- Marathon Oil (NYSE:MRO) +0.8% after-hours as Q3 earnings easily topped Wall Street consensus, but weak crude oil and natural gas prices limited gains from higher production.
- MRO says Q3 total production increased 6.5% Y/Y to 425K boe/day, excluding divestitures, including a nearly 13% gain in U.S. production to 338K boe/day; total oil production rose 14% to 216K net bbl/day, and at top end of the company's guidance range.
- But MRO's average realized U.S. crude oil and condensate price fell 19.5% Y/Y to $55.09/bbl from $68.51/bbl in the year-earlier quarter while internationally the price fell 28% to $46.04/bbl from $64.08/bbl a year ago; realized prices for natural gas and natural gas liquids also were lower.
- For Q4, MRO forecasts total U.S. oil production of 190K-200K net boe/day and international oil output of 12K-16K net boe/day.
- For the full year, MRO raises its divestiture-adjusted oil production growth guidance to 11% for total company and 13% for U.S., above initial guidance of 10% and 12%, respectively.