Marathon Oil posted a net income of $613million, an increase of 73% from last year’s figures.
The first quarter results were buoyed by strong US growth.
However, chief executive Lee Tillman, emphasised the vital role the North Sea would play in its 2014 campaign.
He said: “Importantly, we’ve already advanced the three key priorities of our 2014 agenda – ramping up U.S. resource play drilling activity, marketing our North Sea businesses and delivering shareholder value through opportunistic share repurchases.
“With strong execution, we remain confident in our plans to grow production from our three U.S. resource plays by 30 percent in 2014 over 2013. The combination of downspacing with improved completion productivity has consistently improved our well results. Across the resource plays we continue to aggressively pursue co-development opportunities for the Austin Chalk in the Eagle Ford, Three Forks in the Bakken and vertically stacked horizons in Oklahoma.
“Marathon Oil is committed to rigorous portfolio management to simplify and concentrate our portfolio toward higher-growth and higher-margin opportunities. This quarter we closed on the sales of our interests in Angola Blocks 31 and 32, and opened the data room for the marketing of our U.K. and Norway North Sea businesses with bids due in the second quarter.
“The company has completed the previously announced $1 billion share repurchase tied to the Angola Block 31 sale representing 29 million shares. I n March we announced an additional $500 million share repurchase, which is now substantially complete, further demonstrating our commitment to shareholder value while exercising capital discipline. Upon completion of this additional share repurchase there will be $1.5 billion remaining on our share repurchase authorisation.”
The firm’s total volumes from continuing operations during this year’s first quarter averaged 457,000 net barrels of oil equivalent per day (boed) compared to last year’s 471,000 net boed.
In the UK production available for sale averaged 16,000 net boed compared to 26,000 net boed in the first quarter of 2013.
Reliability of the Foinaven field as well as natural decline and a delayed reinstatement of gas compression at Brae were both credited for the downturn.
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