05/04/2022 | Press release | Distributed by Public on 05/05/2022 06:26
First Quarter 2022 | |||
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 4, 2022 |
Consolidated Statements of Income | ||||||
Marathon Oil Corporation | ||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | |
(In millions, except per share data) | 2021 | 2021 | 2021 | 2021 | 2021 | 2022 |
REVENUES AND OTHER INCOME: | ||||||
Revenues from contracts with customers | $ 1,177 | $ 1,254 | $ 1,438 | $ 1,732 | $ 5,601 | $ 1,761 |
Net gain (loss) on commodity derivatives | (153) | (166) | (79) | 15 | (383) | (143) |
Income (loss) from equity method investments | 44 | 49 | 86 | 74 | 253 | 127 |
Net gain (loss) on disposal of assets | - | 1 | 7 | (27) | (19) | - |
Other income | 3 | 5 | 1 | 6 | 15 | 8 |
Total revenues and other income | 1,071 | 1,143 | 1,453 | 1,800 | 5,467 | 1,753 |
COSTS AND EXPENSES: | ||||||
Production | 121 | 126 | 131 | 156 | 534 | 152 |
Shipping, handling and other operating | 152 | 167 | 219 | 189 | 727 | 185 |
Exploration | 21 | 25 | 63 | 27 | 136 | 11 |
Depreciation, depletion and amortization | 496 | 532 | 522 | 516 | 2,066 | 423 |
Impairments | 1 | 46 | 13 | - | 60 | - |
Taxes other than income | 74 | 74 | 88 | 109 | 345 | 104 |
General and administrative | 89 | 68 | 70 | 64 | 291 | 73 |
Total costs and expenses | 954 | 1,038 | 1,106 | 1,061 | 4,159 | 948 |
Income (loss) from operations | 117 | 105 | 347 | 739 | 1,308 | 805 |
Net interest and other | (13) | (59) | (57) | (59) | (188) | (22) |
Other net periodic benefit (costs) credits | 3 | (1) | - | 3 | 5 | 4 |
Loss on early extinguishment of debt | - | (19) | (102) | - | (121) | - |
Income (loss) before income taxes | 107 | 26 | 188 | 683 | 1,004 | 787 |
Estimated income tax provision (benefit) | ||||||
Current | 14 | 13 | 29 | 29 | 85 | 31 |
Deferred | (4) | (3) | (25) | 5 | (27) | (548) |
Total provision (benefit) for income taxes | 10 | 10 | 4 | 34 | 58 | (517) |
NET INCOME (LOSS) | $ 97 | $ 16 | $ 184 | $ 649 | $ 946 | $ 1,304 |
Effective income tax rate | 9 % | 38 % | 2 % | 5 % | 6 % | (66)% |
Per common share data: | ||||||
Basic: | ||||||
Weighted average shares (millions) | 789 | 789 | 789 | 771 | 787 | 730 |
NET INCOME (LOSS) | $ 0.12 | $ 0.02 | $ 0.23 | $ 0.84 | $ 1.20 | $ 1.79 |
Diluted: | ||||||
Weighted average shares (millions) | 789 | 789 | 789 | 773 | 788 | 732 |
NET INCOME (LOSS) | $ 0.12 | $ 0.02 | $ 0.23 | $ 0.84 | $ 1.20 | $ 1.78 |
Dividends paid per common share | $ 0.03 | $ 0.04 | $ 0.05 | $ 0.06 | $ 0.18 | $ 0.07 |
Consolidated Balance Sheets | |||||
Marathon Oil Corporation | |||||
Mar. 31 | June 30 | Sept. 30 | Dec. 31 | Mar. 31 | |
(In millions) | 2021 | 2021 | 2021 | 2021 | 2022 |
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ 1,125 | $ 970 | $ 485 | $ 580 | $ 681 |
Receivables less allowance for doubtful accounts | 921 | 1,008 | 1,068 | 1,142 | 1,443 |
Inventories | 78 | 78 | 77 | 77 | 78 |
Other current assets | 26 | 19 | 25 | 22 | 28 |
Total current assets | 2,150 | 2,075 | 1,655 | 1,821 | 2,230 |
Equity method investments | 460 | 458 | 489 | 450 | 522 |
Property, plant and equipment, net | 15,313 | 15,019 | 14,734 | 14,499 | 14,422 |
Deferred tax assets | - | - | - | - | 554 |
Other noncurrent assets | 310 | 248 | 283 | 224 | 253 |
Total assets | $ 18,233 | $ 17,800 | $ 17,161 | $ 16,994 | $ 17,981 |
LIABILITIES | |||||
Current liabilities: | |||||
Accounts payable | $ 918 | $ 937 | $ 1,028 | $ 1,110 | $ 1,299 |
Payroll and benefits payable | 37 | 49 | 64 | 74 | 42 |
Accrued taxes | 78 | 95 | 131 | 157 | 169 |
Other current liabilities | 366 | 461 | 417 | 260 | 405 |
Long-term debt due within one year | 500 | 33 | 36 | 36 | 106 |
Total current liabilities | 1,899 | 1,575 | 1,676 | 1,637 | 2,021 |
Long-term debt | 4,905 | 4,875 | 3,977 | 3,978 | 3,908 |
Deferred tax liabilities | 160 | 156 | 132 | 136 | 144 |
Defined benefit postretirement plan obligations | 176 | 151 | 137 | 137 | 132 |
Asset retirement obligations | 251 | 272 | 286 | 288 | 296 |
Deferred credits and other liabilities | 171 | 137 | 157 | 132 | 114 |
Total liabilities | 7,562 | 7,166 | 6,365 | 6,308 | 6,615 |
TOTAL STOCKHOLDERS' EQUITY | 10,671 | 10,634 | 10,796 | 10,686 | 11,366 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 18,233 | $ 17,800 | $ 17,161 | $ 16,994 | $ 17,981 |
Common stock issued | 937 | 937 | 937 | 937 | 937 |
Common stock held in treasury | 149 | 148 | 148 | 194 | 220 |
Net shares outstanding at balance sheet date | 788 | 789 | 789 | 743 | 717 |
Consolidated Statements of Cash Flows (YTD) | |||||
Marathon Oil Corporation | |||||
Mar. 31 | June 30 | Sept. 30 | Dec. 31 | Mar. 31 | |
(In millions) | 2021 | 2021 | 2021 | 2021 | 2022 |
OPERATING ACTIVITIES: | |||||
Net income (loss) | $ 97 | $ 113 | $ 297 | $ 946 | $ 1,304 |
Adjustments to reconcile to net cash provided by operating activities: | |||||
Depreciation, depletion and amortization | 496 | 1,028 | 1,550 | 2,066 | 423 |
Impairments | 1 | 47 | 60 | 60 | - 0 |
Exploratory dry well costs and unproved property impairments | 17 | 39 | 101 | 125 | 8 |
Net (gain) loss on disposal of assets | - 0 | (1) | (8) | 19 | - 0 |
Loss on early extinguishment of debt | - 0 | 19 | 121 | 121 | - 0 |
Deferred income taxes | (4) | (7) | (32) | (27) | (548) |
Unrealized (gain) loss on derivative instruments | 82 | 157 | 130 | (16) | 114 |
Pension and other post retirement benefits, net | (7) | (14) | (25) | (31) | (9) |
Stock-based compensation | 6 | 17 | 29 | 40 | 9 |
Equity method investments, net | (14) | (17) | (57) | (76) | (79) |
Changes in: | |||||
Current receivables | (175) | (253) | (313) | (389) | (307) |
Inventories | (2) | (2) | (1) | (1) | (2) |
Current accounts payable and accrued liabilities | 101 | 121 | 228 | 369 | 101 |
Other current assets and liabilities | 61 | 73 | 66 | 46 | (5) |
All other operating, net | (37) | (43) | (53) | (13) | 58 |
Net cash provided by operating activities | 622 | 1,277 | 2,093 | 3,239 | 1,067 |
INVESTING ACTIVITIES: | |||||
Additions to property, plant and equipment | (209) | (483) | (772) | (1,046) | (332) |
Acquisitions, net of cash acquired | - 0 | - 0 | - 0 | (47) | - 0 |
Disposal of assets, net of cash transferred to the buyer | 3 | 15 | 29 | 22 | 2 |
Equity method investments - return of capital | - 0 | 6 | 15 | 61 | 7 |
All other investing, net | (1) | (1) | - 0 | - 0 | - 0 |
Net cash used in investing activities | (207) | (463) | (728) | (1,010) | (323) |
FINANCING ACTIVITIES: | |||||
Debt repayments | - 0 | (500) | (1,400) | (1,400) | - 0 |
Debt extinguishment costs | - 0 | (19) | (117) | (117) | - 0 |
Shares repurchased under buyback programs | - 0 | - 0 | - 0 | (724) | (592) |
Dividends paid | (23) | (55) | (94) | (141) | (52) |
Purchases of shares for tax withholding obligations | (9) | (9) | (10) | (10) | (21) |
All other financing, net | - 0 | (3) | (1) | 1 | 22 |
Net cash provided by (used in) financing activities | (32) | (586) | (1,622) | (2,391) | (643) |
Net increase (decrease) in cash and cash equivalents | 383 | 228 | (257) | (162) | 101 |
Cash and cash equivalents at beginning of period | 742 | 742 | 742 | 742 | 580 |
Cash and cash equivalents at end of period | $ 1,125 | $ 970 | $ 485 | $ 580 | $ 681 |
Segment Income Summary | |||||||
Marathon Oil Corporation | |||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | ||
(In millions) | 2021 | 2021 | 2021 | 2021 | 2021 | 2022 | |
Segment income (loss) | |||||||
United States | $ 212 | $ 207 | $ 305 | $ 553 | $ 1,277 | $ 661 | |
International | 50 | 68 | 93 | 106 | 317 | 115 | |
Segment income (loss) | 262 | 275 | 398 | 659 | 1,594 | 776 | |
Not allocated to segments - Corporate items: | |||||||
Net interest and other | (54) | (67) | (65) | (16) | (202) | 4 | |
Other net periodic benefit (costs) credits | 3 | 4 | 3 | 4 | 14 | 4 | |
General and administrative | (40) | (36) | (38) | (32) | (146) | (40) | |
Other income and costs | (5) | (5) | (5) | (6) | (21) | (6) | |
Income tax (provision) benefit | - 0 | 2 | 17 | (17) | 2 | 11 | |
Not allocated to segments - Adjustments for special items: | |||||||
Net gain (loss) on disposal of assets | - 0 | 1 | 7 | (27) | (19) | - 0 | |
Proved property impairments | (1) | (46) | (13) | - 0 | (60) | - 0 | |
Exploratory dry well costs, unproved property impairments and other | - 0 | (7) | (48) | (16) | (71) | - 0 | |
Pension settlement | - 0 | (5) | (3) | (1) | (9) | - 0 | |
Unrealized gain (loss) on derivative instruments | (82) | (75) | 27 | 146 | 16 | (114) | |
Unrealized gain (loss) on interest rate swaps (a) | 41 | 8 | 8 | (43) | 14 | (26) | |
Reduction in workforce (b) | (11) | (1) | - 0 | - 0 | (12) | - 0 | - 0 |
Loss on early extinguishment of debt | - 0 | (19) | (102) | - 0 | (121) | - 0 | |
Other (c) | (16) | (13) | (2) | (5) | (36) | (27) | |
Benefit for income taxes related to special items | - 0 | - 0 | - 0 | 3 | 3 | 37 | |
Valuation allowance | - 0 | - 0 | - 0 | - 0 | - 0 | 685 | |
Total special items | (69) | (157) | (126) | 57 | (295) | - 0 | 555 |
Not allocated to segments - Total | (165) | (259) | (214) | (10) | (648) | 528 | |
Net income (loss) | $ 97 | $ 16 | $ 184 | $ 649 | $ 946 | $ 1,304 | |
(a) Included within Net interest and other on our consolidated statements of income. | |||||||
(b) Included within General and administrative on our consolidated statements of income. | |||||||
(c) For the first quarter 2021, balance includes $13 million related to the termination of an aircraft lease agreement, which is included within General and administrative on our consolidated statements of income. |
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) | 2021 | 2021 | 2021 | 2021 | 2021 | 2022 |
Revenues from contracts with customers (a) | $ 1,132 | $ 1,189 | $ 1,375 | $ 1,638 | $ 5,334 | $ 1,714 |
Net realized gain (loss) on commodity derivatives | (71) | (91) | (106) | (131) | (399) | (29) |
Other income | 1 | 3 | - 0 | 3 | 7 | 4 |
Less Costs and Expenses: | ||||||
Production | 111 | 113 | 119 | 137 | 480 | 141 |
Shipping, handling and other operating (b) | 144 | 153 | 209 | 180 | 686 | 150 |
Exploration | 21 | 18 | 15 | 11 | 65 | 11 |
DD&A | 472 | 506 | 499 | 495 | 1,972 | 404 |
Taxes other than income | 74 | 76 | 88 | 108 | 346 | 99 |
General and administrative | 23 | 27 | 29 | 28 | 107 | 30 |
Income (loss) before taxes | 217 | 208 | 310 | 551 | 1,286 | 854 |
Income tax provision (benefit) | 5 | 1 | 5 | (2) | 9 | 193 |
Segment income (loss) | $ 212 | $ 207 | $ 305 | $ 553 | $ 1,277 | $ 661 |
Effective tax rate | 2 % | - % | 2 % | - % | 1 % | 23 % |
Net sales volumes (mboed) | 275 | 283 | 281 | 304 | 286 | 280 |
Costs and Expenses per BOE (c) | ||||||
Production | $ 4.46 | $ 4.41 | $ 4.59 | $ 4.90 | $ 4.60 | $ 5.59 |
Shipping, handling and other operating (d) | 5.43 | 4.81 | 5.69 | 5.81 | 5.44 | 5.77 |
Exploration | 0.86 | 0.69 | 0.57 | 0.41 | 0.63 | 0.44 |
DD&A | 19.05 | 19.65 | 19.29 | 17.71 | 18.90 | 16.02 |
Taxes other than income | 2.97 | 2.98 | 3.37 | 3.89 | 3.32 | 3.93 |
General and administrative | 0.92 | 1.04 | 1.15 | 1.00 | 1.03 | 1.18 |
(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) | 2021 | 2021 | 2021 | 2021 | 2021 | 2022 |
Revenues from contracts with customers | $ 45 | $ 65 | $ 63 | $ 94 | $ 267 | $ 47 |
Income (loss) from equity method investments | 44 | 49 | 86 | 74 | 253 | 127 |
Other income | 1 | 2 | - 0 | 1 | 4 | 2 |
Less Costs and Expenses: | ||||||
Production | 10 | 13 | 12 | 19 | 54 | 11 |
Shipping, handling and other operating | 4 | 2 | 7 | 3 | 16 | 9 |
DD&A | 19 | 18 | 17 | 14 | 68 | 15 |
General and administrative | 2 | 4 | 3 | 4 | 13 | 3 |
Income (loss) before taxes | 55 | 79 | 110 | 129 | 373 | 138 |
Income tax provision (benefit) | 5 | 11 | 17 | 23 | 56 | 23 |
Segment income (loss) | $ 50 | $ 68 | $ 93 | $ 106 | $ 317 | $ 115 |
Effective tax rate | 9 % | 14 % | 15 % | 18 % | 15 % | 17 % |
Net sales volumes (mboed) | 66 | 65 | 61 | 53 | 61 | 61 |
Costs and Expenses per BOE (a) | ||||||
Production | $ 1.68 | $ 2.17 | $ 2.17 | $ 4.05 | $ 2.45 | $ 1.92 |
Shipping, handling and other operating | 0.72 | 0.34 | 1.23 | 0.54 | 0.71 | 1.61 |
DD&A | 3.09 | 3.08 | 3.12 | 2.95 | 3.07 | 2.80 |
General and administrative | 0.46 | 0.46 | 0.60 | 0.68 | 0.54 | 0.49 |
Equatorial Guinea | ||||||
Dividends | $ 31 | $ 44 | $ 47 | $ 55 | $ 177 | $ 47 |
Return of capital | - 0 | 6 | 9 | 46 | 61 | 7 |
Total cash distributions | $ 31 | $ 50 | $ 56 | $ 101 | $ 238 | $ 54 |
Income (loss) from equity method investments | $ 44 | $ 49 | $ 86 | $ 74 | $ 253 | $ 127 |
(a) 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) | 2021 | 2021 | 2021 | 2021 | 2021 | 2022 |
Net income (loss) | $ 97 | $ 16 | $ 184 | $ 649 | $ 946 | $ 1,304 |
Adjustments for special items (pre-tax): | ||||||
Net (gain) loss on disposal of assets | - 0 | (1) | (7) | 27 | 19 | - 0 |
Proved property impairments | 1 | 46 | 13 | - 0 | 60 | - 0 |
Exploratory dry well costs, unproved property impairments and other | - 0 | 7 | 48 | 16 | 71 | - 0 |
Pension settlement | - 0 | 5 | 3 | 1 | 9 | - 0 |
Unrealized (gain) loss on derivative instruments | 82 | 75 | (27) | (146) | (16) | 114 |
Unrealized (gain) on interest rate swaps | (41) | (8) | (8) | 43 | (14) | 26 |
Reduction in workforce | 11 | 1 | - 0 | - 0 | 12 | - 0 |
Loss on early extinguishment of debt | - 0 | 19 | 102 | - 0 | 121 | - 0 |
Other | 16 | 13 | 2 | 5 | 36 | 27 |
Benefit for income taxes related to special items | - 0 | - 0 | - 0 | (3) | (3) | (37) |
Valuation allowance | - 0 | - 0 | - 0 | - 0 | - 0 | (685) |
Adjustments for special items | 69 | 157 | 126 | (57) | 295 | (555) |
Adjusted net income (loss) (a) | $ 166 | $ 173 | $ 310 | $ 592 | $ 1,241 | $ 749 |
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | |
(In millions, except per share data) | 2021 | 2021 | 2021 | 2021 | 2021 | 2022 |
Per common share data: | ||||||
Diluted: | ||||||
Weighted average shares (millions) | 789 | 789 | 789 | 773 | 788 | 732 |
Adjusted net income (loss) (a) | $ 166 | $ 173 | $ 310 | $ 592 | $ 1,241 | $ 749 |
Adjusted net income (loss) per share (a) | $ 0.21 | $ 0.22 | $ 0.39 | $ 0.77 | $ 1.57 | $ 1.02 |
(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/losses on dispositions, impairments of proved and certain unproved properties, goodwill and equity method investments, changes in our valuation allowance, unrealized derivative gain/loss on commodity and interest rate derivative instruments, effects of pension settlements and curtailments 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) | 2021 | 2021 | 2021 | 2021 | 2021 | 2022 |
Adjusted Net Income (Loss) per Diluted Share | ||||||
Net income (loss) | $ 0.12 | $ 0.02 | $ 0.23 | $ 0.84 | $ 1.20 | $ 1.78 |
Adjustments for special items (pre-tax): | ||||||
Net (gain) loss on disposal of assets | - 0 | - 0 | (0.01) | 0.03 | 0.02 | - 0 |
Proved property impairments | - 0 | 0.06 | 0.02 | - 0 | 0.08 | - 0 |
Exploratory dry well costs, unproved property impairments and other | - 0 | 0.01 | 0.06 | 0.02 | 0.09 | - 0 |
Goodwill impairment | - 0 | - 0 | ||||
Pension settlement | - 0 | 0.01 | - 0 | - 0 | 0.01 | - 0 |
Pension curtailment | - 0 | |||||
Unrealized (gain) loss on derivative instruments | 0.10 | 0.10 | (0.03) | (0.19) | (0.02) | 0.16 |
Unrealized (gain) on interest rate swaps | (0.05) | (0.01) | (0.01) | 0.06 | (0.02) | 0.04 |
Reduction in workforce | 0.01 | - 0 | - 0 | - 0 | 0.02 | - 0 |
Impairment of equity method investment | - 0 | - 0 | ||||
Loss on early extinguishment of debt | - 0 | 0.02 | 0.13 | - 0 | 0.15 | - 0 |
Other | 0.03 | 0.01 | - 0 | 0.01 | 0.04 | 0.03 |
Benefit for income taxes related to special items | - 0 | - 0 | - 0 | - 0 | - 0 | (0.05) |
Valuation allowance | - 0 | - 0 | - 0 | - 0 | - 0 | (0.94) |
Adjustments for special items | 0.09 | 0.20 | 0.16 | (0.07) | 0.37 | (0.76) |
Adjusted net income (loss) (a) | $ 0.21 | $ 0.22 | $ 0.39 | $ 0.77 | $ 1.57 | $ 1.02 |
(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/losses on dispositions, impairments of proved and certain unproved properties, goodwill and equity method investments, changes in our valuation allowance, unrealized derivative gain/loss on commodity and interest rate derivative instruments, effects of pension settlements and curtailments 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 2021 | 2nd Qtr 2021 | 3rd Qtr 2021 | 4th Qtr 2021 | Year 2021 | 1st Qtr 2022 |
Cash additions to Property, Plant, and Equipment | $ 209 | $ 274 | $ 289 | $ 274 | $ 1,046 | $ 332 |
Change in capital accrual | (25) | 15 | 19 | (23) | (14) | 16 |
Additions to other assets | - 0 | - 0 | - 0 | - 0 | - 0 | - 0 |
Total Capital Expenditures (accrued) (a) | $ 184 | $ 289 | $ 308 | $ 251 | $ 1,032 | $ 348 |
(In millions) | 1st Qtr 2021 | 2nd Qtr 2021 | 3rd Qtr 2021 | 4th Qtr 2021 | Year 2021 | 1st Qtr 2022 |
Adjusted Free Cash Flow | ||||||
Net cash flow provided by operating activities | $ 622 | $ 655 | $ 816 | $ 1,146 | $ 3,239 | $ 1,067 |
Adjustments: | ||||||
Changes in working capital | 15 | 46 | (41) | (45) | (25) | 213 |
Capital expenditures (accrued) | (184) | (289) | (308) | (251) | (1,032) | (348) |
EG return of capital and other | (10) | 8 | 11 | 48 | 57 | 8 |
Adjusted Free Cash Flow (a) | $ 443 | $ 420 | $ 478 | $ 898 | $ 2,239 | $ 940 |
Our presentation of total capital expenditures (accrued) is a non-GAAP measure. Total capital expenditures (accrued) is defined as cash additions to property, plant and equipment adjusted for the change in capital accrual and additions to other assets. Management believes this is useful to investors as an indicator of Marathon's commitment to capital expenditure discipline by eliminating differences caused by the timing of capital accrual and other items. Total capital expenditures (accrued) should not be considered in isolation or as an alternative to, or more meaningful than, cash additions to property, plant and equipment as determined in accordance with U.S. GAAP. 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, capital expenditures (accrued), 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 | |
Cash Flows (QTD) | 2021 | 2021 | 2021 | 2021 | 2022 | |
Net cash provided by operating activities | $ 622 | $ 655 | $ 816 | $ 1,146 | $ 1,067 | |
Current receivables | (175) | (78) | (60) | (76) | (307) | |
Inventories | (2) | - | 1 | - | (2) | |
Current accounts payable and accrued expenses | 101 | 20 | 107 | 141 | 101 | |
Other current assets and liabilities | 61 | 12 | (7) | (20) | (5) | |
Changes in working capital | (15) | (46) | 41 | 45 | (213) | |
Net cash provided by operating activities before changes in working capital (a) | $ 637 | $ 701 | $ 775 | $ 1,101 | $ 1,280 | |
(a) Non-GAAP financial measure. | ||||||
Our presentation of net cash provided by operating activities before changes in working capital is a non-GAAP measure. 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. Net cash provided by operating activities before changes in working capital 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. | ||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Year | 1st Qtr | |
(In millions) | 2021 | 2021 | 2021 | 2021 | 2021 | 2022 |
Sources of Cash | ||||||
Net cash provided by operating activities before changes in working capital | $ 637 | $ 701 | $ 775 | $ 1,101 | $ 3,214 | $ 1,280 |
EG return of capital and other | (10) | 8 | 11 | 48 | 57 | 8 |
Sources of Cash | 627 | 709 | 786 | 1,149 | 3,271 | 1,288 |
Capital expenditures (accrued) | $ 184 | $ 289 | $ 308 | $ 251 | $ 1,032 | $ 348 |
Reinvestment rate (a) | 29 % | 41 % | 39 % | 22 % | 32 % | 27 % |
(a) Non-GAAP financial measure. | ||||||
Our presentation of reinvestment rate is a non-GAAP measure. The reinvestment rate is defined as total capital expenditures (accrued) divided by net cash provided by operating activities before changes in working capital 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) | 2021 | 2021 | 2021 | 2021 | 2021 | 2022 |
Net income (loss) | $ 97 | $ 16 | $ 184 | $ 649 | $ 946 | $ 1,304 |
Adjustments to net income (loss): | ||||||
DD&A | 496 | 532 | 522 | 516 | 2,066 | 423 |
Tax | 10 | 10 | 4 | 34 | 58 | (517) |
Exploration | 21 | 25 | 63 | 27 | 136 | 11 |
Net interest and other | 13 | 59 | 57 | 59 | 188 | 22 |
EBITDAX | 637 | 642 | 830 | 1,285 | 3,394 | 1,243 |
EBITDAX special items adjustments: | ||||||
Net (gain) loss on disposal of assets | - 0 | (1) | (7) | 27 | 19 | - 0 |
Proved property impairments | 1 | 46 | 13 | - 0 | 60 | - 0 |
Pension settlement | - 0 | 5 | 3 | 1 | 9 | - 0 |
Unrealized (gain) loss on derivative instruments | 82 | 75 | (27) | (146) | (16) | 114 |
Reduction in workforce | 11 | 1 | - 0 | - 0 | 12 | - 0 |
Loss on early extinguishment of debt | - 0 | 19 | 102 | - 0 | 121 | - 0 |
Other | 16 | 13 | 3 | 6 | 38 | 27 |
Adjustments for special items | 110 | 158 | 87 | (112) | 243 | 141 |
Adjusted EBITDAX (a) | $ 747 | $ 800 | $ 917 | $ 1,173 | $ 3,637 | $ 1,384 |
(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 expense, taxes, DD&A, and exploration, further adjusted for gains/losses on dispositions, impairments of proved and certain unproved properties, goodwill and equity method investments, unrealized derivative gain/loss on commodity derivative instruments, effects of pension settlements and curtailments 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. |