Marathon Oil Earnings Beat on Higher Production and Lower Costs

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 rose

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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