About Marathon Oil Corporation
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 1.2 million barrels of oil equivalent It major focus of production is the US: Eagle Ford in Texas, the Bakken in North Dakota, STACK and SCOOP in Oklahoma and Northern Delaware in New Mexico. Its areas of production outside of the US include Europe (the UK); and Africa (Equatorial Guinea, Gabon, and Libya).
Marathon Oil is engaged in oil and gas exploration production worldwide, and LNG and methanol marketing in Equatorial Guinea.
The company operates through two reportable operating segments: United States (approximately 90% of sales) and International (generates about 10% of sales). The US segment explores for, produces and markets crude oil and condensate, NGLs and natural gas in the US, while International segment explores for, produces and markets crude oil and condensate, NGLs and natural gas outside of the US as well as produces and markets products manufactured from natural gas, such as LNG and methanol, in E.G.
Crude oil and condensate generates approximately 85% of the total revenue, while natural gas, natural gas liquids and other account the remaining.
Headquartered in Houston, Texas, Marathon Oil has oil and gas assets in Equatorial Guinea, Gabon, Kurdistan (Iraq), Libya, the UK, and the US. Approximately 90% of revenue comes from 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. In 2019, sales to Marathon Petroleum Corporation, Flint Hills Resources, Valero Marketing and Supply, and Shell Trading and each of their respective affiliates, accounted for approximately 13%, 13%, 11% and 10% of the company's total revenues.
Marathon Oil's revenue has been decreasing and increasing over the last five years. Since its decline in 2016, the company's revenue increased in the next two years unit its slight decrease in 2019. The increase in Marathon Oil's revenue between 2015 and 2019 is below 5%.
A decrease in revenues of approximately 14% compared to 2018, as a result of decreased commodity price realizations and lower net sales volumes in the company's International segment due to dispositions, partially offset by increased net sales volumes in the US. Net income for Marathon got worse. From $1.1 billion in 2018, plummeted to $480 million in 2019, mostly due to an expenses decrease in exploration and impairment, income tax benefit and a decrease in revenue.
Cash and cash equivalents at end of period declined from $1.5 billion in the prior year to $858 million in 2019. Operations generated $2.7 billion, while investing activities used $2.8 billion mainly from additions to property, plant, equipment and acquisitions. Financing activities used $535 million mainly from repayments for debts and purchase of common stock.
Marathon Oil remains committed to its framework for success, with the foundation of a peer-leading balance sheet and the competitive advantages of its multi-basin portfolio. The company has the right portfolio of assets and the right strategy: putting returns first, generating sustainable free cash flow at conservative oil prices and sharing that cash flow with investors.
Marathon Oil delivers competitive and improving corporate level returns by focusing its capital investment in the lower cost, higher margin US resource plays while maintaining a strong balance sheet, prioritizing sustainable cash flow generation over a wide range of commodity prices, and returning capital to shareholders. It is also the company's strategy to obtain competitive prices for the company's products and allow operating results to reflect market price movements dictated by supply and demand.
The company focus its investing in its high-return Myrmidon and Hector areas, while also delineating and extending our core acreage across the rest of our position. It has recently been early infill development in the STACK Meramec and SCOOP Woodford, while progressing delineation of other plays across our footprint. The company's focus has been to strategically advance its position and prepare for future development by further coring up its footprint, progressing early delineation of its acreage, improving its cost structure and securing midstream solutions.
In mid-2019, the company has closed on the sale of its UK business, which consists of the Brae area fields and Foinaven, to RockRose Energy PLC. The transaction represents a complete country exit for Marathon Oil. Also in the same year, the company has closed on the sale of its 15% participating interest in the Atrush Block in Kurdistan, where first quarter 2019 production averaged 2,400 net barrels of oil equivalent per day (100% oil). This divestiture represents a complete country exit for Marathon Oil.
In late 2019, the company acquired approximately 40,000 net acres in a Texas Delaware oil play in West Texas from multiple sellers for $106 million. The company accounted for these transactions as an asset acquisition, allocating the purchase price to unproved property within property, plant and equipment. The company also acquired a 100% working interest in approximately 18,000 net acres in the Eagle Ford from Rocky Creek Resources, LLC and RCR Midstream, LLC for $191 million in cash, subject to post-closing adjustments. The company accounted for this transaction as a business combination, with the entire purchase price allocated between proved property, unproved property, and other assets, all within property, plant and equipment.
5555 San Felipe St
Houston, TX 77056-2701
Phone: 1 (713) 629-6600
Employer Type: Publicly Owned
Stock Symbol: MRO
Stock Exchange: , NYSE
EVP, Operations: T. Mitchell Little
Chairman, President and CEO: Lee M. Tillman
EVP and CFO: Dane E. Whitehead
Employees (This Location): 1,300
Employees (All Locations): 2,000
Park Ridge, IL
Stillman Valley, IL
Crown Point, IN
Terre Haute, IN
Battle Creek, MI
Oak Park, MI
New York, NY
Wshngtn Ct Hs, OH
Oklahoma City, OK