(By Balaseshan) Marathon Oil Corp. (NYSE:MRO) reported a 60.5% drop in quarterly earnings due to higher provision for taxes as well as lower exploration and production segment income. Despite revenue exceeding consensus, adjusted earnings came in-line Street's expectations.
Profit dropped 60.5% to $393 million for the second quarter, while earnings per share (EPS) plunged 59.7% to $0.56. Adjusted earnings declined to $416 million or $0.59 per share from $689 million or $0.96 per share.
Revenue decreased 2.1% to $3.78 billion, while sales and other operating revenue rose 1% to $3.72 billion.
Analysts had expected a profit of $0.59 per share on revenue of $3.35 billion.
Worldwide liquid hydrocarbon sales increased to 270 million barrels per day (mbbld) from 198 mbbld, natural gas sales decreased to 820 millions of cubic feet per day (mmcfd) from 831 mmcfd.
Worldwide average realizations of liquid hydrocarbons declined to $97.81 per barrel from $104.93 per barrel, while average realizations of liquid gas fell to $2.70 per thousand cubic feet (mcf) from $3.21 per mcf.
Net synthetic crude oil sales increased to 44 mbbld from 41 mbbld, synthetic crude oil average realizations fell to $79.31 per barrel from $100.68 per barrel.
LNG sales decreased to 5,467 metric tonnes per day from 6,614 metric tonnes per day, while Methanol sales rose to 1,268 metric tonnes per day from 1,243 metric tonnes per day.
Looking ahead, the company's current capital outlook, excluding initial acquisition costs, remains at about $5 billion for 2012, with the previously discussed rig count reductions being offset by increased spending from outside-operated projects and for infrastructure costs to facilitate the continuing ramp-up of Eagle Ford volumes over the next five years.
The company continues to estimate it will meet or exceed asset dispositions totaling $1.5 billion to $3 billion for 2011 through 2013.
MRO is trading down 0.68% at $26.29 on Wednesday. The stock has been trading between $19.13 and $35.49 for the past 52 weeks.