Marathon Oil Q4 Profit Up 16%, But Results Miss View

(RTTNews) - Oil and gas company Marathon Oil Corp. (MRO) on Wednesday reported a 16 percent increase in profit for the fourth quarter from last year as lower revenues were more than offset by a decline in income tax provisions and higher income from discontinued operations. However, results for the quarter missed analysts' expectations.

The company's net sales volumes for the fourth quarter averaged 464 mboed, down 13 percent from 534 mboed in the year-ago period. North American price for crude oil declined 2 percent from the year-ago period to $87.61 per barrel, while natural gas price decreased 14 percent to $3.76 per mcf.

The Houston, Texas based company's net income for the fourth quarter was $375 million or $0.54 per share, up from $322 million or $0.45 per share in the year-ago period. The latest quarter's results include income from discontinued operations of $79 million, compared to $7 million in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $418 million or $0.60 per share, compared to $388 million or $0.55 per share in the prior-year period. On average, 27 analysts polled by Thomson Reuters expected the company to report earnings of $0.72 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue and other income for the quarter declined 22 percent to $3.29 billion from $4.24 billion in the same period last year. Analysts had a consensus revenue estimate of $3.57 billion for the quarter.

Total costs and expenses decreased to $2.41 billion from $2.55 billion in the same period last year. Provision for income taxes declined 60 percent to $522 million.

For fiscal 2013, Marathon Oil's net income was $1.75 billion or $2.47 per share, up from $1.58 billion or $2.23 per share in the previous year. Adjusted net income was $1.87 billion or $2.64 per share, compared to $1.74 billion or $2.45 per share in the prior year.

Revenues and other income for the year declined 8 percent to $14.96 billion from $16.22 billion last year.

Street expected the company to earn $3.05 per share for the year on revenues of $15.53 billion.

Looking ahead to the first quarter, Marathon Oil expects net production available for sale in North America E&P of 214-223 mboed. In International E&P excluding Libya and Angola, the company projects net production in a range of 186-197 mboed.

For 2014, Marathon Oil projects total combined North America & International production available for sale, excluding Libya and Angola, in a range of 405 to 435 mboed.

MRO closed Wednesday's regular trading session at $32.10, down $0.24 or 0.74 percent on a volume of 6.54 million shares. In after-hours, the stock further declined $1.10 or 3.43 percent to $31.00.