Marathon Oil Fourth-Quarter Profit Decline

Marathon Oil, a Houston-based oil and gas producer, experienced a drop in profit for the fourth quarter due to increased production costs in the U.S.

Financial Performance

• Profit Decline: The company reported a profit of $397 million, or 68 cents a share, for the quarter ended Dec. 31, down from $525 million, or 82 cents a share, in the previous year.
• Adjusted Earnings: Adjusted per-share earnings were 69 cents, exceeding analysts’ forecast of 63 cents.
• Revenue: Revenue decreased to $1.69 billion from $1.73 billion in the same period last year, surpassing the $1.66 billion expected by analysts.

Production Cost Increase

• Reason for Cost Increase: Marathon mentioned that the average unit production cost in the U.S. rose due to lower sales volumes on fewer net wells to sales and higher “opportunistic workover activity.”
• Future Expectations: The company anticipates that unit production costs in the U.S. for 2024 will remain in line with the average for 2023.

Future Plans

• Capital Expenditure: A budget of $1.9 billion to $2.1 billion has been set for capital expenditures in 2024.
• Production Forecast: Marathon expects total oil production to remain flat year-on-year for 2024.

Overall, despite facing challenges with production costs, Marathon Oil remains committed to its future growth and development in the industry.