05/01/2024 | Press release | Distributed by Public on 05/01/2024 15:13
First Quarter 2024 | |||
Table of Contents: | |||
Statements of Income | 2 | Guy Baber | 713/296-1892 |
Balance Sheets | 3 | [email protected] | |
Statements of Cash Flows | 4 | ||
Segment Income Summary | 5 | John Reid | 713/296-4380 |
United States Segment Supplemental Financial Data | 6 | [email protected] | |
International Segment Supplemental Financial Data | 7 | ||
Non-GAAP Reconciliations | 8 - 12 | ||
Investor Relations | |||
990 Town and Country Boulevard | |||
Houston, TX 77024-2217 | |||
Additional information regarding Investor Relations, | |||
Financial Highlights, and News Releases can be | |||
reviewed on our website at: | https://ir.marathonoil.com/ | ||
May 1, 2024 |
Consolidated Statements of Income | ||||||
Marathon Oil Corporation | ||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | |
(In millions, except per share data) | 2023 | 2023 | 2023 | 2023 | 2023 | 2024 |
REVENUES AND OTHER INCOME: | ||||||
Revenues from contracts with customers | $ 1,567 | $ 1,484 | $ 1,771 | $ 1,585 | $ 6,407 | $ 1,538 |
Net gain (loss) on commodity derivatives | 15 | 3 | 1 | 23 | 42 | (24) |
Income from equity method investments | 80 | 22 | 38 | 45 | 185 | 39 |
Net gain on disposal of assets | 5 | - 0 | 1 | 11 | 17 | - 0 |
Other income (expense) | 13 | 4 | 2 | 27 | 46 | (2) |
Total revenues and other income | 1,680 | 1,513 | 1,813 | 1,691 | 6,697 | 1,551 |
COSTS AND EXPENSES: | ||||||
Production | 201 | 214 | 192 | 221 | 828 | 221 |
Shipping, handling and other operating, including related party (a) | 162 | 161 | 164 | 202 | 689 | 169 |
Exploration | 15 | 11 | 20 | 13 | 59 | 7 |
Depreciation, depletion and amortization | 520 | 559 | 583 | 549 | 2,211 | 524 |
Impairments | - 0 | - 0 | - 0 | 2 | 2 | - 0 |
Taxes other than income | 95 | 43 | 113 | 112 | 363 | 96 |
General and administrative | 82 | 71 | 72 | 72 | 297 | 86 |
Total costs and expenses | 1,075 | 1,059 | 1,144 | 1,171 | 4,449 | 1,103 |
Income from operations | 605 | 454 | 669 | 520 | 2,248 | 448 |
Net interest and other | (82) | (92) | (94) | (84) | (352) | (69) |
Other net periodic benefit credits | 3 | 3 | 5 | 4 | 15 | 3 |
Income before income taxes | 526 | 365 | 580 | 440 | 1,911 | 382 |
Estimated income tax provision | ||||||
Current | 24 | 8 | 18 | 8 | 58 | 42 |
Deferred | 85 | 70 | 109 | 35 | 299 | 43 |
Total provision for income taxes | 109 | 78 | 127 | 43 | 357 | 85 |
NET INCOME | $ 417 | $ 287 | $ 453 | $ 397 | $ 1,554 | $ 297 |
Effective income tax rate | 21 % | 21 % | 22 % | 10 % | 19 % | 22 % |
Per common share data: | ||||||
Basic: | ||||||
Weighted average shares (millions) | 628 | 614 | 603 | 583 | 607 | 576 |
NET INCOME | $ 0.66 | $ 0.47 | $ 0.75 | $ 0.68 | $ 2.56 | $ 0.52 |
Diluted: | ||||||
Weighted average shares (millions) | 629 | 615 | 604 | 584 | 608 | 576 |
NET INCOME | $ 0.66 | $ 0.47 | $ 0.75 | $ 0.68 | $ 2.56 | $ 0.52 |
Dividends paid per common share | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.11 | $ 0.41 | $ 0.11 |
(a) The related party expense represents compensation to EG LNG for liquefaction, storage and product handling services, pursuant to the agreement that became effective on January 1, 2024. |
Consolidated Balance Sheets | |||||
Marathon Oil Corporation | |||||
Mar. 31 | June 30 | Sept. 30 | Dec. 31 | Mar. 31 | |
(In millions) | 2023 | 2023 | 2023 | 2023 | 2024 |
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ 178 | $ 215 | $ 174 | $ 155 | $ 49 |
Receivables, net | 1,215 | 1,294 | 1,434 | 1,152 | 1,276 |
Inventories | 136 | 136 | 174 | 186 | 179 |
Other current assets | 77 | 58 | 66 | 76 | 53 |
Total current assets | 1,606 | 1,703 | 1,848 | 1,569 | 1,557 |
Equity method investments | 657 | 430 | 421 | 433 | 472 |
Property, plant and equipment, net | 17,463 | 17,524 | 17,411 | 17,213 | 17,303 |
Other noncurrent assets | 286 | 262 | 239 | 360 | 336 |
Total assets | $ 20,012 | $ 19,919 | $ 19,919 | $ 19,575 | $ 19,668 |
LIABILITIES | |||||
Current liabilities: | |||||
Accounts payable | $ 1,480 | $ 1,537 | $ 1,582 | $ 1,364 | $ 1,514 |
Commercial paper | - 0 | - 0 | 450 | 450 | 450 |
Payroll and benefits payable | 41 | 50 | 67 | 70 | 40 |
Accrued taxes | 176 | 102 | 128 | 126 | 135 |
Other current liabilities | 318 | 305 | 279 | 312 | 310 |
Long-term debt due within one year | 131 | 131 | 400 | 1,600 | 400 |
Total current liabilities | 2,146 | 2,125 | 2,906 | 3,922 | 2,849 |
Long-term debt | 5,723 | 5,724 | 4,876 | 3,378 | 4,578 |
Deferred tax liabilities | 209 | 278 | 386 | 419 | 462 |
Defined benefit postretirement plan obligations | 99 | 105 | 94 | 93 | 93 |
Asset retirement obligations | 296 | 299 | 308 | 326 | 329 |
Deferred credits and other liabilities | 151 | 144 | 123 | 232 | 213 |
Total liabilities | 8,624 | 8,675 | 8,693 | 8,370 | 8,524 |
TOTAL STOCKHOLDERS' EQUITY | 11,388 | 11,244 | 11,226 | 11,205 | 11,144 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 20,012 | $ 19,919 | $ 19,919 | $ 19,575 | $ 19,668 |
Common stock issued | 937 | 937 | 937 | 937 | 937 |
Common stock held in treasury | 315 | 331 | 347 | 360 | 369 |
Net shares outstanding at balance sheet date | 622 | 606 | 590 | 577 | 568 |
Consolidated Statements of Cash Flows (YTD) | |||||
Marathon Oil Corporation | |||||
Mar. 31 | June 30 | Sept. 30 | Dec. 31 | Mar. 31 | |
(In millions) | 2023 | 2023 | 2023 | 2023 | 2024 |
OPERATING ACTIVITIES: | |||||
Net income | $ 417 | $ 704 | $ 1,157 | $ 1,554 | $ 297 |
Adjustments to reconcile to net cash provided by operating activities: | |||||
Depreciation, depletion and amortization | 520 | 1,079 | 1,662 | 2,211 | 524 |
Impairments | - 0 | - 0 | - 0 | 2 | - 0 |
Exploratory dry well costs and unproved property impairments | 14 | 24 | 41 | 53 | 6 |
Net gain on disposal of assets | (5) | (5) | (6) | (17) | - 0 |
Deferred income taxes | 85 | 155 | 264 | 299 | 43 |
Unrealized (gain) loss on derivative instruments | (2) | 2 | 8 | (13) | 24 |
Pension and other post retirement benefits, net | (7) | (11) | (27) | (33) | (3) |
Stock-based compensation | 10 | 21 | 32 | 43 | 11 |
Equity method investments, net | (80) | 113 | 99 | 83 | (39) |
Changes in: | |||||
Current receivables | (86) | (158) | (298) | (21) | (120) |
Inventories | (12) | (11) | (51) | (64) | 6 |
Current accounts payable and accrued liabilities | 30 | 37 | 166 | (10) | 12 |
Other current assets and liabilities | (9) | 10 | (17) | (5) | (2) |
All other operating, net | (10) | (19) | (23) | 5 | (2) |
Net cash provided by operating activities | 865 | 1,941 | 3,007 | 4,087 | 757 |
INVESTING ACTIVITIES: | |||||
Capital expenditures | (601) | (1,224) | (1,673) | (2,033) | (603) |
Change in capital accrual | 69 | 58 | 14 | (25) | 117 |
Acquisitions, net of cash acquired | 11 | 9 | (15) | (12) | (4) |
Disposal of assets, net of cash transferred to the buyer | (1) | (1) | (7) | 3 | - 0 |
Equity method investments - return of capital | - 0 | 34 | 57 | 61 | - 0 |
All other investing, net | - 0 | (1) | - 0 | - 0 | 1 |
Net cash used in investing activities | (522) | (1,125) | (1,624) | (2,006) | (489) |
FINANCING ACTIVITIES: | |||||
Borrowings | - 0 | 200 | 200 | 200 | 1,200 |
Debt repayments | (70) | (270) | (401) | (701) | (1,200) |
Proceeds from revolving credit facility | 175 | 980 | 1,018 | 1,248 | 50 |
Repayments of revolving credit facility | (175) | (980) | (1,468) | (1,698) | (43) |
Proceeds from commercial paper borrowings, net | - 0 | - 0 | 450 | 450 | - 0 |
Shares repurchased under buyback programs | (334) | (706) | (1,121) | (1,473) | (285) |
Dividends paid | (63) | (125) | (186) | (251) | (64) |
Withholding tax on stock-based incentive awards | (30) | (30) | (31) | (31) | (18) |
All other financing, net | (2) | (4) | (4) | (4) | (14) |
Net cash used in financing activities | (499) | (935) | (1,543) | (2,260) | (374) |
Net decrease in cash and cash equivalents | (156) | (119) | (160) | (179) | (106) |
Cash and cash equivalents at beginning of period | 334 | 334 | 334 | 334 | 155 |
Cash and cash equivalents at end of period | $ 178 | $ 215 | $ 174 | $ 155 | $ 49 |
Segment Income Summary | |||||||
Marathon Oil Corporation | |||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | ||
(In millions) | 2023 | 2023 | 2023 | 2023 | 2023 | 2024 | |
Segment income | |||||||
United States | $ 425 | $ 365 | $ 505 | $ 468 | $ 1,763 | $ 334 | |
International | 89 | 30 | 62 | 51 | 232 | 82 | |
Segment income | 514 | 395 | 567 | 519 | 1,995 | 416 | |
Not allocated to segments - Corporate items: | |||||||
Net interest and other | (82) | (92) | (94) | (84) | (352) | (69) | |
Other net periodic benefit credits | 4 | 3 | 5 | 4 | 16 | 3 | |
General and administrative | (43) | (37) | (36) | (35) | (151) | (45) | |
Other income and costs | (1) | (1) | (1) | (3) | (6) | (14) | |
Income tax benefit | 28 | 27 | 25 | 5 | 85 | 26 | |
Not allocated to segments - Adjustments for special items: | |||||||
Net gain on disposal of assets | 5 | - 0 | 1 | 11 | 17 | - 0 | |
Proved property impairments | - 0 | - 0 | - 0 | (2) | (2) | - 0 | |
Exploratory dry well costs, unproved property impairments and other | (10) | (5) | (11) | (4) | (30) | - 0 | |
Pension settlement | (1) | - 0 | - 0 | - 0 | (1) | - 0 | |
Unrealized gain (loss) on derivative instruments | 2 | (4) | (6) | 21 | 13 | (24) | |
Acquisition transaction costs | (1) | - 0 | (1) | - 0 | (2) | - 0 | |
Other | 1 | (1) | - 0 | (37) | (37) | (2) | |
Provision for income taxes related to special items | 1 | 2 | 4 | 2 | 9 | 6 | |
Total special items | $ (3) | $ (8) | $ (13) | $ (9) | $ (33) | - 0 | $ (20) |
Not allocated to segments - Total | $ (97) | $ (108) | $ (114) | $ (122) | $ (441) | $ (119) | |
Net income | $ 417 | $ 287 | $ 453 | $ 397 | $ 1,554 | $ 297 |
United States Segment Supplemental Financial Data | ||||||
Marathon Oil Corporation | ||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | |
(In millions, except per BOE statistics) | 2023 | 2023 | 2023 | 2023 | 2023 | 2024 |
Revenues from contracts with customers (a) | $ 1,503 | $ 1,440 | $ 1,700 | $ 1,556 | $ 6,199 | $ 1,422 |
Net realized gain on commodity derivatives | 13 | 7 | 7 | 2 | 29 | - 0 |
Other income (expense) | 11 | 1 | - 0 | 9 | 21 | (4) |
Less Costs and Expenses: | ||||||
Production | 178 | 191 | 173 | 211 | 753 | 201 |
Shipping, handling and other operating (b) | 159 | 161 | 162 | 165 | 647 | 149 |
Exploration | 5 | 6 | 8 | 8 | 27 | 7 |
DD&A | 505 | 547 | 570 | 534 | 2,156 | 500 |
Taxes other than income | 97 | 43 | 112 | 112 | 364 | 96 |
General and administrative | 35 | 31 | 32 | 33 | 131 | 38 |
Income before taxes | 548 | 469 | 650 | 504 | 2,171 | 427 |
Income tax provision | 123 | 104 | 145 | 36 | 408 | 93 |
Segment income | $ 425 | $ 365 | $ 505 | $ 468 | $ 1,763 | $ 334 |
Effective tax rate | 22 % | 22 % | 22 % | 7 % | 19 % | 22 % |
Net sales volumes (mboed) | 341 | 356 | 369 | 352 | 355 | 326 |
Costs and Expenses per BOE (c) | ||||||
Production | $ 5.82 | $ 5.88 | $ 5.07 | $ 6.51 | $ 5.81 | $ 6.77 |
Shipping, handling and other operating (d) | 4.92 | 4.93 | 4.75 | 4.98 | 4.89 | 4.91 |
Exploration | 0.17 | 0.15 | 0.23 | 0.28 | 0.21 | 0.24 |
DD&A | 16.46 | 16.88 | 16.74 | 16.52 | 16.66 | 16.83 |
Taxes other than income | 3.15 | 1.31 | 3.33 | 3.43 | 2.81 | 3.24 |
General and administrative | 1.13 | 0.97 | 0.94 | 1.01 | 1.01 | 1.26 |
(a) Includes marketing revenue. | ||||||
(b) Includes marketing expense. | ||||||
(c) Costs and expenses per BOE are based upon volumes sold. | ||||||
(d) Excludes marketing expense. |
International Segment Supplemental Financial Data | ||||||
Marathon Oil Corporation | ||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | |
(In millions, except per BOE statistics) | 2023 | 2023 | 2023 | 2023 | 2023 | 2024 |
Revenues from contracts with customers | $ 64 | $ 44 | $ 71 | $ 29 | $ 208 | $ 116 |
Income from equity method investments | 80 | 22 | 38 | 45 | 185 | 39 |
Other income | 1 | 3 | 1 | 16 | 21 | 1 |
Less Costs and Expenses: | ||||||
Production | 23 | 23 | 19 | 10 | 75 | 20 |
Shipping, handling and other operating, including related party (a) | 3 | - 0 | 2 | - 0 | 5 | 17 |
Exploration | - 0 | - 0 | 1 | 1 | 2 | - 0 |
DD&A | 12 | 10 | 12 | 10 | 44 | 10 |
General and administrative | 3 | 3 | 3 | 4 | 13 | 3 |
Income before taxes | 104 | 33 | 73 | 65 | 275 | 106 |
Income tax provision | 15 | 3 | 11 | 14 | 43 | 24 |
Segment income | $ 89 | $ 30 | $ 62 | $ 51 | $ 232 | $ 82 |
Effective tax rate | 14 % | 9 % | 15 % | 22 % | 16 % | 23 % |
Net sales volumes (mboed) | 56 | 44 | 53 | 48 | 50 | 43 |
Costs and Expenses per BOE (b) | ||||||
Production | $ 4.54 | $ 5.72 | $ 3.99 | $ 2.30 | $ 4.11 | $ 5.13 |
Shipping, handling and other operating, including related party (a) | 0.64 | 0.16 | 0.16 | 0.13 | 0.29 | 4.29 |
Exploration | - 0 | 0.04 | 0.20 | 0.14 | 0.09 | 0.07 |
DD&A | 2.41 | 2.42 | 2.39 | 2.49 | 2.43 | 2.79 |
General and administrative | 0.63 | 0.69 | 0.66 | 0.82 | 0.70 | 0.85 |
Equatorial Guinea | ||||||
Dividends | $ - | $ 215 | $ 24 | $ 29 | $ 268 | $ - |
Return of capital | - 0 | 34 | 23 | 4 | 61 | - 0 |
Total cash distributions | $ - | $ 249 | $ 47 | $ 33 | $ 329 | $ - |
Income from equity method investments | $ 80 | $ 22 | $ 38 | $ 45 | $ 185 | $ 39 |
(a) The related party expense represents compensation to EG LNG for liquefaction, storage and product handling services, pursuant to the agreement that became effective on January 1, 2024. | ||||||
(b) Costs and expenses per BOE are based upon volumes sold. |
Non-GAAP Reconciliations | ||||||
Marathon Oil Corporation | ||||||
Marathon Oil Corporation ("Marathon") supplements its use of GAAP financial measures with non-GAAP financial measures as described on the following pages: | ||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | |
(In millions) | 2023 | 2023 | 2023 | 2023 | 2023 | 2024 |
Net income | $ 417 | $ 287 | $ 453 | $ 397 | $ 1,554 | $ 297 |
Adjustments for special items (pre-tax): | ||||||
Net gain on disposal of assets | (5) | - 0 | (1) | (11) | (17) | - 0 |
Proved property impairments | - 0 | - 0 | - 0 | 2 | 2 | - 0 |
Exploratory dry well costs, unproved property impairments and other | 10 | 5 | 11 | 4 | 30 | - 0 |
Pension settlement | 1 | - 0 | - 0 | - 0 | 1 | - 0 |
Unrealized (gain) loss on derivative instruments | (2) | 4 | 6 | (21) | (13) | 24 |
Acquisition transaction costs | 1 | - 0 | 1 | - 0 | 2 | - 0 |
Other | (1) | 1 | - 0 | 37 | 37 | 2 |
Benefit for income taxes related to special items | (1) | (2) | (4) | (2) | (9) | (6) |
Adjustments for special items | 3 | 8 | 13 | 9 | 33 | 20 |
Adjusted net income (a) | $ 420 | $ 295 | $ 466 | $ 406 | $ 1,587 | $ 317 |
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | |
(In millions, except per share data) | 2023 | 2023 | 2023 | 2023 | 2023 | 2024 |
Per common share data: | ||||||
Diluted: | ||||||
Weighted average shares (millions) | 629 | 615 | 604 | 584 | 608 | 576 |
Adjusted net income (a) | $ 420 | $ 295 | $ 466 | $ 406 | $ 1,587 | $ 317 |
Adjusted net income per share (a) | $ 0.67 | $ 0.48 | $ 0.77 | $ 0.69 | $ 2.61 | $ 0.55 |
(a) Non-GAAP financial measure. | ||||||
Our presentation of adjusted net income (loss) and adjusted net income (loss) per share is a non-GAAP measure. Adjusted net income (loss) is defined as net income (loss) adjusted for gains or losses on dispositions, impairments of proved and certain unproved properties, unrealized gain or loss on commodity derivative instruments, effects of pension settlements and curtailments, acquisition transaction costs and other items that could be considered "non-operating" or "non-core" in nature. Management believes this is useful to investors as another tool to meaningfully represent our operating performance and to compare Marathon to certain competitors. Adjusted net income (loss) and adjusted net income (loss) per share should not be considered in isolation or as an alternative to, or more meaningful than, net income (loss) or net income (loss) per share as determined in accordance with U.S. GAAP. |
Non-GAAP Reconciliations | ||||||
Marathon Oil Corporation | ||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | |
(Per share) | 2023 | 2023 | 2023 | 2023 | 2023 | 2024 |
Adjusted Net Income Per Diluted Share (a) | ||||||
Net income | $ 0.66 | $ 0.47 | $ 0.75 | $ 0.68 | $ 2.56 | $ 0.52 |
Adjustments for special items (pre-tax): | ||||||
Net gain on disposal of assets | (0.01) | - 0 | - 0 | (0.02) | (0.03) | - 0 |
Exploratory dry well costs, unproved property impairments and other | 0.02 | 0.01 | 0.01 | 0.01 | 0.05 | - 0 |
Unrealized (gain) loss on derivative instruments | - 0 | - 0 | 0.01 | (0.03) | (0.02) | 0.04 |
Other | - 0 | - 0 | - 0 | 0.05 | 0.05 | - 0 |
Benefit for income taxes related to special items | - 0 | - 0 | - 0 | - 0 | - 0 | (0.01) |
Adjustments for special items | 0.01 | 0.01 | 0.02 | 0.01 | 0.05 | 0.03 |
Adjusted net income (a) | $ 0.67 | $ 0.48 | $ 0.77 | $ 0.69 | $ 2.61 | $ 0.55 |
(a) Non-GAAP financial measure. | ||||||
Our presentation of adjusted net income (loss) and adjusted net income (loss) per share is a non-GAAP measure. Adjusted net income (loss) is defined as net income (loss) adjusted for gains or losses on dispositions, impairments of proved and certain unproved properties, unrealized gain or loss on commodity derivative instruments, effects of pension settlements and curtailments, acquisition transaction costs and other items that could be considered "non-operating" or "non-core" in nature. Management believes this is useful to investors as another tool to meaningfully represent our operating performance and to compare Marathon to certain competitors. Adjusted net income (loss) and adjusted net income (loss) per share should not be considered in isolation or as an alternative to, or more meaningful than, net income (loss) or net income (loss) per share as determined in accordance with U.S. GAAP. |
Non-GAAP Reconciliations | ||||||
Marathon Oil Corporation | ||||||
(In millions) | 1st Qtr 2023 | 2nd Qtr 2023 | 3rd Qtr 2023 | 4th Qtr 2023 | Year 2023 | 1st Qtr 2024 |
Adjusted Free Cash Flow (a) | ||||||
Net cash provided by operating activities | $ 865 | $ 1,076 | $ 1,066 | $ 1,080 | $ 4,087 | $ 757 |
Adjustments: | ||||||
Changes in working capital | 77 | 45 | 78 | (100) | 100 | 104 |
Capital expenditures | (601) | (623) | (449) | (360) | (2,033) | (603) |
EG return of capital and other | (32) | 33 | 23 | 4 | 28 | (19) |
Adjusted Free Cash Flow (a) | $ 309 | $ 531 | $ 718 | $ 624 | $ 2,182 | $ 239 |
(a) Non-GAAP financial measure. | ||||||
Our presentation of adjusted free cash flow is a non-GAAP measure. Adjusted free cash flow before dividend ("adjusted free cash flow") is defined as net cash provided by operating activities before changes in working capital (adjusted CFO), net of capital expenditures and EG return of capital and other. Management believes this is useful to investors as a measure of Marathon's ability to fund its capital expenditure programs, service debt, and other distributions to stockholders. Adjusted free cash flow should not be considered in isolation or as an alternative to, or more meaningful than, net cash provided by operating activities as determined in accordance with U.S. GAAP. |
Non-GAAP Reconciliations | ||||||
Marathon Oil Corporation | ||||||
(In millions) | Mar. 31 | June 30 | Sept. 30 | Dec. 31 | Mar. 31 | |
Adjusted CFO (QTD) | 2023 | 2023 | 2023 | 2023 | 2024 | |
Net cash provided by operating activities | $ 865 | $ 1,076 | $ 1,066 | $ 1,080 | $ 757 | |
Current receivables | (86) | (72) | (140) | 277 | (120) | |
Inventories | (12) | 1 | (40) | (13) | 6 | |
Current accounts payable and accrued expenses | 30 | 7 | 129 | (176) | 12 | |
Other current assets and liabilities | (9) | 19 | (27) | 12 | (2) | |
Changes in working capital | (77) | (45) | (78) | 100 | (104) | |
Adjusted CFO (a) | $ 942 | $ 1,121 | $ 1,144 | $ 980 | $ 861 | |
(In millions) | 1st Qtr 2023 | 2nd Qtr 2023 | 3rd Qtr 2023 | 4th Qtr 2023 | Year 2023 | 1st Qtr 2024 |
Reinvestment rate (a) | ||||||
Adjusted CFO (a) | $ 942 | $ 1,121 | $ 1,144 | $ 980 | $ 4,187 | $ 861 |
EG return of capital and other | (32) | 33 | 23 | 4 | 28 | (19) |
Sources of Cash | 910 | 1,154 | 1,167 | 984 | 4,215 | 842 |
Capital expenditures | $ 601 | $ 623 | $ 449 | $ 360 | $ 2,033 | $ 603 |
Reinvestment rate (a) | 66 % | 54 % | 38 % | 37 % | 48 % | 72 % |
(a) Non-GAAP financial measure. | ||||||
Our presentation of Adjusted CFO is a non-GAAP measure. Adjusted CFO is defined as net cash provided by operating activities adjusted for changes in working capital. Management believes this is useful to investors as an indicator of Marathon's ability to generate cash quarterly or year-to-date by eliminating differences caused by the timing of certain working capital items. Adjusted CFO should not be considered in isolation or as an alternative to, or more meaningful than, net cash provided by operating activities as determined in accordance with U.S. GAAP. | ||||||
Our presentation of reinvestment rate is a non-GAAP measure. The reinvestment rate is defined as capital expenditures divided by adjusted CFO and EG return of capital and other. Management believes the reinvestment rate is useful to investors to demonstrate the Company's commitment to generating cash for use towards investor-friendly purposes (which includes balance sheet enhancement, base dividend and other return of capital). |
Non-GAAP Reconciliations | ||||||
Marathon Oil Corporation | ||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | |
(In millions) | 2023 | 2023 | 2023 | 2023 | 2023 | 2024 |
Net income | $ 417 | $ 287 | $ 453 | $ 397 | $ 1,554 | $ 297 |
Adjustments to net income: | ||||||
DD&A | 520 | 559 | 583 | 549 | 2,211 | 524 |
Tax | 109 | 78 | 127 | 43 | 357 | 85 |
Exploration | 15 | 11 | 20 | 13 | 59 | 7 |
Net interest and other | 82 | 92 | 94 | 84 | 352 | 69 |
EBITDAX (a) | 1,143 | 1,027 | 1,277 | 1,086 | 4,533 | 982 |
EBITDAX special items adjustments: | ||||||
Net gain on disposal of assets | (5) | - 0 | (1) | (11) | (17) | - 0 |
Proved property impairments | - 0 | - 0 | - 0 | 2 | 2 | - 0 |
Pension settlement | 1 | - 0 | - 0 | - 0 | 1 | - 0 |
Unrealized (gain) loss on derivative instruments | (2) | 4 | 6 | (21) | (13) | 24 |
Acquisition transaction costs | 1 | - 0 | 1 | - 0 | 2 | - 0 |
Other | (1) | 1 | - 0 | 37 | 37 | 2 |
Adjustments for special items | (6) | 5 | 6 | 7 | 12 | 26 |
Adjusted EBITDAX (a) | $ 1,137 | $ 1,032 | $ 1,283 | $ 1,093 | $ 4,545 | $ 1,008 |
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | |
(In millions) | 2023 | 2023 | 2023 | 2023 | 2023 | 2024 |
Equatorial Guinea EBITDAX (a) | ||||||
International segment income | $ 89 | $ 30 | $ 62 | $ 51 | $ 232 | $ 82 |
Adjustments: | ||||||
DD&A | 22 | 15 | 22 | 19 | 78 | 21 |
Tax | 26 | 8 | 20 | 21 | 75 | 30 |
Exploration | - 0 | - 0 | - 0 | 1 | 1 | - 0 |
Net interest and other | - 0 | - 0 | (2) | 3 | 1 | - 0 |
E.G. EBITDAX (a) | $ 137 | $ 53 | $ 102 | $ 95 | $ 387 | $ 133 |
(a) Non-GAAP financial measure. | ||||||
Our presentation of Adjusted EBITDAX is a non-GAAP measure. Adjusted EBITDAX is defined as net income (loss) excluding net interest and other, taxes, depreciation, depletion and amortization ("DD&A"), and exploration, further adjusted for gains or losses on dispositions, impairments of proved properties, unrealized gain or loss on commodity derivative instruments, effects of pension settlements and curtailments, acquisition transaction costs and other items that could be considered "non-operating" or "non-core" in nature. Management believes this provides useful information to investors in evaluating our operating and financial performance because it eliminates the impact of certain items affecting comparability from period to period. Adjusted EBITDAX should not be considered in isolation or as an alternative to, or more meaningful than, net income (loss) as determined in accordance with U.S. GAAP. | ||||||
Our presentation of E.G. EBITDAX is a non-GAAP measure. E.G. EBITDAX is defined as International segment income (loss) excluding net interest and other, taxes, depreciation, depletion and amortization ("DD&A"), and exploration. Management believes this is useful to investors as a measure of E.G.'s ability to contribute to Marathon's funding for its capital expenditure programs as well as for dividend payments, servicing debt, and other distributions to stockholders. E.G. EBITDAX should not be considered in isolation or as an alternative to, or more meaningful than, International segment income (loss) as determined in accordance with U.S. GAAP. |