Marathon Oil Reports Second Quarter 2024 Results
Marathon Oil (NYSE: MRO) reported second quarter 2024 net income of $349 million or $0.62 per diluted share. Adjusted net income was $357 million or $0.63 per diluted share. Net operating cash flow reached $1,088 million. Key highlights include:
- Free cash flow of $442 million
- Total return of capital to shareholders of $294 million
- Production increase to 191,000 net bopd and 393,000 net boed
- U.S. production averaged 351,000 net boed
- Equatorial Guinea production averaged 42,000 net boed
The company maintained its full-year 2024 production and capital expenditure guidance. Marathon Oil discontinued its share repurchase program due to the pending merger with ConocoPhillips.
Marathon Oil (NYSE: MRO) ha riportato un utile netto del secondo trimestre 2024 di 349 milioni di dollari, pari a 0,62 dollari per azione diluita. L'utile netto rettificato è stato di 357 milioni di dollari, o 0,63 dollari per azione diluita. Il flusso di cassa operativo netto ha raggiunto 1.088 milioni di dollari. I punti salienti includono:
- Flusso di cassa libero di 442 milioni di dollari
- Ritorno totale di capitale agli azionisti pari a 294 milioni di dollari
- Aumento della produzione a 191.000 barili al giorno netti (bopd) e 393.000 boe al giorno netti (boed)
- Produzione media negli Stati Uniti di 351.000 boe al giorno netti
- Produzione media in Guinea Equatoriale di 42.000 boe al giorno netti
L'azienda ha mantenuto le previsioni di produzione e spesa in conto capitale per l'intero anno 2024. Marathon Oil ha interrotto il suo programma di riacquisto di azioni a causa della fusione in corso con ConocoPhillips.
Marathon Oil (NYSE: MRO) reportó un ingreso neto de 349 millones de dólares en el segundo trimestre de 2024, lo que equivale a 0,62 dólares por acción diluida. El ingreso neto ajustado fue de 357 millones de dólares, o 0,63 dólares por acción diluida. El flujo de caja operativo neto alcanzó 1.088 millones de dólares. Los puntos destacados incluyen:
- Flujo de caja libre de 442 millones de dólares
- Retorno total de capital a los accionistas de 294 millones de dólares
- Aumento de la producción a 191.000 barriles por día netos (bopd) y 393.000 boe por día netos (boed)
- La producción promedio en EE.UU. fue de 351.000 boe por día netos
- La producción promedio en Guinea Ecuatorial fue de 42.000 boe por día netos
La empresa mantuvo su guía de producción y gasto de capital para todo el año 2024. Marathon Oil ha descontinuado su programa de recompra de acciones debido a la fusión pendiente con ConocoPhillips.
마라톤 오일 (NYSE: MRO)은 2024년 2분기 순이익이 3억 4,900만 달러, 즉 희석 주당 0.62 달러라고 보고했습니다. 조정된 순이익은 3억 5,700만 달러 또는 희석 주당 0.63 달러였습니다. 순 운영 현금 흐름은 10억 8,800만 달러에 이릅니다. 주요 하이라이트는 다음과 같습니다:
- 자유 현금 흐름 4억 4,200만 달러
- 주주에게 반환된 총 자본 2억 9,400만 달러
- 생산량 증가: 순 191,000 배럴/일(bopd) 및 순 393,000 석유에너지당량(boed)
- 미국 평균 생산량: 순 351,000 boe/일
- 적도 기니 평균 생산량: 순 42,000 boe/일
회사는 2024년 전체 연도 생산 및 자본 지출 가이던스를 유지했습니다. 마라톤 오일은 ConocoPhillips와의 예정된 합병으로 인해 자사주 매입 프로그램을 중단했습니다.
Marathon Oil (NYSE: MRO) a annoncé un résultat net de 349 millions de dollars pour le deuxième trimestre 2024, soit 0,62 dollar par action diluée. Le résultat net ajusté s'élevait à 357 millions de dollars, ou 0,63 dollar par action diluée. Le flux de trésorerie opérationnel net a atteint 1,088 milliard de dollars. Les faits marquants incluent :
- Flux de trésorerie libre de 442 millions de dollars
- Retour total de capital aux actionnaires de 294 millions de dollars
- Augmentation de la production à 191 000 barils par jour nets (bopd) et 393 000 équivalents barils par jour nets (boed)
- Production moyenne aux États-Unis de 351 000 boe par jour nets
- Production moyenne en Équateur Guinée de 42 000 boe par jour nets
L'entreprise a maintenu sa prévision de production et d'investissement en capital pour l'ensemble de l'année 2024. Marathon Oil a interrompu son programme de rachat d'actions en raison de la fusion imminente avec ConocoPhillips.
Marathon Oil (NYSE: MRO) berichtete von einem Nettoeinkommen von 349 Millionen Dollar im zweiten Quartal 2024, was 0,62 Dollar pro verwässerter Aktie entspricht. Das bereinigte Netto-Einkommen betrug 357 Millionen Dollar oder 0,63 Dollar pro verwässerter Aktie. Der Nettobetriebscashflow erreichte 1.088 Millionen Dollar. Zu den Höhepunkten gehören:
- Freier Cashflow von 442 Millionen Dollar
- Gesamter Kapitalrückfluss an die Aktionäre von 294 Millionen Dollar
- Produktionssteigerung auf 191.000 Barrel pro Tag netto (bopd) und 393.000 Barrel Öläquivalent pro Tag netto (boed)
- Die durchschnittliche Produktion in den USA betrug 351.000 boe pro Tag netto
- Die durchschnittliche Produktion in Äquatorialguinea betrug 42.000 boe pro Tag netto
Das Unternehmen hat seine Produktions- und Investitionsausgabenprognose für das ganze Jahr 2024 beibehalten. Marathon Oil hat aufgrund der bevorstehenden Fusion mit ConocoPhillips sein Aktienrückkaufprogramm eingestellt.
- Free cash flow of $442 million in Q2 2024
- Net operating cash flow of $1,088 million
- Sequential increase in production to 191,000 net bopd and 393,000 net boed
- Return of capital to shareholders totaling $294 million
- Reduction in gross debt by approximately $130 million
- Discontinuation of share repurchase program due to pending merger
- Limitation on increasing quarterly dividend beyond $0.11 per share
Insights
Marathon Oil's Q2 2024 results show a solid financial performance with
The return of capital to shareholders of
Overall, Marathon Oil's financial position appears robust, with strong cash flow generation and disciplined capital management. The unchanged guidance for 2024 suggests confidence in their operational outlook.
Marathon Oil's Q2 2024 operational performance shows resilience in a challenging market. The company's total production of 393,000 net boepd, with 191,000 net bopd of oil, demonstrates strong output across its diverse asset base. The sequential increase in production is particularly noteworthy, indicating effective field management.
The company's efficiency gains are evident in the higher-than-expected well completions, with 99 gross operated wells brought online versus the guided 85-90. This operational excellence is important for maintaining production levels and controlling costs. The low U.S. unit production cost of
The strategic shift in E.G. operations, diverting gas to higher-margin LNG sales, showcases adaptability to market conditions. With a realized LNG price of
Marathon Oil's Q2 2024 results present a mixed picture for investors. While the financial and operational performance is strong, the pending merger with ConocoPhillips introduces uncertainty. The discontinuation of share repurchases and limitations on dividend increases may concern some investors focused on capital returns.
The company's ability to generate significant free cash flow in the current oil price environment is a positive indicator. However, the sequential decline in capital expenditures expected in Q3 and Q4, coupled with projected production peaks, suggests a potential slowdown in growth momentum.
The diversified asset portfolio, spanning the Eagle Ford, Bakken, Permian and international operations, provides stability. The strategic pivot in E.G. to capitalize on higher LNG prices demonstrates market responsiveness. Investors should closely monitor the merger progress with ConocoPhillips, as it will significantly impact Marathon Oil's future strategy and market position.
HIGHLIGHTS
- Second quarter free cash flow (FCF) of
$442 million $364 million Equatorial Guinea (E.G.) distributions and other financing - Total return of capital to shareholders of
$294 million - Sequential increase in second quarter production to 191,000 net bopd and 393,000 net boed
- No change to full-year 2024 production and capital expenditure guidance ranges
2Q24 Financial Overview
CASH FLOW: Net cash provided by operations was
RETURN OF CAPITAL: Second quarter return of capital totaled
BALANCE SHEET: Marathon Oil second quarter cash and cash equivalents totaled
ADJUSTMENTS TO NET INCOME: The adjustments to net income for second quarter totaled
2Q24 Operational Overview
Excluding joint venture wells, the Company brought a total of 99 gross Company-operated wells to sales during second quarter, above the guidance range of 85 to 90 wells due to continued drilling and completion efficiency gains.
Asset | Production (bopd) | Production (boed) | Wells to Sales (Gross) |
Eagle Ford | 81,000 | 153,000 | 63 |
Bakken | 67,000 | 107,000 | 17 |
Permian | 26,000 | 47,000 | 19 |
7,000 | 42,000 | 0 |
INTERNATIONAL: E.G. production averaged 42,000 net boed during second quarter, including 8,000 net bopd.
The Company continued optimizing its operations by diverting a portion of its Alba gas from AMPCO methanol sales to higher margin LNG sales. Marathon Oil's Alba LNG sales achieved a realized price of
Total International segment income was
2024 Guidance Overview
Marathon Oil's previously provided annual guidance ranges for total Company oil production, total Company oil-equivalent production, and capital expenditures remain unchanged, as shown in the table below.
2024 Annual Guidance | High | Low |
Oil Production (bopd) | 195,000 | 185,000 |
BOE Production (boed) | 400,000 | 380,000 |
Capital Expenditures |
Total Company oil and oil-equivalent production are expected to peak during third quarter, with oil production rising to approximately 200,000 net bopd, before moderating into fourth quarter. Capital expenditures are expected to decline sequentially in both the third and fourth quarters, while FCF on a price-normalized basis is expected to increase sequentially in both quarters.
Earnings Call
Due to the pending merger with ConocoPhillips, Marathon Oil will not host a conference call or webcast to discuss its second quarter 2024 results.
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
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 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
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, net of 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, net of 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 proposed business combination transaction between ConocoPhillips ("ConocoPhillips") and the Company, 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), balance sheet enhancement (including interest savings), capital efficiency, well productivity, receipt of E.G. dividends and the timing thereof, unit production costs, business strategy, capital expenditure guidance, production guidance 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: the risks and uncertainties associated with the proposed transaction between ConocoPhillips and the Company, 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
No Offer or Solicitation
This release is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made, except by means of a prospectus meeting the requirements of Section 10 of the
Additional Information about the Merger and Where to Find It
In connection with the proposed transaction, ConocoPhillips has filed with the SEC a registration statement on Form S-4, which includes a proxy statement of Marathon Oil that also constitutes a prospectus of ConocoPhillips common shares to be offered in the proposed transaction. Each of ConocoPhillips and Marathon Oil may also file other relevant documents with the SEC regarding the proposed transaction. This communication is not a substitute for the definitive proxy statement/prospectus or registration statement or any other document that ConocoPhillips or Marathon Oil has filed or may file with the SEC. The definitive proxy statement/prospectus has been mailed to stockholders of Marathon Oil. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, DEFINITIVE PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT HAVE BEEN OR MAY BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders can obtain free copies of the definitive proxy statement/prospectus and other documents containing important information about ConocoPhillips, Marathon Oil and the proposed transaction, once such documents are filed with the SEC through the website maintained by the SEC at www.sec.gov. Copies of the documents filed with the SEC by ConocoPhillips will be available free of charge on ConocoPhillips' website at www.conocophillips.com or by contacting ConocoPhillips' Investor Relations Department by email at investor.relations@conocophillips.com or by phone at 281-293-5000. Copies of the documents filed with the SEC by Marathon Oil will be available free of charge on Marathon's website at https://ir.marathonoil.com/ or by contacting Marathon Oil at 713-629-6600.
Participants in the Solicitation
ConocoPhillips, Marathon Oil and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information about the directors and executive officers of ConocoPhillips is set forth in (i) ConocoPhillips' proxy statement for its 2024 annual meeting of stockholders under the headings "Executive Compensation", "Item 1: Election of Directors and Director Biographies" (including "Related Party Transactions" and "Director Compensation"), "Compensation Discussion and Analysis", "Executive Compensation Tables" and "Stock Ownership", which was filed with the SEC on April 1, 2024 and is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/1163165/000130817924000384/
Information about the directors and executive officers of Marathon is set forth in (i) Marathon's proxy statement for its 2024 annual meeting of stockholders under the headings "Proposal 1: Election of Directors", "Director Compensation", "Security Ownership of Certain Beneficial Owners and Management", "Compensation Discussion and Analysis", "Executive Compensation" and "Transactions with Related Persons", which was filed with the SEC on April 10, 2024 and is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/
Investors should read the definitive proxy statement/prospectus carefully before making any voting or investment decisions.
Consolidated Statements of Income (Unaudited) | Three Months Ended | ||
Jun. 30 | Mar. 31 | Jun. 30 | |
(In millions, except per share data) | 2024 | 2024 | 2023 |
Revenues and other income: | |||
Revenues from contracts with customers | $ 1,666 | $ 1,538 | $ 1,484 |
Net gain (loss) on commodity derivatives | 1 | (24) | 3 |
Income from equity method investments | 26 | 39 | 22 |
Net gain on disposal of assets | 10 | — | — |
Other income (expense) | 4 | (2) | 4 |
Total revenues and other income | 1,707 | 1,551 | 1,513 |
Costs and expenses: | |||
Production | 216 | 221 | 214 |
Shipping, handling and other operating, including related party of | 175 | 169 | 161 |
Exploration | 14 | 7 | 11 |
Depreciation, depletion and amortization | 577 | 524 | 559 |
Taxes other than income | 103 | 96 | 43 |
General and administrative | 99 | 86 | 71 |
Total costs and expenses | 1,184 | 1,103 | 1,059 |
Income from operations | 523 | 448 | 454 |
Net interest and other | (80) | (69) | (92) |
Other net periodic benefit credits | 2 | 3 | 3 |
Income before income taxes | $ 445 | $ 382 | $ 365 |
Provision for income taxes | 96 | 85 | 78 |
Net income | $ 349 | $ 297 | $ 287 |
Adjusted Net Income | |||
Net income | $ 349 | $ 297 | $ 287 |
Adjustments for special items (pre-tax): | |||
Net gain on disposal of assets | (10) | — | — |
Exploratory dry well costs, unproved property impairments and other | 4 | — | 5 |
Unrealized (gain) loss on derivative instruments | (1) | 24 | 4 |
Merger related costs | 10 | — | — |
Other | 8 | 2 | 1 |
Benefit for income taxes related to special items(b) | (3) | (6) | (2) |
Adjustments for special items | 8 | 20 | 8 |
Adjusted net income(c) | $ 357 | $ 317 | $ 295 |
Per diluted share: | |||
Net income | $ 0.62 | $ 0.52 | $ 0.47 |
Adjusted net income(c) | $ 0.63 | $ 0.55 | $ 0.48 |
Weighted average diluted shares | 567 | 576 | 615 |
(a) | The related party expense represents compensation to EG LNG for liquefaction, storage and product handling services, pursuant to the agreement that became effective on January 1, 2024. |
(b) | In both 2024 and 2023, we applied the estimated |
(c) | 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) | 2024 | 2024 | 2023 |
Adjusted Net Income Per Diluted Share | |||
Net income | $ 0.62 | $ 0.52 | $ 0.47 |
Adjustments for special items (pre-tax): | |||
Net gain on disposal of assets | (0.02) | — | — |
Exploratory dry well costs, unproved property impairments and other | 0.01 | — | 0.01 |
Unrealized (gain) loss on derivative instruments | — | 0.04 | — |
Merger related costs | 0.02 | — | — |
Other | 0.01 | — | — |
Benefit for income taxes related to special items | (0.01) | (0.01) | — |
Adjustments for special items | 0.01 | 0.03 | 0.01 |
Adjusted net income per share(a) | $ 0.63 | $ 0.55 | $ 0.48 |
(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) | 2024 | 2024 | 2023 |
Segment income | |||
$ 379 | $ 334 | $ 365 | |
International | 79 | 82 | 30 |
Not allocated to segments | (109) | (119) | (108) |
Net income | $ 349 | $ 297 | $ 287 |
Net operating cash flow before changes in working capital (Adjusted CFO)(a) | |||
Net cash provided by operating activities | $ 1,088 | $ 757 | $ 1,076 |
Changes in working capital | (60) | 104 | 45 |
Adjusted CFO(a) | $ 1,028 | $ 861 | $ 1,121 |
Free cash flow | |||
Net cash provided by operating activities | $ 1,088 | $ 757 | $ 1,076 |
Capital expenditures | (665) | (603) | (623) |
Change in capital accrual | 19 | 117 | (11) |
Free cash flow | $ 442 | $ 271 | $ 442 |
Adjusted free cash flow(a) | |||
Adjusted CFO(a) | $ 1,028 | $ 861 | $ 1,121 |
Adjustments: | |||
Capital expenditures | (665) | (603) | (623) |
EG return of capital and other(b) | 1 | (19) | 33 |
Adjusted free cash flow(a) | $ 364 | $ 239 | $ 531 |
Reinvestment rate(a) | 65 % | 72 % | 54 % |
(a) | Non-GAAP financial measure. See "Non-GAAP Measures" above for further discussion. |
(b) | Excludes approximately |
Supplemental Statistics (Unaudited) | Three Months Ended | ||
Jun. 30 | Mar. 31 | Jun. 30 | |
Net Production | 2024 | 2024 | 2023 |
Oil Production (mbbld) | |||
183 | 172 | 181 | |
International | 8 | 9 | 8 |
Total net production | 191 | 181 | 189 |
Equivalent Production (mboed) | |||
351 | 326 | 356 | |
International | 42 | 45 | 43 |
Total net production | 393 | 371 | 399 |
Supplemental Statistics (Unaudited) | Three Months Ended | ||
Jun. 30 | Mar. 31 | Jun. 30 | |
2024 | 2024 | 2023 | |
Crude oil and condensate (mbbld) | 183 | 172 | 181 |
Eagle Ford | 81 | 65 | 81 |
Bakken | 67 | 68 | 68 |
Permian | 26 | 28 | 21 |
7 | 10 | 9 | |
Other | 2 | 1 | 2 |
Natural gas liquids (mbbld) | 85 | 75 | 91 |
Eagle Ford | 37 | 31 | 39 |
Bakken | 23 | 21 | 25 |
Permian | 11 | 10 | 10 |
14 | 13 | 17 | |
Natural gas (mmcfd) | 500 | 477 | 504 |
Eagle Ford | 211 | 188 | 218 |
Bakken | 99 | 94 | 90 |
Permian | 61 | 59 | 53 |
128 | 134 | 141 | |
Other | 1 | 2 | 2 |
Total | 351 | 326 | 356 |
International (E.G) - net sales volumes | |||
Crude oil and condensate (mbbld) | 5 | 11 | 8 |
Natural gas liquids (mbbld) | 5 | 6 | 5 |
Total Natural gas (mmcfd) | 191 | 156 | 186 |
Natural gas, sold as gas (mmcfd)(b) | 82 | 78 | 186 |
Natural gas, sold as LNG (mmcfd)(c) | 109 | 78 | — |
Total International (mboed) | 42 | 43 | 44 |
Total Company - net sales volumes (mboed) | 393 | 369 | 400 |
Net sales volumes of equity method investees | |||
LNG (mtd)(d) | — | 388 | 1,716 |
Methanol (mtd) | 954 | 935 | 1,047 |
Condensate and LPG (boed) | 5,998 | 7,630 | 6,614 |
(a) | Includes sales volumes from certain non-core proved properties in our |
(b) | In 2023, the purchasers were primarily our equity method investees EG LNG and AMPCO, in addition to natural gas sold for local electricity generation. In 2024, the purchaser is primarily AMPCO, with continuing sales for local electricity generation. Marathon Oil includes its share of income from EG LNG and AMPCO in the International segment. |
(c) | Beginning January 1, 2024, Marathon Oil assumes responsibility for shrink and plant losses during liquefaction, which results in a reduction to reported net production and sales volumes for Alba gas sold as LNG. The Company is also subject to an LNG lifting schedule, which may result in an underlift or overlift position. |
(d) | LNG sales from equity method investees in 2024 represents final residual volumes sold under the contract terms in place prior to January 1, 2024. |
Supplemental Statistics (Unaudited) | Three Months Ended | ||
Jun. 30 | Mar. 31 | Jun. 30 | |
2024 | 2024 | 2023 | |
Crude oil and condensate ($ per bbl) | $ 79.12 | $ 75.39 | $ 72.49 |
Eagle Ford | 78.69 | 74.70 | 71.32 |
Bakken | 79.11 | 75.04 | 73.51 |
Permian | 80.47 | 78.24 | 73.42 |
79.45 | 74.52 | 73.57 | |
Other | 77.79 | 73.23 | 69.34 |
Natural gas liquids ($ per bbl) | $ 21.18 | $ 22.24 | $ 18.72 |
Eagle Ford | 20.24 | 20.97 | 18.01 |
Bakken | 21.24 | 21.34 | 18.00 |
Permian | 21.16 | 22.63 | 19.39 |
23.54 | 26.29 | 20.99 | |
Other | 22.48 | 20.62 | 18.07 |
Natural gas ($ per mcf) | $ 1.42 | $ 1.97 | $ 1.89 |
Eagle Ford | 1.62 | 1.93 | 1.86 |
Bakken | 1.22 | 1.82 | 1.69 |
Permian | 0.31 | 1.36 | 1.59 |
1.77 | 2.40 | 2.16 | |
Other | 2.23 | 2.79 | 2.45 |
International (E.G) - average price realizations | |||
Crude oil and condensate ($ per bbl) | $ 57.31 | $ 61.86 | $ 53.64 |
Natural gas liquids ($ per bbl)(b) | $ 1.00 | $ 1.00 | $ 1.00 |
Average total natural gas ($ per mcf) | $ 4.96 | $ 3.71 | $ 0.24 |
Natural gas, sold as gas ($ per mcf)(c) | 0.24 | 0.24 | 0.24 |
Natural gas, sold as LNG ($ per mcf)(d) | 8.52 | 7.21 | — |
Benchmark | |||
WTI crude oil (per bbl) | $ 80.66 | $ 76.91 | $ 73.56 |
Brent ( | $ 84.65 | $ 83.00 | $ 78.32 |
Mont Belvieu NGLs (per bbl)(f) | $ 22.91 | $ 23.67 | $ 20.49 |
Henry Hub natural gas (per mmbtu)(g) | $ 1.89 | $ 2.24 | $ 2.10 |
TTF ( | $ 9.98 | $ 8.79 | $ 11.34 |
JKM natural gas (per mmbtu)(i) | $ 11.10 | $ 9.50 | $ 11.12 |
(a) | Excludes gains or losses on commodity derivative instruments. |
(b) | Represents fixed prices under a long-term contract with Alba Plant LLC, which is an equity method investee. Alba Plant LLC processes rich hydrocarbon gas from the Alba field, and then sells secondary condensate, propane, and butane at market prices. Marathon Oil includes its share of income from Alba Plant LLC in the International segment. |
(c) | Represents fixed prices under long-term contracts. In 2023, the purchasers were primarily our equity method investees EG LNG and AMPCO, in addition to sales for local electricity generation. In 2024, the purchaser is primarily AMPCO, with continuing sales for local electricity generation. Marathon Oil includes its share of income from EG LNG and AMPCO in the International segment. |
(d) | Represents prices realized for sales of LNG to third party customers beginning in 2024, indexed to global LNG prices. |
(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. |
(h) | Average of monthly prices obtained from NYMEX Exchange (expressed in $). |
(i) | Average of monthly prices obtained from Tokyo Commodity Exchange (expressed in $). |
The following table sets forth outstanding derivative contracts as of July 31, 2024, and the weighted average prices for those contracts:
2024 | 2025 | |||||
Third | Fourth | First | Second | Third | Fourth | |
Crude Oil | ||||||
NYMEX WTI Three-Way Collars | ||||||
Volume (Bbls/day) | 50,000 | 50,000 | — | — | — | — |
Weighted average price per Bbl: | ||||||
Ceiling | $ 95.95 | $ 95.95 | $ — | $ — | $ — | $ — |
Floor | $ 65.00 | $ 65.00 | $ — | $ — | $ — | $ — |
Sold put | $ 50.00 | $ 50.00 | $ — | $ — | $ — | $ — |
Natural Gas | ||||||
Henry Hub Two-Way Collars | ||||||
Volume (MMBtu/day) | — | — | 150,000 | 150,000 | 150,000 | 150,000 |
Weighted average price per MMBtu | ||||||
Ceiling | $ — | $ — | $ 5.85 | $ 5.85 | $ 5.85 | $ 5.85 |
Floor | $ — | $ — | $ 2.50 | $ 2.50 | $ 2.50 | $ 2.50 |
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SOURCE Marathon Oil Corporation
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