Marathon Oil Corporation, an oil and gas exploration and production company, saw its loss deepen and revenues drop during the first quarter of 2016.
Marathon Oil reported a net loss of $407 million, compared to a loss of $276 million in the same period last year.
The company also reported a first quarter 2016 adjusted net loss of $317 million, excluding the impact of certain items not typically represented in analysts’ earnings estimates, compared to $253 million in 1Q 2015.
The company’s revenues dropped from $1.532 billion in the first quarter of 2015 to $730 million in the first quarter of 2016.
First quarter total company net production averaged 388,000 net boed at the upper end of guidance; U.S. resource play production averaged 204,000 net boed.
Marathon Oil President and CEO Lee Tillman , said: “With the backdrop of crude and condensate realizations falling more than 20 percent in the first quarter, we remained focused on lowering costs, reducing our capital program consistent with our plan, and delivering production at the upper end of guidance.
“Additionally, we maintained our commitment to portfolio management with the recently announced $950 million of non-core asset sale transactions, exceeding our target for 2016. With these actions, we’re on track to achieve our objective of living within our means in 2016.”
Marathon Oil expects second quarter 2016 North America E&P production available for sale to average 220,000 to 230,000 net boed reflecting declines as a result of reduced capital investment. Second quarter International E&P production available for sale (excluding Libya) is expected to be within a range of 115,000 to 125,000 net boed as the Alba field in Equatorial Guinea returned to normal operations in February and Brae Alpha in the U.K. resumed production in April.
Marathon Oil said ti reduced E&P production expenses and total company adjusted general and administrative expenses by 26 percent in the first quarter 2016 compared to the same quarter in 2015, or 23 percent lower on an unadjusted basis.
Offshore Energy Today Staff