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Why Marathon Oil’s Production Is Set to Decline in 4Q17

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Marathon Oil’s 4Q17 production guidance

For 4Q17, Marathon Oil (MRO) expects total production of 375–395 Mboepd (thousand barrels of oil equivalent per day). On a year-over-year basis, the mid-point of its 4Q17 production guidance is ~3% lower than 4Q16. Its year-over-year decrease in production could be attributed to reduced capital investments and divestitures in the last year. Sequentially, Marathon Oil’s 4Q17 production guidance is ~2% lower than 3Q17.

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Marathon Oil’s 4Q17 segment-wise production guidance

For 4Q17, MRO expects its North America E&P (exploration and production) to be in the range of 255–265 MBoepd, a mid-point increase of ~23% from its 4Q16 North America E&P of 212 MBoepd.

For 4Q17, MRO expects international E&P to be in the range of 120–130 MBoepd, a mid-point decrease of ~3% from its 4Q16 international E&P of 129 MBoepd.

Marathon Oil’s 2017 production guidance

For 2017, Marathon Oil expects total production volume of 350–360 Mboepd. Its peer Occidental Petroleum (OXY) expects 2017 production of 597–599 Mboepd.

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