Third Quarter 2021

Table of Contents:

Statements of Income

2

Balance Sheets

3

Statements of Cash Flows

4

Segment Income Summary

5

United States Segment Supplemental Financial Data

6

International Segment Supplemental Financial Data

7

Non-GAAP Reconciliations

8 - 11

Guy Baber

713/296-1892

gbaber@marathonoil.com

John Reid

713/296-4380

jreid@marathonoil.com

Investor Relations

990 Town and Country Boulevard

Houston, TX 77024-2217

Additional information regarding Investor Relations, Financial Highlights, and News Releases can be reviewed on our website at: https://ir.marathonoil.com/

November 3, 2021

Consolidated Statements of Income

Marathon Oil Corporation

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

1st Qtr

2nd Qtr

3rd Qtr

Year

(In millions, except per share data)

2020

2020

2020

2020

2020

2021

2021

2021

2021

REVENUES AND OTHER INCOME:

Revenues from contracts with customers

$

1,024

$

490

$

761

$

822

$

3,097

$

1,177

$

1,254

$

1,438

$

3,869

Net gain (loss) on commodity derivatives

202

(70)

(1)

(15)

116

(153)

(166)

(79)

(398)

Income (loss) from equity method investments

(12)

(152)

(10)

13

(161)

44

49

86

179

Net gain (loss) on disposal of assets

9

(2)

1

1

9

-

1

7

8

Other income

7

6

3

9

25

3

5

1

9

Total revenues and other income

1,230

272

754

830

3,086

1,071

1,143

1,453

3,667

COSTS AND EXPENSES:

Production

160

129

129

137

555

121

126

131

378

Shipping, handling and other operating

144

105

183

164

596

152

167

219

538

Exploration

28

26

27

100

181

21

25

63

109

Depreciation, depletion and amortization

644

597

554

521

2,316

496

532

522

1,550

Impairments

97

-

1

46

144

1

46

13

60

Taxes other than income

66

30

49

55

200

74

74

88

236

General and administrative

76

88

53

57

274

89

68

70

227

Total costs and expenses

1,215

975

996

1,080

4,266

954

1,038

1,106

3,098

Income (loss) from operations

15

(703)

(242)

(250)

(1,180)

117

105

347

569

Net interest and other

(64)

(69)

(62)

(61)

(256)

(13)

(59)

(57)

(129)

Other net periodic benefit costs (credits)

-

7

(6)

(2)

(1)

3

(1)

-

2

Loss on early extinguishment of debt

-

-

-

(28)

(28)

-

(19)

(102)

(121)

Income (loss) before income taxes

(49)

(765)

(310)

(341)

(1,465)

107

26

188

321

Estimated income tax provision (benefit)

Current

(2)

(2)

(6)

18

8

14

13

29

56

Deferred

(1)

(13)

13

(21)

(22)

(4)

(3)

(25)

(32)

Total provision (benefit) for income taxes

(3)

(15)

7

(3)

(14)

10

10

4

24

NET INCOME (LOSS)

$

(46)

$

(750)

$

(317)

$

(338)

$

(1,451)

$

97

$

16

$

184

$

297

Effective income tax rate

6 %

2 %

(2)%

1 %

1 %

9 %

38 %

2 %

7 %

Per common share data:

Basic:

Weighted average shares (millions)

794

789

790

790

792

789

789

789

791

NET INCOME (LOSS)

$

(0.06)

$

(0.95)

$

(0.40)

$

(0.43)

$

(1.83)

$

0.12

$

0.02

$

0.23

$

0.38

Diluted:

Weighted average shares (millions)

794

789

790

790

792

789

789

789

791

NET INCOME (LOSS)

$

(0.06)

$

(0.95)

$

(0.40)

$

(0.43)

$

(1.83)

$

0.12

$

0.02

$

0.23

$

0.38

Dividends paid per common share

$

0.05

$

-

$

-

$

0.03

$

0.08

$

0.03

$

0.04

$

0.05

$

0.12

2

Consolidated Balance Sheets

Marathon Oil Corporation

Mar. 31

June 30

Sept. 30

Dec. 31

Mar. 31

June 30

Sept. 30

(In millions)

2020

2020

2020

2020

2021

2021

2021

ASSETS

Current assets:

Cash and cash equivalents

$

817

$

522

$

1,119

$

742

$

1,125

$

970

$

485

Receivables less allowance for doubtful accounts

703

620

643

747

921

1,008

1,068

Inventories

78

77

77

76

78

78

77

Derivative assets

193

79

61

23

-

-

-

Other current assets

118

107

22

24

26

19

25

Total current assets

1,909

1,405

1,922

1,612

2,150

2,075

1,655

Equity method investments

628

476

467

447

460

458

489

Property, plant and equipment, net

16,903

16,424

16,029

15,638

15,313

15,019

14,734

Other noncurrent assets

275

262

245

259

310

248

283

Total assets

$

19,715

$

18,567

$

18,663

$

17,956

$

18,233

$

17,800

$

17,161

LIABILITIES

Current liabilities:

Accounts payable

$

1,104

$

696

$

730

$

837

$

918

$

937

$

1,028

Payroll and benefits payable

68

76

72

57

37

49

64

Accrued taxes

72

77

45

72

78

95

131

Other current liabilities

198

216

219

247

366

461

417

Long-term debt due within one year

-

-

500

-

500

33

36

Total current liabilities

1,442

1,065

1,566

1,213

1,899

1,575

1,676

Long-term debt

5,502

5,503

5,405

5,404

4,905

4,875

3,977

Deferred tax liabilities

185

171

184

163

160

156

132

Defined benefit postretirement plan obligations

172

194

182

180

176

151

137

Asset retirement obligations

236

242

236

241

251

272

286

Deferred credits and other liabilities

220

217

198

194

171

137

157

Total liabilities

7,757

7,392

7,771

7,395

7,562

7,166

6,365

TOTAL STOCKHOLDERS' EQUITY

11,958

11,175

10,892

10,561

10,671

10,634

10,796

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

19,715

$

18,567

$

18,663

$

17,956

$

18,233

$

17,800

$

17,161

Common stock issued

937

937

937

937

937

937

937

Common stock held in treasury

146

147

147

148

149

148

148

Net shares outstanding at balance sheet date

791

790

790

789

788

789

789

3

Consolidated Statements of Cash Flows (YTD)

Marathon Oil Corporation

Mar. 31

June 30

Sept. 30

Dec. 31

Mar. 31

June 30

Sept. 30

(In millions)

2020

2020

2020

2020

2021

2021

2021

OPERATING ACTIVITIES:

Net income (loss)

$

(46)

$

(796)

$

(1,113)

$

(1,451)

$

97

$

113

$

297

Adjustments to reconcile to net cash provided by operating activities:

Depreciation, depletion and amortization

644

1,241

1,795

2,316

496

1,028

1,550

Impairments

97

97

98

144

1

47

60

Exploratory dry well costs and unproved property impairments

22

40

63

159

17

39

101

Net gain on disposal of assets

(9)

(7)

(8)

(9)

-

(1)

(8)

Loss on early extinguishment of debt

-

-

-

28

-

19

121

Deferred income taxes

(1)

(14)

(2)

(22)

(4)

(7)

(32)

Unrealized (gain) loss on derivative instruments

(171)

(75)

(39)

27

82

157

130

Pension and other post retirement benefits, net

(11)

(31)

(35)

(43)

(7)

(14)

(25)

Stock-based compensation

15

28

43

57

6

17

29

Equity method investments, net

28

180

189

210

(14)

(17)

(57)

Changes in:

Current receivables

407

489

467

367

(175)

(253)

(313)

Inventories

(6)

(5)

(5)

(4)

(2)

(2)

(1)

Current accounts payable and accrued liabilities

(234)

(456)

(478)

(381)

101

121

228

Other current assets and liabilities

(16)

46

83

75

61

73

66

All other operating, net

(18)

(27)

(3)

-

(37)

(43)

(53)

Net cash provided by operating activities

701

710

1,055

1,473

622

1,277

2,093

INVESTING ACTIVITIES:

Additions to property, plant and equipment

(620)

(946)

(1,090)

(1,343)

(209)

(483)

(772)

Additions to other assets

(1)

12

15

15

-

-

-

Acquisitions, net of cash acquired

-

3

(1)

(1)

-

-

-

Disposal of assets, net of cash transferred to the buyer

3

9

9

18

3

15

29

Equity method investments - return of capital

7

7

7

7

-

6

15

All other investing, net

-

-

-

1

(1)

(1)

-

Net cash used in investing activities

(611)

(915)

(1,060)

(1,303)

(207)

(463)

(728)

FINANCING ACTIVITIES:

Borrowings

-

-

400

400

-

-

-

Debt repayments

-

-

-

(500)

-

(500)

(1,400)

Debt extinguishment costs

-

-

-

(27)

-

(19)

(117)

Purchases of common stock

(92)

(92)

(92)

(92)

(9)

(9)

(10)

Dividends paid

(40)

(40)

(40)

(64)

(23)

(55)

(94)

All other financing, net

1

1

(2)

(3)

-

(3)

(1)

Net cash provided by (used in) financing activities

(131)

(131)

266

(286)

(32)

(586)

(1,622)

Net increase (decrease) in cash and cash equivalents

(41)

(336)

261

(116)

383

228

(257)

Cash and cash equivalents at beginning of period

858

858

858

858

742

742

742

Cash and cash equivalents at end of period

$

817

$

522

$

1,119

$

742

$

1,125

$

970

$

485

4

Segment Income Summary

Marathon Oil Corporation

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Year

1st Qtr

2nd Qtr

3rd Qtr

Year

(Dollars in millions)

2020

2020

2020

2020

2020

2021

2021

2021

2021

Segment income (loss)

United States

$

(20)

$

(365)

$

(135)

$

(33)

$

(553)

$

212

$

207

$

305

$

724

International

(1)

(6)

8

29

30

50

68

93

211

Segment income (loss)

(21)

(371)

(127)

(4)

(523)

262

275

398

935

Not allocated to segments - Corporate items:

Net interest and other

(64)

(69)

(62)

(68)

(263)

(54)

(67)

(65)

(186)

Other net periodic benefit (costs) credits

3

4

3

3

13

3

4

3

10

General and administrative

(40)

(40)

(23)

(25)

(128)

(40)

(36)

(38)

(114)

Other income and costs

(5)

(5)

(6)

(4)

(20)

(5)

(5)

(5)

(15)

Income tax (provision) benefit

2

4

(4)

-

2

-

2

17

19

Not allocated to segments - Adjustments for special items:

Net gain (loss) on disposal of assets

9

(2)

1

1

9

-

1

7

8

Proved property impairments

(2)

-

(1)

(46)

(49)

(1)

(46)

(13)

(60)

Exploratory dry well costs, unproved property impairments and other

-

-

(6)

(78)

(84)

-

(7)

(48)

(55)

Goodwill impairment

(95)

-

-

-

(95)

-

-

-

-

Pension settlement

(2)

(14)

(9)

(5)

(30)

-

(5)

(3)

(8)

Pension curtailment

-

17

-

-

17

-

-

-

-

Unrealized gain (loss) on derivative instruments

171

(96)

(36)

(66)

(27)

(82)

(75)

27

(130)

Unrealized gain on interest rate swaps (a)

-

-

-

12

12

41

8

8

57

Reduction in workforce (b)

-

(13)

(2)

(2)

(17)

(11)

(1)

-

(12)

Impairment of equity method investment

-

(152)

(18)

(1)

(171)

-

-

-

-

Loss on early extinguishment of debt

-

-

-

(28)

(28)

-

(19)

(102)

(121)

Other (c)

(2)

(13)

(28)

(27)

(70)

(16)

(13)

(2)

(31)

Benefit for income taxes related to special items

-

-

1

-

1

-

-

-

-

Total special items

79

(273)

(98)

(240)

(532)

(69)

(157)

(126)

(352)

Not allocated to segments - Total

(25)

(379)

(190)

(334)

(928)

(165)

(259)

(214)

(638)

Net income (loss)

$

(46)

$

(750)

$

(317)

$

(338)

$

(1,451)

$

97

$

16

$

184

$

297

  1. Included within Net interest and other on our consolidated statements of income.
  2. Included within General and administrative on our consolidated statements of income.
  3. For the first quarter and year ended 2021, balances include $13 million related to the termination of an aircraft lease agreement, which is included within General and administrative on our consolidated statements of income.

5

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Marathon Oil Corporation published this content on 03 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 November 2021 20:32:36 UTC.