Marathon Oil Corporation, a Houston based company, posted a loss of $170 million for the second quarter on Wednesday. With this figure, Marathon has slashed its losses by over half since last year. In 2015 during the second quarter, Marathon posted a loss of $386 million. The loss reported this year has crushed analysts’ predictions.
The independent exploration firm’s revenue fell by $200 million down to $1.3 billion, a significant 15 percent decline. In addition to this drop, expenses for Marathon fell by over $400 million to $1.5 billion. The loss reported during this second quarter totaled to roughly 20 cents a share. This number is a 56 percent improvement against the number posted during this quarter last year.
According to Marathon, production stayed flat with a decrease of 4 percent since 2015 to 393 million barrels of oil equivalent (BOE) each day. The company reported selling off over $1 billion in “non-core” properties this year alone and purchased 61,000 acres of Oklahoma’s STACK play for over $888 million.
Lee Tillman, president and CEO of Marathon, said that the company is directing cash into smaller-cost, larger-margin U.S. wells. Per Tillman’s statement, “In addition to successful portfolio management, we continued our relentless focus on reducing costs and driving durable operational efficiencies while delivering impressive new well results in the resource plays.”
Marathon also changed its 2016 unit production costs for North America by $1.00 per BOE to a range between $6 and $7. International unit production costs were adjusted down by $0.50 per BOE to a range between $4.50 and $5.
Article written by HEI contributor Briana Steptoe.