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$MRO 1Q15 10-Q: Total assets at March 31, 2015 was $34.74Bil vs. $36.01Bil at Dec. 31, 2014. 1Q15-end total assets included $1.13Bil of cash and cash equivalents and $379MM of inventories. Total liabilities stood at $14.08Bil as of March 31, 2015 vs. $14.99Bil at Dec. 31, 2014 and included $5.33Bil of long-term debt.
$MRO entered into a transaction to redeem at par the outstanding $1Bil of 5.125% municipal revenue bonds due 2037. The transaction will reduce gross debt by $1Bil and annual cash interest expense by $51MM. The total debt reduction is now about $1.75Bil, while cash interest expense reduced by about $115MM, when combining with the 3Q17 refinancing.
$MRO stated its 3Q17 Eagle Ford production was up from the previous quarter despite the impacts from Hurricane Harvey. The company added that through the three quarters of the year, Eagle Ford's 90-day cumulative well production was tracking 15% above last year's production, while maintaining flat completed well cost.
$MRO expects to be cash flow neutral in 2017 at current strip prices, including dividend and changes in working capital. The company also expects its margins to expand, as it continues to shift production mix to a greater weighting of U.S. unconventionals, aligning the volumes to its investment concentration.
$MRO expects 4Q17 US E&P production available for sale to average 255,000-265,000 net boed. International E&P production available for sale, excluding Libya, is expected to be within a range of 120,000-130,000 net boed. For FY17, $MRO expects total production available for sale, excluding Libya, to be in the new range of 350,000-360,000 net boed.
Petroleum and natural gas exploration and production company $MRO reported a wider loss in 3Q17, hurt by impairment charges in the quarter. Net loss widened to $599MM or $0.70 per share from $192MM from $0.23 per share a year ago. Revenue however jumped 26% to $1.2Bil from $990MM. Adjusted loss per share narrowed to $0.08 from $0.11.
$MRO expects 3Q17 U.S. E&P production available for sale to average toward the high end of its guidance of 230,000 to 240,000 net barrels of oil equivalent per day (boed), despite the temporary impacts experienced from Hurricane Harvey. Marathon Oil still expects its 2017 capital program to be in a range of $2.1-2.2Bil.
Energy company $MRO has priced an offering of $1Bil of its 4.4% senior notes due July 15, 2027. The price for public is 99.634% of the principal amount. The company will use the net proceeds from the offering to redeem debt. The offering is expected to close on July 24, 2017, subject to customary closing conditions.
$MRO closed the acquisition of approx. 21,000 net surface acres in the Northern Delaware basin of New Mexico from Black Mountain Oil & Gas and other private sellers for $700MM. The transaction effective date is March 1, 2017. Combined with the acquisition from BC Operating, $MRO's total position in the Permian Basin is 91,000 net surface acres.
$MRO still sees FY17 to be "very volatile probably in a tighter band" going by the OPEC trend. As Marathon Oil posted its 1Q17 results, it plans to advance near-term activity and appraisal plans through the rest of the year, with the majority of the activity targeting Bone Spring and Wolfcamp intervals.
$MRO lifted 2017 E&P production guidance range primarily due to the inclusion of production from Northern Delaware acquisitions. For 2017, $MRO sees production available for sale from combined North America and International E&P segments, excluding Libya, to average 340,000 to 360,000 net boed, about 6% higher than 2016.
$MRO expects 2Q17 North America E&P production available for sale to average 210,000 to 220,000 net boed. International E&P production available for sale, excluding Libya, is expected to be within a range of 120,000 to 130,000 net boed for 2Q17.
$MRO reported a wider loss in 1Q17 due to impairment charge from discontinued operations. Net loss widened to $4.96Bil or $5.84 per share from $407MM from 0.56 per share last year. Revenue grew to $1.07Bil from $570MM. Adjusted loss per share narrowed to $0.07 from $0.43.
$MRO entered into a definitive agreement to acquire approx. 21,000 net surface acres in Permian's Northern Delaware basin of New Mexico from Black Mountain Oil & Gas for approx. $700MM in cash, excluding closing adjustments. The company expects to close the transaction in 2Q17, effective March 1, 2017.
$MRO also agreed to buy about 70,000 net surface acres in the Permian basin from BC Operating, Inc. and other entities for $1.1Bil in cash, excluding closing adjustments. The acquisition includes 51,500 acres in the Northern Delaware basin of New Mexico, and current production of about 5,000 net barrels of oil equivalent per day (boed).