Marathon Oil Corp. has second-quarter 2021 net income of $16 million, compared to a net loss of $750 million during the year ago quarter. Adjusted net income was $173 million, compared to an adjusted net loss of $477 million in second-quarter 2020 (OGJ Online, Aug. 6, 2020).
The adjustments to net income for the quarter totaled $157 million, primarily due to the income impact associated with unrealized losses on derivative instruments, miscellaneous asset impairments, and make-whole premium associated with early debt retirement.
The company generated $420 million of free cash flow during the quarter.
Marathon Oil ended the second quarter with total liquidity of $4.1 billion, which consisted of an undrawn revolving credit facility of $3.1 billion and $1.0 billion in cash and cash equivalents. The revolving credit facility was recently extended to June 2024 from May 2023.
As noted in its quarterly report Aug. 4, the company intends to fully redeem its $900 million 3.85% senior notes due 2025 with final settlement expected in September, accelerating its gross debt objective of $4.0 billion and increasing total 2021 gross debt reduction to $1.4 billion.
Second quarter capital expenditures were $289 million for the quarter and $473 million for first-half 2021. Full-year 2021 capital expenditure guidance of $1 billion remains unchanged.
The company produced 348,000 net boe/d during the quarter and has raised its full-year 2021 production guidance by 5,000 net boe/d. Oil production for the quarter was 170,000 net b/d and no change has been made to full-year 2021 oil production guidance.
US production averaged 283,000 net boe/d for second-quarter 2021. Oil production averaged 159,000 net boe/d. US unit production costs were $4.41 per boe for second quarter.
During the quarter, Marathon Oil brought a total of 61 gross company-operated wells to sales in comparison to guidance of 70 wells to sales.
In the Eagle Ford, second quarter production averaged 91,000 net boe/d. Oil production averaged 59,000 net b/d on 45 gross company-operated wells to sales.
In the Bakken, production averaged 107,000 net boe/d, including oil production of 70,000 net b/d. The company brought 16 gross operated wells to sales.
Oklahoma production averaged 54,000 net boe/d, including oil production of 12,000 net b/d.
Northern Delaware production averaged 24,000 net boe/d, including oil production of 13,000 net b/d.
Equatorial Guinea production averaged 65,000 net boe/d for the quarter, including 11,000 net b/d of oil. Second quarter sales totaled 65,000 net boe/d, including 12,000 net b/d of oil.