Core Viewpoint - Crude oil prices have remained stable around $70, supported by OPEC supply decisions, economic growth, and geopolitical concerns, making it an ideal environment for top oil stocks to generate cash flow [1][11]. Company Summaries ConocoPhillips - ConocoPhillips has transformed into a low-cost oil producer, selling higher-cost assets and acquiring lower-cost resources, culminating in a $22.5 billion acquisition of Marathon Oil, adding over 2 billion barrels of resources with an average supply cost below $30 [3][4]. - The company plans to invest $12.9 billion in capital projects while returning $10 billion to shareholders through dividends and share repurchases, an increase from $9.1 billion returned last year [4][5]. Devon Energy - Devon Energy has adopted a similar strategy to ConocoPhillips, focusing on low-cost operations and recently acquiring Grayson Mill Energy, enhancing its position in the Williston Basin [6]. - The company expects to invest up to $4 billion this year, generating over $3 billion in free cash flow at $70 oil, with plans to return up to 70% of this cash flow to shareholders, prioritizing share repurchases [7][8]. EOG Resources - EOG Resources has built a low-cost production model, controlling over 10 billion barrels of oil equivalent, with an average after-tax return above 55% at $45 oil [9]. - The company estimates generating $4.7 billion in free cash flow at $70 oil after a $6.2 billion capital investment, planning to return over 100% of its free cash flow to investors through dividends and share repurchases [10]. Industry Outlook - ConocoPhillips, Devon Energy, and EOG Resources are positioned to thrive in the current oil price environment, generating substantial cash flow to support capital programs and return excess cash to shareholders, indicating strong potential for above-average total returns [11].

Financial Performance - Net income for 2024 was $933 million, a decrease of 19.4% compared to $1,157 million in 2023[9] - Comprehensive income for 2024 was $919 million, down from $1,141 million in 2023, reflecting a decline of 19.4%[9] - For the nine months ended September 30, 2023, Marathon Oil reported a net income of $417 million, compared to $287 million for the same period in 2022, reflecting a 45% increase[17] - Net income for the three months ended September 30, 2024, was $287 million, compared to $453 million for the same period in 2023, representing a decrease of 36.7%[24] - Net income for the nine months ended September 30, 2024, was $193 million, down from $227 million in the same period of 2023, reflecting a decline of approximately 15%[64] Revenue and Sales - Total revenues from contracts with customers for the three months ended September 30, 2024, were $1.615 billion, compared to $1.700 billion for the same period in 2023, a decrease of 5.0%[26] - Revenues from contracts with customers in the US segment decreased by $85 million in Q3 2024 compared to Q3 2023, despite increased crude sales volumes[81] - Total revenues from contracts with customers for the nine months ended September 30, 2024, were $4,945 million, up from $4,822 million in the same period in 2023, reflecting an increase of 3%[103] - International segment revenues increased significantly to $126 million in Q3 2024 from $71 million in Q3 2023, marking an increase of 77%[96] Assets and Liabilities - Total current assets decreased to $1,484 million in 2024 from $1,569 million in 2023, a reduction of 5.4%[12] - Total liabilities decreased to $7,987 million in 2024 from $8,370 million in 2023, a reduction of 4.6%[12] - As of September 30, 2024, total long-term debt outstanding was $4.6 billion, with no outstanding borrowings under the Revolving Credit Facility[44] - The company reported a total of $21 million in derivative instruments, with $10 million classified as commodity derivatives and $11 million as interest rate derivatives[56] Capital Expenditures - Capital expenditures for 2024 were $1,726 million, compared to $1,673 million in 2023, reflecting an increase of 3.2%[15] - Capital expenditures for the three months ended September 30, 2024, were $454 million, compared to $458 million for the same period in 2023, a slight decrease of 0.9%[33] - Capital expenditures for the first nine months of 2024 were $1,726 million, up from $1,673 million in 2023[114] Shareholder Returns - The company repurchased shares under buyback programs totaling $516 million in 2024, compared to $1,121 million in 2023, a decrease of 53.9%[15] - Marathon Oil's shares repurchased under buyback programs totaled $334 million for the nine months ended September 30, 2023[17] - A dividend of $0.11 per share was approved for payment on December 10, 2024, with restrictions preventing an increase beyond this amount[122] Debt Management - Long-term debt increased to $4,573 million in 2024 from $3,378 million in 2023, an increase of 35.3%[12] - The company repaid $300 million of outstanding borrowings from its Term Loan Facility during the fourth quarter of 2023[42] - The company issued $1.2 billion in unsecured senior notes in March 2024, with proceeds used to repay the Term Loan Facility[45] Merger and Acquisition Activities - The proposed merger with ConocoPhillips is expected to close late in the fourth quarter of 2024, pending regulatory approvals[19] - The company has incurred transaction costs of $6 million and $16 million for the three and nine months ended September 30, 2024, respectively, related to the proposed merger with ConocoPhillips[19] - The company plans to convert each outstanding share of its common stock to 0.2550 shares of ConocoPhillips common stock as part of the merger agreement[19] Market and Commodity Risks - The company expects continued volatility in commodity prices due to global supply and demand dynamics, influenced by geopolitical events and economic conditions[90] - The company is exposed to market risks including commodity price risk and interest rate risk, employing financial derivatives as part of its risk management strategy[130] Operational Performance - Segment income for the U.S. operations was $362 million for the three months ended September 30, 2024, down from $453 million in the same period of 2023, a decline of 20.1%[33] - Production expenses increased by $31 million in Q3 2024 compared to Q3 2023, primarily due to higher workover activities and increased costs associated with higher net sales volumes[97] - The company drilled 18 wells to total depth in the Eagle Ford region during Q3 2024, compared to 19 wells in Q3 2023[85]

Financial Performance - Marathon Oil reported third quarter 2024 net income of $287 million or $0.51 per diluted share, with adjusted net income of $360 million or $0.64 per diluted share[1]. - Total revenues and other income for Q3 2024 were $1,791 million, a decrease of 1.2% compared to $1,813 million in Q3 2023[15]. - Net income for Q3 2024 was $287 million, down 36.7% from $453 million in Q3 2023[15]. - Adjusted net income per diluted share for Q3 2024 was $0.64, compared to $0.77 in Q3 2023, reflecting a decrease of 17%[16]. - Total costs and expenses increased to $1,251 million in Q3 2024, up from $1,144 million in Q3 2023, marking an increase of 9.4%[15]. - Net cash provided by operating activities was $1,209 million in Q3 2024, compared to $1,066 million in Q3 2023, indicating a year-over-year increase of 13.4%[18]. - Free cash flow for Q3 2024 was $659 million, an increase from $573 million in Q3 2023, representing a growth of 15%[18]. Production and Operations - U.S. production averaged 379,000 net boed during the third quarter, with oil production averaging 198,000 net bopd, a significant increase from 183,000 net bopd in the second quarter[2]. - Marathon Oil raised full-year 2024 production guidance to 192,000 net bopd and 393,000 net boed, compared to prior guidance midpoints of 190,000 net bopd and 390,000 net boed[5]. - The company brought a total of 72 gross Company-operated wells to sales during the third quarter[2]. - The average U.S. unit production cost for the third quarter was $5.97 per boe[2]. - The company expects fourth quarter oil production to moderate to approximately 190,000 net bopd, consistent with the phasing of its capital program[5]. - Total net production for Q3 2024 was 421 mboed, unchanged from Q3 2023[19]. Debt and Cash Management - The company achieved a sequential gross debt reduction of $545 million in the third quarter, with cash and cash equivalents increasing by $57 million[1]. - Marathon Oil discontinued its share repurchase program due to the pending merger with ConocoPhillips[1]. Price Realizations and Market Conditions - Average price realizations for crude oil and condensate in the U.S. decreased to $73.92 per bbl in Q3 2024 from $80.90 per bbl in Q3 2023, representing a decline of 8.9%[23]. - The average price for natural gas liquids in the U.S. was $20.40 per bbl in Q3 2024, down from $21.37 per bbl in Q3 2023, a decrease of 4.5%[23]. - International average price realizations for crude oil and condensate increased to $61.68 per bbl in Q3 2024 from $64.30 per bbl in Q3 2023, a decline of 4.1%[23]. - The average total natural gas price increased to $5.75 per mcf in Q3 2024 from $0.24 per mcf in Q3 2023, a significant increase[23]. - The average price for natural gas sold as LNG increased to $10.76 per mcf in Q3 2024 from $8.52 per mcf in Q3 2023, an increase of 26.3%[23]. - The average price for WTI crude oil decreased to $75.27 per bbl in Q3 2024 from $82.22 per bbl in Q3 2023, a decline of 8.9%[23]. - The company reported a decrease in average price realizations for natural gas in the U.S. to $1.45 per mcf in Q3 2024 from $2.28 per mcf in Q3 2023, a decline of 36.4%[23]. Derivative Contracts - The company has outstanding derivative contracts for crude oil with a ceiling price of $95.95 per bbl and a floor price of $65.00 per bbl for 50,000 bbls/day in Q4 2024[24]. - For natural gas, the company has a ceiling price of $5.85 per MMBtu and a floor price of $2.50 per MMBtu for 150,000 MMBtu/day in Q1 2025[24]. - The company is actively managing its derivative contracts to mitigate price volatility in the crude oil and natural gas markets[24]. Reinvestment and Gains - The reinvestment rate for Q3 2024 was 44%, down from 65% in Q2 2024[18]. - The company reported a net gain on commodity derivatives of $9 million in Q3 2024, compared to a net gain of $1 million in Q3 2023[15].

Merger Agreement - Marathon Oil entered into a Merger Agreement with ConocoPhillips, where each outstanding share of Marathon Oil will be converted to 0.2550 shares of ConocoPhillips common stock[25]. - The transaction costs associated with the merger have reached $10 million, primarily consisting of third-party legal and banking fees[26]. - The merger is expected to close late in the fourth quarter of 2024, pending shareholder and regulatory approvals[25]. - The company is subject to restrictions under the Merger Agreement that limit the quarterly dividend increase to a maximum of $0.11 per share[35]. - The company is subject to restrictions under the Merger Agreement that limit its ability to incur additional debt[66]. - The company has suspended its stock repurchase activity due to restrictions from the Merger Agreement, with remaining authorization at approximately $1.8 billion as of June 30, 2024[188]. Financial Performance - For the three months ended June 30, 2024, Marathon Oil reported a net income of $349 million, compared to $287 million for the same period in 2023, representing a 22.9% increase[35]. - The diluted net income per share for the second quarter of 2024 was $0.62, up from $0.47 in the second quarter of 2023, reflecting a 31.9% increase[35]. - Revenues from contracts with customers for the three months ended June 30, 2024, totaled $1.551 billion, a 7.7% increase from $1.440 billion in the same period of 2023[39]. - Segment income for Q2 2024 was $349 million, up from $287 million in Q2 2023, reflecting a 21.6% increase[48]. - The company reported total revenues from contracts with customers for the first six months of 2024 were $3,204 million, a 5% increase from $3,051 million in the same period of 2023, with the U.S. segment contributing $2,973 million and the International segment $231 million[159]. Revenue and Sales Volumes - Crude oil and condensate revenues in the U.S. for the second quarter of 2024 were $1.316 billion, compared to $1.195 billion in the same quarter of 2023, marking a 10.1% increase[39]. - Revenues from contracts with customers for Q2 2024 totaled $1,666 million, an increase of 12.2% compared to $1,484 million in Q2 2023[46]. - The company experienced a 38% decrease in crude and oil condensate net sales volumes for the three months ended June 30, 2024, compared to the same period in 2023, with volumes of 5 mbbld[139]. - Natural gas sold as gas saw a 56% decrease in net sales volumes for the three months ended June 30, 2024, at 82 mmcfd, down from 186 mmcfd in 2023[139]. - The International segment reported revenues of $115 million for the three months ended June 30, 2024, significantly up from $44 million in the same period of 2023[148]. Capital Expenditures and Debt - Capital expenditures for the first half of 2024 were $1,268 million, compared to $1,224 million in the same period of 2023, indicating a 3.6% increase[51]. - As of June 30, 2024, the total long-term debt outstanding for the company was $5.0 billion[65]. - The company completed a public offering of $1.2 billion in unsecured senior notes on March 28, 2024, to repay existing borrowings[175]. - The company had approximately $2.3 billion in liquidity, consisting of $77 million in cash and cash equivalents and $2.2 billion available under its Revolving Credit Facility as of June 30, 2024[179]. - The company reported total financial liabilities of $5.201 billion as of June 30, 2024, compared to $5.111 billion as of December 31, 2023[85]. Operational Highlights - The company reported a net loss on commodity derivatives of $23 million for the first half of 2024, compared to a net gain of $18 million in the same period of 2023[51]. - The company incurred $10 million in transaction costs associated with the merger with ConocoPhillips[46]. - Marathon Oil's drilling activity in the Eagle Ford increased, with 40 wells drilled to total depth in Q2 2024 compared to 30 in Q2 2023[133]. - The company reported net sales volumes of LNG at 109 mmcfd for Q2 2024, with an average realized price of $8.52 per mcf, generating $84 million in revenue[136]. - The company reported total inventories of $161 million as of June 30, 2024, down from $186 million at the end of 2023, with crude oil, NGLs, and natural gas valued at $10 million[107]. Tax and Compliance - The effective income tax rate for Q2 2024 was 22%, consistent with the rate in Q2 2023[56]. - The company entered into a consent decree with the EPA, requiring a $65 million civil penalty and an estimated total cost of $177 million for compliance projects, with over 70% of costs already incurred[112]. - The company agreed to pay a civil penalty of $265,000 to the EPA as part of a consent agreement effective July 25, 2024, but does not expect this to materially affect its financial position[114]. - The company anticipates incurring a civil penalty of $65 million related to a consent decree with the EPA and Department of Justice in 2024[192]. Market Risks and Derivatives - The company employs financial derivatives to manage commodity price and interest rate risks, although current limitations may hinder these strategies[201]. - The company’s exposure to market risks includes commodity price risk and interest rate risk, which are managed through various strategies[201]. - A hypothetical 10% increase in crude oil prices would result in a fair value increase of $12 million, while a 10% decrease would lead to a fair value decrease of $15 million[203]. - The company had forward starting interest rate swap agreements totaling $295 million designated as cash flow hedges as of June 30, 2024[206]. - The company is subject to limitations on entering new derivative transactions under the Merger Agreement, impacting its risk management strategies[201].

Marathon Oil Reports Second Quarter 2024 Results HOUSTON, Aug. 7, 2024 - Marathon Oil Corporation (NYSE: MRO) reported second quarter 2024 net income of $349 million or $0.62 per diluted share, which includes the impact of certain items not typically represented in analysts' earnings estimates and that would otherwise affect comparability of results. Adjusted net income was $357 million or $0.63 per diluted share. Net operating cash flow was $1,088 million or $1,028 million before changes in working capital ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission file number 1-5153 Marathon Oil Corporation (Exact name of registrant as specified in its charter) (State or other jurisdiction of i ...

Marathon Oil Corporation (NYSE:MRO) Q1 2024 Earnings Conference Call May 2, 2024 9:00 AM ET Company Participants Guy Baber - VP, IR Lee Tillman - Chairman, President & CEO Dane Whitehead - Adviser, CEO Rob White - VP, Controller, CAO & CFO Michael Henderson - EVP, Operations Patrick Wagner - EVP, Corporate Development & Strategy Conference Call Participants Scott Hanold - RBC Capital Markets Arun Jayaram - JPMorgan Chase & Co. Betty Jiang - Barclays Bank Neal Dingmann - Truist Securities Nitin Kumar - Wells ...

Marathon Oil Reports First Quarter 2024 Results Returned $350 Million to Shareholders and Sanctioned Equatorial Guinea Drilling Program • Continued delivery on sector-leading commitment to return at least 40% of adjusted CFO to shareholders; returned $349 million or 41% of adjusted CFO to shareholders during first quarter, including $285 million of share repurchases and $64 million base dividend • Strong financial and operational quarter with no change to full-year production or capital spending guidance – ...

FOURTH QUARTER 2023 RESULTS AND 2024 OUTLOOK Forward-Looking Statements and Other Matters This presentation (and oral statements made regarding the subjects of this presentation) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These are statements, other than statements of historical fact, that give current expectations or forecasts of future events, including, without limitation: the Company’s future ...

Marathon Oil Corporation (NYSE:MRO) Q4 2023 Earnings Conference Call February 22, 2024 9:00 AM ET Company Participants Guy Baber - Vice President, Investor Relations Lee Tillman - Chairman, President and Chief Executive Officer Dane Whitehead - Executive Vice President and Chief Financial Officer Mike Henderson - Executive Vice President, Operations Pat Wagner - Executive Vice President, Corporate Development and Strategy Conference Call Participants Arun Jayaram - JP Morgan Chase Neal Dingmann - Truist Sec ...