Houston-headquartered exploration and production company Marathon Oil Corp. reported $349 million in net income for the second quarter, compared to $297 million for the previous quarter and $287 million for the corresponding quarter a year prior.
Marathon Oil said that its production in the United States averaged 351,000 net barrels of oil equivalent (boe). Oil production for the period averaged 183,000 net bopd.In Equatorial Guinea, Marathon Oil’s production averaged 42,000 net boed during the quarter under review. Oil production averaged 8,000 net bopd.
In Equatorial Guinea, Marathon Oil’s operations include the offshore Alba Field operated by Marathon EG Production Limited (MEGPL) and the Alba Plant LLC’s liquefied petroleum gas (LPG) plant, a liquefied natural gas (LNG) production facility operated by Equatorial Guinea LNG Operations S.A. (EG LNG) and a methanol production facility operated by the Atlantic Methanol Production Company (AMPCO).
Marathon Oil said it has continued optimizing its operations in the country by diverting a portion of its Alba gas from AMPCO methanol sales to higher-margin LNG sales. Marathon Oil’s Alba LNG sales achieved a realized price of $8.52 per million cubic feet during the quarter, as the company continued realizing the uplift in value from the shift to global LNG pricing.
During the second quarter, the company’s total international segment income was $79 million, which included $26 million of income from equity method investees. The company received a total of $77 million in cash distributions from equity method companies during the second quarter, comprising $75 million in dividends and a $2 million return of capital.
The company reaffirmed its annual guidance ranges for total oil production, total oil-equivalent production, and capital expenditures. Oil production has been set between 195,000 bopd (higher end) and 185,000 bopd (lower end). Total oil equivalent production has been set between 400,000 boepd (higher end) and 380,000 boepd (lower end). Capital expenditures guidance stayed between $2.1 billion (higher end) and $1.9 billion (lower end).
The company said its total oil and oil-equivalent production is expected to peak during the third quarter, with oil production rising to approximately 200,000 net bopd, before moderating into the fourth quarter. Capital expenditures are expected to decline sequentially in both the third and fourth quarters, while FCF on a price-normalized basis is expected to increase sequentially in both quarters.
Source:https://www.rigzone.com