Marathon Oil Corporation, (NYSE: MRO) is a United States-based oil and natural gas exploration and production company. Principal exploration activities are in the United States, Norway, Equatorial Guinea, Angola and Canada. Principal development activities are in the United States, the United Kingdom, Norway, Equatorial Guinea, and Gabon. In addition, Marathon operates other businesses that market and transport its own and third-party natural gas, crude oil and products manufactured from natural gas, such as liquefied natural gas and methanol, primarily in the United States, Europe and West Africa. Marathon's headquarters facility is the Marathon Oil Tower in Houston, Texas.

Marathon Oil Corporation (Marathon) is an integrated international energy company engaged in exploration and production; oil sands mining; integrated gas, and refining, marketing and transportation. Marathon operations consist of four operating segments: Exploration and Production (E&P), which explores for, produces and markets liquid hydrocarbons and natural gas on a worldwide; Oil Sands Mining (OSM), which mines, extracts and transports bitumen from oil sands deposits in Alberta, Canada, and upgrades the bitumen to produce and market synthetic crude oil; Integrated Gas (IG), which markets and transports products manufactured from natural gas, such as liquefied natural gas (LNG) and methanol, and Refining, Marketing and Transportation (RM&T), which refines, transports and markets crude oil and petroleum products, primarily in the Midwest, Gulf Coast and southeastern regions of the United States. The E&P, OSM and IG segments consists of its upstream operations. The RM&T segment consists of its downstream operations. As of December 31, 2010, it acquired approximately 177,000 net acres within the Niobrara play in the DJ Basin of northern Colorado and southeast Wyoming.
Exploration and Production
As of December 31, 2010, Marathon was conducting oil and gas exploration, development or production activities in ten countries: the United States, Angola, Canada, Equatorial Guinea, Indonesia, Libya, Norway, Poland, the Iraqi Kurdistan Region, and the United Kingdom. During the year ended December 31, 2010, its worldwide net liquid hydrocarbon sales averaged 245 thousand barrels per day. During 2010, net natural gas sales, including natural gas acquired for injection and resale, averaged 878 million cubic feet per day. During 2010, in total its net sales averaged 391 thousand barrels of oil equivalent per day. During 2010, in the United States the Company drilled 77 gross (36 net) exploratory wells of which 73 gross (32 net) wells encountered commercial quantities of hydrocarbons. Internationally, it drilled 10 gross (two net) exploratory wells of which seven gross (one net) wells encountered commercial quantities of hydrocarbons.
The Company’s United States operations accounted for 29% of its worldwide net liquid hydrocarbon sales volumes and 41% of its worldwide net natural gas sales volumes during 2010. As of December 31, 2010, it held material interests in seven producing fields, four of which are company operated. It operates the Ewing Bank 873 platform, which is located 130 miles south of New Orleans, Louisiana. The platform serves as a production hub for the Ewing Bank 873 (Lobster), Ewing Bank 917 (Oyster) and Ewing Bank 963 (Arnold) fields. It owns a 50% interest in the outside-operated Petronius field on Viosca Knoll Blocks 786 and 830. It holds 391,000 net acres in the Bakken shale oil play in the Williston Basin of North Dakota with a working interest of approximately 80%. During 2010, it entered into an agreement with an operator in the Eagle Ford shale, a liquids-rich play in Texas.
Marathon holds leases with natural gas production in the Piceance Basin of Colorado, located in Garfield County in the Greater Grand Valley field complex. The Company owns a 63% operated working interest in the Alba field which is offshore Equatorial Guinea. During 2010, Equatorial Guinea net liquid hydrocarbon sales was 15% of its worldwide net liquid hydrocarbon sales volumes, and net natural gas sales was 46% of its worldwide net natural gas sales. The Company also owns a 52% interest in Alba Plant LLC. It holds a 63% operated interest in the Deep Luba discovery on the Alba Block and it operates with a 90% interest in the Corona well on Block D. It holds 10% interests in Block 31 and Block 32, both of which are outside-operated. It holds a 16% interest in the Waha concessions, which encompass almost 13 million acres located in the Sirte Basin. The Company operates and holds a 70% interest in the Pasangkayu Block located both onshore & offshore Sulawesi in the Makassar Strait, Indonesia. The Pasangkayu Block covers an area of approximately 872,000 acres and is located in east of the Kutei Basin production region.
Oil Sands Mining
Marathon holds a 20% outside-operated interest in the Athabasca Oil Sands Project (AOSP), an oil sands mining joint venture located in Alberta, Canada. The joint venture produces bitumen from oil sands deposits in the Athabasca region utilizing mining techniques and upgrades the bitumen to synthetic crude oils. The AOSP’s mining and extractions assets are located near Fort McMurray, Alberta and include the Muskeg River mine and the Jackpine mine. As of December 31, 2010, the Company’s proved bitumen reserves was 388 million barrels of oil equivalents. During 2010, its proved undeveloped reserves include 28 million barrels of oil equivalents for development drilling in the Company’s Libya properties and 19 million barrels of oil equivalents additional for development drilling in the Bakken Shale play.
Integrated Gas
Marathon’s integrated gas operations include natural gas liquefaction and regasification operations and methanol production operations. The Company holds a 60% interest in EGHoldings. EGHoldings has a 3.7 million metric tones per annum LNG production facility on Bioko Island in Equatorial Guinea. It owns a 30% outside-operated interest in a natural gas liquefaction plant in Kenai Alaska. As of December 31, 2010, the Company leased one 87,500 cubic meter tankers to transport LNG to customers in Japan. It owns a 45% interest in AMPCO, AMPCO owns a methanol plant located in Malabo, Equatorial Guinea.
Refining, Marketing and Transportation
Marathon’s has refining, marketing and transportation operations concentrated primarily in the Midwest, Gulf Coast and Southeast regions of the United States. The Company’s operations include a six-plant refining network and an integrated terminal and transportation system, which supplies wholesale and Marathon-brand customers, as well as its owns retail operations. It wholly owned retail marketing subsidiary Speedway LLC (Speedway) is the Company owned and -operated retail gasoline and convenience stores in the United States. In December 2010, it sold its St. Paul Park, Minnesota, refinery, including associated terminal, tankage and pipeline investments and 166 SuperAmerica retail outlets (collectively, Minnesota Assets). As of December 31, 2010, it owned and operated six refineries with an aggregate refining capacity of 1,142 thousand barrels per day of crude oil.
During 2010, the Company’s refineries processed 1,173 million barrels per day of crude oil and 162 million barrels per day of other charge and blend stocks. Its refineries include crude oil atmospheric and vacuum distillation, fluid catalytic cracking, catalytic reforming, desulfurization and sulfur recovery units. The refineries process a variety of crude oils and produce numerous refined products, ranging from transportation fuels, such as reformulated gasolines, blend-grade gasolines intended for blending with fuel ethanol and ultra-low sulfur diesel fuel, to heavy fuel oil and asphalt. In addition, the Company manufactures aromatics, cumene, propane, propylene, and sulfur. Its Garyville, Louisiana, refinery is located along the Mississippi River in southeastern Louisiana between New Orleans and Baton Rouge. The Garyville refinery processes sour crude oil into products, such as gasoline, distillates, sulfur, asphalt, propane, polymer grade propylene, isobutane and coke. Its Catlettsburg, Kentucky, refinery is located in northeastern Kentucky on the western bank of the Big Sandy River. The Catlettsburg refinery processes sweet and sour crude oils into products, such as gasoline, asphalt, diesel, jet fuel, petrochemicals, propane, propylene and sulfur.
The Company Robinson, Illinois, refinery is located in southeastern Illinois. The Robinson refinery processes sweet and sour crude oils into products, such as multiple grades of gasoline, jet fuel, kerosene, diesel fuel, propane, propylene, sulfur and anode-grade coke. Its Detroit, Michigan, refinery is located near Interstate 75 in southwest Detroit. It is the petroleum refinery operating in Michigan. The Detroit refinery processes light sweet and heavy sour crude oils, including Canadian crude oils, into products, such as gasoline, diesel, asphalt, slurry, propane, chemical grade propylene and sulfur. Its Canton, Ohio, refinery is located approximately 60 miles southeast of Cleveland, Ohio. The Canton refinery processes sweet and sour crude oils into products, such as gasoline, diesel fuels, kerosene, propane, sulfur, asphalt, roofing flux, home heating oil and industrial fuel oil. The Company’s Texas City, Texas, refinery is located on the Texas Gulf Coast approximately 30 miles south of Houston, Texas. The refinery processes sweet crude oil into products, such as gasoline, propane, chemical grade propylene, slurry, sulfur and aromatics.

Marathon began as The Ohio Oil Company in 1887. In 1889, it was purchased by John D. Rockefeller's Standard Oil trust. It remained a part of Standard Oil until the trust was broken in 1911. In 1930, The Ohio bought the Transcontinental Oil Company, giving it the Marathon brand name. In 1962, the company changed its name to "Marathon Oil Company" after its main brand name. Mobil wanted to buy the company in 1981. The residents of Findlay, Ohio, the corporation's home town, worried that the Findlay jobs would be lost so Marathon looked for a white knight. They found one in 1982 when United States Steel bought the company. The headquarters moved to Houston in 1990 but the company maintains downstream operations in Findlay. In 2001, USX, the holding company that owned United States Steel and Marathon, spun off the steel business and in 2002 USX renamed itself Marathon Oil Corporation.
In 1998, Marathon and Ashland, Inc., formed Marathon Ashland Petroleum LLC to refine, market and transport crude oil and petroleum products, primarily in the Midwest, the upper Great Plains and southeastern United States. Marathon now owns 100% of the venture with its purchase of Ashland's share on June 30, 2005.
In 2003, Marathon sold off its Canadian operations to Calgary-based Husky Energy, which is owned in part by Hong Kong billionaire Li Ka Shing. In that same year, they sold off their interest in the giant Yates Oil Field, one of the most productive in the United States, to Kinder Morgan.[2]
In late 2003, Marathon Oil and partners (Noble Energy, AMPCO) started the Bioko Island Malaria Control Project (BIMCP) in Equatorial Guinea. Malaria control activities included indoor residual spraying, improved diagnosis and case management, and capacity building to contain future outbreaks. As of late 2005, BIMCP had proven being successful in reducing malaria transmission, reducing the proportion of children with malaria parasites, and improving iron status. BIMCP is perceived as a model of hands-on corporate involvement in a humanitarian effort with government, non-profits and academic organizations to reduce the burden of malaria in countries located in Equatorial Africa. Equatorial Guinea's President Obiang Nguema is one of the world's worst dictators (Parade Magazine). Marathon's humanitarian efforts have mitigated some of the criticism resulting from their dealings with Nguema's regime.
In 2006, Marathon began using STP-branded additives in its gasoline, likely to compete with Chevron's popular Techron additive.
Marathon maintains refineries in Robinson, Illinois; Canton, Ohio; Detroit, Michigan; Garyville, Louisiana; Catlettsburg, Kentucky; and Texas City, Texas. The refinery in St. Paul Park, Minnesota was recently sold as the Garyville Major Expansion project has made this refinery obsolete.
On July 29, 2010, The Pantry, Inc., operator of Kangaroo Express stores and the leading independently operated convenience store chain in the southeastern United States, announced a fuel supply agreement with Marathon Petroleum Company LLC, the refining, marketing and transportation operations of Marathon Oil Corporation (NYSE:MRO).
Under the terms of the agreement, Marathon will supply fuel to more than 600 Pantry locations, with a joint branding relationship at approximately 285 of these sites. The store and fuel forecourt re-branding was initially introduced in Charlotte, North Carolina. Throughout the remainder of 2010, all joint brand location conversions were completed across a seven-state southeastern marketing region.
On January 13, 2011, Marathon moved forward with plans to spin off its downstream business. Marathon Petroleum Corp. (MPC) will be headquartered in Findlay, Ohio and will be a top-tier downstream refiner. Marathon Oil Corp. (MRO) will be a global upstream company remaining headquartered in Houston, Texas. The spin-off is expected to be tax-free and to be effective June 30, 2011.


OVERALL
Beta: 1.17
Market Cap (Mil.): $37,163.90
Shares Outstanding (Mil.): 712.09
Annual Dividend: 1.00
Yield (%): 1.92
FINANCIALS
MRO Industry Sector
P/E (TTM): 11.97 6.36 11.49
EPS (TTM): -- -- --
ROI: 7.92 6.91 4.26
ROE: 13.24 9.17 5.69

Name Age Since Current Position
Usher, Thomas 68 1991 Non-Executive Chairman of the Board
Cazalot, Clarence 60 2002 President, Chief Executive Officer, Director
Clark, Janet 56 2007 Chief Financial Officer, Executive Vice President
Heminger, Gary 57 2005 Executive Vice President - Downstream
Roberts, David 50 2008 Executive Vice President - Upstream
Reinbolt, Paul 55 2002 Vice President - Finance, Treasurer
Kerrigan, Sylvia 46 2009 Vice President, General Counsel, Secretary
Stewart, Michael 53 2006 Vice President - Accounting, Controller
Thill, Howard 51 2008 Vice President - Investor Relations and Public Affairs
Campbell, Eileen 53 2010 Vice President - Public Policy
Schofield, Seth 71 1994 Independent Director
Snow, John 71 2006 Independent Director
Lee, Charles 71 1991 Independent Director
Jackson, Shirley 64 2000 Independent Director
Daberko, David 65 2002 Independent Director
Reilley, Dennis 58 2002 Independent Director
Lader, Philip 65 2002 Independent Director
Davis, William 67 2002 Independent Director
Boyce, Gregory 56 2008 Independent Director
Phelps, Michael 63 2009 Independent Director
Brondeau, Pierre 53 2011 Independent Director

COMPANY ADDRESS
Marathon Oil Corp
5555 San Felipe Road
Houston TX 77056
 
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