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Houston, Texas oil producer and shale exploration company Marathon Oil reported fbetter than expected fourth quarter earnings after the close Wednesday.  $MRO guided production higher led by profits from South Texas' Eagle Ford shale and North Dakota's Bakken shale.

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Marathon Oil Corp (NYSE: $MRO) Reported Earnings After Close Wednesday

$0.15 Beat Exp $0.14 EPS AND $1.77B Beat  $1.44 billion forecast in revenue 

Earnings

Marathon Oil Corporation reported fourth quarter earnings of net income of $390 million, which was better than the company’s loss during the same period in its fiscal 2017. The company net income was 47 cents per share, or 15 cents per share when adjusting for non-recurring gains. Marathon Oil’s earnings were stronger than  the exected 14 cents per share.

MRO's rvenue for its fourth quarter was $1.77 billion beating expectations of $1.44 billion, For its fiscal 2018, Marathon Oil  net income was $1.1 billion, or $1.30 per share, while its revenue was $6.58 billion.

Marathon Oil Corporation NYSE: $MRO

Market Reaction After hours $15.83 +0.28 (+1.80%)

Highlights

  • Marathon said its capital spending for 2019 is budgeted at $2.6 billion, which is virtually flat from the 2018 budget of just less than $2.7 billion.
  • About 95 percent of the capital budget will be spent domestically, including the Eagle Ford, Bakken, Permian Basin and Oklahoma.
  • The company forecasts total oil production growth of 10 percent this year.

Marathon Chief Executive Lee Tillman said the company remains well positioned financially as long as the U.S. oil benchmark stays above $45 a barrel. For all of 2018, Marathon posted a $1.1 billion profit versus a big loss of $5.7 billion in 2017.

 

Marathon Oil Q3 Earnings Recap

$0.24 Beat Exp $0.20 EPS and $1.54 billion Beat $1.48 billion forecast in revenue 

Earnings

Marathon Oil Corporation reported third -quarter earnings of $0.24 per share, beating the consensus for $0.20 EPS and revenue fo $1.54 billion beating the consensus estimate of $1.48 billion.  MRO delivered a loss of 8 cents per share the year-ago quarter. Investors will be looking for an improvement from Q2 where the company delivered weaker-than expected earnings on high operating expenses.  

Marathon Oil Corporation NYSE: $MRO

Market Reaction After hours 18.75 +0.24 (1.30%)

Highlights

"Another quarter of outstanding operational execution and capital efficiency across our multi-basin U.S. portfolio has again delivered production out-performance and enabled us to raise annual resource play production guidance for the third consecutive quarter, with no increase to our development capital budget. Each of our asset teams contributed to this strong outcome, highlighted by basin leading results and continued core extension in the Eagle Ford and Bakken, the successful transition to primarily multi-well pad development drilling in Oklahoma, and the progression of important multi-well tests alongside strategic advancements in the Northern Delaware," said Marathon Oil president and CEO Lee Tillman. "

  • Third consecutive quarter on unchanged development capital budget FCF Generation & Enhanced Return of Cash to Shareholders
  • ~$320MM of 3Q18 organic free cash flow, bringing year-to-date organic free cash flow to over $630MM
  • $500MM of year-to-date share repurchases with $1.0B of remaining authorization
  • Differentiated Multi-Basin Execution • 3Q18 Total Company and U.S. Resource Play production above high end of guidance; development capex down 8% sequentially
  • Eagle Ford: production +8% q/q; continued strong well results from expanded Atascosa core
  • Bakken: oil +5% q/q; successful core extension with Southern Hector Lars pad; three new record Three Forks wells in West Myrmidon, including Jerome well IP 30 of 6,380 boed (75% oil)
  • Oklahoma: enhanced predictability and strong performance from two STACK overpressured multi-well infill pads 
  • Northern Delaware: three well Upper Wolfcamp Malaga pad achieves IP 30 rate of 540 boed per 1,000 ft latera

Marathon Basins Q3 18

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Source: Marathon

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