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Marathon Oil’s 2016 Operational Performance Report Card

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Production and capital expenditure

For 2016, Marathon Oil (MRO) exceeded the midpoint of its E&P (exploration and production) production guidance range by 2 Mboepd (thousand barrels of oil equivalent per day).

MRO’s E&P production excludes Libya and oil sands mining in Canada. MRO achieved its better-than-expected production while spending ~$200 million less than its original capital expenditure guidance.

Marathon Oil’s peer Devon Energy (DVN), which also operates in STACK in Oklahoma, spent ~$3.1 billion in capital expenditure in 2016. For 2017, MRO is planning to spend significantly more as a part of its capital program. We’ll take a look at MRO’s 2017 capital program in the next article.

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Production expenses

For 2016, Marathon Oil’s North America E&P production (USO) (UNG) expense of $5.96 per boe (barrel of oil equivalent) came in below the low end of its production expense guidance range. MRO’s North America E&P production expenses were ~19% lower than their level of $7.38 per boe in 2015.

For 2016, Marathon Oil’s International E&P production expense of $4.41 per boe came in below the low end of its production expense guidance range. MRO’s International E&P production expenses were ~17% lower than their level of $5.33 per boe in 2015. International E&P production expenses exclude Libya.

Now let’s take a look at MRO’s 2017 capital program and production guidance.

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