Marathon Oil Corp. posted a second quarter 2020 net loss of $750 million, compared to net income of $1.1 billion for second-quarter 2019. Adjusted net loss was $477 million. Net operating cash flow was $9 million, or $86 million before changes in working capital.
Second quarter capital expenditures were $137 million due to a pause in drilling and completion activity.
Total second quarter oil production of 197,000 net b/d of oil was inclusive of 11,000 net b/d of oil curtailments.
At the end of the quarter, the company had $3.0 billion undrawn on its revolving credit facility and $522 million of cash and cash equivalents.
Net cash provided by operations was $9 million during second quarter 2020, or $86 million before changes in working capital. Second quarter capital expenditures totaled $137 million.
US production averaged 307,000 net boe/d for the second quarter. Oil production averaged 182,000 net b/d of oil inclusive of 11,000 net b/d of curtailments.
In the Eagle Ford, Marathon Oil's second-quarter 2020 production averaged 108,000 net boe/d. Oil production averaged 66,000 net b/d of oil on 20 gross company-operated wells to sales.
In the Bakken, production averaged 103,000 net boe/d in the quarter, including oil production of 80,000 net b/d. The company brought eight gross company-operated wells to sales during the quarter in the Bakken.
Oklahoma production averaged 60,000 net boe/d in the quarter, including oil production of 15,000 net b/d. The company did not bring any gross company-operated wells to sales during the quarter.
Northern Delaware production averaged 30,000 net boe/d in second-quarter 2020. Oil production averaged 16,000 net b/d on six gross company-operated wells to sales.
In total, Marathon brought 34 gross company-operated wells to sales during the quarter, with 32 of those wells coming online in April. Following the pause in drilling and completion activity during the quarter, the company has resumed activity in both the Eagle Ford and Bakken, currently running three rigs and two frac crews across the two plays. Gross company-operated wells to sales over the second half of 2020 will be weighted to the fourth quarter.
Marathon completed its 2020 Resource Play Exploration (REx) drilling program, which was primarily focused on continued delineation of its contiguous 60,000 net acreage position in the Texas Delaware oil play. In the Texas Delaware, Marathon has now brought online four Woodford wells and two Meramec wells since entering the play. These wells have confirmed reservoir productivity and gas-oil ratio expectations while exhibiting high oil cut, shallow decline profiles, and low water/oil ratios, the company said.
Equatorial Guinea production averaged 83,000 net boe/d for the quarter, including 15,000 net b/d of oil.
Citing execution and capital efficiency improvement, Marathon Oil reduced its full year 2020 capital spending guidance to $1.2 billion and raised its full year 2020 oil production guidance, the midpoint of which is now 190,000 net bo/d, inclusive of year-to-date curtailments. Previously provided production guidance was on an underlying basis and excluded the impact from production curtailments. Revised full year guidance accounts for a sequential reduction in expected third quarter Equatorial Guinea production due to the impact of higher forward prices on net interest under the production sharing contract (PSC) and natural decline.