Marathon Oil (MRO) Provides Preliminary First Quarter 2021 Update

Marathon Oil Corporation (NYSE: MRO) today provided preliminary information regarding certain first quarter 2021 financial and operational estimates in light of uncertainty from Winter Storm Uri. The Company will report final first quarter results on Wednesday, May 5, after the close of U.S. financial markets. The Company will conduct a conference call on Thursday, May 6, at 9 a.m. ET.

Preliminary 1Q21 Results

• Cash flow from operations of $610 million to $630 million, including $10 million to $20 million of negative changes in working capital
• Cash additions to property, plant, and equipment of approximately $200 million
• Total Company oil production of 172,000 net bopd with sales of 168,000 net bopd; total Company oil-equivalent production of 345,000 net boed with sales of 341,000 net boed; difference between production and sales due primarily to an underlift in Equatorial Guinea
• Estimated unhedged U.S. segment realizations1 of approximately $55/bbl for oil, $24/bbl for NGLs, and $6.30/mcf for natural gas; International segment oil realizations of approximately $44/bbl
• Realized derivative loss of $71 million
• General and administrative expense of approximately $90 million, including $11 million of severance expense and $13 million of corporate aircraft lease termination expense, both related to cost reduction actions during first quarter 2021

Footnotes:1 Inclusion of realized gains (losses) on crude oil derivative instruments would have decreased average price realizations by approximately $4.60 per bbl for first quarter 2021.

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