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Last Update: 06-Nov-12 08:50 ET
Marathon Oil shares little changed following in line earnings
Marathon Oil (MRO $30.51 +0.00) reported third quarter earnings of $0.64 per share, in-line with the Capital IQ consensus of $0.64, while revenues rose 9.5% year/year to $4.16 billion versus the the $3.19 bln consensus. Q3 Production: E&P sales volumes per day (excluding Libya) during the third quarter of 2012 averaged 399,000 net boed, up 10% compared to 363,000 net boed for the second quarter. The increase was primarily a result of increased sales from the Eagle Ford, Bakken and Anadarko Woodford plays. Compared to the third quarter of 2011, production available for sale (excluding Libya) in the third quarter of 2012 increased 49,000 net boed, or 14%, driven by growth in the co's U.S. resource plays.
The difference between production volumes available for sale and recorded sales volumes was primarily due to the timing of international liftings. Production operations in Libya were suspended in the first quarter of 2011 and resumed with limited production in the fourth quarter of 2011. During the third quarter of 2012, net production available for sale averaged 74,000 boed, compared to 44,000 boed in the second quarter, and net sales averaged 53,000 boed compared to 44,000 boed in the second quarter. Q4 and FY Production guidance: Co estimates fourth quarter E&P production available for sale will be between 400,000-415,000 net boed (excluding Libya). Guidance for full-year E&P production available for sale has been increased to between 375,000-385,000 net boed. This guidance excludes any Libyan production but includes the production impacts of recent Eagle Ford acquisitions. Additional Commentary and Outlook: "Marathon Oil's producing assets exceeded expectations in the third quarter, driven by superior execution in our U.S. resource plays and continued strong reliability from our base assets...With a strong position in U.S. resource plays and the very good operational performance we've had this year, Marathon Oil is positioned to meet or exceed our full-year production targets. In the case of exploration and production (E&P), we are raising our 2012 available for sale estimates to between 375,000 and 385,000 net boed, excluding Libya, which further demonstrates our confidence in our ability to grow production at a 5 to 7 percent compound annual rate from 2010 through 2017."
The difference between production volumes available for sale and recorded sales volumes was primarily due to the timing of international liftings. Production operations in Libya were suspended in the first quarter of 2011 and resumed with limited production in the fourth quarter of 2011. During the third quarter of 2012, net production available for sale averaged 74,000 boed, compared to 44,000 boed in the second quarter, and net sales averaged 53,000 boed compared to 44,000 boed in the second quarter. Q4 and FY Production guidance: Co estimates fourth quarter E&P production available for sale will be between 400,000-415,000 net boed (excluding Libya). Guidance for full-year E&P production available for sale has been increased to between 375,000-385,000 net boed. This guidance excludes any Libyan production but includes the production impacts of recent Eagle Ford acquisitions. Additional Commentary and Outlook: "Marathon Oil's producing assets exceeded expectations in the third quarter, driven by superior execution in our U.S. resource plays and continued strong reliability from our base assets...With a strong position in U.S. resource plays and the very good operational performance we've had this year, Marathon Oil is positioned to meet or exceed our full-year production targets. In the case of exploration and production (E&P), we are raising our 2012 available for sale estimates to between 375,000 and 385,000 net boed, excluding Libya, which further demonstrates our confidence in our ability to grow production at a 5 to 7 percent compound annual rate from 2010 through 2017."
