Lifting cost estimates
For 2Q16, Marathon Oil (MRO) expects its lifting costs to be in the range of $9.13–$10.63 per boe (barrel of oil equivalent), which would be a midpoint decrease of ~18% from 2Q15.
Lifting costs (also referred as production costs) are the costs to operate and maintain oil wells after drilling is complete. Lifting cost is derived by adding LOE (lease operating expenses), production taxes, workover costs, and other operating costs.
By comparison, peer S&P 500 (SPY) upstream companies ConocoPhillips (COP), Devon Energy (DVN), and Murphy Oil (MUR) have lifting costs of $10.68 per boe, $8.37 per boe, and $9.60 per boe, respectively, for 1Q16.