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Houston oil producer and shale exploration company Marathon Oil reported better than expected second quarter quarter earnings after the close next Wednesday. $MRO production from South Texas' Eagle Ford shale and North Dakota's Bakken shale roseMarathon Oil Map

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

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

Earnings

Marathon Oil Corporation (NYSE: MRO) beat analysts’ expectations for revenue and earnings in the second quarter of 2019. On a GAAP basis, net income was $161 million, or $0.20 per share, compared to $96 million, or $0.11 per share, in the year-ago quarter. Adjusted net income totaled $189 million, or $0.23 per share, topping forecasts of $0.15 per share.

Total revenue rose 1% to $1.43 billion from the same period last year, beating consensus estimates of $1.41 billion. MRO is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of -6.7%. Revenues are expected to be $1.36 billion, down 4.1% from the year-ago quarter.

Marathon Oil Corporation NYSE: $MRO

Market Reaction Close $12.86 USD +0.81 (+6.72%)

Highlights

  • US production averaged 332,000 net barrels of oil equivalent per day (boed), including 192,000 net barrels of oil per day (bopd), both above the top end of the company’s guidance ranges.
  • On a divestiture-adjusted basis, oil production was up 17% year-over-year. US unit production costs decreased 14% to $4.89 per barrel of oil equivalent (boe). International production averaged 103,000 net boed for the quarter.
  • During the second quarter, Marathon closed on the sale of its 15% participating interest in the Atrush Block in Kurdistan, marking a complete country exit.
  • On July 1, the company closed on the sale of its UK business. Development capital expenditures totaled $636 million in the second quarter. The development capital budget for 2019 is $2.4 billion.

Marathon Oil Corporation Q2 2019 Earnings

Outlook

  • For the third quarter of 2019, Marathon forecasts total US oil production of 190,000 to 200,000 net bopd.
  • International oil production guidance is 12,000 to 16,000 net bopd, reflecting both the UK and Kurdistan asset divestitures.
  • The annual divestiture-adjusted oil production growth guidance is 10% for total company and 12% for US.

Marathon Basins Q3 18

Divesture Program

Marathon Divesture

Source: Marathon

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