Marathon Oil Corp. posted a smaller-than-expected loss on Aug. 6 as it reined in costs to cushion the impact from the COVID-19 pandemic that has crushed crude prices and sapped demand for fuel.
The oil and gas producer cut its costs and expenses by 17.2% to $975 million as the average realized price for its U.S. crude oil and condensate fell 63.4% to $21.65/bbl.
U.S. crude prices remain about 32% lower from January levels despite a recent rally, as COVID-19 drained demand and a battle for market share among the world's top producers flooded the market with oil.
However, with oil prices having rebounded from a dip into negative territory, Marathon raised its production guidance to 190,000 net bbl/d of oil at mid-point, inclusive of year-to-date curtailment. It also cut its full-year capex to $1.2 billion from $1.3 billion.
Permian Basin producer Parsley Energy Inc. also narrowed its 2020 capital budget to between $650 million and $700 million from less than $700 million previously, however it did not reinstate its production guidance citing ongoing uncertainty caused by the coronavirus.
Marathon's total net production for the quarter fell to 390,000 boe/d from 435,000 boe/d a year ago.
The Houston-based company reported a loss of $750 million, or 95 cents per share, in the second quarter ended June 30, from a profit of $161 million, or 20 cents per share, last year.
Excluding items, Marathon posted a loss of 60 cents per share, smaller than analysts' estimate of 63 cents per share, according to Refinitiv IBES, while Parsley posted a surprise profit.
Recommended Reading
Iraq to Seek Bids for Oil, Gas Contracts April 27
2024-04-18 - Iraq will auction 30 new oil and gas projects in two licensing rounds distributed across the country.
Aker BP’s Hanz Subsea Tieback Goes Onstream
2024-04-22 - AKER BP’s project marks the first time subsea production systems have been reused on the Norwegian Continental Shelf.
E&P Highlights: April 22, 2024
2024-04-22 - Here’s a roundup of the latest E&P headlines, including a standardization MoU and new contract awards.
Deepwater Roundup 2024: Americas
2024-04-23 - The final part of Hart Energy E&P’s Deepwater Roundup focuses on projects coming online in the Americas from 2023 until the end of the decade.
Technip Energies Wins Marsa LNG Contract
2024-04-22 - Technip Energies contract, which will will cover the EPC of a natural gas liquefaction train for TotalEnergies, is valued between $532 million and $1.1 billion.