Additional information regarding Investor Relations,
Financial Highlights, and News Releases can be
reviewed on our website at:
https://ir.marathonoil.com/
August 4, 2021
Statements of Income
Consolidated Statements of Income
Marathon Oil Corporation
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
Year
(In millions, except per share data)
2020
2020
2020
2020
2020
2021
2021
2021
REVENUES AND OTHER INCOME:
Revenues from contracts with customers
$ 1,024
$ 490
$ 761
$ 822
$ 3,097
$ 1,177
$ 1,254
$ 2,431
Net gain (loss) on commodity derivatives
202
(70)
(1)
(15)
116
(153)
$ (166)
(319)
Income (loss) from equity method investments
(12)
(152)
(10)
13
(161)
44
$ 49
93
Net gain (loss) on disposal of assets
9
(2)
1
1
9
-
$ 1
1
Other income
7
6
3
9
25
3
$ 5
8
Total revenues and other income
1,230
272
754
830
3,086
1,071
1,143
2,214
COSTS AND EXPENSES:
Production
160
129
129
137
555
121
126
247
Shipping, handling and other operating
144
105
183
164
596
152
167
319
Exploration
28
26
27
100
181
21
25
46
Depreciation, depletion and amortization
644
597
554
521
2,316
496
532
1028
Impairments
97
-
1
46
144
1
46
47
Taxes other than income
66
30
49
55
200
74
74
148
General and administrative
76
88
53
57
274
89
68
157
Total costs and expenses
1,215
975
996
1,080
4,266
954
1,038
1,992
Income (loss) from operations
15
(703)
(242)
(250)
(1,180)
117
105
222
Net interest and other
(64)
(69)
(62)
(61)
(256)
(13)
(59)
(72)
Other net periodic benefit costs (credits)
-
7
(6)
(2)
(1)
3
(1)
2
Loss on early extinguishment of debt
-
-
-
(28)
(28)
-
(19)
(19)
Income (loss) before income taxes
(49)
(765)
(310)
(341)
(1,465)
107
26
133
Estimated income tax provision (benefit)
Current
(2)
(2)
(6)
18
8
14
13
27
Deferred
(1)
(13)
13
(21)
(22)
(4)
(3)
(7)
Total provision (benefit) for income taxes
(3)
(15)
7
(3)
(14)
10
10
20
NET INCOME (LOSS)
$ (46)
$ (750)
$ (317)
$ (338)
$ (1,451)
$ 97
$ 16
$ 113
Effective income tax rate
6 %
2 %
(2)%
1 %
1 %
9 %
38 %
15 %
Per common share data:
Basic:
Weighted average shares (millions)
794
789
790
790
792
789
789
790
NET INCOME (LOSS)
$ (0.06)
$ (0.95)
$ (0.40)
$ (0.43)
$ (1.83)
$ 0.12
$ 0.02
$ 0.14
Diluted:
Weighted average shares (millions)
794
789
790
790
792
789
789
791
NET INCOME (LOSS)
$ (0.06)
$ (0.95)
$ (0.40)
$ (0.43)
$ (1.83)
$ 0.12
$ 0.02
$ 0.14
Dividends paid per common share
$ 0.05
$ -
$ -
$ 0.03
$ 0.08
$ 0.03
$ 0.04
$ 0.07
Balance Sheets
Consolidated Balance Sheets
Marathon Oil Corporation
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
(In millions)
2020
2020
2020
2020
2021
2021
ASSETS
Current assets:
Cash and cash equivalents
$ 817
$ 522
$ 1,119
$ 742
$ 1,125
$ 970
Receivables less allowance for doubtful accounts
703
620
643
747
921
1,008
Inventories
78
77
77
76
78
78
Derivative assets
193
79
61
23
-
-
Other current assets
118
107
22
24
26
19
Total current assets
1,909
1,405
1,922
1,612
2,150
2,075
Equity method investments
628
476
467
447
460
458
Property, plant and equipment, net
16,903
16,424
16,029
15,638
15,313
15,019
Other noncurrent assets
275
262
245
259
310
248
Total assets
$ 19,715
$ 18,567
$ 18,663
$ 17,956
$ 18,233
$ 17,800
LIABILITIES
Current liabilities:
Accounts payable
$ 1,104
$ 696
$ 730
$ 837
$ 918
$ 937
Payroll and benefits payable
68
76
72
57
37
49
Accrued taxes
72
77
45
72
78
95
Other current liabilities
198
216
219
247
366
461
Long-term debt due within one year
-
-
500
-
500
33
Total current liabilities
1,442
1,065
1,566
1,213
1,899
1,575
Long-term debt
5,502
5,503
5,405
5,404
4,905
4,875
Deferred tax liabilities
185
171
184
163
160
156
Defined benefit postretirement plan obligations
172
194
182
180
176
151
Asset retirement obligations
236
242
236
241
251
272
Deferred credits and other liabilities
220
217
198
194
171
137
Total liabilities
7,757
7,392
7,771
7,395
7,562
7,166
TOTAL STOCKHOLDERS' EQUITY
11,958
11,175
10,892
10,561
10,671
10,634
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$ 19,715
$ 18,567
$ 18,663
$ 17,956
$ 18,233
$ 17,800
Common stock issued
937
937
937
937
937
937
Common stock held in treasury
146
147
147
148
149
148
Net shares outstanding at balance sheet date
791
790
790
789
788
789
Statements of Cash Flows
Consolidated Statements of Cash Flows (YTD)
Marathon Oil Corporation
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
(In millions)
2020
2020
2020
2020
2021
2021
OPERATING ACTIVITIES:
Net income (loss)
$ (46)
$ (796)
$ (1,113)
$ (1,451)
$ 97
$ 113
Adjustments to reconcile to net cash provided by operating activities:
Depreciation, depletion and amortization
644
1,241
1,795
2,316
496
1,028
Impairments
97
97
98
144
1
47
Exploratory dry well costs and unproved property impairments
22
40
63
159
17
39
Net gain on disposal of assets
(9)
(7)
(8)
(9)
-
(1)
Loss on early extinguishment of debt
-
-
-
28
-
19
Deferred income taxes
(1)
(14)
(2)
(22)
(4)
(7)
Unrealized (gain) loss on derivative instruments
(171)
(75)
(39)
27
82
157
Net (gain) loss on derivative instruments
(202)
(132)
(131)
(116)
-
-
Net settlements of derivative instruments
31
57
92
143
-
-
Pension and other post retirement benefits, net
(11)
(31)
(35)
(43)
(7)
(14)
Stock-based compensation
15
28
43
57
6
17
Equity method investments, net
28
180
189
210
(14)
(17)
Changes in:
Current receivables
407
489
467
367
(175)
(253)
Inventories
(6)
(5)
(5)
(4)
(2)
(2)
Current accounts payable and accrued liabilities
(234)
(456)
(478)
(381)
101
121
Other current assets and liabilities
(16)
46
83
75
61
73
All other operating, net
(18)
(27)
(3)
-
(37)
(43)
Net cash provided by operating activities
701
710
1,055
1,473
622
1,277
INVESTING ACTIVITIES:
Additions to property, plant and equipment
(620)
(946)
(1,090)
(1,343)
(209)
(483)
Additions to other assets
(1)
12
15
15
-
-
Acquisitions, net of cash acquired
-
3
(1)
(1)
-
-
Disposal of assets, net of cash transferred to the buyer
3
9
9
18
3
15
Equity method investments - return of capital
7
7
7
7
-
6
All other investing, net
-
-
-
1
(1)
(1)
Net cash used in investing activities
(611)
(915)
(1,060)
(1,303)
(207)
(463)
FINANCING ACTIVITIES:
Borrowings
-
-
400
400
-
-
Debt repayments
-
-
-
(500)
-
(500)
Debt extinguishment costs
-
-
-
(27)
-
(19)
Purchases of common stock
(92)
(92)
(92)
(92)
(9)
(9)
Dividends paid
(40)
(40)
(40)
(64)
(23)
(55)
All other financing, net
1
1
(2)
(3)
-
(3)
Net cash provided by (used in) financing activities
(131)
(131)
266
(286)
(32)
(586)
Net increase (decrease) in cash and cash equivalents
(41)
(336)
261
(116)
383
228
Cash and cash equivalents at beginning of period
858
858
858
858
742
742
Cash and cash equivalents at end of period
$ 817
$ 522
$ 1,119
$ 742
$ 1,125
$ 970
Segment Income Statement
Segment Income Summary
Marathon Oil Corporation
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
Year
(Dollars in millions)
2020
2020
2020
2020
2020
2021
2021
2021
Segment income (loss)
United States
$ (20)
$ (365)
$ (135)
$ (33)
$ (553)
$ 212
$ 207
$ 419
International
(1)
(6)
8
29
30
50
68
118
Segment income (loss)
(21)
(371)
(127)
(4)
(523)
262
275
537
Not allocated to segments - Corporate items:
Net interest and other
(64)
(69)
(62)
(68)
(263)
(54)
(67)
(121)
Other net periodic benefit costs (credits)
-
7
(6)
(2)
(1)
3
(1)
2
General and administrative
(40)
(40)
(23)
(25)
(128)
(40)
(36)
(76)
Other income and costs
(2)
(8)
4
1
(5)
(5)
-
(5)
Income tax (provision) benefit
2
4
(4)
-
2
-
2
2
Not allocated to segments - Adjustments for special items:
Net gain (loss) on disposal of assets
9
(2)
1
1
9
-
1
1
Proved property impairments
(2)
-
(1)
(46)
(49)
(1)
(46)
(47)
Exploratory dry well costs, unproved property impairments and other
-
-
(6)
(78)
(84)
-
(7)
(7)
Goodwill impairment
(95)
-
-
-
(95)
-
-
-
Pension settlement
(2)
(14)
(9)
(5)
(30)
-
(5)
(5)
Pension curtailment
-
17
-
-
17
0
-
-
-
Unrealized gain (loss) on derivative instruments
171
(96)
(36)
(66)
(27)
(82)
(75)
(157)
Unrealized gain on interest rate swaps (a)
-
-
-
12
12
41
8
49
Reduction in workforce (b)
-
(13)
(2)
(2)
(17)
-
(11)
(1)
(12)
Impairment of equity method investment
-
(152)
(18)
(1)
(171)
0
-
-
-
Loss on early extinguishment of debt
-
-
-
(28)
(28)
-
(19)
(19)
Other (c)
(2)
(13)
(28)
(27)
(70)
(16)
(13)
(29)
Total special items
79
(273)
(99)
(240)
(533)
(69)
(157)
(226)
Not allocated to segments - Total
(25)
(379)
(190)
(334)
(928)
(165)
(259)
(424)
Net income (loss)
$ (46)
$ (750)
$ (317)
$ (338)
$ (1,451)
$ 97
$ 16
$ 113
(1) Included within Net interest and other on our consolidated statements of income.
(2) Included within General and administrative on our consolidated statements of income.
(3) 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 Supplemental Fina
United States Supplemental Financial Data
Marathon Oil Corporation
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
Year
(In millions, except per BOE statistics)
2020
2020
2020
2020
2020
2021
2021
2021
Revenues from contracts with customers (a)
$ 970
$ 462
$ 722
$ 770
$ 2,924
$ 1,132
$ 1,189
$ 2,321
Net gain (loss) on commodity derivatives
31
26
35
51
143
(71)
(91)
(162)
Other income
4
3
1
7
15
1
3
4
Less Costs and Expenses:
Production
143
114
118
119
494
111
113
224
Shipping, handling and other operating (b)
140
91
154
149
534
144
153
297
Exploration
28
26
21
22
97
21
18
39
DD&A
617
569
530
495
2,211
472
506
978
Taxes other than income
66
30
48
49
193
74
76
150
General and administrative
32
32
25
26
115
23
27
50
Income (loss) before taxes
(21)
(371)
(138)
(32)
(562)
217
208
425
Income tax provision (benefit)
(1)
(6)
(3)
1
(9)
5
1
6
Segment income (loss)
(20)
(365)
(135)
(33)
(553)
212
207
419
Effective tax rate
5 %
2 %
2 %
(3)%
2 %
2 %
- %
1 %
Net sales volumes (mboed)
338
308
297
280
306
275
283
279
Costs and Expenses per BOE (c)
Production
$ 4.63
$ 4.09
$ 4.32
$ 4.62
$ 4.42
$ 4.46
$ 4.41
$ 4.43
Shipping, handling and other operating (d)
3.88
2.86
4.63
4.94
4.05
5.43
4.81
5.12
Exploration
0.91
1.20
0.77
0.84
0.86
0.86
0.69
0.78
DD&A
20.03
20.28
19.39
19.25
19.76
19.05
19.65
19.36
Taxes other than income
2.13
1.07
1.77
1.91
1.73
2.97
2.98
2.97
General and administrative
1.04
1.13
0.93
1.01
1.03
0.92
1.04
0.98
(a) Includes marketing revenue.
(b) Includes marketing expense.
(c) Costs and expenses per BOE are based upon volumes sold.
(d) Excludes marketing expense.
International Supplemental Fina
International Supplemental Financial Data
Marathon Oil Corporation
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
Year
(In millions, except per BOE statistics)
2020
2020
2020
2020
2020
2021
2021
2021
Revenues from contracts with customers
$ 54
$ 28
$ 39
$ 52
$ 173
$ 45
$ 65
$ 110
Income (loss) from equity method investments
(12)
-
8
14
10
44
49
93
Other income
2
2
1
2
7
1
2
3
Less Costs and Expenses:
Production
17
15
11
16
59
10
13
23
Shipping, handling and other operating
3
1
1
3
8
4
2
6
Exploration
-
-
-
-
-
-
-
-
DD&A
21
22
19
20
82
19
18
37
General and administrative
4
3
3
4
14
2
4
6
Other net periodic benefit costs
-
-
-
-
-
-
-
-
Income (loss) before taxes
(1)
(11)
14
25
27
55
79
134
Income tax provision (benefit)
-
(5)
6
(4)
(3)
5
11
16
Segment income (loss)
(1)
(6)
8
29
30
50
68
118
Effective tax rate
- %
45 %
43 %
(16)%
(11)%
9 %
14 %
12 %
Net sales volumes (mboed)
81
84
71
73
77
66
65
66
Costs and Expenses per BOE (a)
Production
$ 2.35
$ 1.88
$ 1.76
$ 2.49
$ 2.12
$ 1.68
$ 2.17
$ 1.93
Shipping, handling and other operating
0.43
0.09
0.15
0.51
0.29
0.72
0.34
0.53
DD&A
2.86
2.86
2.89
2.95
2.89
3.09
3.08
3.09
General and administrative
0.53
0.42
0.41
0.57
0.48
0.46
0.46
0.46
Equatorial Guinea
EG - Income (loss) from equity method investments
$ (12)
$ -
$ 8
$ 14
$ 10
$ 44
$ 49
$ 93
EG - Net income (loss) excluding equity method investments
9
(5)
7
12
23
8
16
24
EG Total Net Income (Loss)
(3)
(5)
15
26
33
52
65
117
EG Net Income before DD&A, Tax, and Exploration (EBITDAX) (b)
$ 34
$ 22
$ 48
$ 59
$ 163
$ 94
$ 118
$ 212
(a) Costs and expenses per BOE are based upon volumes sold.
(b) See "Non-GAAP Reconciliations", for further detail.
Non-GAAP Reconciliations
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
2nd Qtr
Year
(In millions)
2020
2020
2020
2020
2020
2021
2021
2021
Net income (loss)
$ (46)
$ (750)
$ (317)
$ (338)
$ (1,451)
$ 97
$ 16
$ 113
Adjustments for special items (pre-tax):
Net (gain) loss on disposal of assets
(9)
2
(1)
(1)
(9)
-
(1)
(1)
Proved property impairments
2
-
1
46
49
1
46
47
Exploratory dry well costs, unproved property impairments and other
-
-
6
78
84
-
7
7
Goodwill impairment
95
-
-
-
95
-
-
-
Pension settlement
2
14
9
5
30
-
5
5
Pension curtailment
-
(17)
-
-
(17)
-
-
-
Unrealized (gain) loss on derivative instruments
(171)
96
36
66
27
82
75
157
Unrealized (gain) on interest rate swaps
-
-
-
(12)
(12)
(41)
(8)
(49)
Reduction in workforce
-
13
2
2
17
11
1
12
Impairment of equity method investment
-
152
18
1
171
-
-
-
Loss on early extinguishment of debt
-
-
-
28
28
-
19
19
Other
2
13
28
27
70
16
13
29
Benefit for income taxes related to special items
-
-
(1)
-
(1)
-
-
-
Adjustments for special items
(79)
273
98
240
532
69
157
226
Adjusted net income (loss) (a)
$ (125)
$ (477)
$ (219)
$ (98)
$ (919)
$ 166
$ 173
$ 339
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
Year
(In millions, except per share data)
2020
2020
2020
2020
2020
2021
2021
2021
Per common share data:
Diluted:
Weighted average shares (millions)
794
789
790
790
792
789
789
791
Adjusted net income (loss) (a)
$ (125)
$ (477)
$ (219)
$ (98)
$ (919)
$ 166
$ 173
$ 339
Adjusted net income (loss) per share (a)
$ (0.16)
$ (0.60)
$ (0.28)
$ (0.12)
$ (1.16)
$ 0.21
$ 0.22
$ 0.43
(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, 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 2
Non-GAAP Reconciliations
Marathon Oil Corporation
(In millions)
1st Qtr 2020
2nd Qtr 2020
3rd Qtr 2020
4th Qtr 2020
Year 2020
1st Qtr 2021
2nd Qtr 2021
Year 2021
Cash additions to Property, Plant, and Equipment
$ 620
$ 326
$ 144
$ 253
1,343
$ 209
$ 274
$ 483
Change in working capital associated with PP&E
(52)
(187)
33
14
(192)
(25)
15
(10)
Exploration costs other than well costs
-
-
-
M&S Inventory and other
-
Additions to other assets
$ 1
$ (13)
$ (3)
$ -
(15)
$ -
$ -
-
Total Capital Expenditures (a)
$ 569
$ 126
$ 174
$ 267
$ 1,136
$ 184
$ 289
$ 473
(In millions)
1st Qtr 2020
2nd Qtr 2020
3rd Qtr 2020
4th Qtr 2020
Year 2020
1st Qtr 2021
2nd Qtr 2021
Year 2021
Free Cash Flow
Net cash flow provided by operating activities
701
9
345
418
1,473
622
655
1,277
Adjustments:
Changes in working capital
(151)
77
7
10
(57)
15
46
61
Capital expenditures
(569)
(126)
(174)
(267)
(1,136)
(184)
(289)
(473)
EG return of capital and other
1
-
-
-
1
(10)
8
(2)
Free Cash Flow (a)
$ (18)
$ (40)
$ 178
$ 161
$ 281
$ 443
$ 420
$ 863
Our presentation of total capital expenditures is a non-GAAP measure. Total capital expenditures is defined as cash additions to property, plant and equipment adjusted for the change in working capital associated with property, plant and equipment 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 certain working capital and other items. Total capital expenditures 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 free cash flow is a non-GAAP measure. Free cash flow before dividend ("free cash flow" is defined as net cash provided by operating activities adjusted for working capital, 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. 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 3
Non-GAAP Reconciliations
Marathon Oil Corporation
(In millions)
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Cash Flows (QTD)
2020
2020
2020
2020
2021
2021
Changes in Working Capital
Current receivables
407
82
(22)
(100)
(175)
(78)
Inventories
(6)
1
-
1
(2)
-
Current accounts payable and accrued expenses
(234)
(222)
(22)
97
101
20
Other current assets and liabilities
(16)
62
37
(8)
61
12
Total changes in operating working capital
$ 151
$ (77)
$ (7)
$ (10)
$ (15)
$ (46)
Change in M&S inventory
Total changes in operating working capital less M&S inventory
151
(77)
(7)
(10)
(15)
(46)
Changes in investing working capital
(52)
(187)
33
14
(25)
15
Total changes in working capital
$ 99
$ (264)
$ 26
$ 4
$ (40)
$ (31)
Net cash provided by operating activities
$ 701
$ 9
$ 345
$ 418
$ 622
$ 655
Total changes in operating working capital
151
(77)
(7)
(10)
(15)
(46)
Net cash provided by operating activities before changes in operating working capital (a)
$ 550
$ 86
$ 352
$ 428
$ 637
$ 701
(a) Non-GAAP financial measure.
Our presentation of net cash provided by operations 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 operations 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
2nd Qtr
Year
(In millions)
2020
2020
2020
2020
2020
2021
2021
2021
Equatorial Guinea EBITDAX
EG - Income (loss) from equity method investments
$ (12)
$ -
$ 8
$ 14
$ 10
$ 44
$ 49
$ 93
EG - Net income (loss) excluding equity method investments
9
(5)
7
12
23
8
16
24
EG Total Net Income (Loss)
(3)
(5)
15
26
33
52
65
117
Adjustments to EG total net income (loss):
DD&A
37
30
29
28
124
27
29
56
Tax
-
(3)
4
5
6
15
24
39
EG Net Income before DD&A, Tax, and Exploration (EBITDAX) (a)
$ 34
$ 22
$ 48
$ 59
$ 163
$ 94
$ 118
$ 212
(a) Non-GAAP financial measure.
Our presentation of E.G. EBITDAX is a non-GAAP measure. E.G. EBITDAX is defined as E.G. net income (loss) excluding net interest expense, 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, E.G. net income (loss), which is a component of our International segment income (loss) as determined in accordance with U.S. GAAP.
Non-GAAP Reconciliations 4
Non-GAAP Reconciliations
Marathon Oil Corporation
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Year
1st Qtr
2nd Qtr
Year
(In millions)
2020
2020
2020
2020
2020
2021
2021
2021
Net income (loss)
(46)
(750)
(317)
(338)
(1,451)
97
16
113
Adjustments to net income (loss):
DD&A
644
597
554
521
2,316
496
532
1,028
Tax
(3)
(15)
7
(3)
(14)
10
10
20
Exploration
28
26
27
100
181
21
25
46
Net interest and other
64
69
62
61
256
13
59
72
EBITDAX
687
(73)
333
341
1,288
637
642
1,279
EBITDAX special items adjustments:
Net (gain) loss on disposal of assets
(9)
2
(1)
(1)
(9)
-
(1)
(1)
Proved property impairments
2
-
1
46
49
1
46
47
Goodwill impairment
95
-
-
-
95
-
-
-
Pension settlement
2
14
9
5
30
-
5
5
Pension curtailment
-
(17)
-
-
(17)
-
-
-
Unrealized (gain) loss on derivative instruments
(171)
96
36
66
27
82
75
157
Reduction in workforce
-
13
2
2
17
11
1
12
Impairment of equity method investment
-
152
18
1
171
-
-
-
Loss on early extinguishment of debt
-
-
-
28
28
-
19
19
Other
2
13
28
16
59
16
13
29
Adjustments for special items
(79)
273
93
163
450
110
158
268
Adjusted EBITDAX (a)
$ 608
$ 200
$ 426
$ 504
$ 1,738
$ 747
$ 800
$ 1,547
(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.
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Marathon Oil Corporation published this content on 03 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2021 22:23:07 UTC.
Marathon Oil Corporation specializes in the exploration and production of oil and natural gas. The activity is organized around 3 product families:
- crude oil and gas condensates: 172,000 barrels of oil sold per day in 2021;
- natural gas: 18.1 million m3 sold per day;
- liquefied natural gas: 69,000 barrels sold per day.
The United States account for 95.2% of net sales.