USA: Marathon Oil Net Income Climbs

Marathon Oil Corporation reported third quarter 2013 net income of $569 million, compared to net income in the second quarter of 2013 of $426 million.

For the third quarter of 2013, adjusted net income was $617 million, compared to adjusted net income of $478 million, for the second quarter of 2013.

“Marathon Oil achieved strong financial results in the third quarter, delivering $1.44 billion in operating cash flows before working capital changes, and adjusted net income of $617 million, 29 percent higher than the second quarter,” said Lee M. Tillman, Marathon Oil’s president and CEO. “All three business segments performed well, capturing the higher liquid hydrocarbon realizations both domestically and internationally, compared to the second quarter.

“Marathon Oil again delivered a major planned turnaround on time and on budget, this time with the Company’s Alvheim facility in Norway. Sales volumes, excluding Libya, came in slightly higher during the quarter reflecting the impact of the planned turnaround and expected moderate growth in the resource plays. With acreage retention drilling in the Eagle Ford now essentially complete, volumes have returned to a more robust growth profile in the fourth quarter. The Company’s Eagle Ford production averaged approximately 92,000 net barrels of oil equivalent per day (boed) for the last seven days of October, placing us on track to achieve a 2013 exit rate of approximately 100,000 net boed. Additionally, during the quarter, the Oil Sands Mining segment achieved better reliability compared to the second quarter.

“With our renewed global exploration portfolio we’ve captured significant resource potential through the recently announced Mirawa-1 oil and natural gas discovery on the Company-operated Harir Block in the Kurdistan Region of Iraq and a deepwater pre-salt discovery offshore Gabon. We’re currently drilling or participating in other prospects across Kurdistan, Ethiopia, Kenya and the Gulf of Mexico, and we were the high bidder on two new Company-operated blocks in deepwater pre-salt Gabon. Additionally, approval was received from the Kurdistan Regional Government for a development plan on the Atrush Block.

“Marathon Oil is well placed to grow our production volumes at a 5 to 7 percent compound annual rate from 2012 to 2017, and we expect reserve replacement in 2013 to exceed 140 percent, excluding any acquisitions or divestitures. At our Dec. 11 Analyst Day we will provide more details on our forward business plans and strategy for delivering shareholder value,” Tillman said.

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LNG World News Staff, November 5, 2013