• 4 hours UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 6 hours Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 8 hours Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 9 hours German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 11 hours Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 12 hours Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 1 day Oil Prices Rise After API Reports Major Crude Draw
  • 1 day Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 1 day Gazprom Speaks Out Against OPEC Production Cut Extension
  • 1 day Statoil Looks To Lighter Oil To Boost Profitability
  • 1 day Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 1 day Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 1 day Whitefish Energy Suspends Work In Puerto Rico
  • 1 day U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 2 days Thanksgiving Gas Prices At 3-Year High
  • 2 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 2 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 2 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 2 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 2 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 3 days ConocoPhillips Sets Price Ceiling For New Projects
  • 5 days Shell Oil Trading Head Steps Down After 29 Years
  • 5 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 5 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 5 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 5 days Venezuela Officially In Default
  • 5 days Iran Prepares To Export LNG To Boost Trade Relations
  • 6 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 6 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 6 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 6 days Rosneft Announces Completion Of World’s Longest Well
  • 6 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 6 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 6 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 7 days Santos Admits It Rejected $7.2B Takeover Bid
  • 7 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 7 days Africa’s Richest Woman Fired From Sonangol
  • 7 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 7 days Russian Hackers Target British Energy Industry
  • 7 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
Oil Prices Stuck Ahead Of OPEC Meeting

Oil Prices Stuck Ahead Of OPEC Meeting

Oil prices are holding steady…

China Is The World’s Biggest Energy Market Mover

China Is The World’s Biggest Energy Market Mover

China is the foremost consumer…

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

Marathon Surpasses Production Targets But Faces Steep Loss

Marathon Surpasses Production Targets But Faces Steep Loss

Houston-based Marathon Oil Corporation (NYSE: MRO) announced on Wednesday that falling oil prices led to a fourth-quarter net loss of $793 million, bringing their total 2015 adjusted net loss of $869 million.

Total fourth-quarter revenue was $1.48 billion, beating analysts’ expectations of $1.17 billion.

Despite its net loss, which was largely driven by $580 million in writedowns due to the low price of crude oil, Marathon reported that due to lower production costs per barrel, the company was still able to surpass 2015 production targets, ending 2015 with an 8 percent production growth overall (excluding Libya).

Marathon added 247 million barrels of oil equivalent in 2015, ending the year with 2.2 billion barrels of oil equivalent of net proved reserves.

Related: How Far Will The U.S. Go If Turkey Invades Syria?

The gain in production was in part due to a 20 percent increase in Oklahoma unconventional volumes, and flat production in its Eagle Ford plays.

Workforce cuts of 20 percent resulted in $160 million in annualized net savings for Marathon, and overall, fourth-quarter capital spend and production costs came in better than expectations. The announcement also stated that Marathon was cutting its 2016 capital program by half, down to $1.4 billion. This amount includes $1.15 billion for its North American activity, with a focus on Eagle Ford, Oklahoma Resource Basins, and the Bakken, and $170 million that will be reserved for international assets.

Related: Historic OPEC-Russia Agreement Will Have Minimal Impact

Marathon is also set to drastically reduce its exploration spending to $30 million, down from its $250 million budget in 2015, and $500 million budget for 2014.

“Our actions early in the cycle on production expenses and G&A reset our cost structure and positioned us to realize full year benefits in 2016. “ said Marathon Oil President and CEO Lee Tillman.

On tap for Marathon in 2016 is the startup of its Alba field compression project in Equatorial Guinea.

Marathon’s shares were down more than 8 percent on Thursday morning trading.

By James Burgess of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News