HOUSTON, April 20, 2021
/PRNewswire/ -- Marathon Oil Corporation (NYSE: MRO) today provided
preliminary information regarding certain first quarter 2021
financial and operational estimates in light of uncertainty from
Winter Storm Uri. The Company will
report final first quarter results on Wednesday, May 5, after the close of U.S.
financial markets. The Company will conduct a conference call on
Thursday, May 6, at 9 a.m. ET.
Preliminary 1Q21 Results
- Cash flow from operations of $610
million to $630 million,
including $10 million to $20 million of negative changes in working
capital
- Cash additions to property, plant, and equipment of
approximately $200 million
- Total Company oil production of 172,000 net bopd with sales of
168,000 net bopd; total Company oil-equivalent production of
345,000 net boed with sales of 341,000 net boed; difference between
production and sales due primarily to an underlift in Equatorial Guinea
- Estimated unhedged U.S. segment realizations1 of
approximately $55/bbl for oil,
$24/bbl for NGLs, and $6.30/mcf for natural gas; International segment
oil realizations of approximately $44/bbl
- Realized derivative loss of $71
million
- General and administrative expense of approximately
$90 million, including $11 million of severance expense and $13 million of corporate aircraft lease
termination expense, both related to cost reduction actions during
first quarter 2021
Footnotes:
1 Inclusion of realized gains (losses) on crude oil
derivative instruments would have decreased average price
realizations by approximately $4.60
per bbl for first quarter 2021.
Forward-Looking Statements
This release contains forward-looking statements. All
statements, other than statements of historical fact, including,
without limitation, statements regarding the Company's anticipated
results of operations and financial performance, including
estimates related to cash flow from operations, cash additions to
property, plant and equipment, production, segment realizations,
derivative losses and general and administrative expenses. Words
such as "anticipate," "believe," "could," "estimate," "expect,"
"forecast," "future," "guidance," "intend," "may," "outlook,"
"plan," "positioned," "project," "seek," "should," "target,"
"will," "would," or similar words may be used to identify
forward-looking statements; however, the absence of these words
does not mean that the statements are not forward-looking. Where,
in any forward-looking statement, the Company expresses an
expectation or estimate as to its results, such expectation or
estimate is expressed in good faith and believed to be reasonable
at the time such statement is made. However, a number of
factors could cause actual results to differ materially from those
projected, including, but not limited to: any adjustments to our
results of operations recognized as part of our regular process for
producing and reviewing our financial statements for completed
periods; conditions in the oil and gas industry, including
supply/demand levels for crude oil and condensate, NGLs and natural
gas and the resulting impact on price; changes in expected reserve
or production levels; changes in political or economic conditions
in the U.S. and Equatorial Guinea,
including changes in foreign currency exchange rates, interest
rates, and inflation rates; actions taken by the members of the
Organization of the Petroleum Exporting Countries and Russia affecting the production and pricing of
crude oil; other global and domestic political, economic or
diplomatic developments; capital available for exploration and
development; risks related to the Company's hedging activities;
voluntary or involuntary curtailments, delays or cancellations of
certain drilling activities; well production timing; liability
resulting from litigation; drilling and operating risks; lack of,
or disruption in, access to storage capacity, pipelines or other
transportation methods; availability of drilling rigs, materials
and labor, including the costs associated therewith; difficulty in
obtaining necessary approvals and permits; non-performance by third
parties of contractual obligations; unforeseen hazards such as
weather conditions, a health pandemic (including COVID-19), acts of
war or terrorist acts and the government or military response
thereto; cyber-attacks; changes in safety, health, environmental,
tax and other regulations, requirements or initiatives, including
initiatives addressing the impact of global climate change, air
emissions, or water management; other geological, operating and
economic considerations; and the risk factors, forward-looking
statements and challenges and uncertainties described in the
Company's 2020 Annual Report on Form 10-K and other public filings
and press releases, available at https://ir.marathonoil.com/.
Except as required by law, the Company undertakes no obligation to
revise or update any forward-looking statements as a result of new
information, future events or otherwise.
Media Relations Contact
Stephanie Gentry: 713-296-3307
Investor Relations Contacts:
Guy Baber: 713-296-1892
John Reid: 713-296-4380
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SOURCE Marathon Oil Corporation