Why Marathon Oil Had Sequential Production Growth in 2Q17
Marathon Oil’s 2Q17 production
For 2Q17, Marathon Oil (MRO) reported total production of 389.0 Mboepd (thousand barrels of oil equivalent per day). Total production excludes production from Libya due to uncertainties in the country. Including production from Libya, MRO’s 2Q17 production was 400.0 Mboepd.
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Marathon Oil’s production trend
Marathon Oil’s quarterly production volumes started to decline in 4Q14. In 2Q15 and 1Q16, it saw a steep decline in its production volumes, mainly due to reduced capital spending in response to lower crude oil (SCO) and natural gas (UNG) prices.
Marathon Oil’s 2Q17 total production is slightly higher by less than a percentage point when compared with 2Q16 total production of 388.0 Mboepd. Sequentially, Marathon Oil’s 2Q17 total production is ~2.0% higher than total production in 1Q17 of 383.0 Mboepd. According to MRO’s press release, it attributed company-wide sequential production growth to much stronger production growth of ~11.0% from the Oklahoma Resource Basin.
MRO’s peer Occidental Petroleum (OXY) reported total production of 601.0 Mboepd, which is ~1.0% lower than production of 609.0 Mboepd in 2Q16.
Marathon Oil’s segment-wise 2Q17 production details
For 2Q17, Marathon Oil reported North American E&P (exploration and production) of 222.0 Mboepd, which is ~7.0% higher than its 2Q16 North American E&P of 208.0 Mboepd.
For 2Q17, Marathon Oil reported international E&P of 135.0 Mboepd, which is ~7.0% higher than its 2Q16 production of 126.0 Mboepd. Its international E&P production excludes Libya, which produced 11.0 Mboepd in 2Q17.
For 2Q17, Marathon Oil reported production from oil sands mining of 29.0 Mboepd.
For 2017, Marathon Oil expects production in the range of 345.0 Mboepd to 360.0 Mboepd. The guidance excludes Libya and is on a divestiture-adjusted basis. In the next part, we’ll look at MRO’s divestiture-adjusted production.
For 3Q16, MRO expects production in the range of 345.0 Mboepd to 365.0 Mboepd.