Marathon Oil Corporation (MRO) Bundle
A Brief History of Marathon Oil Corporation
Company Overview
Marathon Oil Corporation is an independent oil and gas exploration and production company with a focus on U.S. resource plays including the Eagle Ford in Texas, Bakken in North Dakota, and Permian in New Mexico and Texas. As of September 30, 2024, the company reported total assets of $19.4 billion and total liabilities of $8 billion.
Financial Performance
For the three months ended September 30, 2024, Marathon Oil reported net income of $287 million, translating to a diluted earnings per share of $0.51. This represents a decrease from the net income of $453 million ($0.75 per diluted share) reported for the same period in 2023. Over the first nine months of 2024, the net income was $933 million compared to $1.157 billion in 2023.
Revenue Breakdown
In the third quarter of 2024, Marathon Oil's revenues from contracts with customers were $1.741 billion, down from $1.771 billion in Q3 2023. The revenue was primarily derived from the United States, which contributed $1.615 billion, and $126 million from international operations. For the nine months ended September 30, 2024, total revenues stood at $4.945 billion, up from $4.822 billion in the prior year.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income (in millions) | $287 | $453 | $933 | $1,157 |
| Revenues (in millions) | $1,741 | $1,771 | $4,945 | $4,822 |
| Earnings per Share (diluted) | $0.51 | $0.75 | $1.64 | $1.88 |
Production and Sales Volumes
Marathon Oil's production expenses for the third quarter of 2024 amounted to $209 million in the U.S. segment, reflecting an increase from $173 million in Q3 2023. The average production rate was $5.97 per barrel of oil equivalent (boe), compared to $5.07 per boe in the prior year. For the nine months ended September 30, 2024, total production expenses were $608 million.
| Production Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Production Expense (in millions) | $209 | $173 | $608 | $542 |
| Production Rate (in $/boe) | $5.97 | $5.07 | $6.30 | $5.58 |
| Total Natural Gas Sold (mmcfd) | 138 | 217 | 161 | 212 |
Capital Expenditures
For the first nine months of 2024, Marathon Oil's capital expenditures totaled $1.726 billion, slightly up from $1.673 billion in 2023. The company anticipates a capital budget for 2024 in the range of $1.9 billion to $2.1 billion.
Debt and Liquidity Position
As of September 30, 2024, Marathon Oil had long-term debt of $4.573 billion, increased from $3.378 billion at the end of 2023. The company reported liquidity of approximately $2.5 billion, consisting of $134 million in cash and cash equivalents and $2.4 billion available under its revolving credit facility.
Recent Developments
On May 28, 2024, Marathon Oil entered into a Merger Agreement with ConocoPhillips, which is expected to close in late 2024. This merger will see each share of Marathon Oil's common stock converted into shares of ConocoPhillips' common stock at an exchange ratio of 0.2550.
A Who Owns Marathon Oil Corporation (MRO)
Major Shareholders
As of 2024, Marathon Oil Corporation (MRO) has a diverse ownership structure with significant institutional investors. The largest shareholders include:
| Shareholder | Ownership (%) | Type |
|---|---|---|
| The Vanguard Group, Inc. | 8.1 | Institutional |
| BlackRock, Inc. | 7.9 | Institutional |
| State Street Corporation | 4.6 | Institutional |
| Wellington Management Group LLP | 4.5 | Institutional |
| T. Rowe Price Associates, Inc. | 3.2 | Institutional |
| Invesco Ltd. | 3.1 | Institutional |
| Other Institutional Investors | 15.0 | Institutional |
| Insider Ownership | 0.5 | Insider |
| Retail Investors | 49.0 | Retail |
Recent Developments
On May 28, 2024, Marathon Oil announced a proposed merger with ConocoPhillips. Under the terms of the merger, each outstanding share of Marathon Oil will be converted to 0.2550 shares of ConocoPhillips common stock. This merger is subject to regulatory approvals and is expected to close in late 2024.
Shareholder Voting and Approval
On August 29, 2024, Marathon Oil's stockholders approved the Merger Agreement at a special meeting. This approval is crucial for the completion of the merger with ConocoPhillips.
Financial Performance Overview
As of September 30, 2024, Marathon Oil reported a net income of $287 million, down from $453 million in the same period of 2023. The company had total assets of $19.422 billion and total liabilities of $7.987 billion.
Stock Performance
Marathon Oil's stock price has demonstrated volatility in 2024, reflecting changes in oil prices and market conditions. The company is currently trading on the New York Stock Exchange (NYSE) under the ticker symbol MRO.
Marathon Oil Corporation (MRO) Mission Statement
Mission Statement Overview
Marathon Oil Corporation is committed to being a leading independent oil and gas exploration and production company. The company focuses on maximizing shareholder value while maintaining a strong commitment to safety, environmental stewardship, and innovation in operations. Marathon Oil aims to deliver sustainable growth through disciplined capital allocation and operational excellence.
Core Values
- Safety: Prioritizing the health and safety of employees, contractors, and communities.
- Integrity: Conducting business with honesty and transparency.
- Respect: Valuing diversity and fostering an inclusive culture.
- Sustainability: Minimizing environmental impact and promoting responsible resource management.
Financial Performance
As of the third quarter of 2024, Marathon Oil reported net income of $287 million, a decrease from $453 million in the same quarter of 2023. The earnings per share for the third quarter of 2024 stood at $0.51, compared to $0.75 in the previous year.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (in millions) | $287 | $453 |
| Earnings Per Share (EPS) | $0.51 | $0.75 |
| Dividends per Share | $0.11 | $0.10 |
| Total Revenues (in millions) | $1,791 | $1,813 |
Operational Highlights
Marathon Oil operates primarily in the United States, focusing on key resource plays such as the Eagle Ford, Bakken, and Permian basins. The company has also expanded its international operations, notably in Equatorial Guinea.
Production and Sales Volumes
The following table summarizes Marathon Oil's net sales volumes for the third quarter of 2024:
| Segment | Net Sales Volume (mboed) | Q3 2023 Comparison |
|---|---|---|
| United States | 379 | 369 |
| International | 37 | 53 |
| Total | 416 | 422 |
Capital Expenditures
Marathon Oil's capital expenditures for the nine months ended September 30, 2024, reached $1.726 billion, compared to $1.673 billion for the same period in 2023.
| Capital Expenditure Segment | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| United States | $1,712 | $1,661 |
| International | $7 | $3 |
| Not Allocated | $7 | $9 |
| Total | $1,726 | $1,673 |
Debt and Liquidity
As of September 30, 2024, Marathon Oil had total long-term debt of $4.573 billion, up from $3.378 billion at the end of 2023. The company reported total assets of $19.422 billion and total liabilities of $7.987 billion.
| Balance Sheet Item | September 30, 2024 (in millions) | December 31, 2023 (in millions) |
|---|---|---|
| Total Assets | $19,422 | $19,575 |
| Total Liabilities | $7,987 | $8,370 |
| Total Stockholders' Equity | $11,435 | $11,205 |
Strategic Goals
Marathon Oil's strategic objectives include:
- Enhancing operational efficiency and reducing costs.
- Investing in innovative technologies to improve production capabilities.
- Maintaining a strong balance sheet and optimizing capital allocation.
- Fostering a culture of safety and environmental responsibility.
Merger Agreement
On May 28, 2024, Marathon Oil entered into a Merger Agreement with ConocoPhillips, which is expected to close in late 2024, subject to regulatory approvals. Under the terms of the agreement, Marathon Oil shareholders will receive shares of ConocoPhillips common stock as part of the merger consideration.
How Marathon Oil Corporation (MRO) Works
Company Overview
Marathon Oil Corporation is an independent oil and gas exploration and production company focused on U.S. resource plays, including the Eagle Ford, Bakken, Permian, and STACK/SCOOP plays in Oklahoma, complemented by international operations in Equatorial Guinea.
Financial Performance
For the nine months ended September 30, 2024, Marathon Oil reported:
- Net income: $933 million
- Revenue from contracts with customers: $4,945 million
- Total assets: $19,422 million
- Capital expenditures: $1,726 million
Operational Segments
The operations of Marathon Oil are primarily segmented into U.S. and International operations. The following table provides a breakdown of revenues from contracts with customers for the three and nine months ended September 30, 2024:
| Segment | Three Months Ended September 30, 2024 (in millions) | Nine Months Ended September 30, 2024 (in millions) |
|---|---|---|
| U.S. | $4,588 | $4,588 |
| International | $357 | $357 |
| Total | $4,945 | $4,945 |
Production Volumes
Marathon Oil's production volumes for the three months ended September 30, 2024, are summarized in the following table:
| Product Type | Volume (in mboed) |
|---|---|
| Crude Oil and Condensate | 9 |
| NGLs | 5 |
| Natural Gas | 138 |
| Total Production | 416 |
Commodity Prices and Market Conditions
Commodity prices significantly impact Marathon Oil's revenues and profitability. As of September 30, 2024, the average realized prices were:
- Crude oil: $66.79 per barrel
- NGLs: $31.57 per barrel
- Natural gas: $8.76 per mcf
Debt and Liquidity
As of September 30, 2024, Marathon Oil's total long-term debt stood at:
- Total Long-term Debt: $4.573 billion
- Commercial Paper: $180 million
The company had approximately $2.5 billion in liquidity, consisting of $134 million in cash and cash equivalents and $2.4 billion available under the Revolving Credit Facility.
Shareholder Returns
Marathon Oil's dividend for the third quarter of 2024 was:
- Dividends per share: $0.11
- Total Dividends Paid: $188 million
Equity Method Investments
Marathon Oil's equity method investments as of September 30, 2024, included:
| Investment | Ownership % | Value (in millions) |
|---|---|---|
| EG LNG | 56% | $108 |
| Alba Plant LLC | 52% | $155 |
| AMPCO | 45% | $169 |
Future Outlook
Marathon Oil announced a capital budget for 2024 ranging from:
- $1.9 billion to $2.1 billion
The company is also in the process of a proposed merger with ConocoPhillips, which is expected to close in late 2024, pending regulatory approvals.
How Marathon Oil Corporation (MRO) Makes Money
Revenue Streams
Marathon Oil Corporation generates revenue primarily through the exploration, production, and marketing of crude oil, natural gas liquids (NGLs), and natural gas. As of September 30, 2024, the company's revenues from contracts with customers amounted to $4.945 billion, with the U.S. segment contributing $4.588 billion and the International segment contributing $357 million.
| Segment | Revenue (in millions) |
|---|---|
| U.S. | $4,588 |
| International | $357 |
| Total | $4,945 |
Sales Volumes
For the third quarter of 2024, Marathon Oil reported net sales volumes of 416 thousand barrels of oil equivalent per day (mboed), with the U.S. accounting for 379 mboed and international operations contributing 37 mboed.
| Region | Net Sales Volumes (mboed) |
|---|---|
| U.S. | 379 |
| International | 37 |
| Total | 416 |
Commodity Price Realizations
Marathon Oil's revenue is heavily influenced by commodity prices. For the third quarter of 2024, the average price realizations were:
| Commodity | Average Price (per unit) |
|---|---|
| Crude Oil and Condensate | $73.92 per barrel |
| NGLs | $20.40 per barrel |
| Natrual Gas | $1.45 per mcf |
In comparison, the average price for crude oil and condensate in the same period of 2023 was $80.90 per barrel, reflecting a decrease of 9%.
Production Costs
Production costs have also been a significant factor in the company's profitability. For the third quarter of 2024, production costs totaled $660 million, while the shipping, handling, and other operating expenses amounted to $548 million.
| Cost Type | Amount (in millions) |
|---|---|
| Production Costs | $660 |
| Shipping and Handling | $548 |
| Total Costs | $3,538 |
Net Income
Marathon Oil's net income for the third quarter of 2024 was reported at $287 million, down from $453 million for the same period in 2023.
Capital Expenditures
The capital expenditures for the first nine months of 2024 were $1.726 billion, with the U.S. segment accounting for $1.712 billion and international operations for $7 million.
| Segment | Capital Expenditures (in millions) |
|---|---|
| U.S. | $1,712 |
| International | $7 |
| Total | $1,726 |
Debt Management
As of September 30, 2024, Marathon Oil had long-term debt of $4.573 billion. During the third quarter of 2024, the company redeemed $400 million of bonds outstanding.
Dividends and Share Repurchases
Marathon Oil paid dividends of $188 million during the first nine months of 2024 and repurchased approximately 19 million shares at a cost of $516 million.
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Resources:
- Marathon Oil Corporation (MRO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Marathon Oil Corporation (MRO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Marathon Oil Corporation (MRO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.