Marathon 2007 Net Income Drops Due to Production Delays and More
Marathon Oil Corporation reported fourth quarter 2007 net income of $668 million, or $0.94 per diluted share. Net income in the fourth quarter of 2006 was $1.079 billion, or $1.53 per diluted share. For the fourth quarter of 2007, net income adjusted for special items was $500 million, or $0.70 per diluted share, compared to net income adjusted for special items of $838 million, or $1.19 per diluted share, for the fourth quarter of 2006.
Marathon reported 2007 net income of $3.956 billion, or $5.69 per diluted share. Net income in 2006 was $5.234 billion, or $7.25 per diluted share. Marathon reported 2007 net income adjusted for special items of $3.771 billion, or $5.43 per diluted share, compared to net income adjusted for special items of $4.636 billion, or $6.42 per diluted share for 2006.
"The fourth quarter of 2007 was a difficult quarter that included: lower downstream margins driven primarily by rapidly rising crude prices; relatively flat upstream production due to delays in the Alvheim project and unscheduled downtime for warranty repairs at our Equatorial Guinea LNG production facility; unscheduled downtime at our Athabasca Oil Sands Project in Canada; and higher exploration costs," said Clarence P. Cazalot, Jr., Marathon president and CEO.
"However, reflecting on all of 2007, we had significant accomplishments in each of our business segments; and, we remain confident in Marathon's integrated business strategy. Last year included the acquisition of Western Oil Sands Inc., the completion of the EG LNG Train 1 production facility ahead of schedule and on budget and groundbreaking on our projected $3.2 billion refinery expansion in Garyville, La. We also continued to achieve significant exploration success in Angola and the Gulf of Mexico, and we anticipate sanctioning major projects in both those areas during 2008.
"We expect 2008 will show significant growth as Marathon is uniquely positioned with a broad portfolio of projects," Cazalot added. "Marathon continues to maintain financial discipline while delivering value to investors through multiple reinvestment opportunities, dividends and share repurchases."
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