Marathon Oil Reports Strong Q3 Earnings

(Reuters) – U.S. shale producer Marathon Oil (NYSE:MRO) surpassed Wall Street estimates for third-quarter profit on Wednesday, driven by higher production and resilient oil demand.

Benchmark Brent crude averaged $78.3 a barrel in the reported quarter, a price level allowing profitable drilling. Meanwhile, natural gas prices rose towards the end of Q3 after Hurricane Helene caused production shutdowns.

Marathon, which operates in the Bakken, Permian, and Eagle Ford (NYSE:F) basins, increased total production to 421,000 barrels of oil equivalent per day (boepd), up from 393,000 boepd in Q2.

Total (EPA:TTEF) oil production grew to 207,000 barrels per day in the three months ended September 30, compared to 191,000 in the previous quarter.

Marathon Oil is set to be acquired by larger rival ConocoPhillips (NYSE:COP) for $22.5 billion. This deal, approved by Marathon's shareholders in August, is currently under Federal Trade Commission review and is expected to close late in Q4 2024.

Last week, ConocoPhillips also surpassed Wall Street expectations for Q3 profits and raised its full-year output forecast.

Marathon has increased its full-year production forecast, anticipating a boost from rising U.S. oil consumption, which reached its highest summer level since 2019 in July.

The company now estimates total production of 393,000 boepd in 2024, exceeding the midpoint of its previous forecast of 391,000 boepd.

Marathon reported adjusted earnings of 64 cents per share for the quarter, slightly exceeding analysts' average estimate of 63 cents per share, according to data compiled by LSEG.