Marathon Earnings: Guidance Unchanged; Still Delivering on Capital Returns, Despite Lower Oil Prices

Marathon's second-quarter financial results were ahead of consensus estimates, according to FactSet, and the firm still expects to meet its previous full-year production target of 395 thousand barrels of oil equivalent per day. Firmwide output in the second quarter came in at 399 mboe/d, 1% higher sequentially, and management believes third-quarter volumes will meet or exceed the annual target as well. Full-year capital expenditures are also on track, with no revision. We do expect service pricing to soften in the back half of the year, but this is more likely to affect 2024 spending, and we already incorporate a 5% reduction in well costs starting next year.