Tags: US | Earns | Marathon | Oil

Marathon Earns $355 Million on Higher Oil Prices

Tuesday, 02 Feb 2010 09:31 AM

Marathon Oil Corp. said Tuesday that higher oil prices helped it earn $355 million in the fourth quarter, reversing a loss from a year ago.

The Houston oil company reported net income of 50 cents per share in final the three months of 2009. Marathon lost $41 million, or 6 cents a share, in the same quarter of 2008.

Revenue increased 11.5 percent to $15.9 billion.

Excluding special items, the company said it earned $229 million, or 32 cents a share.

The results come one day after Marathon said it plans to cut capital spending by 17 percent this year to $5.1 billion, slashing its budget for refineries by more than half.

The refining business has been a sore spot throughout the oil patch. Americans are burning less fuel than in previous years, and pump prices haven't increased at the same clip as the crude oil that's used to make it.

After expanding its refinery in Garyville, La., Marathon said it would devote most of its spending this year to oil and gas exploration, which has propped up its bottom line with higher profits.

The company said it will focus on exploring potential petroleum deposits in the Gulf of Mexico. It also will target two "high-reward, but also high-risk" deepwater wells in Indonesia and look for more natural gas in the rich underground shale beds of the U.S.

The company will continue to increase oil and gas production by 4 percent a year until 2011.

For all of 2009, Marathon earned $1.46 billion, or $2.06 per share, compared with $3.5 billion, or $4.95 per share in 2008.

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Marathon Oil Corp. said Tuesday that higher oil prices helped it earn $355 million in the fourth quarter, reversing a loss from a year ago.The Houston oil company reported net income of 50 cents per share in final the three months of 2009. Marathon lost $41 million, or 6...
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2010-31-02
 

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