OREANDA-NEWS. February 12, 2013. Marathon Oil Corporation (NYSE:MRO) reported fourth quarter 2012 net income of USD 322 million, or USD 0.45 per diluted share, compared to net income in the third quarter of 2012 of USD 450 million, or USD 0.63 per diluted share, reported the press-centre of Marathon Oil.   

For the fourth quarter of 2012, adjusted net income was USD 388 million, or USD 0.55 per diluted share, compared to adjusted net income of USD 454 million, or USD 0.64 per diluted share, for the third quarter of 2012.

Marathon Oil reported full-year 2012 net income of USD 1.582 billion, or USD 2.23 per diluted share. Net income in 2011 was USD 2.946 billion, or USD 4.13 per diluted share. Net income for 2011 included income of USD 1.239 billion from the Company's former Refining, Marketing and Transportation business, which was spun off on June 30, 2011 and reported as discontinued operations in 2011, so income from continuing operations is better suited for year-over-year comparison. For full-year 2012, adjusted income from continuing operations was USD 1.736 billion, or USD 2.45 per diluted share, compared to adjusted income from continuing operations of \\$2.293 billion, or \\$3.21 per diluted share, for full-year 2011.

2012 Key Highlights
Demonstrated ability to execute strategy in first full year as an independent E&P company

Achieved 8 percent year-over-year growth in Upstream net production available for sale, excluding Libya

Doubled Lower 48 onshore net production available for sale over the past five quarters

Increased average net production more than four-fold in the Eagle Ford shale from approximately 15,000 barrels of oil equivalent per day (boed) in December 2011 to more than 65,000 boed in December 2012. For the same period, average net production in the Bakken shale increased from 24,000 to 35,000 boed, while average net production in the Oklahoma Resource Basins increased from 2,500 to 9,600 boed

Expanded midstream infrastructure in the Eagle Ford to support production growth

In total, spud 392 gross operated wells in U.S. resource plays in 2012, compared to 123 in 2011

Completed targeted acquisitions in the Eagle Ford of approximately USD 1 billion, increased the Company's acreage position and working interest in the core of the play and added production and drilling locations

Replaced 226 percent of 2012 Upstream production, including acquisitions and Libya

Increased total net proved reserves 12 percent to 2.0 billion boe

Replaced 268 percent of net proved liquid hydrocarbon and synthetic crude oil (SCO) reserves, consistent with liquids-focused strategy

Recorded more than 95 percent average operational availability for Company-operated E&P assets

Enhanced global exploration program, announcing plans to pursue activities in Kenya, Ethiopia and Gabon, to create a balanced portfolio targeting significant value creation

Continued commitment to financial discipline and progress toward the previously stated goal of divesting between USD 1.5 billion and USD 3 billion of non-core assets over the period of 2011 through 2013, of which approximately USD 1.3 billion was completed or contracted through the end of 2012

Issued USD 1 billion of 3-year senior notes at 0.9 percent interest and USD 1 billion of 10-year senior notes at 2.8 percent interest

Increased quarterly dividend 13 percent to USD 0.17 per share

2013 Key Benchmarks

Project 6 to 8 percent growth in Upstream net production available for sale compared to 2012, progressing toward the Company's goal of 5 to 7 percent compound annual net production growth from 2010 through 2017. (Both exclude Libya and Alaska. Libya is excluded because of the uncertainty around sustained production levels, while Marathon Oil sold its Alaska business on Jan. 31, 2013.)

Implement USD 5.2 billion capital, investment and exploration expenditures budget

Spud 350-400 gross operated wells in key U.S. resource plays

Continue downspacing pilot in Eagle Ford to identify optimal spacing of wells

Continue to build infrastructure to support production growth across Eagle Ford operating area

Anticipate 2013 Upstream reserve replacement ratio of more than 100 percent, excluding acquisitions, divestitures and Libya

Expect to participate in 10 to 13 exploration wells across the deepwater Gulf of Mexico, Ethiopia, Kenya, Gabon, the Kurdistan Region of Iraq and Norway

Continue portfolio optimization through divestitures and capital discipline.