2024-05-19 11:26:30 ET
Summary
- Marathon Oil reduces per foot costs and increases initial flow rate, leading to lower well breakeven point and higher profitability.
- Management front loads capital budget, and has significant natural gas production. It is important to bring natural gas production online for the winter heating season.
- Despite the change in net income, adjusted cash flow from operating activities held up rather well for Marathon Oil.
- Marathon burnished the company's reputation as an operator with the announcement of cost-effective 3-mile wells.
Marathon Oil ( MRO ) is a company that has a known reputation as an operator. In the first quarter report, they burnished that reputation some more with the following announcement :
Brought online 12 three-mile wells during first quarter, delivered at a total per foot well cost more than 20% below comparable two-mile lateral wells; first three-mile Permian pad achieved an average per well 30-day IP rate of over 5,000 net BOED.
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For further details see:
Marathon Oil Often Leads In Cost Progress