U.S. oil and gas producer Marathon Oil Corp. reported a jump in third-quarter profit on Nov. 2, helped by a surge in crude prices over tighter energy supplies following Russia’s invasion of Ukraine.
The company also said it would acquire Ensign Natural Resources’ Eagle Ford assets for $3 billion, a deal expected to close by the end of this year.
Energy companies are posting huge profits as crude and natural gas prices have soared following Western sanctions against major exporter Russia and OPEC+’s decision to tighten an already squeezed global supply. U.S. crude has risen nearly 20% so far this year.
Marathon’s average realized U.S. crude price rose to $93.67/bbl in the reported quarter, up from last year’s $69.40/bbl.
The company raised its profit outlook for operations in Equatorial Guinea to $610 million from a midpoint of $540 million previously, due to strong operational performance and exposure to increased European natural gas pricing.
It also boosted its outlook for 2022 spending by $100 million to $1.4 billion, in part due to inflation. Rival Chesapeake Energy on Nov. 2 said a top U.S. natural gas basin could see a 15% jump in costs next year.
Production in the third quarter stood at 352,000 boe/d, above last year's 345,000 boe/d.
Rival Continental Resources Inc. also posted a third-quarter profit of $1.01 billion, which was nearly three-fold higher from last year. APA Corp. posted a quarterly adjusted profit of $651 million, or $1.97 per share, topping Wall Street forecasts of $1.78 per share, according to Refinitiv IBES.
Houston-based Marathon said adjusted net income stood at $832 million, or $1.24 per share, for the three-months ended Sept.30, compared with $310 million, or 39 cents per share, a year earlier. Analysts had anticipated earnings of $1.19 per share, according to Refinitiv IBES.
Shares of Marathon were up a fraction in after-hours trading after closing down 3.7% at $29.76.