SEATTLE (Oil Monster): Marathon Oil reported exceptional year in 2022, said the recently released results for Q4 2022 and full-year 2022. The outlook for the current year and beyond is equally compelling, it noted.
According to company press release, it generated $4 billion of adjusted free cash flow during the previous year. It was the strongest free cash flow yield in its peer group. It returned 55% of its adjusted free cash flow from operations to shareholders. Also, the acquisition of Ensign Natural Resources further strengthened its portfolio, noted Lee Tillman, Chairman and CEO, Marathon Oil.
Commenting on the future outlook, the company targets adjusted free cash flow of $2.6 billion and a return of at least $1.8 billion to its shareholders in 2023. The above estimates are based on price assumptions of $80 per barrel for West Texas Intermediate crude oil and $3 per thousand cubic feet for natural gas.
The company has $200 million of low cost tax exempt bonds maturing in the current year, which it plans to refinance. In addition, the company has similar maturities in 2024 and 2026 as well.
The company is better positioned for 2024, primarily driven by anticipated increased returns from its integrated gas business in Equatorial Guinea.
