Marathon Oil’s International E&P segment
We analyzed Marathon Oil’s (MRO) 2Q15 North America E&P (exploration and production) segment’s performance in the last part of this series. Now, we’ll discuss its international operations. Marathon Oil’s 2Q15 International E&P segment’s profits fell due to lower average crude oil realized prices and lower natural gas and NGL (natural gas liquid) production volumes in 2Q15 compared to 2Q14.
In the International E&P segment, crude oil’s realized prices fell 43% in 2Q15 compared to 2Q14. NGL and natural gas realized prices improved 3% and 13% during the same period, respectively.
As noted in the above chart, Marathon Oil’s International E&P segment’s natural gas and NGL production volume fell in 2Q15—compared to 2Q14. In 2Q15, Marathon Oil’s international production featured the following:
- Higher maintenance activity in Equatorial Guinea resulted in lower production. Marathon Oil’s total production fell 19% to 86,000 barrels of oil equivalent per day in 2Q15—compared to 2Q14.
- In the United Kingdom, Marathon Oil’s total production rose 57% to 22,000 barrels of oil equivalent per day in 2Q15 compared to the same quarter last year. It brought a new well online with a higher-than-estimated initial production rate.
Oil Sands Mining segment’s production
The OSM (Oil Sands Mining) segment’s production fell 31% to 25,000 barrels of oil equivalent per day in 2Q15—compared to 2Q14. The fall was due to:
- planned maintenance activity related the shutdown of the “base upgrader” assets
- unplanned maintenance activity related the shutdown at the “expansion upgrader”
- completion of the Muskeg River mine—an oil sands mining project in Canada
Like Marathon Oil, major oil companies that have oil sands operations in Canada include ExxonMobil (XOM) through its Imperial Oil subsidiary in Canada, Cenovus Energy (CVE), Suncor Energy (SU), and Statoil ASA (STO). Marathon Oil accounts for 1.06% of the Energy Select Sector SPDR ETF (XLE) and 0.07% of the SPDR S&P 500 ETF (SPY).
Next, we’ll discuss Marathon Oil’s YTD (year-to-date) performance.