This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Marathon Oil Corporation Reports Fourth Quarter And Full-Year 2012 Results

United States E&P income was $104 million for the fourth quarter of 2012, compared to $110 million in the third quarter of 2012, with the decrease largely the result of higher exploration expenses. Higher sales volumes of liquids, reflecting the Company's ongoing development programs primarily in the Eagle Ford and Bakken shale plays, were partially offset by higher DD&A and other costs associated with these increased activities.

For full-year 2012, U.S. E&P income was $393 million, compared to $366 million for the prior year. The increase was a result of higher sales volumes, partially offset by lower realized product prices, higher DD&A and operating expenses primarily associated with increased activities in the shale resource plays and higher exploration expenses. On a per boe basis, operating costs and DD&A each showed improvement by approximately $0.30 per boe.

International E&P income was $397 million in the fourth quarter of 2012, compared to $376 million in the third quarter of 2012. On a pre-tax basis, the increase reflects the impact of higher liquid hydrocarbon sales volumes and realizations and lower DD&A.

International E&P income for full-year 2012 was $1.488 billion, compared to $1.791 billion in 2011. The decrease included lower earnings in the U.K. and Equatorial Guinea, partially offset by higher earnings in Libya. Also, in 2011 the Company was not in an excess foreign tax credit position for the entire year as it was in 2012.

Total E&P exploration expenses were $238 million for the fourth quarter of 2012 and $729 million for the entire year, compared to $176 million in the third quarter of 2012 and $644 million for full-year 2011. Fourth quarter 2012 exploration expenses included $85 million of dry well costs associated with the Innsbruck prospect in the Gulf of Mexico.

EAGLE FORD: Marathon Oil's average net production in the Texas Eagle Ford shale rose 50 percent in the fourth quarter to approximately 60,000 boed compared to 40,000 net boed in the prior quarter. Approximately 64 percent of the production was crude oil/condensate, 16 percent was natural gas liquids (NGLs) and 20 percent was natural gas. For the month of January, the Company projects average production was approximately 70,000 net boed. During the fourth quarter, Marathon Oil reached total depth on 70 gross Company operated wells and brought 70 gross operated wells to sales. For all of 2012, the Company reached total depth on 248 Eagle Ford gross operated wells, an increase of approximately 15 percent from original 2012 estimates, and brought 215 gross operated wells to sales. Marathon Oil has continued to deliver a top-quartile drilling performance in the areas in which it operates in the Eagle Ford. The Company improved its spud-to-spud performance 40 percent from the fourth quarter of 2011 (35 days) to the fourth quarter of 2012 (21 days). During January, the Company improved another 10 percent averaging 19 days spud-to-spud on wells drilled in the Eagle Ford. The Company fully expects the spud-to-spud time to continue dropping during 2013 as it moves to more pad drilling.

7 of 14

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,328.04 +62.05 0.36%
S&P 500 2,017.97 +6.61 0.33%
NASDAQ 4,607.4410 +14.0160 0.31%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs