Third Quarter 2021
Table of Contents: | |
Statements of Income | |
Balance Sheets | |
Statements of Cash Flows | |
Segment Income Summary | |
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 |
- Included within Net interest and other on our consolidated statements of income.
- Included within General and administrative on our consolidated statements of income.
- 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.