US Markets
MRO

Marathon Oil posts quarterly loss on oil crash

Credit: REUTERS/TODD KOROL

U.S. oil and gas producer Marathon Oil Corp on Wednesday posted a quarterly loss compared with a year-ago profit, as the coronavirus-induced lockdowns crushed crude prices and sapped demand for fuel.

Adds background on oil prices, shares, outlook

Aug 5 (Reuters) - U.S. oil and gas producer Marathon Oil Corp MRO.N on Wednesday posted a quarterly loss compared with a year-ago profit, as the coronavirus-induced lockdowns crushed crude prices and sapped demand for fuel.

Shares of the company fell 2.5% to $5.83 in extended trade.

U.S. crude prices CLc1 remain about 32% lower from January levels despite a recent rally, as COVID-19 drained demand and a battle for market share among the world's top producers flooded the market with oil.

Marathon Oil said the average realized price for its U.S. crude oil and condensate fell 63.4% to $21.65 per barrel.

However, with oil prices having rebounded from a dip into negative territory, Marathon raised its production guidance to 190,000 net barrels of oil per day at mid-point, inclusive of year-to-date curtailment. It also cut its full-year capital expenditure to $1.2 billion from $1.3 billion.

Total net production for the quarter fell to 390,000 barrels of oil equivalent per day (boepd) from 435,000 boepd a year ago.

The Houston, Texas based company reported a loss of $750 million, or 95 cents per share, in the second quarter ended June 30, from a profit of $161 million, or 20 cents per share, last year.

(Reporting by Arunima Kumar in Bengaluru; Editing by Shailesh Kuber)

((Arunima.Kumar@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

MRO

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More