Marathon Oil Raises Full-Year Production Guidance, Q3 Income Slips

Marathon Oil Corp. has reported a third-quarter 2024 net income of $287 million, well below the $349 million reported for the previous quarter and $453 million posted for the third quarter of 2023.

The company said in its quarterly report that its net income was impacted by certain items not typically represented in analysts' earnings estimates. The company said that its adjusted net income was $360 million. “The adjustments to net income for the third quarter totaled $73 million. This includes a $75 million deferred tax valuation allowance recorded for foreign tax credits which expire in 2025 that are likely to remain unused”, Marathon Oil said in its statement.

In the United States, Marathon Oil’s average production was 379,000 net barrels of oil equivalent per day (boed) for the quarter. Oil production averaged 198,000 barrels of oil per day (bopd), an increase from the previous quarter when the company’s production averaged 183,000 net bopd. The increase was attributed to strong new well performance and ongoing drilling and completion efficiency gains.

In Equatorial Guinea, production averaged 42,000 boed, with sales volumes averaging 37,000 net boed. “The difference between production and sales was the result of a 31,000 net mcfd (5,000 net boed) Alba LNG underlift. Marathon Oil's Alba LNG sales achieved a realized price of $10.76 per mcf during the third quarter, as the company continued realizing the uplift in value from the shift to global LNG pricing. Third quarter E.G. unit production cost averaged $4.16 per boe”, the company said.

Income for the company’s international segment landed at $95 million during the quarter.

The strong well performance and continued drilling and completion gains have prompted the company to raise its full-year production guidance. Marathon Oil said it now expects to produce 192,000 net bopd and 393,000 boepd. The company anticipates a sequential increase in free cash flow for the fourth quarter.

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