Marathon Oil (NYSE: MRO) reported Q4 EPS of $0.69, $0.06 better than the analyst estimate of $0.63. Revenue for the quarter came in at $1.69 billion versus the consensus estimate of $1.66 billion.

2024 Capital Budget and Guidance
Marathon Oil announced a $1.9 billion to $2.1 billion capital expenditure budget for 2024, fully consistent with the Company\'s disciplined capital allocation framework that prioritizes corporate returns and FCF generation.

The 2024 program is expected to deliver approximately $1.9 billion of FCF, assuming $75/bbl WTI, $2.50/MMBtu Henry Hub, and $10/MMBtu TTF. 2024 cash flow sensitivities to WTI, Henry Hub, and TTF commodity prices are provided in the Company\'s fourth quarter and full-year 2023 investor presentation.

Marathon Oil\'s 2024 financial guidance assumes Alternative Minimum Tax (AMT) cash tax payments for its U.S. domestic operations at 15% of pre-tax income, partially offset by approximately $150 million of expected research and development (R&D) tax credits.

Marathon Oil expects to deliver total Company oil production of 190,000 net bopd at the midpoint of its 2024 guidance range. Although winter weather is expected to lower first quarter production by about 4,000 net bopd, primarily concentrated in the Bakken, the Company expects no impact to its flat oil production guidance for the full year. Marathon Oil expects to continue driving significant growth in oil production per share. The underlying capital efficiency and bottom line financial outcomes of the 2024 capital program are again expected to benchmark at the top of Marathon Oil\'s high-quality E&P peer group.

More detailed highlights of the 2024 capital program include the following:

Expect 5% to 10% fewer net wells to sales in 2024 to deliver flat year-on-year total oil production as the Company optimizes well mix to maximize corporate returns and FCF generation
2024 well productivity expected to be comparable to 2023, with average lateral length increasing by ~5% and capital efficiency improving
Capital spending again approximately 60% weighted to first half of year, driving higher production during second half of year
Approximately 70% of total capital allocated to the Eagle Ford and Bakken
Higher year-on-year capital spending in the Permian, accounting for majority of remaining Resource Play capital spend
Modest E.G. capital spend limited to long-lead items in support of up to two potential Alba infill wells in 2025
Higher year-on-year non-development capital spending, primarily related to environmental and emissions reduction efforts

For earnings history and earnings-related data on Marathon Oil (MRO) click here.