Marathon reports record second quarter revenues of $9.2 billion

July 23, 2001
USX-Marathon Group said Monday that its second quarter net income was $582 million, or $1.88/share, compared with $367 million a year earlier. Revenues of $9.2 billion in the second quarter compared with $8.7 billion in second quarter 2000.


By the OGJ Online Staff

HOUSTON, July 23 -- USX-Marathon Group said Monday that its second quarter net income was $582 million, or $1.88/share, compared with $367 million a year earlier.

USX Corp. Chairman Thomas Usher said, "This record second quarter was primarily led by strong downstream margins coupled with higher upstream earnings in comparison to second quarter 2000 results.

"However, upstream results declined from first quarter 2001 due primarily to lower natural gas prices and lower volumes related to lower crude oil liftings and reduced natural gas demand due to seasonal factors. Downstream refining margins also ended the quarter sharply lower due to increasing refined product inventories."

Marathon Group revenues were $9.2 billion in the second quarter, compared with $8.7 billion in second quarter 2000.

Worldwide exploration and production (upstream) segment income totaled $459 million in the second quarter, compared with $356 million for the same quarter last year.

US upstream income was $374 million in the quarter, compared with $277 million a year earlier, largely due to higher natural gas production and prices.

Marathon said production is expected to be 392,000 boe/d for the third quarter and 420,000 boe/d for the year. "The full-year estimate reflects reduced heavy oil investment in Canada, a higher-than-expected level of asset sales, and delays in new project start-ups."

Refining, marketing, and transportation income was $842 million in the second quarter, compared with $529 million in second quarter 2000.