03.11.2016, 13:29
Marathon Oil Reports 3Q Results
OREANDA-NEWS. Marathon Oil Corporation today reported a third quarter 2016 net loss of $192 million, or $0.23 per diluted share. The net loss includes the impact of certain items not typically represented in analysts' earnings estimates and that would otherwise affect comparability of results. The adjusted net loss for the quarter was $97 million or $0.11 per diluted share.
Highlights
Third quarter total Company production averaged 402,000 net boed, above the top end of guidance and up 5% sequentially
Oklahoma Resource Basins' production up more than 50% sequentially and nearly 80% over year-ago quarter
Strong well results across all three resource plays, highlighted by: STACK volatile oil well 30-day rate of 2,845 boed (69% oil); Bakken Three Forks well 30-day rate of 2,635 boed (80% oil); Lower Eagle Ford well 30-day rate of 2,285 boed (81% oil)
8% sequential production increase in Equatorial Guinea driven by Alba B3 compression project brought online in early July
Production costs reduced sequentially more than 10% for North America E&P and nearly 20% for International E&P (excluding Libya)
Closed sale of non-operated CO2 and waterflood assets in West Texas and New Mexico for $235 million; more than $1.5 billion in non-core asset sales announced or closed since August 2015
2016 capital program remains at $1.3 billion including planned 50% increase in rig activity by year end
"Strong execution across our entire business led to third quarter production above the top end of our guidance and cash flow neutrality," said Marathon Oil President and CEO Lee Tillman. "We're increasing our rig count by 50 percent in the fourth quarter while remaining within our existing $1.3 billion capital program. This acceleration will have us well positioned to resume sequential production growth in the resource plays by the second half of 2017. Our planning process continues, but the preliminary five-year view for the resource plays supports compounded annual growth rate of 15 to 20 percent within cash flows at flat $55 WTI."
Highlights
Third quarter total Company production averaged 402,000 net boed, above the top end of guidance and up 5% sequentially
Oklahoma Resource Basins' production up more than 50% sequentially and nearly 80% over year-ago quarter
Strong well results across all three resource plays, highlighted by: STACK volatile oil well 30-day rate of 2,845 boed (69% oil); Bakken Three Forks well 30-day rate of 2,635 boed (80% oil); Lower Eagle Ford well 30-day rate of 2,285 boed (81% oil)
8% sequential production increase in Equatorial Guinea driven by Alba B3 compression project brought online in early July
Production costs reduced sequentially more than 10% for North America E&P and nearly 20% for International E&P (excluding Libya)
Closed sale of non-operated CO2 and waterflood assets in West Texas and New Mexico for $235 million; more than $1.5 billion in non-core asset sales announced or closed since August 2015
2016 capital program remains at $1.3 billion including planned 50% increase in rig activity by year end
"Strong execution across our entire business led to third quarter production above the top end of our guidance and cash flow neutrality," said Marathon Oil President and CEO Lee Tillman. "We're increasing our rig count by 50 percent in the fourth quarter while remaining within our existing $1.3 billion capital program. This acceleration will have us well positioned to resume sequential production growth in the resource plays by the second half of 2017. Our planning process continues, but the preliminary five-year view for the resource plays supports compounded annual growth rate of 15 to 20 percent within cash flows at flat $55 WTI."
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