Marathon Oil posts quarterly loss on oil crash


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)


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


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