Marathon Oil Corporation has reported a second quarter 2015 adjusted net loss of US$155 million, or US$0.23 per diluted share, excluding the impact of certain items not typically represented in analysts' earnings estimates and that would otherwise affect comparability of results. The reported net loss was US$386 million, or US$0.57 per diluted share.
- Second quarter capital programme at approximately US$680 million, down 40% from first quarter; full-year capital programme at or below US$3.3 billion.
- Total Company net production from continuing operations (excluding Libya) averaged 407 000 net boe/d, up 6% over the year-ago quarter; US resource play net production of 220 000 net boe/d up nearly 30% over year-ago quarter.
- Reaffirming total Company and US resource play production growth rates of 5 - 7% and 20%, respectively, year over year.
- Reduced North America E&P production costs per boe more than 30% below year-ago quarter; adjusting full-year guidance down US$1.25 per boe.
- Increased captured savings from US unconventional drilling and completions (D&C) costs by an additional US$50 million to greater than US$300 million.
- Top-performing Eagle Ford rig drilled two wells achieving an average of 3100 ft per day.
- Best three-horizon "stack-and-frac" in Eagle Ford achieved 30 day IP rates of 1400 - 1650 gross boe/d; Bakken Three Forks second bench well delivered 30 day IP rate of 1226 gross boe/d.
- Recorded 96% average operational availability for Company-operated assets.
- Progressing non-core asset sales with signed agreement for approximately US$100 million.
"In the second quarter, we concentrated efforts on protecting margins and executing our planned reduction in activity and spending while delivering E&P production within guidance," said Marathon Oil President and CEO Lee M. Tillman. "Capital spending in the quarter was down about 40% sequentially as we've moderated activity levels in the US resource plays. Looking to the second half of the year, we expect to maintain production levels and achieve our year-over-year production growth of 5 - 7% for the total Company and 20% in the U.S. resource plays at or below our US$3.3 billion capital programme. With continuing uncertainty and volatility in oil prices, we remain resolutely focused on the fundamentals within our control that will position the Company for long-term success, including durable cost reductions, enhanced well productivity and sustainable operational efficiencies. Importantly, we've reduced E&P production expenses and total Company G&A costs, excluding special items, by more than 20% over the year-ago quarter."
Adapted from a press release by David Bizley