Returned $400 Million to
Shareholders and Completed Ensign Integration
HOUSTON,, May 3, 2023
/PRNewswire/ -- Marathon Oil Corporation (NYSE: MRO) reported first
quarter 2023 net income of $417
million or $0.66 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
$420 million or $0.67 per diluted share. Net operating cash flow
was $865 million or $942 million before changes in working capital
(adjusted CFO). Free cash flow was $333
million or $309 million before
changes in working capital and including Equatorial Guinea (E.G.) distributions and
other financing (adjusted FCF).
- Continued delivery against differentiated Return of Capital
Framework, exceeding commitment to return at least 40% of adjusted
CFO to shareholders
-
- Returned 42% of adjusted CFO to shareholders during first
quarter, representing $397 million of
total distributions; includes $334
million of share repurchases and $63
million base dividend
- Achieved cumulative shareholder distributions of $4.3 billion since substantially increasing
return of capital in fourth quarter 2021 under current Return of
Capital Framework
- Executed $3.9 billion of total
share repurchases since fourth quarter 2021 that have driven a 22%
reduction in outstanding share count and significant growth in all
per-share metrics
- Strong first quarter financial and operational results with no
changes to full-year production or capital spending guidance
-
- Generated first quarter FCF of $333
million and adjusted FCF of $309
million despite not receiving any E.G. cash dividends;
expect E.G. cash dividends in excess of $200
million second quarter
- Delivered first quarter oil and oil-equivalent production of
186,000 net barrels of oil per day (bopd) and 396,000 net
barrels of oil equivalent per day (boed)
- Completed Ensign Natural Resources integration ahead of
schedule and brought 14 wells to sales during first quarter on
acquired acreage with strong results
- Signed Heads of Agreement (HOA) that aligns all critical
parties on next phases of the Equatorial Guinea Regional Gas Mega
Hub
-
- Represents key step in realizing increased Alba equity gas
exposure to global liquefied natural gas (LNG) pricing in 2024
under new contractual terms that are expected to drive significant
improvement in E.G. earnings and cash flow
- Intended to further leverage and extend life of E.G. LNG
facility through future processing of Aseng gas; bilateral
agreement between E.G. and Cameroon expected to provide further Gas Mega
Hub expansion opportunities
"First quarter adds to our track record of strong execution
against our well-established Framework for Success, highlighted by
a number of noteworthy accomplishments," said Chairman, President,
and CEO Lee Tillman. "We built on
our return of capital leadership, distributing 42% of first quarter
adjusted CFO to shareholders, exceeding our minimum commitment.
With $2 billion of outstanding share
repurchase authorization, we expect to continue buying back our
stock to drive peer-leading growth in per-share metrics. We further
strengthened our portfolio by successfully integrating the highly
accretive Ensign Natural Resources asset ahead of schedule and
signed an HOA to develop future phases of the E.G. Gas Mega Hub.
Additionally, we improved our already investment grade balance
sheet with $70 million of gross debt
reduction and the recent $200 million
remarketing of tax-exempt bonds at an attractive rate. In summary,
we believe our Company remains well positioned to execute on a 2023
business plan that is resilient across a broad range of commodity
prices and 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 first quarter, Marathon Oil returned 42% of adjusted CFO
to equity investors, exceeding its minimum commitment. First
quarter return of capital totaled $397
million, including $334
million of share repurchases and the $63 million base dividend.
Since significantly increasing return of capital to equity
investors in fourth quarter 2021 under its current Return of
Capital Framework, Marathon Oil has returned $4.3 billion to shareholders, including
$3.9 billion of share repurchases
that have reduced outstanding share count by 22%, contributing to
significant growth in all per share metrics.
1Q23 Financials
CASH FLOW AND CAPEX: Net cash provided by operations was
$865 million during first quarter or
$942 million before changes in
working capital. First quarter cash additions to property, plant
and equipment totaled $532 million,
while capital expenditures (accrued) totaled $601 million, consistent with the Company's
previously provided guidance for approximately 60% of 2023 capital
expenditures to be concentrated in the first half of the year.
BALANCE SHEET AND LIQUIDITY: Marathon Oil ended first quarter
with $178 million in cash and cash
equivalents. The Company redeemed $70
million of 8.5% Senior Notes during first quarter on the
maturity date. At quarter end, Marathon Oil had $2.1 billion of available borrowing capacity on
its revolving credit facility that matures in 2027. On April 3, 2023, the Company closed a $200 million remarketing of tax-exempt bonds at
an interest rate of 4.05% that matures July
1, 2026.
ADJUSTMENTS TO NET INCOME: The adjustments to net income for
first quarter increased net income by $3
million, primarily due to dry well expense. This was partly
offset by a gain on asset sale and the income impact associated
with unrealized gains on derivative instruments.
1Q23 Operations
UNITED STATES (U.S.): U.S.
production averaged 341,000 net boed for first quarter 2023. Oil
production averaged 176,000 net bopd. The Company brought a total
of 61 gross Company-operated wells to sales during first quarter in
comparison to guidance for approximately 62 to 67 gross
Company-operated wells to sales. U.S. unit production costs
averaged $5.82 per boe during first
quarter.
Marathon Oil's first quarter Eagle Ford production averaged
144,000 net boed, including 75,000 net bopd of oil, with 36 gross
Company-operated wells to sales. Bakken production averaged 95,000
net boed, including 63,000 net bopd, with 17 gross Company-operated
wells to sales. Oklahoma,
production averaged 54,000 net boed, including 12,000 net bopd.
Permian production averaged 45,000 net boed, including 25,000 net
bopd, with eight gross Company-operated wells to sales. The Company
also brought five gross wells to sales during first quarter in
Oklahoma under its joint venture
program.
ENSIGN NATURAL RESOURCES: As previously announced, Marathon Oil
closed on the acquisition of the Eagle Ford assets of Ensign
Natural Resources on Dec. 27, 2022.
Integration of the asset has progressed ahead of schedule, with
transition activities now complete. Of the total 36 Eagle Ford
wells to sales during first quarter, 14 were on the recently
acquired Ensign acreage in the condensate window of Karnes and Live
Oak Counties. These 14 wells have demonstrated top decile
oil productivity in the Eagle Ford, as measured by average 30-day
production rates.
INTERNATIONAL: E.G. production averaged 55,000 net boed for
first quarter 2023, including 10,000 net bopd. Unit production
costs averaged $4.54 per boe. Net
income from equity method investees totaled $80 million. There were no cash distributions
from equity method companies during first quarter. However,
Marathon Oil expects to receive cash dividends in excess of
$200 million during second quarter.
In addition, the previously announced planned second quarter E.G.
turnaround was successfully completed. The planned turnaround is
expected to reduce second quarter E.G. production by approximately
12,000 boed.
EQUATORIAL GUINEA HOA: During
first quarter, Marathon Oil signed an HOA with the Republic of E.G.
and Noble Energy E.G. Ltd, a Chevron company, to progress the
development of the E.G. Regional Gas Mega Hub (GMH). The HOA aligns
all critical parties on necessary commercial principles to advance
the next phases (II and III) of the GMH, which is expected to
further leverage and extend the life of E.G.'s world-class gas
monetization infrastructure, including the E.G. LNG facility, into
the next decade.
More specifically, Phase II is anticipated to process Alba Unit
(MRO 64% interest) gas, from Jan. 1,
2024, under new contractual terms following the expiration
of the legacy Henry Hub-linked Alba sales and purchase agreement at
the end of this year. Phase II is expected to materially increase
Marathon Oil's exposure to global LNG pricing and drive significant
improvement to E.G. earnings and cash flow. Phase III of the GMH is
expected to facilitate gas processing from the Aseng Field at Punta
Europa facilities. Beyond Phase III, a recently established
bilateral agreement on cross-border oil and gas development between
E.G. and Cameroon is expected to
provide other opportunities to further expand the GMH through
fast-track monetization of cross-border wet gas fields.
2023 Guidance
Marathon Oil's originally provided 2023 production guidance
remains unchanged, as does the Company's 2023 capital spending
guidance range of $1.9 to
$2.0 billion, with approximately 60%
of 2023 capital spending weighted to the first half of the
year.
The Company's 2023 business plan benchmarks 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; pre and post-dividend 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, May 4, 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; the timing
and advancement of phases II and III of the GMH; future E.G.
earnings, cash flow and cash dividends (and the timing thereof);
the life of the E.G. LNG Facility; the Company's future exposure to
global LNG pricing; the impact of the recently established
bilateral treaty on cross-border oil and gas development between
E.G. and Cameroon; future
commercial and other benefits of expected expanded development 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
|
|
Mar.
31
|
Dec.
31
|
Mar.
31
|
(In millions, except
per share data)
|
2023
|
2022
|
2022
|
Revenues and other
income:
|
|
|
|
Revenues from
contracts with customers
|
$
1,567
|
$
1,603
|
$
1,761
|
Net gain (loss) on
commodity derivatives
|
15
|
15
|
(143)
|
Income from equity
method investments
|
80
|
144
|
127
|
Net gain (loss) on
disposal of assets
|
5
|
(39)
|
—
|
Other
income
|
13
|
10
|
8
|
Total revenues and
other income
|
1,680
|
1,733
|
1,753
|
Costs and
expenses:
|
|
|
|
Production
|
201
|
181
|
152
|
Shipping, handling and
other operating
|
162
|
158
|
185
|
Exploration
|
15
|
18
|
11
|
Depreciation,
depletion and amortization
|
520
|
434
|
423
|
Impairments
|
—
|
3
|
—
|
Taxes other than
income
|
95
|
103
|
104
|
General and
administrative
|
82
|
88
|
73
|
Total costs and
expenses
|
1,075
|
985
|
948
|
Income from
operations
|
605
|
748
|
805
|
Net interest and
other
|
(82)
|
(60)
|
(22)
|
Other net periodic
benefit credits
|
3
|
2
|
4
|
Income before income
taxes
|
$
526
|
$
690
|
$
787
|
Provision (benefit)
for income taxes
|
109
|
165
|
(517)
|
Net
income
|
$
417
|
$
525
|
$
1,304
|
Adjusted Net
Income
|
|
|
|
Net
income
|
$
417
|
$
525
|
$
1,304
|
Adjustments for special
items (pre-tax):
|
|
|
|
Net (gain) loss on
disposal of assets
|
(5)
|
39
|
—
|
Proved property
impairments
|
—
|
3
|
—
|
Exploratory dry well
costs, unproved property impairments and other
|
10
|
12
|
—
|
Pension
settlement
|
1
|
2
|
—
|
Unrealized (gain) loss
on commodity derivatives
|
(2)
|
(22)
|
114
|
Unrealized (gain) loss
on interest rate swaps
|
—
|
—
|
26
|
Acquisition
transaction costs
|
1
|
18
|
—
|
Other
|
(1)
|
(2)
|
27
|
Provision (benefit) for
income taxes related to special items(a)
|
(1)
|
(12)
|
(37)
|
Valuation
allowance
|
—
|
—
|
(685)
|
Adjustments for
special items
|
3
|
38
|
(555)
|
Adjusted net
income(b)
|
$
420
|
$
563
|
$
749
|
Per diluted
share:
|
|
|
|
Net income
|
$
0.66
|
$
0.82
|
$
1.78
|
Adjusted net
income(b)
|
$
0.67
|
$
0.88
|
$
1.02
|
Weighted average
diluted shares
|
629
|
637
|
732
|
|
|
(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
|
|
Mar.
31
|
Dec.
31
|
Mar.
31
|
(Per
share)
|
2023
|
2022
|
2022
|
Adjusted Net Income
Per Diluted Share
|
|
|
|
Net
income
|
$
0.66
|
$
0.82
|
$
1.78
|
Adjustments for special
items (pre-tax):
|
|
|
|
Net (gain) loss on
disposal of assets
|
(0.01)
|
0.06
|
—
|
Proved property
impairments
|
—
|
—
|
—
|
Exploratory dry well
costs, unproved property impairments and other
|
0.02
|
0.02
|
—
|
Pension
settlement
|
—
|
—
|
—
|
Unrealized (gain) loss
on commodity derivatives
|
—
|
(0.03)
|
0.16
|
Unrealized (gain) loss
on interest rate swaps
|
—
|
—
|
0.04
|
Acquisition
transaction costs
|
—
|
0.03
|
—
|
Other
|
—
|
—
|
0.03
|
Provision (benefit) for
income taxes related to special items
|
—
|
(0.02)
|
(0.05)
|
Valuation
allowance
|
—
|
—
|
(0.94)
|
Adjustments for
special items
|
0.01
|
0.06
|
(0.76)
|
Adjusted net income
per share(a)
|
$
0.67
|
$
0.88
|
$
1.02
|
|
|
(a)
|
Non-GAAP financial
measure. See "Non-GAAP Measures" above for further
discussion.
|
Supplemental Data
(Unaudited)
|
Three Months
Ended
|
|
Mar.
31
|
Dec.
31
|
Mar.
31
|
(In
millions)
|
2023
|
2022
|
2022
|
Segment income
(loss)
|
|
|
|
United
States
|
$
425
|
$
510
|
$
661
|
International
|
89
|
129
|
115
|
Not allocated to
segments
|
(97)
|
(114)
|
528
|
Net income
(loss)
|
$
417
|
$
525
|
$ 1,304
|
Net operating cash
flow before changes in working capital (Adjusted
CFO)(a)
|
|
|
|
Net cash provided by
operating activities
|
$
865
|
$ 1,127
|
$ 1,067
|
Changes in working
capital
|
77
|
(23)
|
213
|
Adjusted
CFO(a)
|
$
942
|
$ 1,104
|
$ 1,280
|
Free cash
flow
|
|
|
|
Net cash provided by
operating activities
|
$
865
|
$ 1,127
|
$ 1,067
|
Cash additions to
property, plant and equipment
|
(532)
|
(333)
|
(332)
|
Free cash
flow
|
$
333
|
$
794
|
$
735
|
Adjusted free cash
flow(a)
|
|
|
|
Adjusted
CFO(a)
|
$
942
|
$ 1,104
|
$ 1,280
|
Adjustments:
|
|
|
|
Capital expenditures
(accrued)(a)
|
(601)
|
(344)
|
(348)
|
EG return of capital
and other financing(b)
|
(32)
|
3
|
8
|
Adjusted free cash
flow(a)
|
$
309
|
$
763
|
$
940
|
Reinvestment
rate(a)
|
66 %
|
31 %
|
27 %
|
Capital expenditures
(accrued)(a)
|
|
|
|
Cash additions to
property, plant and equipment
|
$
(532)
|
$
(333)
|
$
(332)
|
Change in capital
accrual
|
(69)
|
(11)
|
(16)
|
Additions to other
assets
|
—
|
—
|
—
|
Capital
expenditures (accrued)(a)
|
$
(601)
|
$
(344)
|
$
(348)
|
|
|
(a)
|
Non-GAAP financial
measure. See "Non-GAAP Measures" above for further
discussion.
|
(b)
|
Includes tax
withholding for employee stock-based compensation of $30 million
and $21 million for the first quarter 2023 and 2022,
respectively.
|
Supplemental
Statistics (Unaudited)
|
Three Months
Ended
|
|
Mar.
31
|
Dec.
31
|
Mar.
31
|
Net
Production
|
2023
|
2022
|
2022
|
Equivalent
Production (mboed)
|
|
|
|
United
States
|
341
|
278
|
281
|
International
|
55
|
55
|
64
|
Total net
production
|
396
|
333
|
345
|
Oil Production
(mbbld)
|
|
|
|
United
States
|
176
|
156
|
158
|
International
|
10
|
10
|
10
|
Total net
production
|
186
|
166
|
168
|
Supplemental
Statistics (Unaudited)
|
Three Months
Ended
|
|
Mar.
31
|
Dec.
31
|
Mar.
31
|
|
2023
|
2022
|
2022
|
United States - net
sales volumes
|
|
|
|
Crude oil and
condensate (mbbld)
|
176
|
156
|
158
|
Eagle Ford
|
74
|
62
|
53
|
Bakken
|
63
|
59
|
77
|
Oklahoma
|
12
|
10
|
12
|
Permian
|
25
|
20
|
11
|
Other United
States(a)
|
2
|
5
|
5
|
Natural gas liquids
(mbbld)
|
78
|
59
|
64
|
Eagle Ford
|
33
|
14
|
14
|
Bakken
|
18
|
22
|
26
|
Oklahoma
|
17
|
15
|
17
|
Permian
|
10
|
6
|
4
|
Other United
States(a)
|
—
|
2
|
3
|
Natural gas
(mmcfd)
|
522
|
371
|
350
|
Eagle Ford
|
222
|
93
|
80
|
Bakken
|
84
|
80
|
91
|
Oklahoma
|
153
|
143
|
132
|
Permian
|
61
|
40
|
30
|
Other United
States(a)
|
2
|
15
|
17
|
Total United States
(mboed)
|
341
|
277
|
280
|
International - net
sales volumes
|
|
|
|
Crude oil and
condensate (mbbld)
|
11
|
11
|
8
|
Equatorial
Guinea
|
11
|
11
|
8
|
Natural gas liquids
(mbbld)
|
6
|
6
|
7
|
Equatorial
Guinea
|
6
|
6
|
7
|
Natural gas
(mmcfd)
|
232
|
235
|
276
|
Equatorial
Guinea
|
232
|
235
|
276
|
Total International
(mboed)
|
56
|
56
|
61
|
Total Company - net
sales volumes (mboed)
|
397
|
333
|
341
|
Net sales volumes of
equity method investees
|
|
|
|
LNG (mtd)
|
2,112
|
1,653
|
3,489
|
Methanol
(mtd)
|
1,378
|
1,328
|
982
|
Condensate and LPG
(boed)
|
8,817
|
7,540
|
6,914
|
|
|
(a)
|
Includes sales volumes
from certain non-core proved properties in our United States
segment.
|
Supplemental
Statistics (Unaudited)
|
Three Months
Ended
|
|
Mar.
31
|
Dec.
31
|
Mar.
31
|
|
2023
|
2022
|
2022
|
United States -
average price realizations(a)
|
|
|
|
Crude oil and
condensate ($ per bbl)(b)
|
$
74.69
|
$
84.29
|
$
94.43
|
Eagle Ford
|
73.90
|
84.26
|
96.38
|
Bakken
|
75.81
|
84.93
|
93.80
|
Oklahoma
|
73.37
|
82.36
|
94.08
|
Permian
|
75.25
|
84.21
|
92.47
|
Other United
States
|
69.23
|
81.74
|
88.79
|
Natural gas liquids
($ per bbl)
|
$
24.27
|
$
26.02
|
$
37.32
|
Eagle Ford
|
24.36
|
26.47
|
35.50
|
Bakken
|
22.45
|
23.17
|
38.21
|
Oklahoma
|
25.95
|
30.14
|
38.02
|
Permian
|
24.39
|
25.82
|
35.29
|
Other United
States
|
24.50
|
24.55
|
36.98
|
Natural gas ($ per
mcf)
|
$
2.95
|
$
4.93
|
$
4.79
|
Eagle Ford
|
2.83
|
4.99
|
4.51
|
Bakken
|
4.65
|
5.55
|
5.28
|
Oklahoma
|
2.64
|
4.95
|
4.71
|
Permian
|
1.86
|
3.83
|
4.54
|
Other United
States
|
3.27
|
3.96
|
4.49
|
International -
average price realizations
|
|
|
|
Crude oil and
condensate ($ per bbl)
|
$
58.57
|
$
59.27
|
$
59.63
|
Equatorial
Guinea
|
58.57
|
59.27
|
59.63
|
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)
|
$
75.99
|
$
82.64
|
$
95.01
|
Brent (Europe) crude
oil (per bbl)(d)
|
$
81.17
|
$
88.56
|
$
100.30
|
Mont Belvieu NGLs (per
bbl) (e)
|
$
25.33
|
$
27.18
|
$
38.24
|
Henry Hub natural gas
(per mmbtu)(f)
|
$
3.42
|
$
6.26
|
$
4.95
|
TTF natural gas (per
mmbtu)
|
$
16.72
|
$
37.18
|
$
33.33
|
|
|
(a)
|
Excludes gains or
losses on commodity derivative instruments.
|
(b)
|
Inclusion of realized
gains (losses) on crude oil derivative instruments would have have
decreased average price realizations by $0.40 for the fourth
quarter 2022 and by $2.00 for the first 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 May 1, 2023, and the weighted
average prices for those contracts:
|
2023
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
Crude
Oil
|
|
|
|
|
|
NYMEX WTI
Three-Way Collars
|
|
|
|
|
|
Volume
(Bbls/day)
|
10,000
|
|
10,000
|
|
10,000
|
Weighted average price
per Bbl:
|
|
|
|
|
|
Ceiling
|
$
97.59
|
|
$
97.59
|
|
$
97.59
|
Floor
|
$
60.00
|
|
$
60.00
|
|
$
60.00
|
Sold put
|
$
45.00
|
|
$
45.00
|
|
$
45.00
|
Natural
Gas
|
|
|
|
|
|
Henry Hub
Three-Way Collars
|
|
|
|
|
|
Volume
(MMBtu/day)
|
50,000
|
|
50,000
|
|
50,000
|
Weighted average price
per MMBtu:
|
|
|
|
|
|
Ceiling
|
$
11.14
|
|
$
11.14
|
|
$
11.14
|
Floor
|
$
4.00
|
|
$
4.00
|
|
$
4.00
|
Sold put
|
$
2.50
|
|
$
2.50
|
|
$
2.50
|
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SOURCE Marathon Oil Corporation