Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,370.97 108.41 0.67%
S&P 500 1,855.44 12.46 0.68%
NASDAQ 4,058.92 24.76 0.61%
Ticker Volume Price Price Delta
STOXX 50 3,139.26 47.74 1.54%
FTSE 100 6,584.17 42.56 0.65%
DAX 9,317.82 144.11 1.57%
Ticker Volume Price Price Delta
NIKKEI 14,417.68 420.87 3.01%
TOPIX 1,166.55 30.46 2.68%
HANG SENG 22,696.01 24.75 0.11%

Marathon Oil Corporation Reports Second Quarter 2013 Results



Marathon Oil Corporation Reports Second Quarter 2013 Results

HOUSTON, Aug. 6, 2013 (GLOBE NEWSWIRE) -- Marathon Oil Corporation (NYSE:MRO)
today reported second quarter 2013 net income of $426 million, or $0.60 per
diluted share, compared to net income in the first quarter of 2013 of $383
million, or $0.54 per diluted share. For the second quarter of 2013, adjusted
net income was $478 million, or $0.67 per diluted share, compared to adjusted
net income of $361 million, or $0.51 per diluted share, for the first quarter
of 2013.

                                                            Three Months Ended
                                                            June 30   Mar. 31
(In millions, except per diluted share data)                2013      2013
Adjusted net income (a)                                     $478      $361
Adjustments for special items (net of taxes):                          
Unrealized gain (loss) on crude oil derivative instruments  32        (32)
Impairments                                                 --        (10)
Net gain (loss) on dispositions                             (73)      64
Pension settlement                                          (11)      --
Net income                                                  $426      $383
Adjusted net income - per diluted share (a)                 $0.67     $0.51
Net income - per diluted share                              $0.60     $0.54
Revenues and other income                                   $3,898    $4,106
Weighted average shares - diluted                           714       712
Exploration expenses                                                   
Unproved property impairments                               $40       $383
Dry well costs                                              50        21
Geological and geophysical                                  12        27
Other                                                       31        34
Total exploration expenses                                  $133      $465
Cash flow                                                              
Cash flow from operations before changes in working capital $1,445    $1,601
(b)
Changes in working capital                                  (577)     (73)
Cash flow from operations                                   $868      $1,528

(a)  Adjusted net income is a non-GAAP financial measure and should not be
considered a substitute for net income as determined in accordance with
accounting principles generally accepted in the United States. See below for
further discussion of adjusted net income.

(b)  Cash flow from operations before changes in working capital is a non-GAAP
financial measure and should not be considered a substitute for cash flow from
operations as determined in accordance with accounting principles generally
accepted in the United States. See below for further discussion of cash flow
from operations before changes in working capital.

"Marathon Oil continued to execute well operationally and had strong second
quarter operating cash flows of $1.445 billion, before changes in working
capital, in spite of lower international liquid hydrocarbon realizations
compared to the first quarter. The large increase in the second quarter usage
of cash for working capital was primarily a result of two tax installment
payments for Norway, versus one in the first quarter, and our annual tax
payment to Equatorial Guinea," said Clarence P. Cazalot, Jr., Marathon Oil's
executive chairman.

"Second quarter production available for sale in both E&P segments was at or
above the Company's guidance. In the U.S., Lower 48 onshore production grew to
182,000 barrels of oil equivalent per day (boed), a nearly 6 percent increase
over the first quarter, highlighted by 11 percent growth in the Company's
Eagle Ford operations and more than 5 percent growth in the Bakken. In the
International E&P segment, we again had strong reliability and the Equatorial
Guinea turnaround was completed in 22 days, 8 days ahead of schedule and under
budget. The Company's non-operated Oil Sands Mining production decreased
compared to the first quarter as a result of unplanned mine downtime and a
planned turnaround at the AOSP in Canada.

"During the quarter we advanced our portfolio optimization through an
agreement to sell our 10 percent working interest in Angola Block 31 for
approximately $1.5 billion. This brings our total completed or agreed
divestitures to $2.9 billion for the period 2011 to date, at the top end of
our targeted $1.5 to $3 billion.

"In addition, we raised our quarterly dividend 12 percent, further
demonstrating our commitment to delivering competitive value to our
shareholders.

"In June we announced my retirement at year end and the appointment of Lee M.
Tillman who succeeded me as president and CEO effective Aug. 1. Lee's strong
leadership skills and extensive experience in global operations, project
execution and leading edge technology make him ideally suited to lead our
Company and efforts to create sustainable value for our shareholders," Cazalot
said.

Sales and Production Volumes

Total Company sales volumes (excluding Libya) during the second quarter of
2013 averaged 457,000 net boed compared to 485,000 net boed for the first
quarter of 2013. This decrease was driven by a planned turnaround in
Equatorial Guinea, unplanned mine downtime and a planned turnaround at the
non-operated Athabasca Oil Sands Project (AOSP) in Canada, fewer liftings at
the non-operated Foinaven field in the U.K., as well as the first quarter
disposition of the Company's Alaska assets.

                                      Three Months Ended
                                      June 30   Mar. 31
(mboed)                               2013      2013
Net Sales Volumes                                
North America E&P excluding Alaska    201       193
Alaska                                --        5
International E&P excluding Libya (a) 213       236
Oil Sands Mining (b)                  43        51
Total excluding Libya                 457       485
Libya                                 49        38
Total                                 506       523

(a) Libya is excluded because of uncertainty around sustained production and
sales levels.

(b) Includes blendstocks.

                                      Three Months Ended Guidance (a)
                                      June 30   Mar. 31  Q3
(mboed)                               2013      2013     2013
Net Production Available for Sale                         
North America E&P excluding Alaska    201       193      196-207
Alaska                                --        5         
International E&P excluding Libya (b) 217       229      199-208
Oil Sands Mining (c)                  37        44       40-45
Total excluding Libya                 455       471       
Libya                                 45        46        
Total                                 500       517       

(a) This guidance excludes the effect of acquisitions or dispositions not
previously announced.

(b) Libya is excluded because of uncertainty around sustained production and
sales levels.

(c) Upgraded bitumen excluding blendstocks.

The difference between production volumes available for sale and recorded
sales volumes was primarily due to the timing of International E&P liftings.

Production available for sale from all segments (excluding Libya) for the
second quarter of 2013 averaged 455,000 net boed, an expected decrease
compared to the first quarter of 2013 average of 471,000 net boed as a result
of impacts in Equatorial Guinea, Canada and the disposition of Alaskan assets,
as detailed above. Production available for sale of 418,000 net boed for the
North America E&P and International E&P segments combined (excluding Libya)
was at the upper end of the Company's guidance for the quarter (403,000 to
420,000 net boed). The OSM segment had net production in the quarter of 37,000
barrels per day (bbld) (excluding blendstocks), below the Company's previous
guidance of 40,000 to 44,000 bbld as a result of the AOSP unplanned mine
downtime.

North America E&P production available for sale, excluding Alaska, averaged
201,000 net boed in the second quarter, a 4 percent increase compared to the
first quarter of 2013 average of 193,000 net boed.

International E&P production available for sale for the second quarter of 2013
averaged 217,000 net boed (excluding Libya), which was lower than the first
quarter of 2013 average of 229,000 net boed as a result of the turnaround in
Equatorial Guinea and declines in Norway and U.K. production.

As per the table above, production available for sale in the third quarter of
2013 is expected to be lower than the second quarter. This anticipated
decrease is a result of a planned turnaround in Norway, planned pipeline
curtailments and turnaround at Brae in the U.K. North Sea, as well as
compression and subsea equipment issues at non-operated Foinaven in the U.K.
Production at Foinaven was shut-in in mid-July and is expected to resume at
partial rates in mid-August. Full year 2013 guidance for production available
for sale from the combined North America E&P and International E&P segments
(excluding Libya) has been narrowed to a range of 410,000 to 425,000 net boed,
from the previous guidance of 405,000 to 425,000 net boed. Full year 2013
production guidance for the OSM segment has been narrowed to 40,000 to 44,000
net bbld of synthetic crude oil, from the previous guidance of 40,000 to
45,000 net bbld.

Segment Results

Total segment income was $623 million in the second quarter of 2013, compared
to $432 million in the first quarter of 2013.

                      Three Months Ended
                      June 30   Mar. 31
(In millions)         2013      2013
Segment Income (Loss)            
North America E&P     $221      $(59)
International E&P     382       453
Oil Sands Mining      20        38
Segment Income (a)    $623      $432

(a)   See Supplemental Statistics below for a reconciliation of segment income
to net income as reported under generally accepted accounting principles.

North America E&P

The North America E&P segment reported income of $221 million in the second
quarter of 2013, compared to a loss of $59 million in the first quarter of
2013. The improvement was primarily due to higher liquid hydrocarbon sales
volumes and lower unproved property impairments related to cancelled or
expiring leases.

EAGLE FORD: Marathon Oil's average net production in the Eagle Ford shale grew
approximately 11 percent from the first quarter of 2013 to approximately
80,000 boed in the second quarter. Approximately 62 percent of second quarter
net production was crude oil/condensate, 17 percent was natural gas liquids
(NGLs) and 21 percent was natural gas. During the second quarter, Marathon Oil
reached total depth on 82 gross Company operated wells and brought 70 gross
operated wells to sales, compared to 76 and 68 gross wells respectively in the
first quarter. With approximately 85 percent pad drilling, which continues to
improve efficiencies and reduce costs, the Company's second quarter
spud-to-total depth averaged 12 days and 18 days spud-to-spud.

The Company continues to evaluate the potential of downspacing to 40- and
60-acre units, with results of the downspacing pilots expected to be released
in December. It also continues to evaluate the Austin Chalk and Pearsall
formations across its acreage position. To date the Company has completed four
Austin Chalk wells with average lateral length of 4,075 feet yielding average
24-hour initial production (IP) rates of 980 gross boed (485 bbld of crude
oil/condensate, 220 bbld of NGLs and 1.65 million cubic feet per day of
natural gas) on chokes ranging from 12/64-inch to 16/64-inch. Early Austin
Chalk production results suggest the mix of crude oil/condensate, NGLs and
natural gas to be similar to Eagle Ford condensate wells. Also in the second
quarter one Pearsall well was completed with a 24-hour IP rate of 580 gross
boed on a maximum choke of 18/64-inch. 

BAKKEN: Marathon Oil averaged production of approximately 39,000 net boed
during the second quarter compared to 37,000 net boed in the previous quarter.
The Company reached total depth on 22 gross wells during the second quarter
and brought 16 gross wells to sales, compared to 18 and 22 gross wells
respectively in the first quarter. In the second quarter Marathon Oil's
average time to drill a well continued to improve, averaging 15 days
spud-to-total depth, or 22 days spud-to-spud, a top-quartile performance in
the areas in which Marathon Oil operates. Marathon Oil's Bakken production
averages approximately 90 percent crude oil, 5 percent NGLs and 5 percent
natural gas.

OKLAHOMA RESOURCE BASINS: The Company's unconventional production averaged
13,000 net boed during the second quarter, which is flat compared to the
previous quarter. During the second quarter, the Company reached total depth
on two gross wells and brought three gross wells to sales. Marathon Oil
anticipates spudding two wells each in the Mississippi Lime in central
Oklahoma and Granite Wash in northwestern Oklahoma during the second half of
2013.

GULF OF MEXICO: Marathon Oil participated in an appraisal well on the Gunflint
prospect on Mississippi Canyon Block 992, in which it holds an 18 percent
outside-operated working interest. The appraisal well successfully encountered
109 feet of net pay within the primary reservoir targets. After penetrating
the initial appraisal targets, the well was deepened to a previously untested
Lower Miocene interval with a total depth of 32,835 feet. Commercial
hydrocarbons were not encountered in the deeper exploration objective.
Additional exploration potential remains in an adjacent three-way structure to
the north, a candidate for future exploration following development of the
confirmed resources.

Marathon Oil expects to spud its first exploration well on the Madagascar
prospect (De Soto Canyon Block 757) late in the third quarter. The Company has
reduced its working interest in the Madagascar prospect from 100 percent to 70
percent as a result of a farm-down in the second quarter with no up-front cash
proceeds. As stated previously, the Company anticipates further reducing its
interest to a target of 40 - 50 percent working interest by the time of spud.

International E&P

The International E&P segment reported income of $382 million in the second
quarter of 2013, compared to segment income of $453 million in the first
quarter of 2013. The decrease is primarily a result of lower volumes and price
realizations, as well as less income from equity method investments due to the
planned turnaround in Equatorial Guinea in the second quarter.

EQUATORIAL GUINEA: Net production available for sale averaged approximately
101,000 boed in the second quarter, compared to approximately 110,000 boed in
the first quarter of 2013. The planned turnaround that occurred in April was
safely completed in 22 days, eight days ahead of schedule and below budget.

NORWAY: The production decline that has been projected and previously
disclosed in the Alvheim area continues to be less than expected. Net
production available for sale averaged 85,000 boed for the second quarter,
slightly lower than the 86,500 boed produced in the first quarter of 2013. The
better-than-expected results were achieved through continued strong
operational performance that delivered availability of 96 percent; production
optimization from well management; and reservoir and well performance at the
upper end of expectations, resulting primarily from a delay in anticipated
water breakthrough at the Volund field.

The Sverdrup exploration well on PL 330 in the Norwegian Sea was spud on June
6. A total depth of 18,150 feet is expected to be reached in early September.
The Company holds a 30 percent non-operated working interest in the license.

KURDISTAN REGION OF IRAQ: The Company spud the Mirawa exploration well on its
operated Harir Block on March 19 and the Safen exploration well on its
operated Safen Block on April 18. The Mirawa well reached total depth of
13,975 feet in July and is currently testing multiple zones of interest. The
Safen well is expected to reach a projected total depth of 12,100 feet in
August, with a testing program to follow. Marathon Oil holds a 45 percent
working interest in each block.

On the outside-operated Sarsang Block, two exploration wells, Mangesh and
Gara, were spud in the second half of 2012 and have reached total depth, with
testing programs ongoing. Also on the Sarsang Block, the East Swara Tika
exploration well was spud July 15 with a projected total depth of 11,150 feet.
The well will test additional resource potential to the northeast of the
previously announced Swara Tika discovery. On the outside-operated Atrush
Block, following a successful appraisal program and a declaration of
commerciality, a plan for field development was filed with the Kurdistan
Ministry of Natural Resources (MNR) on May 6. The development plan is
currently under review with final approval expected in the third
quarter. First production is anticipated in 2015. The Atrush-3 appraisal well,
approximately 6 miles from the discovery well, was spud on March 25, reached
total depth of 5,925 feet and is currently testing. Marathon Oil holds a 25
percent working interest in the Sarsang Block and a 15 percent working
interest in the Atrush Block.

ETHIOPIA: The Sabisa-1 well, on the onshore South Omo Block in a frontier rift
basin, encountered reservoir quality sands, oil and heavy gas shows and a
thick shale section. The presence of oil prone source rocks, reservoir sands
and good seals is encouraging for the numerous fault bounded traps identified
in the basin. Because of mechanical issues, the well was abandoned before a
full evaluation could be completed. The rig will mobilize to the nearby
Tultule prospect, approximately two miles from the Sabisa-1. Marathon Oil
holds a 20 percent non-operated working interest in the South Omo Block.

GABON: Exploration drilling began in the second quarter on the Diaman well in
the Diaba License G4-223, offshore Gabon, to test the deepwater presalt play.
The well reached the projected total depth of 18,300 feet in the third
quarter. Logging and evaluation are under way. Marathon Oil holds a 21.25
percent non-operated working interest in the Diaba License.

Oil Sands Mining (OSM)

The OSM segment reported income of $20 million for the second quarter of 2013,
compared to $38 million in the first quarter of 2013. The decrease in income
was primarily a result of lower second quarter sales volumes due to unplanned
mine downtime and the planned turnaround at the non-operated AOSP in Canada.
The decrease in revenue from lower volumes was partially offset by higher
price realizations. Second quarter operating costs were higher than the first
quarter of 2013, primarily as a result of the turnaround. The total cost to
date of the turnaround is approximately $25 million (net), of which $16
million (net) occurred in the second quarter.

Corporate and Other

The change in working capital in the second quarter of 2013 includes two tax
installment payments for Norway, versus one in the first quarter, as well as
an annual tax payment to Equatorial Guinea.

Marathon Oil announced in June that it entered into an agreement to sell its
10 percent working interest in the Production Sharing Contract and Joint
Operating Agreement in Block 31 offshore Angola. The transaction has a total
value of approximately $1.5 billion, excluding any purchase price adjustments
at closing. The companies anticipate closing the transaction in the fourth
quarter of 2013, subject to government, regulatory and third-party approvals.
Marathon Oil expects to use the proceeds from this sale to repurchase shares,
strengthen the balance sheet and for general corporate purposes.

As of Aug. 6, 2013, the Company has agreed upon or closed on nearly $2.9
billion in divestitures over the period of 2011 to date, at the upper end of
its targeted $1.5 billion to $3 billion of divestitures.

On July 31, Moody's Investors Service upgraded Marathon Oil's senior unsecured
debt rating to Baa1 from Baa2 based on expected consistent production and
reserves growth with conservative financial policies. Moody's also affirmed
Marathon Oil's Prime-2 commercial paper rating and the outlook is stable.

Special Items

In August 2012, Marathon Oil entered into crude oil derivative instruments
related to a portion of its forecast North America E&P crude oil sales. For
the second quarter of 2013, an after-tax unrealized gain of $32 million ($50
million pre-tax) was recorded related to these crude oil derivative
instruments.

In the second quarter of 2013, Marathon Oil recorded an after-tax loss of $73
million ($114 million pre-tax) on the disposition of its interests in the D.J.
Basin.

Marathon Oil recorded an after-tax settlement charge of $11 million ($17
million pre-tax) in the second quarter of 2013 in connection with the
Company's U.S. pension plans.

The Company will conduct a conference call with questions and answers only on
Wednesday, Aug. 7 at 8:00 a.m. EDT, during which it will discuss second
quarter 2013 results and will include forward-looking information. The webcast
slides and associated commentary, as well as the Quarterly Investor Packet,
will be posted to the Company's website at http:ir.marathonoil.com and to its
mobile app as soon as practical following this release today, Aug. 6. To
listen to the Aug. 7 live webcast, visit the Marathon Oil website at
http://www.marathonoil.com. Replays of the webcast will be available through
Sept. 7.

                                    # # #

In addition to net income determined in accordance with generally accepted
accounting principles (GAAP), Marathon Oil has provided supplementally
"adjusted net income," a non-GAAP financial measure which facilitates
comparisons to earnings forecasts prepared by stock analysts and other third
parties. Such forecasts generally exclude the effects of items that are
considered non-recurring, are difficult to predict or to measure in advance or
that are not directly related to Marathon Oil's ongoing operations. A
reconciliation between GAAP net income and "adjusted net income" is provided
in a table on page 1 of this release. "Adjusted net income"should not be
considered a substitute for net income as reported in accordance with GAAP.
Management, as well as certain investors, uses "adjusted net income" to
evaluate Marathon Oil's financial performance between periods. Management also
uses "adjusted net income" to compare Marathon Oil's performance to certain
competitors.

In addition to cash flow from operations determined in accordance with GAAP,
Marathon Oil has provided supplementally "cash flow from operations before
changes in working capital," a non-GAAP financial measure, which management
believes demonstrates the Company's ability to internally fund capital
expenditures, pay dividends and service debt. A reconciliation between GAAP
cash flow from operations and "cash flow from operations before changes in
working capital" is provided in a table on page 1 of this release. "Cash flow
from operations before changes in working capital" should not be considered a
substitute for cash flow from operations as reported in accordance with GAAP.
Management, as well as certain investors, uses "cash flow from operations
before changes in working capital" to evaluate Marathon Oil's financial
performance between periods. Management also uses "cash flow from operations
before changes in working capital" to compare Marathon Oil's performance to
certain competitors.

This release contains forward-looking statements with respect to the timing
and levels of the Company's worldwide liquid hydrocarbon, natural gas and
synthetic crude oil production, anticipated drilling activity, a planned
turnaround in Norway and planned pipeline curtailments and turnaround at Brae
in the U.K. North Sea, expected timing and rate of production returning at
Foinaven, possible increased recoverable resources from optimized well spacing
in the Eagle Ford resource play, additional farm-down of the Company's working
interest in the Madagascar prospect in the Gulf of Mexico, anticipated
exploration drilling activity in the Gulf of Mexico, Ethiopia, Gabon, the
Kurdistan Region of Iraq and Norway, the timing of approval of a plan of
development and first production for the Atrush Block, the timing of closing
the sale of the Company's 10 percent working interest in Block 31 offshore
Angola, including the use of proceeds, and projected asset dispositions
through 2013. The average times to drill a well referenced in the release may
not be indicative of future drilling times. The initial production rates
referenced in this release may not be indicative of future production rates.
Factors that could potentially affect the timing and levels of the Company's
worldwide liquid hydrocarbon, natural gas and synthetic crude oil production,
anticipated drilling activity, a planned turnaround in Norway and planned
pipeline curtailments and turnaround at Brae in the U.K. North Sea, possible
increased recoverable resources from optimized well spacing in the Eagle Ford
resource play, and anticipated exploration drilling activity in the Gulf of
Mexico, Ethiopia, Gabon, the Kurdistan Region of Iraq and Norway include
pricing, supply and demand for liquid hydrocarbons and natural gas, the amount
of capital available for exploration and development, regulatory constraints,
timing of commencing production from new wells, drilling rig availability,
availability of materials and labor, the inability to obtain or delay in
obtaining necessary government or third-party approvals and permits,
unforeseen hazards such as weather conditions, acts of war or terrorist acts
and the governmental or military response thereto, and other geological,
operating and economic considerations. The expected timing and rate of
production returning at Foinaven, additional farm-down of the Company's
working interest in the Madagascar prospect in the Gulf of Mexico, the timing
of approval of a plan of development and first production for the Atrush Block
and the projected asset dispositions through 2013 are based on current
expectations, good faith estimates and projections and are not guarantees of
future performance. The timing of closing the sale of the Company's 10 percent
working interest in Block 31 offshore Angola is subject to the satisfaction of
customary closing conditions and obtaining necessary government, regulatory
and third-party approvals. The expectations with respect to the use of
proceeds from the sale of our 10 percent working interest in Block 31 offshore
Angola could be affected by changes in the prices and demand for liquid
hydrocarbons and natural gas, actions of competitors, disruptions or
interruptions of the Company's exploration or production operations,
unforeseen hazards such as weather conditions or acts of war or terrorist acts
and other operating and economic considerations. Actual results may differ
materially from these expectations, estimates and projections and are subject
to certain risks, uncertainties and other factors, some of which are beyond
the Company's control and difficult to predict. The foregoing factors (among
others) could cause actual results to differ materially from those set forth
in the forward-looking statements. In accordance with the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995, Marathon
Oil Corporation has included in its Annual Report on Form 10-K for the year
ended December 31, 2012, and subsequent Forms 10-Q and 8-K, cautionary
language identifying other important factors, though not necessarily all such
factors, that could cause future outcomes to differ materially from those set
forth in the forward-looking statements.

Media Relations Contacts:

Lee Warren: 713-296-4103

John Porretto: 713-296-4102

Investor Relations Contacts:

Howard Thill: 713-296-4140

Chris Phillips: 713-296-3213

Consolidated Statements of Income (Unaudited)          Three Months Ended
                                                       June 30 Mar. 31 June 30
(In millions, except per share data)                   2013    2013    2012
Revenues and other income:                                              
Sales and other operating revenues, including related  $3,419  $3,440  $2,975
party
Marketing revenues                                     499     430     757
Income from equity method investments                  77      118     60
   Net gain (loss) on disposal of assets               (107)   109     (28)
   Other income                                        10      9       20
Total revenues and other income                        3,898   4,106   3,784
Costs and expenses:                                                     
Production                                             614     578     485
Marketing, including purchases from related parties    495     429     755
Other operating                                        86      111     107
Exploration                                            133     465     172
Depreciation, depletion and amortization               738     747     580
Impairments                                            --      38      1
Taxes other than income                                93      84      55
General and administrative                             164     174     154
Total costs and expenses                               2,323   2,626   2,309
Income from operations                                 1,575   1,480   1,475
Net interest and other                                 (71)    (72)    (57)
Income from operations before income taxes             1,504   1,408   1,418
Provision for income taxes                             1,078   1,025   1,025
Net income                                             $426    $383    $393
Adjusted net income (a)                                $478    $361    $416
Adjustments for special items (net of taxes):                           
Unrealized gain (loss) on crude oil derivative         32      (32)    --
instruments
Impairments                                            --      (10)    --
Net gain (loss) on dispositions                        (73)    64      (23)
Pension settlement                                     (11)    --      --
Net income                                             $426    $383    $393
Per Share Data                                                          
Basic:                                                                  
Net income                                             $0.60   $0.54   $0.56
Diluted:                                                                
Adjusted net income (a)                                $0.67   $0.51   $0.59
Net income                                             $0.60   $0.54   $0.56
Weighted Average Shares:                                                
Basic                                                  710     708     706
Diluted                                                714     712     709

(a) Adjusted net income is a non-GAAP financial measure and should not be
considered a substitute for net income as determined in accordance with
accounting principles generally accepted in the United States. See above for
further discussion of adjusted net income.

Supplemental Statistics (Unaudited)                    Three Months Ended   
                                                       June 30 Mar. 31 June 30
(in millions)                                          2013    2013    2012
Segment Income (Loss)                                                   
North America E&P                                      $221    ($59)   $70
International E&P                                      382     453     373
Oil Sands Mining                                       20      38      50
Segment income                                         623     432     493
Items not allocated to segments, net of income taxes:                   
Corporate and unallocated                              (145)   (71)    (77)
Unrealized gain (loss)  on crude oil derivative        32      (32)    --
instruments
Impairments                                            --      (10)    --
Net gain (loss) on dispositions                        (73)    64      (23)
Pension settlement                                     (11)    --      --
Net  income                                            $426    $383    $393
Capital Expenditures (b)                                                
North America E&P                                      $904    $970    $1,013
International E&P                                      241     225     202
Oil Sands Mining                                       97      45      43
Corporate                                              15      30      19
Total                                                  $1,257  $1,270  $1,277
Exploration Expenses                                                    
North America E&P                                      $76     $435    $147
International E&P                                      57      30      25
Total                                                  $133    $465    $172
Provision for Income Taxes                                              
Current income taxes                                   $1,009  $981    $928
Deferred income taxes                                  69      44      97
Total                                                  $1,078  $1,025  $1,025
                                                                            

 (b)  Capital expenditures include changes in accruals.

Supplemental Statistics (Unaudited)                Three Months Ended     
                                                   June 30 Mar. 31 June 30
                                                   2013    2013    2012
North America E&P - Net Sales Volumes                               
Liquid Hydrocarbons (mbbld)                        148     141     93     
Bakken                                             37      35      25     
Eagle Ford                                         64      58      18     
Anadarko Woodford                                  5       4       2      
Other North America                                42      44      48     
Crude Oil and Condensate (mbbld)                   126     121     85     
Bakken                                             35      33      24     
Eagle Ford                                         50      46      16     
Anadarko Woodford                                  1       1       1      
Other North America                                40      41      44     
Natural Gas Liquids (mbbld)                        22      20      8      
Bakken                                             2       2       1      
Eagle Ford                                         14      12      2      
Anadarko Woodford                                  4       3       1      
Other North America                                2       3       4      
Natural Gas (mmcfd)                                316     340     319    
Bakken                                             12      13      8      
Eagle Ford                                         99      83      18     
Anadarko Woodford                                  49      51      23     
Alaska                                             --      31      82     
Other North America                                156     162     188    
International E&P - Net Sales Volumes                               
Liquid Hydrocarbons (mbbld)                        177     180     177    
Equatorial Guinea                                  30      37      35     
Norway                                             79      79      77     
United Kingdom                                     14      21      22     
Libya                                              45      34      43     
Other International                                9       9       --     
Natural Gas (mmcfd)                                514     568     501    
Equatorial Guinea                                  401     447     394    
Norway                                             53      54      53     
United Kingdom (c)                                 36      41      49     
Libya                                              24      26      5      
Oil Sands Mining - Net Sales Volumes                                
Synthetic Crude Oil (mbbld) (d)                    43      51      44     
                                                                    
Total Company - Net Sales Volumes (mboed)          506     523     451    
Net Sales Volumes of Equity Method Investees (mtd)                  
LNG                                                5,820   6,787   5,467  
Methanol                                           973     1,410   1,268  

(c)  Includes natural gas acquired for injection and subsequent resale of 8
mmcfd, 11 mmcfd and 17 mmcfd in the second and first quarters of 2013 and the
second quarter of 2012, respectively.

(d)  Includes blendstocks.

Supplemental Statistics (Unaudited)          Three Months Ended
                                             June 30 Mar. 31 June 30
                                             2013    2013    2012
North America E&P - Average Realizations (e)                  
Liquid Hydrocarbons ($ per bbl) (f)          $84.51  $86.14  $84.72
Bakken                                       85.96   88.60   77.26
Eagle Ford                                   83.90   88.06   90.82
Anadarko Woodford                            50.61   51.05   51.69
Crude Oil and Condensate ($ per bbl)         $93.75  $94.68  $89.04
Bakken                                       88.65   91.22   78.99
Eagle Ford                                   99.40   103.78  99.22
Anadarko Woodford                            90.08   90.52   97.05
Natural Gas Liquids ($ per bbl)              $31.72  $35.48  $40.54
Bakken                                       35.92   41.05   43.27
Eagle Ford                                   28.09   28.16   33.91
Anadarko Woodford                            33.61   37.94   31.50
Natural Gas ($ per mcf)                      $4.19   $3.86   $3.42
Bakken                                       4.47    3.61    2.89
Eagle Ford                                   4.17    3.35    2.13
Anadarko Woodford                            4.15    3.67    2.66
Alaska                                       --      7.90    6.59
International E&P- Average Realizations (e)                   
Liquid Hydrocarbons ($ per bbl)              $100.00 $107.68 $104.82
Equatorial Guinea                            54.09   65.89   64.48
Norway                                       107.21  117.13  111.40
United Kingdom                               101.85  112.25  110.16
Libya                                        117.55  129.56  122.30
Other International                          100.30  105.95  --
Natural Gas ($ per mcf)                      $2.37   $2.57   $2.25
Equatorial Guinea (g)                        0.24    0.24    0.24
Norway                                       12.13   14.00   10.54
United Kingdom                               10.23   11.27   9.53
Libya                                        4.65    5.04    0.70
Oil Sands Mining - Average Realizations (e)                   
Synthetic Crude Oil ($ per bbl)              $89.39  $79.98  $79.31

(e)  Excludes gains or losses on derivative instruments.

(f)  Inclusion of realized gains (losses) on crude oil derivative instruments
would have increased (decreased) North America E&P average liquid hydrocarbon
realizations by $1.22 per bbl for the second quarter of 2013 and ($0.37) per
bbl for the first quarterof 2013.  There were no realized gains (losses) on
crude oil derivative instruments in the second quarterof 2012.

(g)  Primarily represents fixed prices under long-term contracts with Alba
Plant LLC, Atlantic Methanol Production Company LLC and Equatorial Guinea LNG
Holdings Limited, which are equity method investees. Marathon Oil includes its
share of income from each of these equity method investees in the
International E&P segment.
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement