman. "We generated
"Looking to 2024 and beyond," continued Mr. Tillman, "I expect more of the same from our Company: strong free cash flow generation, underlying growth in per share metrics, compelling return of capital to shareholders, and ongoing balance sheet enhancement. We believe the combination of our consistent, disciplined strategy; our high-quality
2024 Capital Budget and Guidance
Marathon Oil announced a
The 2024 program is expected to deliver approximately
Marathon Oil's 2024 financial guidance assumes Alternative Minimum Tax (AMT) cash tax payments for its
Marathon Oil expects to deliver total Company oil production of 190,000 net bopd at the midpoint of its 2024 guidance range. Although winter weather is expected to lower first quarter production by about 4,000 net bopd, primarily concentrated in the Bakken, the Company expects no impact to its flat oil production guidance for the full year. Marathon Oil expects to continue driving significant growth in oil production per share. The underlying capital efficiency and bottom line financial outcomes of the 2024 capital program are again expected to benchmark at the top of Marathon Oil's high-quality E&P peer group.
More detailed highlights of the 2024 capital program include the following:
- Expect
5% to10% fewer net wells to sales in 2024 to deliver flat year-on-year total oil production as the Company optimizes well mix to maximize corporate returns and FCF generation - 2024 well productivity expected to be comparable to 2023, with average lateral length increasing by ~
5% and capital efficiency improving - Capital spending again approximately
60% weighted to first half of year, driving higher production during second half of year - Approximately
70% of total capital allocated to the Eagle Ford and Bakken - Higher year-on-year capital spending in the Permian, accounting for majority of remaining Resource Play capital spend
- Modest E.G. capital spend limited to long-lead items in support of up to two potential Alba infill wells in 2025
- Higher year-on-year non-development capital spending, primarily related to environmental and emissions reduction efforts
Return of Capital Overview
Marathon Oil's percentage of CFO Return of Capital Framework provides clear visibility to shareholder returns, ensuring the shareholder gets the first call on cash flow generation. In a
During 2023, Marathon Oil returned
While delivering on its Return of Capital Framework in 2023, Marathon Oil also reduced gross debt by
For 2024, consistent with its Return of Capital Framework, Marathon Oil expects to return at least
4Q23 Operations
The Company brought a total of 32 gross Company-operated wells to sales during fourth quarter, including five wells that came online near the end of December. Additionally, the Company brought a total of 10 joint venture wells to sales during fourth quarter.
Marathon Oil's fourth quarter production in the Eagle Ford averaged 144,000 net boed, including 71,000 net bopd, with four gross Company-operated wells to sales. In the Bakken, production averaged 118,000 net boed, including 76,000 net bopd, with 23 gross Company-operated wells to sales. Permian production averaged 39,000 net boed, including 21,000 net bopd, with five gross company-operated wells to sales and four joint venture wells to sales.
INTERNATIONAL: E.G. production averaged 52,000 net boed for fourth quarter, including 9,000 net bopd. Sales volumes averaged 48,000 net boed, including 5,000 net bopd, as the Company was underlifted during the quarter. Unit production costs averaged
Corporate Overview
2023 RESERVES: Year-end 2023 proved reserves totaled 1,320 million barrels of oil equivalent (mmboe), comparable to year-end 2022 proved reserves, despite lower SEC commodity pricing. 2023 reserve additions were primarily attributable to expansion of proved areas and 5-year plan optimization and effectively replaced produced volumes. Excluding the impacts of SEC commodity pricing, reserve replacement totaled over
BALANCE SHEET AND LIQUIDITY: Marathon Oil ended fourth quarter with total liquidity of
FOURTH QUARTER ADJUSTMENTS TO NET INCOME: The adjustments to net income for fourth quarter totaled
Safety, Environmental, Social, and Governance Excellence
SAFETY: Marathon Oil holds safety as a core value and strives to provide safe, healthy, and secure workplaces. During 2023, Marathon Oil achieved a record-low annual Total Recordable Incident Rate (TRIR) of 0.21 for employees and contractors. Marathon Oil's safety performance remains a key element of its executive compensation scorecard, underscoring the Company's commitment to keeping its employees and contractors safe.
ENVIRONMENTAL: Marathon Oil aims to help meet global oil and gas demand with strong environmental performance by driving significant improvement to both the greenhouse gas (GHG) and methane intensity of its operations, consistent with the trajectory of the Paris Climate Agreement. Preliminary calculations indicate Marathon Oil achieved its 2025 GHG intensity reduction goal of
SOCIAL: Marathon Oil is committed to promoting a diverse and inclusive workplace, respecting human rights, and making strategic investments to build healthier, safer, more resilient, and stronger local communities. Key strategic social investments during 2023 included: ongoing support of
GOVERNANCE: Marathon Oil believes best-in-class governance is foundational to delivering shareholder value. The Company is especially focused on industry leadership in aligning executive compensation with the most critical drivers of shareholder value and on maintaining an independent and diverse board of directors with strong skills and experience. During 2023, Marathon Oil continued to enhance its board of director oversight through its focus on refreshment, independence, and diversity. The Company elected one new board member in 2023. Seven of eight directors are independent, average director tenure remains below the S&P 500 average while maintaining a diverse mix of short and longer-tenured directors, three directors are female (including the lead director), and two directors are ethnically/racially diverse.
A slide deck and Quarterly Investor Packet will be posted to the Company's website following this release today, February 21. On Thursday, February 22, at 9:00 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/.
Media Relations Contact:
Karina Brooks: 713-296-2191
Investor Relations Contacts:
Guy Baber: 713-296-1892
John Reid: 713-296-4380
Footnotes: | |
1 | Total recordable incident rate (TRIR) measures combined employee and contractor workforce incidents per 200,000 work hours |
2 | 2025 GHG intensity reduction goal of |
About Marathon Oil
Marathon Oil Corporation (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
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 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, goodwill and equity method investments, 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
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
Our presentation of free cash flow is a non-GAAP measure. Free cash flow is defined as net cash provided by operating activities, capital expenditures and change in capital accrual. 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
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, and EG return of capital and other. 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
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 divided by adjusted CFO. The reinvestment rate in the context of free cash flow is defined as capital expenditures 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), growth in per share metrics, balance sheet enhancement, net wells to sales, well productivity, gross debt reduction, unit production costs, distribution yields, business strategy, capital expenditure guidance, production guidance, rig counts, tax assumptions 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
Consolidated Statements of Income (Unaudited) | Three Months Ended | Year Ended | |||
Dec. 31 | Sept. 30 | Dec. 31 | Dec. 31 | Dec. 31 | |
(In millions, except per share data) | 2023 | 2023 | 2022 | 2023 | 2022 |
Revenues and other income: | |||||
Revenues from contracts with customers | $ 1,585 | $ 1,771 | $ 1,603 | $ 6,407 | $ 7,540 |
Net gain (loss) on commodity derivatives | 23 | 1 | 15 | 42 | (114) |
Income from equity method investments | 45 | 38 | 144 | 185 | 613 |
Net gain (loss) on disposal of assets | 11 | 1 | (39) | 17 | (38) |
Other income | 27 | 2 | 10 | 46 | 35 |
Total revenues and other income | 1,691 | 1,813 | 1,733 | 6,697 | 8,036 |
Costs and expenses: | |||||
Production | 221 | 192 | 181 | 828 | 690 |
Shipping, handling and other operating | 202 | 164 | 158 | 689 | 733 |
Exploration | 13 | 20 | 18 | 59 | 110 |
Depreciation, depletion and amortization | 549 | 583 | 434 | 2,211 | 1,753 |
Impairments | 2 | — | 3 | 2 | 7 |
Taxes other than income | 112 | 113 | 103 | 363 | 484 |
General and administrative | 72 | 72 | 88 | 297 | 308 |
Total costs and expenses | 1,171 | 1,144 | 985 | 4,449 | 4,085 |
Income from operations | 520 | 669 | 748 | 2,248 | 3,951 |
Net interest and other | (84) | (94) | (60) | (352) | (188) |
Other net periodic benefit credits | 4 | 5 | 2 | 15 | 16 |
Income before income taxes | 440 | 580 | 690 | 1,911 | 3,779 |
Provision for income taxes | 43 | 127 | 165 | 357 | 167 |
Net income | $ 397 | $ 453 | $ 525 | $ 1,554 | $ 3,612 |
Adjusted Net Income | |||||
Net income | $ 397 | $ 453 | $ 525 | $ 1,554 | $ 3,612 |
Adjustments for special items (pre-tax): | |||||
Net (gain) loss on disposal of assets | (11) | (1) | 39 | (17) | 38 |
Proved property impairments | 2 | — | 3 | 2 | 7 |
Exploratory dry well costs, unproved property impairments and other | 4 | 11 | 12 | 30 | 74 |
Pension settlement | — | — | 2 | 1 | 2 |
Unrealized (gain) loss on derivative instruments | (21) | 6 | (22) | (13) | (18) |
Unrealized loss on interest rate swaps | — | — | — | — | 27 |
Acquisition transaction costs | — | 1 | 18 | 2 | 18 |
Other | 37 | — | (2) | 37 | 46 |
Benefit for income taxes related to special items (a) | (2) | (4) | (12) | (9) | (43) |
Valuation allowance | — | — | — | — | (685) |
Adjustments for special items | 9 | 13 | 38 | 33 | (534) |
Adjusted net income (b) | $ 406 | $ 466 | $ 563 | $ 1,587 | $ 3,078 |
Per diluted share: | |||||
Net income | $ 0.68 | $ 0.75 | $ 0.82 | $ 2.56 | $ 5.26 |
Adjusted net income (b) | $ 0.69 | $ 0.77 | $ 0.88 | $ 2.61 | $ 4.48 |
Weighted average diluted shares | 584 | 604 | 637 | 608 | 687 |
(a) | In both 2023 and 2022, we applied the estimated |
(b) | Non-GAAP financial measure. See "Non-GAAP Measures" above for further discussion. |
Supplemental Data (Unaudited) | Three Months Ended | Year Ended | |||
Dec. 31 | Sept. 30 | Dec. 31 | Dec. 31 | Dec. 31 | |
(Per share) | 2023 | 2023 | 2022 | 2023 | 2022 |
Adjusted Net Income Per Diluted Share | |||||
Net income | $ 0.68 | $ 0.75 | $ 0.82 | $ 2.56 | $ 5.26 |
Adjustments for special items (pre-tax): | |||||
Net (gain) loss on disposal of assets | (0.02) | — | 0.06 | (0.03) | 0.06 |
Proved property impairments | — | — | — | — | 0.01 |
Exploratory dry well costs, unproved property impairments and other | 0.01 | 0.01 | 0.02 | 0.05 | 0.11 |
Unrealized (gain) loss on derivative instruments | (0.03) | 0.01 | (0.03) | (0.02) | (0.03) |
Unrealized loss on interest rate swaps | — | — | — | — | 0.04 |
Acquisition transaction costs | — | — | 0.03 | — | 0.03 |
Other | 0.05 | — | — | 0.05 | 0.06 |
Benefit for income taxes related to special items | — | — | (0.02) | — | (0.06) |
Valuation allowance | — | — | — | — | (1.00) |
Adjustments for special items | 0.01 | 0.02 | 0.06 | 0.05 | (0.78) |
Adjusted net income per share (a) | $ 0.69 | $ 0.77 | $ 0.88 | $ 2.61 | $ 4.48 |
(a) | Non-GAAP financial measure. See "Non-GAAP Measures" above for further discussion. |
Supplemental Data (Unaudited) | Three Months Ended | Year Ended | |||
Dec. 31 | Sept. 30 | Dec. 31 | Dec. 31 | Dec. 31 | |
(In millions) | 2023 | 2023 | 2022 | 2023 | 2022 |
Segment income | |||||
$ 468 | $ 505 | $ 510 | $ 1,763 | $ 2,740 | |
International | 51 | 62 | 129 | 232 | 585 |
Not allocated to segments | (122) | (114) | (114) | (441) | 287 |
Net income | $ 397 | $ 453 | $ 525 | $ 1,554 | $ 3,612 |
Net operating cash flow before changes in working capital (Adjusted CFO)(a) | |||||
Net cash provided by operating activities | $ 1,080 | $ 1,066 | $ 1,127 | $ 4,087 | $ 5,428 |
Changes in working capital | (100) | 78 | (23) | 100 | (18) |
Adjusted CFO(a) | $ 980 | $ 1,144 | $ 1,104 | $ 4,187 | $ 5,410 |
Free cash flow | |||||
Net cash provided by operating activities | $ 1,080 | $ 1,066 | $ 1,127 | $ 4,087 | $ 5,428 |
Capital expenditures | (360) | (449) | (344) | (2,033) | (1,480) |
Change in capital accrual | (39) | (44) | 11 | (25) | 30 |
Free cash flow | $ 681 | $ 573 | $ 794 | $ 2,029 | $ 3,978 |
Adjusted free cash flow(a) | |||||
Adjusted CFO(a) | $ 980 | $ 1,144 | $ 1,104 | $ 4,187 | $ 5,410 |
Adjustments: | |||||
Capital expenditures | (360) | (449) | (344) | (2,033) | (1,480) |
EG return of capital and other financing(b) | 4 | 23 | 3 | 28 | 17 |
Adjusted free cash flow (a) | $ 624 | $ 718 | $ 763 | $ 2,182 | $ 3,947 |
Reinvestment rate (a) | 37 % | 38 % | 31 % | 48 % | 27 % |
(a) | Non-GAAP financial measure. See "Non-GAAP Measures" above for further discussion. |
(b) | Excludes approximately |
Supplemental Data (Unaudited) | 2024 Free Cash Flow |
(In millions) | |
Expected free cash flow(b) | |
Expected net cash provided by operating activities | $ 3,900 |
Less: Capital expenditures (at mid-point of annual guidance) | (2,000) |
Expected free cash flow(b) | $ 1,900 |
(a) | Based upon an |
(b) | Non-GAAP financial measure. See "Non-GAAP Measures" above for further discussion. |
Supplemental Statistics (Unaudited) | Three Months Ended | Year Ended | |||
Dec. 31 | Sept. 30 | Dec. 31 | Dec. 31 | Dec. 31 | |
Net Production | 2023 | 2023 | 2022 | 2023 | 2022 |
Equivalent Production (mboed) | |||||
352 | 369 | 278 | 355 | 284 | |
International | 52 | 52 | 55 | 50 | 59 |
Total net production | 404 | 421 | 333 | 405 | 343 |
Oil Production (mbbld) | |||||
180 | 189 | 156 | 182 | 159 | |
International | 9 | 9 | 10 | 8 | 10 |
Total net production | 189 | 198 | 166 | 190 | 169 |
Supplemental Statistics (Unaudited) | Three Months Ended | Year Ended | |||
Dec. 31 | Sept. 30 | Dec. 31 | Dec. 31 | Dec. 31 | |
2023 | 2023 | 2022 | 2023 | 2022 | |
Crude oil and condensate (mbbld) | 179 | 189 | 156 | 181 | 159 |
Eagle Ford | 71 | 80 | 62 | 77 | 57 |
Bakken | 75 | 77 | 59 | 71 | 71 |
10 | 9 | 10 | 10 | 12 | |
Permian | 21 | 22 | 20 | 21 | 14 |
Other | 2 | 1 | 5 | 2 | 5 |
Natural gas liquids (mbbld) | 86 | 90 | 59 | 87 | 64 |
Eagle Ford | 37 | 40 | 14 | 37 | 15 |
Bakken | 26 | 27 | 22 | 24 | 25 |
15 | 13 | 15 | 16 | 17 | |
Permian | 8 | 10 | 6 | 10 | 5 |
Other | — | — | 2 | — | 2 |
Natural gas (mmcfd) | 520 | 539 | 371 | 521 | 363 |
Eagle Ford | 217 | 229 | 93 | 222 | 86 |
Bakken | 101 | 103 | 80 | 94 | 87 |
147 | 143 | 143 | 146 | 140 | |
Permian | 53 | 61 | 40 | 57 | 34 |
Other | 2 | 3 | 15 | 2 | 16 |
Total | 352 | 369 | 277 | 355 | 284 |
International - net sales volumes | |||||
Crude oil and condensate (mbbld) | 5 | 11 | 11 | 9 | 10 |
5 | 11 | 11 | 9 | 10 | |
Natural gas liquids (mbbld) | 6 | 6 | 6 | 5 | 7 |
6 | 6 | 6 | 5 | 7 | |
Natural gas (mmcfd) | 219 | 217 | 235 | 214 | 252 |
219 | 217 | 235 | 214 | 252 | |
Total International (mboed) | 48 | 53 | 56 | 50 | 59 |
Total Company - net sales volumes (mboed) | 400 | 422 | 333 | 405 | 343 |
Net sales volumes of equity method investees | |||||
LNG (mtd) | 1,669 | 1,670 | 1,653 | 1,790 | 2,565 |
Methanol (mtd) | 1,377 | 1,208 | 1,328 | 1,252 | 1,058 |
Condensate and LPG (boed) | 5,705 | 8,264 | 7,540 | 7,344 | 7,969 |
(a) | Includes sales volumes from certain non-core proved properties in our |
Supplemental Statistics (Unaudited) | Three Months Ended | Year Ended | |||
Dec. 31 | Sept. 30 | Dec. 31 | Dec. 31 | Dec. 31 | |
2023 | 2023 | 2022 | 2023 | 2022 | |
Crude oil and condensate ($ per bbl)(b) | $ 77.28 | $ 80.90 | $ 84.29 | $ 76.42 | $ 95.58 |
Eagle Ford | 76.71 | 79.70 | 84.26 | 75.41 | 95.73 |
Bakken | 77.19 | 81.97 | 84.93 | 77.32 | 96.40 |
78.36 | 80.48 | 82.36 | 76.25 | 95.26 | |
Permian | 79.05 | 81.86 | 84.21 | 77.35 | 92.25 |
Other | 76.45 | 78.54 | 81.74 | 73.47 | 91.74 |
Natural gas liquids ($ per bbl) | $ 20.92 | $ 21.37 | $ 26.02 | $ 21.20 | $ 34.55 |
Eagle Ford | 20.12 | 21.60 | 26.47 | 20.89 | 34.12 |
Bakken | 19.29 | 19.24 | 23.17 | 19.52 | 33.80 |
25.78 | 24.52 | 30.14 | 24.22 | 37.09 | |
Permian | 20.97 | 21.97 | 25.82 | 21.72 | 31.75 |
Other | 21.34 | 18.94 | 24.55 | 20.81 | 33.30 |
Natural gas ($ per mcf)(c) | $ 2.32 | $ 2.28 | $ 4.93 | $ 2.36 | $ 6.11 |
Eagle Ford | 2.34 | 2.33 | 4.99 | 2.34 | 5.94 |
Bakken | 2.44 | 2.10 | 5.55 | 2.66 | 6.23 |
2.49 | 2.35 | 4.95 | 2.41 | 6.27 | |
Permian | 1.55 | 2.18 | 3.83 | 1.81 | 5.65 |
Other | 2.82 | 3.03 | 3.96 | 2.88 | 5.89 |
International - average price realizations | |||||
Crude oil and condensate ($ per bbl) | $ 47.43 | $ 64.30 | $ 59.27 | $ 57.50 | $ 68.67 |
47.43 | 64.30 | 59.27 | 57.50 | 68.67 | |
Natural gas liquids ($ per bbl) | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
1.00 | 1.00 | 1.00 | 1.00 | 1.00 | |
Natural gas ($ per mcf) | $ 0.24 | $ 0.24 | $ 0.24 | $ 0.24 | $ 0.24 |
0.24 | 0.24 | 0.24 | 0.24 | 0.24 | |
Benchmark | |||||
WTI crude oil (per bbl) | $ 78.53 | $ 82.22 | $ 82.64 | $ 77.60 | $ 94.33 |
Brent ( | $ 83.72 | $ 86.66 | $ 88.56 | $ 82.47 | $ 100.78 |
Mont Belvieu NGLs (per bbl)(f) | $ 22.33 | $ 23.13 | $ 27.18 | $ 22.82 | $ 35.78 |
Henry Hub natural gas (per mmbtu)(g) | $ 2.88 | $ 2.55 | $ 6.26 | $ 2.74 | $ 6.64 |
TTF natural gas (per mmbtu) | $ 13.61 | $ 10.80 | $ 37.18 | $ 13.10 | $ 40.85 |
(a) | Excludes gains or losses on commodity derivative instruments. |
(b) | Inclusion of realized gains (losses) on crude oil derivative instruments would have had no effect on average price realizations for the fourth quarter 2023, third quarter 2023 and the year ended December 31, 2023, while decreasing average price realizations by |
(c) | Inclusion of realized gains (losses) on natural gas derivative instruments would have increased average price realizations by |
(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 segment. |
(e) | Average of monthly prices obtained from Energy Information Administration website. |
(f) | Bloomberg Finance LLP: Y-grade Mix NGL of |
(g) | Settlement date average per mmbtu. |
The following table sets forth outstanding derivative contracts as of February 19, 2024 and the weighted average prices for those contracts:
2024 | ||||||||
First Quarter | Second | Third Quarter | Fourth Quarter | |||||
Crude Oil | ||||||||
NYMEX WTI Three-Way Collars | ||||||||
Volume (Bbls/day) | 40,000 | 40,000 | 20,000 | 20,000 | ||||
Weighted average price per Bbl: | ||||||||
Ceiling | $ 101.01 | $ 101.01 | $ 101.95 | $ 101.95 | ||||
Floor | $ 66.25 | $ 66.25 | $ 65.00 | $ 65.00 | ||||
Sold put | $ 51.25 | $ 51.25 | $ 50.00 | $ 50.00 | ||||
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SOURCE Marathon Oil Corporation
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