About Marathon Oil Company

In the long-running competition for success in the oil and gas industry Marathon Oil is keeping up a steady pace. It has proved reserves of more than 2.1 billion barrels of oil equivalent, including 692 million barrels of synthetic oil derived from oil sands mining. It major focus of production is the US, in the Gulf of Mexico, Oklahoma, Texas, and North Dakota. Its areas of production outside of the US include Europe (the UK); Africa (Equatorial Guinea, Gabon, and Libya); and Canada (the Athabasca Oil Sands Project, which the company agreed to exit in 2017).


Marathon Oil is engaged in oil and gas exploration production worldwide, oil sands mining (extracting bitumen from oil sands deposits in Canada, and producing synthetic crude oil and vacuum gas oil), and LNG and methanol marketing in Equatorial Guinea.

The company operates through three reportable operating segments: North America E&P (60% of total revenues), which explores for, produces, and markets crude oil and condensate, NGLs, and natural gas in North America; Oil Sands Mining (20%), which mines, extracts and transports bitumen from oil sands deposits in Alberta, Canada, and upgrades the bitumen to produce and market synthetic crude oil and vacuum gas oil; and International E&P (about 20%), which explores for, produces, and markets crude oil and condensate, NGLs, and natural gas outside of North America and produces and markets products manufactured from natural gas, such as LNG and methanol, in Equatorial Guinea.

Geographic Reach

Marathon Oil has oil and gas assets in Canada, Equatorial Guinea, Gabon, Kurdistan (Iraq), Libya, the UK, and the US.

Sales and Marketing

Marathon Oil's marketing activities include the transportation of oil and gas to market centers, the sale of commodities to third parties, and the storage of hydrocarbon products.

Financial Performance

In 2016 the company's net revenues decreased by 21% to $4.7 billion due to decreases in the North America and International E&P segments, and despite a growth in the Oil Sands Mining segment.

The E&P decline was primarily due to lower price realizations and lower net sales volumes from its core US resource plays, which outpaced the financial impact of lower production costs.

In 2016 Marathon Oil posted a net loss of $2.1 billion (compared to a net loss of $2.2 billion in 2015), mainly due to lower net revenues; a non-cash charge related to a valuation allowance on deferred tax assets of $1.3 billion; and a non-cash charge of $262 million for property impairments.

The company's operating cash inflow decreased from $1.6 billion in 2015 to $1.1 billion in 2016 due to lower commodity prices. The average crude oil and natural gas price realizations were down 11% and 16%, respectively.


Marathon Oil continues to focus on lower cost/higher return liquid hydrocarbon reserves and production in the US. To accelerate this push, in 2017 the company agreed to sell its 20% stake in the Athabasca Oil Sands Project for $2.5 billion, to pay down debt and reinvest in core projects. That year it also agreed to buy 70,000 net acres in the lower-cost Permian Basin from BC Operating for $1.1 billion.

To raise cash, in 2016 the company agreed to sell non-core assets for $950 million, bringing the total to $1.3 billion since 2015.

In 2016 the company's primary focus was on the SCOOP and STACK areas, where it holds 365,000 net acres with rights to the Woodford, Springer, Meramec, Granite Wash and other Pennsylvanian and Mississippian plays. It also has operations (145,000 net acres, six drilling rigs) in the Eagle Ford in Texas, and the Bakken in North Dakota/Montana (270,000 net acres, six rigs).

In 2015 the company realized significant increases in its three key unconventional liquids-rich plays: the Eagle Ford, Bakken, and Oklahoma resource basins. In 2015 about 40% of its spending was allocated to the Eagle Ford, $760 million for Bakken, $226 million for Oklahoma Resource Basins. Internationally the spend was $429 million primarily in Equatorial Guinea, the UK, and the Kurdistan Region of Iraq, and $232 million for the Gulf of Mexico and seismic surveys in Gabon and Ethiopia.

Mergers and Acquisitions

In 2016 the company acquired Payrock Energy Holdings (a portfolio company of EnCap Investments) for $888 million. The deal added to Marathon Oil's position in the STACK play in Oklahoma where the break-even crude price for commercially viable oil production is in the low $40s.

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Marathon Oil Company

5555 San Felipe St B112
Houston, TX 77056-2799
Phone: 1 (713) 629-6600
Fax: 1 (713) 513-1322


  • Employer Type: Public
  • Sr V Pres-fin & Admin/cfo: J T Mills
  • Senior Vice President: Mary E Peters
  • Executive Vice President Chief Financial Officer: Dane Whitehead
  • Employees: 3,000

Major Office Locations

  • Houston, TX

Other Locations

  • Grand Junction, CO
  • Tamarac, FL
  • Aurora, IL
  • Chicago, IL
  • Gurnee, IL
  • Park Ridge, IL
  • Stillman Valley, IL
  • Sullivan, IL
  • Coatesville, IN
  • Gary, IN
  • Muncie, IN
  • Franklin, LA
  • Jackson, LA
  • Battle Creek, MI
  • Detroit, MI
  • Dorr, MI
  • Eastpointe, MI
  • Hastings, MI
  • Niles, MI
  • Oak Park, MI
  • Roseville, MI
  • Temperance, MI
  • Lakeville, MN
  • Dickinson, ND
  • Hobbs, NM
  • New York, NY
  • Bucyrus, OH
  • Columbus, OH
  • Findlay, OH
  • Tulsa, OK
  • Weatherford, OK
  • Wheatland, OK
  • Boyers, PA
  • Pittsburgh, PA
  • Fairfield, TX
  • Iraan, TX
  • Pasadena, TX
  • Texon, TX
  • Price, UT
  • Radford, VA
  • Gillette, WY
  • Kinnear, WY
  • Thermopolis, WY
  • Moscow, Russia
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