June 2008 -- Marathon Oil Corp. reported fourth-quarter 2007 net income of $668 million, compared with $1.08
billion for the same quarter in 2006. Net income adjusted for special items was $500 million
compared to net income adjusted for special items of $838 million the fourth quarter of 2006.
Marathon Oil reported 2007 net income of $3.96 billion, compared to $5.23 billion in 2006.
Fourth-quarter 2007 was marked by lower downstream margins—driven primarily by rapidly rising
crude prices—relatively flat upstream production, unscheduled downtime at its Athabasca Oil
Sands Project in Canada and higher exploration costs. However, according to Clarence P. Cazalot,
Jr., Marathon president and CEO, the company had significant accomplishments in each business
segment and remains confident in its integrated business strategy.
Last year brought Marathon's acquisition of Western Oil Sands Inc., the completion of the EG LNG
Train 1 production facility ahead of schedule and on budget, breaking ground on its projected
$3.2 billion refinery expansion in Garyville, La. The company also achieved exploration success
in Angola and the Gulf of Mexico, and anticipates sanctioning major projects in both of those
areas in 2008.
"We expect 2008 will show significant growth as Marathon is uniquely positioned with a broad
portfolio of projects," said Cazalot in a company statement. "Marathon continues to maintain
financial discipline while delivering value to investors through multiple reinvestment
opportunities, dividends and share repurchases."
