Independent oil and gas exploration and production company Marathon Oil Corporation reported a net income of $297 million for the first quarter of 2024, some 28.8 percent below the Q1, 2023 figures. In its quarterly report, Marathon Oil said its revenues for the quarter were $1.5 billion, down from $1.6 billion reported in the corresponding quarter a year prior.
The company delivered first-quarter oil production of 181,000 net barrels of oil per day (boped) and had a first-quarter oil-equivalent production of 371,000 net boed.
US production averaged 326,000 net boed during the first quarter of 2024. Oil production averaged 172,000 net bopd. January winter storms negatively affected first-quarter oil production by 4,000 net bopd, with the impact primarily concentrated in the Bakken, consistent with prior guidance, according to Marathon Oil.
In Equatorial Guinea, Marathon Oil is responsible for directly marketing its own share of Alba LNG, under new contractual agreements that came into force on January 1, 2024. During the first quarter, Equatorial Guinea production averaged 45,000 net boed, while total sales volumes averaged 43,000 net boed.
Furthermore, during the quarter, Marathon Oil and its partners made a final investment decision on two Alba infill wells and have successfully contracted a rig within the West Africa region, expecting a first-half 2025 spud date.
The company said that first gas from both wells is expected during the second half of 2025 and it is expected to largely mitigate Alba field base decline for two years, contributing to a relatively flat production profile from the full year 2024 to the full year 2026.
Looking further ahead into 2024, Marathon Oil said its production, capital expenditure, cost, and tax guidance ranges are all unchanged.
“With first quarter results, we continued to build on our multi-year track record of consistent operational execution, strong financial results, and compelling return of capital to our shareholders,” said chairman, president, and CEO Lee Tillman.
“During the first quarter, we improved our capital efficiency by bringing online 12 three-mile laterals, including one of the strongest pads industry has delivered in the Permian Basin; we enhanced our financial flexibility through a highly successful $1.2 billion bond offering; and we continued to progress the EG Regional Gas Mega Hub by sanctioning two high-confidence, low-execution risk infill wells on the Alba Block,” he added.
“The combination of outstanding performance from our extended lateral program and material additions to our refrac and redevelopment opportunity set continues to enhance and further extend our decade-plus of development well inventory life. Bottom line, I’m proud of our team, as we executed according to our plan during first quarter while holding true to our core values of safety and environmental excellence. We remain fully on track to deliver a 2024 program that provides a sector-leading combination of free cash flow, capital efficiency, and shareholder returns,” he continued.
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