Marathon Oil Corporation (NYSE: MRO) surpassed analysts’ expectations for revenue and earnings in the second quarter of 2019, allowing shares to gain 5.1% in aftermarket hours on Wednesday.
Total revenue inched up 1% to $1.43 billion from the same period last year, beating consensus estimates of $1.41 billion.
On a GAAP basis, net income was $161 million, or $0.20 per share, compared to $96 million, or $0.11 per share, in the year-ago quarter. Adjusted net income totaled $189 million, or $0.23 per share, topping forecasts of $0.15 per share.
US production averaged 332,000 net barrels of oil equivalent per day (boed), including 192,000 net barrels of oil per day (bopd), both above the top end of the company’s guidance ranges. On a divestiture-adjusted basis, oil production was up 17% year-over-year. US unit production costs decreased 14% to $4.89 per barrel of oil equivalent (boe). International production averaged 103,000 net boed for the quarter.
During the second quarter, Marathon closed on the sale of its 15% participating interest in the Atrush Block in Kurdistan, marking a complete country exit. On July 1, the company closed on the sale of its UK business.
Development capital expenditures totaled $636 million in the second quarter. The development capital budget for 2019 is $2.4 billion.
For the third quarter of 2019, Marathon forecasts total US oil production of 190,000 to 200,000 net bopd. International oil production guidance is 12,000 to 16,000 net bopd, reflecting both the UK and Kurdistan asset divestitures. The annual divestiture-adjusted oil production growth guidance is 10% for total company and 12% for US.