Marathon Production Rising; Profits Tumble

MARK WILLIAMS

Marathon Oil on Tuesday followed a pattern established by peers during the third quarter, reporting a plunge in profit compared with the same period last year but improving conditions that have led to some healthy production numbers.

Crude prices fell away earlier this year, a threat to exploration and production even for some of the largest producers. A sharp rebound in energy prices and some big finds in the Gulf of Mexico and off the coast of Africa have encouraged companies to keep the oil and gas flowing.

The quick rebound in prices has hurt integrated oil companies like Marathon, too, cutting into the profit margins of its refineries.

Marathon, based in Houston, said it made $413 million, or 58 cents per share, for the quarter ended Sept. 30, down from profit of $2.1 billion, or $2.90 per share, in the year ago quarter when crude reached $147 a barrel and gasoline topped $4 per gallon.

Discounting charges, Marathon said it made 61 cents per share in the quarter. Not including a $101 million gain, the year-ago profit would have been $2 billion, or $2.76 per share.