Investing: Marathon

Yahoo!Financial: MRO

Original Posting

Fact sheet on MRO's home page: 320,000 net acres in North Dakota; expects15,000 boepd by 2015.

The numbers really are something. I see on MRO's home page that the company expects to produce 15,000 boepd by 2015. MRO is of interest today because it actually reported a profit despite it's refining operations.  15,000 *$70 = $383 million/year at the wellhead, assuming most of the "oe" (oil equivalent) is "oil" -- which I assume is, by definition. February 2, 2010.

MRO has only four rigs in North Dakota; it really is incredible how much cash flow there is on relatively small operation (four rigs). February 2, 2010.

NEWS

Motley Fool thinks post-breakup, Marathon Oil (upstream) could rival CVX and COP, and downstream, Marathon Petroleum could rival today's largest independent refiner, Valero.  July 12, 2011. 

Presentation, February, 2011

• 391,000 net acres in the Bakken
• Well cost: $6 - 7 million
• 30-day IP: 250 - 600 boepd for first 30 days
• EUR: 280 - 500,000 boe/well
• Plans to drill 120 - 145 wells in 2011; with 70 - 75 operated; rest non-operated
• Prospects have changed slightly

Presentation: September, 2010

• Well and facility cost: $5.3 - 6.4 million / well
• Operating cost: <$5 / barrel
• Total discount to West Texas Intermediate: $6 - 8 / barrel
• Net development cost: $16 - 20 / barrel
• Increased number of rigs in the Bakken from 4 to 6 in 2010

2Q, 2010, earning conference call: earnings increase a whopping 216% year-over-year. Incredible. Were things that good this quarter or were things that bad last year?

4Q, 2009, results: Marathon announces a quarterly profit (despite refining business) but Wall Street disappointed. Well, la de da.

3rd Quarter 2009, results: “Marathon currently has three rigs running in its Bakken program with plans to add a fourth rig late in the fourth quarter of 2009. Net production at the end of the third quarter amounted to approximately 11,000 boepd, compared to 7,300 boepd at the end of the third quarter 2008. Marathon's total Bakken leasehold in North Dakota is approximately 335,000 net acres.”

7,300 * $50 = $365,000/day

11,000 * $70 = $770,000 day = $281 million/year just off a few wells in the Williston Oil Basin.

Oh, by the way, Marathon has 42 wells on the confidential list (November 3, 2009).