Marathon Oil Corporation Reports Third Quarter 2013 Results

Marathon Oil Corporation Reports Third Quarter 2013 Results

Marathon Oil Corporation (NYSE:MRO) today reported third quarter 2013 net income of $569 million, or $0.80 per diluted share, compared to net income in the second quarter of 2013 of $426 million, or $0.60 per diluted share. For the third quarter of 2013, adjusted net income was $617 million, or $0.87 per diluted share, compared to adjusted net income of $478 million, or $0.67 per diluted share, for the second quarter of 2013.

> Third quarter net income increased to $569 million, up 34% from second quarter
> Adjusted net income per share increased to $0.87, up 30% from second quarter
> Eagle Ford production doubled compared to third quarter 2012
– Net production approx. 92,000 boed last seven days of October
– Expect to achieve 2013 exit rate of approx. 100,000 boed net
> High bidder on two deepwater Gabon blocks, contract negotiations under way
> Previously announced $1 billion share repurchase program under way
– $500 million complete, phase 2 expected to commence in fourth quarter
> 2013 reserve replacement expected to exceed 140%, excluding acquisitions and divestitures

“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.

Source: marathonoil full report

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