UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
 For the Quarterly Period EndedSeptember 30, 2022March 31, 2023
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from _____ to _____
Commission file number 1-1513
mro_logob24.jpg
Marathon Oil Corporation
(Exact name of registrant as specified in its charter)
Delaware25-0996816
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
990 Town and Country Boulevard, Houston, Texas  
77024-2217
(Address of principal executive offices)
(713) 629-6600
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading SymbolName of each exchange on which registered
Common Stock, par value $1.00 MRONew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.       Yes þ No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes þ No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerþAccelerated filer
o  
Non-accelerated filer
o   
Smaller reporting companyEmerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o    
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes No þ  
There were 635,067,840617,604,314 shares of Marathon Oil Corporation common stock outstanding as of October 31, 2022.April 28, 2023.



MARATHON OIL CORPORATION
Unless the context otherwise indicates, references to “Marathon Oil,” “we,” “our,” or “us” in this Form 10-Q are references to Marathon Oil Corporation, including its wholly owned and majority-owned subsidiaries, and its ownership interests in equity method investees (corporate entities, partnerships, limited liability companies and other ventures over which Marathon Oil exerts significant influence by virtue of its ownership interest).
For certain industry specific terms used in this Form 10-Q, please see “Definitions” in our 20212022 Annual Report on Form 10-K.
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Table of Contents
Part I – FINANCIAL INFORMATION
Item 1. Financial Statements


MARATHON OIL CORPORATION
Consolidated Statements of Income (Unaudited)
Three Months EndedNine Months EndedThree Months Ended
September 30,September 30,March 31,
(In millions, except per share data)(In millions, except per share data)2022202120222021(In millions, except per share data)20232022
Revenues and other income:Revenues and other income:    Revenues and other income:  
Revenues from contracts with customersRevenues from contracts with customers$2,008 $1,438 $5,937 $3,869 Revenues from contracts with customers$1,567 $1,761 
Net gain (loss) on commodity derivativesNet gain (loss) on commodity derivatives41 (79)(129)(398)Net gain (loss) on commodity derivatives15 (143)
Income from equity method investmentsIncome from equity method investments190 86 469 179 Income from equity method investments80 127 
Net gain on disposal of assetsNet gain on disposal of assetsNet gain on disposal of assets— 
Other incomeOther income25 Other income13 
Total revenues and other incomeTotal revenues and other income2,247 1,453 6,303 3,667 Total revenues and other income1,680 1,753 
Costs and expenses:Costs and expenses:   Costs and expenses:  
ProductionProduction193 131 509 378 Production201 152 
Shipping, handling and other operatingShipping, handling and other operating199 219 575 538 Shipping, handling and other operating162 185 
ExplorationExploration73 63 92 109 Exploration15 11 
Depreciation, depletion and amortizationDepreciation, depletion and amortization460 522 1,319 1,550 Depreciation, depletion and amortization520 423 
Impairments13 60 
Taxes other than incomeTaxes other than income137 88 381 236 Taxes other than income95 104 
General and administrativeGeneral and administrative79 70 220 227 General and administrative82 73 
Total costs and expensesTotal costs and expenses1,143 1,106 3,100 3,098 Total costs and expenses1,075 948 
Income from operationsIncome from operations1,104 347 3,203 569 Income from operations605 805 
Net interest and otherNet interest and other(52)(57)(128)(129)Net interest and other(82)(22)
Other net periodic benefit creditsOther net periodic benefit credits— 14 Other net periodic benefit credits
Loss on early extinguishment of debt— (102)— (121)
Income before income taxesIncome before income taxes1,057 188 3,089 321 Income before income taxes526 787 
Provision for income taxes240 24 
Provision (benefit) for income taxesProvision (benefit) for income taxes109 (517)
Net incomeNet income$817 $184 $3,087 $297 Net income$417 $1,304 
Net income per share:Net income per share:    Net income per share:  
BasicBasic$1.22 $0.23 $4.40 $0.38 Basic$0.66 $1.79 
DilutedDiluted$1.22 $0.23 $4.39 $0.38 Diluted$0.66 $1.78 
Weighted average common shares outstanding:Weighted average common shares outstanding:    Weighted average common shares outstanding:  
BasicBasic670 789 701 791 Basic628 730 
DilutedDiluted672 789 703 791 Diluted629 732 
 The accompanying notes are an integral part of these consolidated financial statements.
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Table of Contents
MARATHON OIL CORPORATION
Consolidated Statements of Comprehensive Income (Unaudited)
Three Months EndedNine Months EndedThree Months Ended
September 30,September 30,March 31,
(In millions)(In millions)2022202120222021(In millions)20232022
Net incomeNet income$817 $184 $3,087 $297 Net income$417 $1,304 
Other comprehensive income, net of taxOther comprehensive income, net of tax   Other comprehensive income, net of tax 
Change in actuarial gain (loss) and other for postretirement and postemployment plansChange in actuarial gain (loss) and other for postretirement and postemployment plans(3)(6)17 Change in actuarial gain (loss) and other for postretirement and postemployment plans(5)(4)
Change in derivative hedges unrecognized gainChange in derivative hedges unrecognized gain23 20 Change in derivative hedges unrecognized gain(2)12 
Reclassification of de-designated forward interest rate swaps— — — (28)
Other— — (1)— 
Other comprehensive income16 
Other comprehensive income (loss)Other comprehensive income (loss)(7)
Comprehensive incomeComprehensive income$821 $189 $3,103 $306 Comprehensive income$410 $1,312 
 The accompanying notes are an integral part of these consolidated financial statements.

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Table of Contents
MARATHON OIL CORPORATION
Consolidated Balance Sheets (Unaudited)
September 30,December 31,March 31,December 31,
(In millions, except par value and share amounts)(In millions, except par value and share amounts)20222021(In millions, except par value and share amounts)20232022
AssetsAssets  Assets  
Current assets:Current assets:  Current assets:  
Cash and cash equivalentsCash and cash equivalents$1,109 $580 Cash and cash equivalents$178 $334 
Receivables, netReceivables, net1,358 1,142 Receivables, net1,215 1,146 
InventoriesInventories103 77 Inventories136 125 
Other current assetsOther current assets66 22 Other current assets77 66 
Total current assetsTotal current assets2,636 1,821 Total current assets1,606 1,671 
Equity method investmentsEquity method investments568 450 Equity method investments657 577 
Property, plant and equipment, net of accumulated depreciation, depletion and amortization of $23,458 and $22,41214,245 14,499 
Property, plant and equipment, net of accumulated depreciation, depletion and amortization of $24,346 and $23,876Property, plant and equipment, net of accumulated depreciation, depletion and amortization of $24,346 and $23,87617,463 17,377 
Deferred tax assets155 — 
Other noncurrent assetsOther noncurrent assets254 224 Other noncurrent assets286 315 
Total assetsTotal assets$17,858 $16,994 Total assets$20,012 $19,940 
LiabilitiesLiabilities  Liabilities  
Current liabilities:Current liabilities:  Current liabilities:  
Accounts payableAccounts payable$1,480 $1,110 Accounts payable$1,480 $1,279 
Payroll and benefits payablePayroll and benefits payable76 74 Payroll and benefits payable41 90 
Accrued taxesAccrued taxes168 157 Accrued taxes176 171 
Other current liabilitiesOther current liabilities305 260 Other current liabilities318 364 
Long-term debt due within one yearLong-term debt due within one year402 36 Long-term debt due within one year131 402 
Total current liabilitiesTotal current liabilities2,431 1,637 Total current liabilities2,146 2,306 
Long-term debtLong-term debt3,579 3,978 Long-term debt5,723 5,521 
Deferred tax liabilitiesDeferred tax liabilities159 136 Deferred tax liabilities209 167 
Defined benefit postretirement plan obligationsDefined benefit postretirement plan obligations117 137 Defined benefit postretirement plan obligations99 100 
Asset retirement obligationsAsset retirement obligations283 288 Asset retirement obligations296 295 
Deferred credits and other liabilitiesDeferred credits and other liabilities102 132 Deferred credits and other liabilities151 154 
Total liabilitiesTotal liabilities6,671 6,308 Total liabilities8,624 8,543 
Commitments and contingencies (Note 22)
Commitments and contingencies (Note 21)Commitments and contingencies (Note 21)
Stockholders’ EquityStockholders’ Equity  Stockholders’ Equity  
Preferred stock – no shares issued or outstanding (no par value, 26 million shares authorized)Preferred stock – no shares issued or outstanding (no par value, 26 million shares authorized)— — Preferred stock – no shares issued or outstanding (no par value, 26 million shares authorized)— — 
Common stock:Common stock:  Common stock:  
Issued – 937 million shares (par value $1 per share, 1.925 billion shares authorized at September 30, 2022 and December 31, 2021)937 937 
Held in treasury, at cost – 294 million shares and 194 million shares(7,240)(4,825)
Issued – 937 million shares (par value $1 per share, 1.925 billion shares authorized at March 31, 2023 and December 31, 2022)Issued – 937 million shares (par value $1 per share, 1.925 billion shares authorized at March 31, 2023 and December 31, 2022)937 937 
Held in treasury, at cost – 315 million shares and 304 million sharesHeld in treasury, at cost – 315 million shares and 304 million shares(7,814)(7,512)
Additional paid-in capitalAdditional paid-in capital7,196 7,221 Additional paid-in capital7,149 7,203 
Retained earningsRetained earnings10,196 7,271 Retained earnings11,017 10,663 
Accumulated other comprehensive incomeAccumulated other comprehensive income98 82 Accumulated other comprehensive income99 106 
Total stockholders’ equityTotal stockholders’ equity11,187 10,686 Total stockholders’ equity11,388 11,397 
Total liabilities and stockholders’ equityTotal liabilities and stockholders’ equity$17,858 $16,994 Total liabilities and stockholders’ equity$20,012 $19,940 
 The accompanying notes are an integral part of these consolidated financial statements.
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MARATHON OIL CORPORATION
Consolidated Statements of Cash Flows (Unaudited)
Nine Months EndedThree Months Ended
September 30,March 31,
(In millions)(In millions)20222021(In millions)20232022
Increase (decrease) in cash and cash equivalentsIncrease (decrease) in cash and cash equivalents  Increase (decrease) in cash and cash equivalents  
Operating activities:Operating activities:  Operating activities:  
Net incomeNet income$3,087 $297 Net income$417 $1,304 
Adjustments to reconcile net income to net cash provided by operating activities:Adjustments to reconcile net income to net cash provided by operating activities:  Adjustments to reconcile net income to net cash provided by operating activities:  
Depreciation, depletion and amortizationDepreciation, depletion and amortization1,319 1,550 Depreciation, depletion and amortization520 423 
Impairments60 
Exploratory dry well costs and unproved property impairmentsExploratory dry well costs and unproved property impairments85 101 Exploratory dry well costs and unproved property impairments14 
Net gain on disposal of assetsNet gain on disposal of assets(1)(8)Net gain on disposal of assets(5)— 
Loss on early extinguishment of debt— 121 
Deferred income taxesDeferred income taxes(137)(32)Deferred income taxes85 (548)
Unrealized loss on derivative instruments, net130 
Unrealized (gain) loss on derivative instruments, netUnrealized (gain) loss on derivative instruments, net(2)114 
Pension and other post retirement benefits, netPension and other post retirement benefits, net(28)(25)Pension and other post retirement benefits, net(7)(9)
Stock-based compensationStock-based compensation28 29 Stock-based compensation10 
Equity method investments, netEquity method investments, net(130)(57)Equity method investments, net(80)(79)
Changes in:Changes in: Changes in: 
Current receivablesCurrent receivables(221)(313)Current receivables(86)(307)
InventoriesInventories(27)(1)Inventories(12)(2)
Current accounts payable and accrued liabilitiesCurrent accounts payable and accrued liabilities300 228 Current accounts payable and accrued liabilities30 101 
Other current assets and liabilitiesOther current assets and liabilities(57)66 Other current assets and liabilities(9)(5)
All other operating, netAll other operating, net75 (53)All other operating, net(10)58 
Net cash provided by operating activitiesNet cash provided by operating activities4,301 2,093 Net cash provided by operating activities865 1,067 
Investing activities:Investing activities:  Investing activities:  
Additions to property, plant and equipmentAdditions to property, plant and equipment(1,117)(772)Additions to property, plant and equipment(532)(332)
Acquisitions, net of cash acquiredAcquisitions, net of cash acquired— Acquisitions, net of cash acquired11 — 
Disposal of assets, net of cash transferred to the buyerDisposal of assets, net of cash transferred to the buyer29 Disposal of assets, net of cash transferred to the buyer(1)
Equity method investments - return of capitalEquity method investments - return of capital12 15 Equity method investments - return of capital— 
All other investing, net— — 
Net cash used in investing activitiesNet cash used in investing activities(1,095)(728)Net cash used in investing activities(522)(323)
Financing activities:Financing activities:  Financing activities:  
Proceeds from revolving credit facilityProceeds from revolving credit facility175 — 
Repayments of revolving credit facilityRepayments of revolving credit facility(175)— 
Debt repaymentDebt repayment(35)(1,400)Debt repayment(70)— 
Debt extinguishment costs— (117)
Shares repurchased under buyback programsShares repurchased under buyback programs(2,474)— Shares repurchased under buyback programs(334)(592)
Dividends paidDividends paid(162)(94)Dividends paid(63)(52)
Purchases of shares for tax withholding obligationsPurchases of shares for tax withholding obligations(21)(10)Purchases of shares for tax withholding obligations(30)(21)
All other financing, netAll other financing, net15 (1)All other financing, net(2)22 
Net cash used in financing activitiesNet cash used in financing activities(2,677)(1,622)Net cash used in financing activities(499)(643)
Net increase (decrease) in cash and cash equivalentsNet increase (decrease) in cash and cash equivalents529 (257)Net increase (decrease) in cash and cash equivalents(156)101 
Cash and cash equivalents at beginning of periodCash and cash equivalents at beginning of period580 742 Cash and cash equivalents at beginning of period334 580 
Cash and cash equivalents at end of periodCash and cash equivalents at end of period$1,109 $485 Cash and cash equivalents at end of period$178 $681 
The accompanying notes are an integral part of these consolidated financial statements.
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MARATHON OIL CORPORATION
Consolidated Statements of Stockholders’ Equity (Unaudited)
Total Equity of Marathon Oil Stockholders Total Equity of Marathon Oil Stockholders
(In millions)(In millions)Preferred
Stock
Common
Stock
Treasury
Stock
Additional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Income
Total
Equity
(In millions)Preferred
Stock
Common
Stock
Treasury
Stock
Additional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Income
Total
Equity
Nine Months Ended September 30, 2021
December 31, 2020 Balance$— $937 $(4,089)$7,174 $6,466 $73 $10,561 
Stock-based compensation— — (24)21 — — (3)
Net income— — — — 97 — 97 
Other comprehensive income— — — — — 39 39 
Dividends paid (per share amount of $0.03)— — — — (23)— (23)
March 31, 2021 Balance$— $937 $(4,113)$7,195 $6,540 $112 $10,671 
Stock-based compensation— — — — 14 
Net income— — — — 16 — 16 
Other comprehensive loss— — — — — (35)(35)
Dividends paid (per share amount of $0.04)— — — — (32)— (32)
June 30, 2021 Balance$— $937 $(4,105)$7,201 $6,524 $77 $10,634 
Stock-based compensation— — — 12 — — 12 
Net income— — — — 184 — 184 
Other comprehensive income— — — — — 
Dividends paid (per share amount of $0.05)— — — — (39)— (39)
September 30, 2021 Balance$— $937 $(4,105)$7,213 $6,669 $82 $10,796 
Nine Months Ended September 30, 2022
Three Months Ended March 31, 2022Three Months Ended March 31, 2022
December 31, 2021 BalanceDecember 31, 2021 Balance$— $937 $(4,825)$7,221 $7,271 $82 $10,686 December 31, 2021 Balance$— $937 $(4,825)$7,221 $7,271 $82 $10,686 
Shares repurchased under buyback programsShares repurchased under buyback programs— — (592)— — — (592)Shares repurchased under buyback programs— — (592)— — — (592)
Stock-based compensationStock-based compensation— — 55 (43)— — 12 Stock-based compensation— — 55 (43)— — 12 
Net incomeNet income— — — — 1,304 — 1,304 Net income— — — — 1,304 — 1,304 
Other comprehensive incomeOther comprehensive income— — — — — Other comprehensive income— — — — — 
Dividends paid (per share amount of $0.07) Dividends paid (per share amount of $0.07)— — — — (52)— (52)Dividends paid (per share amount of $0.07)— — — — (52)— (52)
March 31, 2022 BalanceMarch 31, 2022 Balance$— $937 $(5,362)$7,178 $8,523 $90 $11,366 March 31, 2022 Balance$— $937 $(5,362)$7,178 $8,523 $90 $11,366 
Three Months Ended March 31, 2023Three Months Ended March 31, 2023
December 31, 2022 BalanceDecember 31, 2022 Balance$— $937 $(7,512)$7,203 $10,663 $106 $11,397 
Shares repurchased under buyback programsShares repurchased under buyback programs— — (760)— — — (760)Shares repurchased under buyback programs— — (334)— — — (334)
Excise tax on shares repurchasedExcise tax on shares repurchased— — (3)— — — (3)
Stock-based compensationStock-based compensation— — — — 12 Stock-based compensation— — 35 (54)— — (19)
Net incomeNet income— — — — 966 — 966 Net income— — — — 417 — 417 
Other comprehensive income— — — — — 
Dividends paid (per share amount of $0.08)— — — — (56)— (56)
June 30, 2022 Balance$— $937 $(6,118)$7,186 $9,433 $94 $11,532 
Shares repurchased under buyback programs— — (1,122)— — — (1,122)
Stock-based compensation— — — 10 — — 10 
Net income— — — — 817 — 817 
Other comprehensive income— — — — — 
Dividends paid (per share amount of $0.08)— — — — (54)— (54)
September 30, 2022 Balance$— $937 $(7,240)$7,196 $10,196 $98 $11,187 
Other comprehensive lossOther comprehensive loss— — — — — (7)(7)
Dividends paid (per share amount of $0.10) Dividends paid (per share amount of $0.10)— — — — (63)— (63)
March 31, 2023 BalanceMarch 31, 2023 Balance$— $937 $(7,814)$7,149 $11,017 $99 $11,388 
The accompanying notes are an integral part of these consolidated financial statements.


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MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)


1.    Basis of Presentation
These consolidated financial statements are unaudited; however, in the opinion of management, these statements reflect all adjustments necessary for a fair statement of the results for the periods reported. All such adjustments are of a normal recurring nature unless disclosed otherwise. These consolidated financial statements, including notes, have been prepared in accordance with the applicable rules of the SEC and do not include all of the information and disclosures required by U.S. GAAP for complete financial statements.
These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 20212022 Annual Report on Form 10-K. The results of operations for the thirdfirst quarter and first nine months of 20222023 are not necessarily indicative of the results to be expected for the full year.
2.    Accounting Standards
Accounting Standards Updates Adopted
No accounting standards were adopted in the thirdfirst quarter or first nine months of 20222023 that had a material impact on our consolidated financial statements.
Accounting Standards Updates Not Yet Adopted
In March 2020, the FASBThere were no issued ASU 2020-04, which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions that reference London Interbank Offered Rate (LIBOR) or another reference ratebut pending accounting standards expected to be discontinued. The guidance is effective March 12, 2020 and can be applied prospectively through December 31, 2022. Upon adoption, we do not believe it will have a material impact on our consolidated results of operations, financial position and cash flows.statements.
3.    Income and Dividends per Common Share
Basic income per share is based on the weighted average number of common shares outstanding. Diluted income per share assumes exercise of stock options in all periods, provided the effect is not antidilutive. The per share calculations below exclude 1 million and 2 million of antidilutive stock options for the three and nine months ended September 30,March 31, 2023 and 2022, respectively, and 4 million of stock options for each of the three and nine months ended September 30, 2021, that were antidilutive.respectively.

Three Months Ended September 30,Nine Months Ended September 30,Three Months Ended March 31,
(In millions, except per share data)(In millions, except per share data)2022202120222021(In millions, except per share data)20232022
Net incomeNet income$817 $184 $3,087 $297 Net income$417 $1,304 
Weighted average common shares outstandingWeighted average common shares outstanding670 789 701 791 Weighted average common shares outstanding628 730 
Effect of dilutive securitiesEffect of dilutive securities— — Effect of dilutive securities
Weighted average common shares, dilutedWeighted average common shares, diluted672 789 703 791 Weighted average common shares, diluted629 732 
Net income per share:Net income per share:Net income per share:
BasicBasic$1.22 $0.23 $4.40 $0.38 Basic$0.66 $1.79 
DilutedDiluted$1.22 $0.23 $4.39 $0.38 Diluted$0.66 $1.78 
Dividends per shareDividends per share$0.08 $0.05 $0.23 $0.12 Dividends per share$0.10 $0.07 
4.    Revenues
The majority of our revenues are derived from the sale of crude oil and condensate, NGLs and natural gas under spot and term agreements with our customers in the United States and Equatorial Guinea.
As of September 30, 2022March 31, 2023 and December 31, 2021,2022, receivables from contracts with customers, included in receivables, netless reserves for credit losses, were $1.1 billion$943 million and $961$875 million, respectively.
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MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)

The following tables present our revenues from contracts with customers disaggregated by product type and geographic areas for the three and nine months ended September 30:March 31:
United States
Three Months Ended March 31, 2023
(In millions)Eagle FordBakkenOklahomaPermianOther U.S.Total
Crude oil and condensate$495 $431 $78 $170 $11 $1,185 
Natural gas liquids71 37 39 22 — 169 
Natural gas56 35 36 11 139 
Other— — — 10 
Revenues from contracts with customers$624 $503 $153 $203 $20 $1,503 
Three Months Ended September 30, 2022
(In millions)Eagle FordBakkenOklahomaNorthern DelawareOther U.S.Total
Crude oil and condensate$523 $648 $104 $114 $39 $1,428 
Natural gas liquids49 82 63 16 216 
Natural gas56 67 105 22 11 261 
Other— — — 19 22 
Revenues from contracts with customers$631 $797 $272 $152 $75 $1,927 
Three Months Ended September 30, 2021
(In millions)Eagle FordBakkenOklahomaNorthern DelawareOther U.S.Total
Crude oil and condensate$391 $425 $74 $75 $19 $984 
Natural gas liquids50 63 53 12 183 
Natural gas38 29 62 12 144 
Other— — — 62 64 
Revenues from contracts with customers$481 $517 $189 $99 $89 $1,375 
Nine Months Ended September 30, 2022
(In millions)Eagle FordBakkenOklahomaNorthern DelawareOther U.S.Total
Crude oil and condensate$1,526 $2,049 $341 $302 $124 $4,342 
Natural gas liquids148 263 191 46 23 671 
Natural gas145 156 256 55 28 640 
Other— — — 71 77 
Revenues from contracts with customers$1,825 $2,468 $788 $403 $246 $5,730 
Nine Months Ended September 30, 2021Three Months Ended March 31, 2022
(In millions)(In millions)Eagle FordBakkenOklahomaNorthern DelawareOther U.S.Total(In millions)Eagle FordBakkenOklahomaPermianOther U.S.Total
Crude oil and condensateCrude oil and condensate$1,003 $1,208 $206 $229 $65 $2,711 Crude oil and condensate$459 $652 $99 $88 $43 $1,341 
Natural gas liquidsNatural gas liquids109 152 127 32 10 430 Natural gas liquids44 89 59 15 216 
Natural gasNatural gas114 71 212 42 11 450 Natural gas33 43 56 12 151 
OtherOther— — — 99 105 Other— — — 
Revenues from contracts with customersRevenues from contracts with customers$1,232 $1,431 $545 $303 $185 $3,696 Revenues from contracts with customers$538 $784 $214 $115 $63 $1,714 

International (E.G.)
Three Months Ended March 31,
(In millions)20232022
Crude oil and condensate$57 $40 
Natural gas liquids
Natural gas
Other
Revenues from contracts with customers$64 $47 
Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2022202120222021
Crude oil and condensate$75 $56 $186 $151 
Natural gas liquids— 
Natural gas17 18 
Other— 
Revenues from contracts with customers$81 $63 $207 $173 
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MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)
5.    Segment Information
    We have two reportable operating segments. Both of these segments are organized and managed based upon geographic location and the nature of the products and services offered.
United States (“U.S.”) – explores for, produces and markets crude oil and condensate, NGLs and natural gas in the United StatesStates; and
International (“Int’l”) – explores for, produces and markets crude oil and condensate, NGLs and natural gas outside of the United States as well as produces and markets products manufactured from natural gas, such as LNG and methanol, in Equatorial Guinea (“E.G.”)
    Segment income represents income that excludes certain items not allocated to our operating segments, net of income taxes. A portion of our corporate and operations general and administrative support costs are not allocated to the operating segments. These unallocated costs primarily consist of employment costs (including pension effects), professional services, facilities and other costs associated with corporate and operations support activities. Additionally, items which affect comparability such as: gains or losses on dispositions, impairments of proved and certain unproved properties, goodwill and equity method investments,dry wells, changes in our valuation allowance, unrealized gains or losses on commodity and interest rate derivative instruments, effects of pension settlements and curtailments, expensed transaction costs for business combinations or other items (as determined by the chief operating decision maker (“CODM”)) are not allocated to operating segments.
 Three Months Ended September 30, 2022
(In millions)U.S.Int’lNot Allocated to SegmentsTotal
Revenues from contracts with customers$1,927 $81 $— $2,008 
Net gain (loss) on commodity derivatives(26)— 67 (b)41 
Income from equity method investments— 190 — 190 
Net gain on disposal of assets— — 
Other income
Less costs and expenses:
Production173 20 — 193 
Shipping, handling and other operating171 23 

199 
Exploration11 — 62 (c)73 
Depreciation, depletion and amortization441 14 460 
Impairments— — 

Taxes other than income136 — 137 
General and administrative37 38 79 
Net interest and other— — 52 52 
Other net periodic benefit costs— — (5)

(5)
Income tax provision (benefit)213 48 (21)240 
Segment income (loss)$723 $181 $(87)$817 
Total assets$15,487 $1,294 $1,077 $17,858 
Capital expenditures(a)
$406 $$$413 
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MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)

 Three Months Ended March 31, 2023
(In millions)U.S.Int’lNot Allocated to SegmentsTotal
Revenues from contracts with customers$1,503 $64 $— $1,567 
Net gain on commodity derivatives13 — (b)15 
Income from equity method investments— 80 — 80 
Net gain on disposal of assets— — 
Other income11 13 
Less costs and expenses:
Production178 23 — 201 
Shipping, handling and other operating159 — 

162 
Exploration— 10 (c)15 
Depreciation, depletion and amortization505 12 520 
Taxes other than income97 — (2)95 
General and administrative35 44 82 
Net interest and other— — 82 82 
Other net periodic benefit costs— — (3)

(3)
Income tax provision (benefit)123 15 (29)109 
Segment income (loss)$425 $89 $(97)$417 
Total assets$18,696 $1,148 $168 $20,012 
Capital expenditures(a)
$597 $$$601 
(a)Includes accruals.accruals and excludes acquisitions.
(b)Unrealized gain on commodity derivative instruments (See Note 1312).
(c)Includes $10 million of dry well costs and unproved property impairments of $48 million for Louisiana exploration leases and $14 million forexpense associated with wells in Permian exploration leases (See Note 9and Note 10).



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MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)

Three Months Ended September 30, 2021 Three Months Ended March 31, 2022
(In millions)(In millions)U.S.Int’lNot Allocated to SegmentsTotal(In millions)U.S.Int’lNot Allocated to SegmentsTotal
Revenues from contracts with customersRevenues from contracts with customers$1,375 $63 $— $1,438 Revenues from contracts with customers$1,714 $47 $— $1,761 
Net gain (loss) on commodity derivatives(106)— 27 (b)(79)
Net loss on commodity derivativesNet loss on commodity derivatives(29)— (114)(b)(143)
Income from equity method investmentsIncome from equity method investments— 86 — 86 Income from equity method investments— 127 — 127 
Net gain on disposal of assets— — 
Other incomeOther income— — Other income
Less costs and expenses:Less costs and expenses:Less costs and expenses:
ProductionProduction119 12 — 131 Production141 11 — 152 
Shipping, handling and other operatingShipping, handling and other operating209 219 Shipping, handling and other operating150 26 185 
ExplorationExploration15 — 48 (c)63 Exploration11 — — 11 
Depreciation, depletion and amortizationDepreciation, depletion and amortization499 17 522 Depreciation, depletion and amortization404 15 423 
Impairments— — 13 (d)13 
Taxes other than incomeTaxes other than income88 — — 88 Taxes other than income99 — 104 
General and administrativeGeneral and administrative29 38 

70 General and administrative30 40 

73 
Net interest and otherNet interest and other— — 57 (e)57 Net interest and other— — 22 (c)22 
Other net periodic benefit costsOther net periodic benefit costs— — — — Other net periodic benefit costs— — (4)(4)
Loss on early extinguishment of debt— — 102 (f)102 
Income tax provision (benefit)Income tax provision (benefit)17 (18)Income tax provision (benefit)193 23 (733)(d)(517)
Segment income (loss)$305 $93 $(214)$184 
Segment incomeSegment income$661 $115 $528 $1,304 
Total assetsTotal assets$15,528 $1,071 $562 $17,161 Total assets$15,684 $1,102 $1,195 $17,981 
Capital expenditures(a)
Capital expenditures(a)
$303 $$$308 
Capital expenditures(a)
$346 $(1)$$348 
(a)Includes accruals.
(b)Unrealized gainloss on commodity derivative instruments (See Note 1312).
(c)Includes unproved property impairments of $20 million for Louisiana exploration leases and$16 million related to the disposition of a Permian lease. Also includes $12 million of dry well costs associated with drilled and uncompleted wells, primarily in Permian.
(d)Includes impairments of $5 million for proved properties in Permian (SeeNote 10) and $8 million associated with decommissioning costs for non-producing long-lived assets in GOM (SeeNote 10and Note 11).
(e)Includes a $5 million gain on 2022 interest rate swaps and a $3$17 million gain on 2025 interest rate swaps (See Note 1312).
(f)(d)Represents costs related toIncludes a make-whole provision premium and the write off of issuance costs$685 million benefit related to the redemptionpartial release of the 2025 Notes in September 2021our valuation allowance (See Note 156).










10

MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)
 Nine Months Ended September 30, 2022
(In millions)U.S.Int’lNot Allocated to SegmentsTotal
Revenues from contracts with customers$5,730 $207 $— $5,937 
Net loss on commodity derivatives(125)— (4)(b)(129)
Income from equity method investments— 469 — 469 
Net gain on disposal of assets— — 
Other income10 10 25 
Less costs and expenses:
Production464 45 — 509 
Shipping, handling and other operating508 15 52 575 
Exploration30 — 62 (c)92 
Depreciation, depletion and amortization1,260 45 14 1,319 
Impairments— — 

Taxes other than income374 — 381 
General and administrative94 10 116 

220 
Net interest and other— — 128 (d)128 
Other net periodic benefit costs— — (14)(14)
Income tax provision (benefit)655 110 (763)(e)
Segment income$2,230 $456 $401 $3,087 
Total assets$15,487 $1,294 $1,077 $17,858 
Capital expenditures(a)
$1,124 $$11 $1,136 
(a)Includes accruals.
(b)Unrealized loss on commodity derivative instruments (SeeNote 13).
(c)Includes dry well costs and unproved property impairmentsTable of $48 million for Louisiana exploration leases and $14 million for Permian exploration leases (See Note 9ContentsandNote 10).
(d)Includes a $17 million gain on 2025 interest rate swaps (See Note 13).
(e)Includes a $685 million benefit related to the partial release of our valuation allowance (See Note 6).

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MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)
Nine Months Ended September 30, 2021
(In millions)U.S.Int’lNot Allocated to SegmentsTotal
Revenue from contracts with customers$3,696 $173 $— $3,869 
Net loss on commodity derivatives(268)— (130)(b)(398)
Income from equity method investments— 179 — 

179 
Net gain on disposal of assets— — 
Other income
Less costs and expenses:
Production343 35 — 378 
Shipping, handling and other operating506 13 19 538 
Exploration54 — 55 (c)109 
Depreciation, depletion and amortization1,477 54 19 1,550 
Impairments— — 60 (d)60 
Taxes other than income238 — (2)236 
General and administrative79 139 (e)227 
Net interest and other— — 129 (f)129 
Other net periodic benefit credit— — (2)

(2)
Loss on early extinguishment of debt— — 121 (g)121 
Income tax provision (benefit)11 33 (20)24 
Segment income (loss)$724 $211 $(638)$297 
Total assets$15,528 $1,071 $562 $17,161 
Capital expenditures(a)
$770 $$$781 
(a)Includes accruals.
(b)Unrealized loss on commodity derivative instruments (SeeNote 13).
(c)Includes unproved property impairments of $20 million for Louisiana exploration leases and $16 million related to the disposition of a lease in Permian. Also includes $12 million of dry well costs associated with drilled and uncompleted wells, primarily in Permian.
(d)Includes impairments of $24 million for central facilities in Eagle Ford (SeeNote 10), $5 million for proved properties in Permian (SeeNote 10), and $30 million associated with decommissioning costs for non-producing long-lived assets in GOM (SeeNote 10and Note 11).
(e)Includes $13 million associated with the termination of an aircraft lease agreement and $12 million arising from severance expenses associated with a workforce reduction.
(f)Includes a $24 million gain on 2022 interest rate swaps and a $34 million gain on 2025 interest rate swaps (See Note 13).
(g)Represents costs related to a make-whole provision premium and the write off of unamortized discount and issuance costs in regards to the redemption of the 2022 Notes in April 2021 and 2025 Notes in September 2021 (See Note 15).


12

MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)
6.    Income Taxes
Effective Tax Rate
The effective income tax rate is influenced by a variety of factors including the geographic and functional sources of income and the relative magnitude of these sources of income. The difference between the total provision and the sum of the amounts allocated to segments is reported in the “Not Allocated to Segments” column of the tables in Note 5.
For the three and nine months ended September 30,March 31, 2023 and 2022, and 2021, our effective income tax rates were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Effective income tax rate23 %%— %%
Three Months Ended March 31,
20232022
Effective income tax rate21 %(66)%
2022 Our effective income tax rate was different from our U.S. statutory tax rate of 21% for the ninethree months ended September 30,March 31, 2022, due to the first quarter 2022 release of the valuation allowance on certain U.S. and state deferred tax assets resulting in a non-cash deferred tax benefit of $685 million. As we previously disclosed in our 2021 Form 10-K, we maintained a full valuation allowance on our net federal deferred tax assets and would continue to do so until there exists sufficient positive evidence to support a reversal of the allowance. In the first quarter, as a result of significant increases in commodity prices, corresponding increases in projections of our future taxable income, and the absence of objective negative evidence such as a cumulative loss in recent years, we determined we have sufficient positive evidence to release a majority of the federal valuation allowance. We retained a partial valuation allowance on certain U.S. deferred tax assets primarily as a result of volatility in commodity prices impacting assessed likelihood of future realizability.
2021Our effective income tax rate was different from our U.S. statutory tax rate of 21% for the three and nine months ended September 30, 2021, as a result of the valuation allowance on net federal deferred tax assets in the U.S. which was in place at the time. In addition, the income mix of our U.S. and E.G. operations, including the income mix within E.G. between equity method investees and subsidiaries, contributed to the difference.
On August 16, 2022, the President signed the Inflation Reduction Act of 2022 (“IRA”) into law. The IRA enacted various income tax provisions, including a 15% corporate book minimum tax. The corporate book minimum tax, which became effective on January 1, 2023, applies to corporations with an average annual adjusted financial statement income that exceeds $1 billion for the preceding three years. Under current law and created and extended certain tax-related energy incentives.guidance, we do not anticipate being subject to the corporate book minimum tax in 2023. The tax provisions of the IRA which may apply to us are generally effective in 2023 or later and therefore tax impacts to us in 2022 areU.S. Treasury is expected to publish further guidance and regulations that will be immaterial. Werelevant to scoping considerations and the calculation of minimum income tax liabilities. As this guidance is issued, we will continue to monitorevaluate and assess the impact that the IRA may have on our U.S.current and future period income taxes. We have made an accounting policy election to consider the effects of the corporate book minimum tax liability for 2023 or later years.on the realizability of our deferred tax assets, carryforwards and tax credits as a period cost when they arise.
7.    Credit Losses
The majority of our receivables are from purchasers of commodities or joint interest owners in properties we operate, both of which are recorded at estimated or invoiced amounts and do not bear interest. The majority of these receivables have payment terms of 30 days or less. At the end of each reporting period, we assess the collectability of our receivables and estimate the expected credit losses using historical data, current market conditions, reasonable and supportable forecasts of future economic conditions and other data as deemed appropriate.
Changes in the allowance for credit losses were as follows:    
(In millions)(In millions)September 30, 2022December 31, 2021(In millions)March 31, 2023December 31, 2022
Beginning balance as of January 1Beginning balance as of January 1$15 $22 Beginning balance as of January 1$10 $15 
Current period provisionCurrent period provision(2)Current period provision(3)
Current period write offsCurrent period write offs(1)(5)Current period write offs— (2)
Recoveries of amounts previously reservedRecoveries of amounts previously reserved— (5)Recoveries of amounts previously reserved(1)— 
Ending balanceEnding balance$12 $15 Ending balance$11 $10 
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MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)

8.    Inventories
Crude oil and natural gas liquids are recorded at weighted average cost and carried at the lower of cost or net realizable value. Supplies and other items consist principally of tubular goods and equipment which are valued at weighted average cost and reviewed periodically for obsolescence or impairment when market conditions indicate.
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MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)
(In millions)(In millions)September 30, 2022December 31, 2021(In millions)March 31, 2023December 31, 2022
Crude oil and natural gas liquidsCrude oil and natural gas liquids$14 $Crude oil and natural gas liquids$14 $15 
Supplies and other itemsSupplies and other items89 69 Supplies and other items122 110 
InventoriesInventories$103 $77 Inventories$136 $125 
9.    Property, Plant and Equipment
(In millions)(In millions)September 30, 2022December 31, 2021(In millions)March 31, 2023December 31, 2022
United StatesUnited States$13,889 $14,097 United States$17,130 $17,034 
InternationalInternational302 347 International279 288 
CorporateCorporate54 55 Corporate54 55 
Net property, plant and equipmentNet property, plant and equipment$14,245 $14,499 Net property, plant and equipment$17,463 $17,377 
As of September 30, 2022March 31, 2023 and December 31, 2021,2022, we had $10 million and $20 million, and $80 million, respectively, of exploratoryexploratory well costs capitalized greater than one year related to suspended wells. Management believes these wells exhibit sufficient quantities of hydrocarbons to justify potential development. The majorityAll of the suspended wells require completion activities and installation of infrastructure in order to classify the reserves as proved. The decrease during the ninethree months ended September 30, 2022March 31, 2023 included a $46 million reduction in suspended well costs as we resumed drilling or completion activities and brought previously suspended wells to sales. During the third quarter of 2022, we also recorded $14$10 million of dry well costsexpense associated with drilled and uncompleted exploratory wells primarily in Louisiana Austin Chalk. See Note 10 for further information.Permian.
10.    Impairments
The following table summarizes impairment charges of proved properties and their corresponding fair values.
 Three Months Ended September 30,
 20222021
(In millions)Fair ValueImpairmentFair ValueImpairment
Long-lived assets held for use$— $— $— $
Asset retirement costs of long-lived assets$— $$— $

 Nine Months Ended September 30,
 20222021
(In millions)Fair ValueImpairmentFair ValueImpairment
Long-lived assets held for use$— $— $— $30 
Asset retirement costs of long-lived assets$— $$— $30 
2022There were no significant impairments of proved property in 2022.
During the third quarter of 2022, we recognized impairments totaling $48 million of unproved property leases and dry well costs in Louisiana Austin Chalk. The impairments resulted from a combination of factors including timing of lease expiration dates, our assessment of risk and resource, and the decision not to develop the acreage. We also recognized impairments of $14 million for unproved property leases in Permian as a result of an acreage exchange. The combined effects of these impairments were recorded as exploration expense.

2021During the third quarter of 2021, we recognized unproved property impairments of $20 million for Louisiana exploration leases and $16 million related to the disposition of a Permian lease. In addition, we also recognized $12 million of dry well costs associated with drilled and uncompleted wells, primarily in Permian. The combined effects of these impairments were recorded as exploration expense.
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MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)
For proved property, during the third quarter of 2021, we recorded an impairment expense of $5 million associated with our interests in outside operated conventional assets located in New Mexico.
In the second quarter of 2021, we recorded an impairment expense of $24 million associated with the decommissioning of two central facilities located in Eagle Ford.
During the nine months ended September 30, 2021, we recognized an incremental $30 million of impairment expense associated with an increase in the estimated future decommissioning costs of certain non-producing wells, pipelines and production facilities for previously divested offshore assets located in the Gulf of Mexico. See Note 11 for further information.
11.    Asset Retirement Obligations
Asset retirement obligations primarily consist of estimated costs to remove, dismantle and restore land or seabed at the end of oil and gas production operations. Changes in asset retirement obligations were as follows:
September 30,March 31,
(In millions)(In millions)20222021(In millions)20232022
Beginning balance as of January 1Beginning balance as of January 1$316 $254 Beginning balance as of January 1$340 $316 
Incurred liabilities, including acquisitionsIncurred liabilities, including acquisitions10 Incurred liabilities, including acquisitions
Settled liabilities, including dispositionsSettled liabilities, including dispositions(8)(3)Settled liabilities, including dispositions(9)(3)
Accretion expense (included in depreciation, depletion and amortization)Accretion expense (included in depreciation, depletion and amortization)11 Accretion expense (included in depreciation, depletion and amortization)
Revisions of estimatesRevisions of estimates(1)40 Revisions of estimates— 
Ending balance as of September 30, total$328 $309 
Ending balance as of March 31, totalEnding balance as of March 31, total$341 $324 
Ending balance as of September 30, short-term$45 $23 
Ending balance as of March 31, short-termEnding balance as of March 31, short-term$45 $28 
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2021In the first nine months of 2021, we had revisions of estimates totaling $37 million related
MARATHON OIL CORPORATION
Notes to anticipated costs for decommissioning certain wells, pipelines and production facilities for previously divested offshore non-producing long-lived assets located in the Gulf of Mexico. As of September 30, 2021, $14 million of these Gulf of Mexico related revisions of estimates were classified as short-term. See Note 22 for further information. Of the $37 million, approximately $30 million was recognized as impairment expense during the nine months ended September 30, 2021. See Note 10 for further information.
Consolidated Financial Statements (Unaudited)
12.
11. Leases
Lessee
Balance sheet information related to right-of-use (“ROU”) assets and lease liabilities was as follows:
(In millions)Balance Sheet Location:September 30, 2022December 31, 2021
ROU assets:
Operating leasesOther noncurrent assets$95 $59 
Finance leasesOther noncurrent assets26 28 
Total ROU assets$121 $87 
Lease liabilities:
Current liabilities
Operating leasesOther current liabilities$65 $40 
Finance leasesOther current liabilities
Noncurrent liabilities
Operating leasesDeferred credits and other liabilities35 23 
Finance leasesDeferred credits and other liabilities19 24 
Total lease liabilities$125 $93 
15

MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)
(In millions)Balance Sheet Location:March 31, 2023December 31, 2022
ROU assets:
Operating leasesOther noncurrent assets$143 $123 
Finance leasesOther noncurrent assets22 24 
Total ROU assets$165 $147 
Lease liabilities:
Current liabilities
Operating leasesOther current liabilities$99 $94 
Finance leasesOther current liabilities
Noncurrent liabilities
Operating leasesDeferred credits and other liabilities46 32 
Finance leasesDeferred credits and other liabilities16 18 
Total lease liabilities$167 $150 
Operating Leases
We enter into various lease agreements to support our operations including drilling rigs, well fracturing equipment, compressors, buildings, vessels, vehicles and miscellaneous field equipment. We primarily act as a lessee in these transactions and the majority of our existing leases are classified as either short-term or long-term operating leases.
Finance Leases
In 2018, we signed an agreement with an owner/lessor to construct and lease a new build-to-suit office building in Houston, Texas. The initial lease term is five years and commenced in late September 2021 after the new Houston office was ready for occupancy. In March 2022, we made our first cash lease payment. For the ninethree months ended September 30, 2022, ourMarch 31, 2023, we have made cash lease payments weretotaling approximately $6$5 million. At the end of the initial lease term, we can negotiate to extend the lease term for an additional five years, subject to the approval of the participants; purchase the property subject to certain terms and conditions; or remarket the property to an unrelated third party. The lease contains a residual value guarantee of 100% of the total acquisition and construction costs.
Lessor
Our wholly owned subsidiary, Marathon E.G. Production Limited, is a lessor for residential housing in E.G., which is occupied by EGHoldings, a related party equity method investee see Note 2120. The lease was classified as an operating lease and expires in 2024, with a lessee option to extend through 2034. Lease payments are fixed for the entire duration of the agreement at approximately $6 million per year. Our lease income is reported in other income in our consolidated statements of income for all periods presented. The undiscounted cash flows to be received under this lease agreement are summarized below.
(In millions)(In millions)Operating Lease Future Cash Receipts(In millions)Operating Lease Future Cash Receipts
2022$
202320232023$
202420242024
202520252025
202620262026
20272027
ThereafterThereafter48 Thereafter42 
Total undiscounted cash flowsTotal undiscounted cash flows$74 Total undiscounted cash flows$71 
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13.
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MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)

12.  Derivatives
We may use derivatives to manage a portion of our exposure to commodity price risk, commodity locational risk and interest rate risk. For further information regarding the fair value measurement of derivative instruments, see Note 1413. All of our commodity derivatives and interest rate derivatives are subject to enforceable master netting arrangements or similar agreements under which we report net amounts.
The following tables present the gross fair values of our open derivative instruments and the reported net amounts along with where they appear on thetheir locations in our consolidated balance sheets.
September 30, 2022March 31, 2023
(In millions)(In millions)AssetLiabilityNet Asset (Liability)Balance Sheet Location(In millions)AssetLiabilityNet Asset (Liability)Balance Sheet Location
Not Designated as HedgesNot Designated as HedgesNot Designated as Hedges
CommodityCommodity$— $— $— Other current assetsCommodity$12 $— $12 Other current assets
Commodity12 (11)Other current liabilities
Total Not Designated as HedgesTotal Not Designated as Hedges$$12 $(11)Total Not Designated as Hedges$12 $— $12 
Cash Flow HedgesCash Flow HedgesCash Flow Hedges
Interest RateInterest Rate$$— $Other current assetsInterest Rate$$— $Other current assets
Interest RateInterest Rate18 — 18 Other noncurrent assetsInterest Rate11 — 11 Other noncurrent assets
Total Designated HedgesTotal Designated Hedges$26 $— $26 Total Designated Hedges$20 $— $20 
TotalTotal$27 $12 $15 Total$32 $— $32 

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MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)
December 31, 2021December 31, 2022
(In millions)(In millions)AssetLiabilityNet Asset (Liability)Balance Sheet Location(In millions)AssetLiabilityNet Asset (Liability)Balance Sheet Location
Not Designated as HedgesNot Designated as HedgesNot Designated as Hedges
CommodityCommodity$10 $— $10 Other current assets
Commodity(7)Other current liabilities
Interest Rate27 — 27 Other noncurrent assets
Total Not Designated as HedgesTotal Not Designated as Hedges$28 $$20 Total Not Designated as Hedges$10 $— $10 
Cash Flow HedgesCash Flow HedgesCash Flow Hedges
Interest RateInterest Rate$— $$(3)Other current liabilitiesInterest Rate$$— $Other current assets
Interest RateInterest Rate— (2)Deferred credits and other liabilitiesInterest Rate15 — 15 Other noncurrent assets
Total Designated HedgesTotal Designated Hedges$— $$(5)Total Designated Hedges$24 $— $24 
TotalTotal$28 $13 $15 Total$34 $— $34 
Derivatives Not Designated as Hedges
Commodity Derivatives
We have entered into multiple crude oil and natural gas derivatives indexed to the respective indicesHenry Hub as noted in the table below, related to a portion of our forecasted U.S. sales through the first quarter of 2023. These derivatives consist ofare three-way collars, two-way collars and NYMEX roll basis swaps.collars. Three-way collars consist of a sold call (ceiling), a purchased put (floor) and a sold put. The ceiling price is the maximum we will receive for the contract volumes; the floor is the minimum price we will receive, unless the market price falls below the sold put strike price. In this case, we receive the NYMEX WTIHenry Hub price plus the difference between the floor and the sold put price. These natural gas derivatives were not designated as hedges.
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MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)

The following table sets forth outstanding derivative contracts as of September 30, 2022,March 31, 2023, and the weighted average prices for those contracts:
20222023
Fourth QuarterFirst Quarter
Crude Oil
NYMEX WTI Three-Way Collars
Volume (Bbls/day)30,000 — 
Weighted average price per Bbl:
Ceiling$97.52 $— 
Floor$56.67 $— 
Sold put$46.67 $— 
NYMEX Roll Basis Swaps
Volume (Bbls/day)60,000 — 
Weighted average price per Bbl$0.67 $— 
Natural Gas
Henry Hub (“HH”) Two-Way Collars
Volume (MMBtu/day)50,000 50,000 
Weighted average price per MMBtu:
Ceiling$19.28 $19.28 
Floor$5.00 $5.00 
Henry Hub Three-Way Collars
Volume (MMBtu/day)100,000 — 
Weighted average price per MMBtu:
Ceiling$7.13 $— 
Floor$3.88 $— 
Sold Put$2.88 $— 
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MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)
2023
Second QuarterThird QuarterFourth Quarter
Natural Gas
Henry Hub Three-Way Collars
Volume (MMBtu/day)50,000 50,000 50,000 
Weighted average price per MMBtu:
Ceiling$11.14 $11.14 $11.14 
Floor$4.00 $4.00 $4.00 
Sold Put$2.50 $2.50 $2.50 
The unrealized and realized gain (loss) impact of our commodity derivative instruments appears in the table below and is reflected in net gain (loss) on commodity derivatives in the consolidated statements of income.
Three Months Ended September 30,Nine Months Ended September 30,Three Months Ended March 31,
(In millions)(In millions)2022202120222021(In millions)20232022
Unrealized gain (loss) on derivative instruments, netUnrealized gain (loss) on derivative instruments, net$67 $27 $(4)$(130)Unrealized gain (loss) on derivative instruments, net$$(114)
Realized gain (loss) on derivative instruments, net(a)
Realized gain (loss) on derivative instruments, net(a)
$(26)$(106)$(125)$(268)
Realized gain (loss) on derivative instruments, net(a)
$13 $(29)
(a)During the thirdfirst quarter andof 2023, net cash received for settled derivative positions was $10 million. During the first nine monthsquarter of 2022, net cash paid for settled derivative positions was $56 million and $145 million, respectively. During the third quarter and first nine months of 2021, net cash paid for settled derivative positions was $108 million and $203 million, respectively.$28 million.
Interest Rate Swaps
During 2020, we entered into forward starting interest rate swaps with a notional amount of $500 million to hedge the variations in cash flows related to fluctuations in the London Interbank Offered Rate (“LIBOR”) benchmark interest rate related to forecasted interest payments of a future debt issuance in 2022. Each respective derivative contract can be tied to an anticipated underlying dollar notional amount. During the third quarter of 2020, we de-designated these forward starting interest rate swaps previously designated as cash flow hedges. In the first quarter of 2021, the net deferred loss of $2 million in accumulated other comprehensive income related to these de-designated forward starting interest rate swaps was reclassified from accumulated other comprehensive income into earnings as an adjustment to net interest, as we fully redeemed the remainder of our outstanding 2022 notes in April 2021. We recorded a $5 millionmark-to-market gain and a $24 millionmark-to-market gain within net interest to reflect the change in value of these interest rate swaps during the three and nine months ended September 30, 2021, respectively.
During 2020, we entered into forward starting interest rate swaps with a notional amount of $350 million to hedge variations in cash flows arising from fluctuations in the LIBOR benchmark interest rate related to forecasted interest payments of a future debt issuance in 2025. The expected proceeds of the future debt issuance were intended to refinance theour $900 million 3.85% Senior Notes due 2025 (“2025 Notes”). In September 2021, we fully redeemed these 2025 Notes. We recorded a $3 million mark-to-market gain and a $34 million mark-to-market gain within net interest to reflect the change in value of these interest rate swaps during the three and nine months ended September 30, 2021. In March 2022, we closed these positions and settled the interest rate swaps for proceeds of $44 million. During the ninethree months ended September 30,March 31, 2022, we recorded a cumulative $17 million gain within net interest forand other within our consolidated statements of income related to these swaps.
During the second quarter of 2021, we de-designated $25 million of the $320 million Houston office cash flow hedges (discussed further in the Derivatives Designated as Cash Flow Hedges section below), as the construction cost budget estimate was reduced. These interest rate swap contracts began to settle in January 2022. On June 10, 2022, we closed the $25 million de-designated hedges, which resulted in cash proceeds of approximately $2 million. As of September 30, 2022, the remaining open interest rate swaps for the Houston office (with a notional amount of $295 million) are still classified as cash flow hedges.
The following table presents, by maturity date, information about our de-designated forward starting interest rate swap agreements. These positions were fully liquidated as of September 30, 2022.
September 30, 2022December 31, 2021
Maturity Date
Aggregate Notional Amount
(in millions)
Weighted Average, LIBOR
Aggregate Notional Amount
(in millions)
Weighted Average, LIBOR
June 1, 2025$— — %$350 0.95 %
September 9, 2026$— — %$25 1.45 %
Derivatives Designated as Cash Flow Hedges
During 2019, we entered into forward starting interest rate swaps with a total notional amountmaturity date of $320 millionSeptember 9, 2026 to hedge variations in cash flows related to the 1-month LIBORinterest rate component of future lease payments of our Houston office. DuringAs of March 31, 2023 and December 31, 2022, the second quarter of 2021, we de-designated $25 million of these hedges as the construction cost budget estimate associated with the project was reduced (see discussion in preceding section). The notional amount of open interest rate swaps for the Houston office iswas $295 million.
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MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)
The weighted average secured overnight financing rate (“SOFR”) for the swaps was 1.43% as of both March 31, 2023 and December 31, 2022.
The Houston office lease commenced in September 2021, however, our first cash lease payment for February 2022 rent was paid in March.March 2022. The first settlement date for the interest rate swaps was in January 2022. The last swap will mature in September 2026. During the third quarter and first ninethree months of2022,ended March 31, 2023, net cash received/paidreceived for the settled interest rate swap positions was immaterial.$2 million. As of September 30, 2022,March 31, 2023, we expect to reclassify $8a $9 million gain from accumulated other comprehensive income into theour consolidated statements of income statement over the next twelve months. See Note 1211 for further details regarding the leaseHouston office lease.
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Table of the Houston office.Contents
The following table presents, by maturity date, information about our interest rate swap agreements, including the fixed weighted average LIBOR.
September 30, 2022December 31, 2021
Maturity Date
Aggregate Notional Amount
(in millions)
Weighted Average, LIBOR
Aggregate Notional Amount
(in millions)
Weighted Average, LIBOR
September 9, 2026$295 1.52 %$295 1.52 %
MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)
14.
13.    Fair Value Measurements
Fair Values – Recurring
The following tables present assets and liabilities accounted for at fair value on a recurring basis as of September 30, 2022March 31, 2023 and December 31, 20212022 by hierarchy level.
September 30, 2022March 31, 2023
(In millions)(In millions)Level 1Level 2Level 3Total(In millions)Level 1Level 2Level 3Total
Derivative instruments, assetsDerivative instruments, assetsDerivative instruments, assets
Commodity(a)
Commodity(a)
$— $12 $— $12 
Interest rate - designated as cash flow hedgesInterest rate - designated as cash flow hedges$— $26 $— $26 Interest rate - designated as cash flow hedges$— $20 $— $20 
Derivative instruments, assetsDerivative instruments, assets$— $26 $— $26 Derivative instruments, assets$— $32 $— $32 
Derivative instruments, liabilities
Commodity(a)
$(2)$(9)$— $(11)
Derivative instruments, liabilities$(2)$(9)$— $(11)
Total$(2)$17 $— $15 
December 31, 2021 December 31, 2022
(In millions)(In millions)Level 1Level 2Level 3Total(In millions)Level 1Level 2Level 3Total
Derivative instruments, assetsDerivative instruments, assetsDerivative instruments, assets
Interest rate - not designated as cash flow hedges$— $27 $— $27 
Derivative instruments, assets$— $27 $— $27 
Derivative instruments, liabilities
Commodity(a)
Commodity(a)
$(2)$(5)$— $(7)
Commodity(a)
$— $10 $— $10 
Interest rate - designated as cash flow hedgesInterest rate - designated as cash flow hedges— (5)— (5)Interest rate - designated as cash flow hedges— 24 — 24 
Derivative instruments, liabilities$(2)$(10)$— $(12)
Total$(2)$17 $— $15 
Derivative instruments, assetsDerivative instruments, assets$— $34 $— $34 
(a)Commodity derivative instruments are recorded on a net basis in our consolidated balance sheet. See Note 1312.
CommodityAs of March 31, 2023, our commodity derivatives include three-way collars, two-way collars and NYMEX roll basis swaps.collars. These instruments are measured at fair value using either a Black-Scholes or a modified Black-Scholes Model. For commodity swaps, inputs to the models include only commodity prices and interest rates and are categorized as Level 1 because all assumptions and inputs are observable in active markets throughout the term of the instruments. For three-way collars and two-way collars, inputs to the models include commodity prices and implied volatility and are categorized as Level 2 because predominantly all assumptions and inputs are observable in active markets throughout the term of the instruments.
The forward starting interest rate swaps are measured at fair value with a market approach using actionable broker quotes, which are Level 2 inputs. See Note 1312 for detaildetails on the forward starting interest rate swaps.
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MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)
Fair Values – Nonrecurring
See Note 10for detail on our fair values related to impairments.
Fair Values – Financial Instruments
Our current assets and liabilities include financial instruments, the most significant of which are receivables, the current portion of our long-term debt and payables. We believe the carrying values of our receivables and payables approximate fair value. Our fair value assessment incorporates a variety of considerations, including (1) the short-term duration of the instruments, (2) our credit rating and (3) our historical incurrence of and expected future insignificant bad debt expense, which includes an evaluation of counterparty credit risk.
The following table summarizes financial instruments, excluding receivables, payables and derivative financial instruments, and their reported fair values by individual balance sheet line item at September 30, 2022March 31, 2023 and December 31, 2021.2022.
September 30, 2022December 31, 2021March 31, 2023December 31, 2022
(In millions)(In millions)Fair ValueCarrying AmountFair ValueCarrying Amount(In millions)Fair ValueCarrying AmountFair ValueCarrying Amount
Financial assetsFinancial assets    Financial assets    
Current assets$— $— $11 $10 
Other noncurrent assetsOther noncurrent assets10 28 12 27 Other noncurrent assets10 28 10 28 
Total financial assetsTotal financial assets$10 $28 $23 $37 Total financial assets$10 $28 $10 $28 
Financial liabilitiesFinancial liabilities    Financial liabilities    
Current liabilities$107 $171 $99 $136 
Other current liabilitiesOther current liabilities$132 $197 $140 $204 
Long-term debt, including current portion(a)
Long-term debt, including current portion(a)
3,793 3,997 4,705 4,033 
Long-term debt, including current portion(a)
5,789 5,878 5,806 5,948 
Deferred credits and other liabilitiesDeferred credits and other liabilities16 15 46 46 Deferred credits and other liabilities61 60 73 73 
Total financial liabilitiesTotal financial liabilities$3,916 $4,183 $4,850 $4,215 Total financial liabilities$5,982 $6,135 $6,019 $6,225 
(a)Excludes debt issuance costs.
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MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)

Fair values of our financial assets included in other noncurrent assets, and of our financial liabilities included in other current liabilities and deferred credits and other liabilities, are measured using an income approach and most inputs are internally generated, which results in a Level 3 classification. Estimated future cash flows are discounted using a rate deemed appropriate to obtain the fair value.
All of our long-termOur fixed rate debt instruments are publicly traded. AThe fair value of our fixed rate debt is measured using a market approach, based upon quotes from major financial institutions, which are Level 2 inputs,inputs. Our floating rate debt is used to measure thenon-public and consists of borrowings under our Term Loan Facility and Revolving Credit Facility. The fair value of our debt.floating rate debt approximates the carrying value and is estimated based on observable market-based inputs, which results in a Level 2 classification.
15.14.    Debt
Term Loan Facility
In November 2022, we entered into a term credit agreement, which provides for a two-year $1.5 billion term loan facility (“Term Loan Facility”) and we borrowed the full amount thereunder in December 2022. Borrowings under the Term Loan Facility can be prepaid without penalty. As of March 31, 2023, we had $1.5 billion in borrowings under our Term Loan Facility and the weighted average interest rate on borrowings under the Term Loan Facility was 6.36%.
The Term Loan Facility includes a covenant requiring our total debt to total capitalization ratio not to exceed 65% as of the last day of each fiscal quarter. In the event of a default, the lenders holding more than half of the commitments may terminate all of the commitments under the Term Loan Facility and require the immediate repayment of all outstanding borrowings under the Term Loan Facility. As of March 31, 2023, we were in compliance with this covenant with a ratio of 26%.
Revolving Credit Facility
As of September 30, 2022,March 31, 2023, we had nonet borrowings of $450 million against our $2.5 billion unsecured revolving credit facility (“Credit Facility”).
On July 28, 2022, we executed the seventh amendment to ourRevolving Credit Facility. The primary changes toweighted average interest rate on borrowings under the Revolving Credit Facility effected by this amendment were to (i) extend the maturity date of the Credit Facility by three years to July 28, 2027, (ii) decrease the size of the Credit Facility from $3.1 billion to $2.5 billion, (iii) replace the LIBOR interest rate benchmark with the secured overnight financing rate (“SOFR”) and (iv) implement certain revisions to the Pricing Schedule.was 6.20%.
The Revolving Credit Facility includes a covenant requiring our total debt to total capitalization ratio not to exceed 65% as of the last day of each fiscal quarter. In the event of a default, the lenders holding more than half of the commitments may terminate the commitments under the Revolving Credit Facility and require the immediate repayment of all outstanding borrowings and the cash collateralization of all outstanding letters of credit under the Revolving Credit Facility. As of September 30, 2022,March 31, 2023, we were in compliance with this covenant with a ratio of 20%26%.
Debt Redemption
In May 2022,March 2023, we redeemed the $32$70 million 9.375%8.5% Senior Notes on the maturity date.
20

MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)
In September 2021, we redeemed our outstanding $900 million 3.85% Senior Notes due 2025 (“2025 Notes”). We incurred $102 million in costs related to the make-whole provision premium and the write off of unamortized discount and issuance costs.
In April 2021, we redeemed our outstanding $500 million 2.8% Senior Notes due 2022 (“2022 Notes”). We incurred $19 million in costs related to a make-whole provision premium and the write off of unamortized discount and issuance costs.
Long-term debt
At September 30, 2022,March 31, 2023, we had $4.0$5.9 billion of total long-term debt outstanding, which includes $402$131 million of long-term debt due within one year. Included in long-term debt due within one year is $200 million in 2.0% Bonds which feature a mandatory put on April 1, 2023. Refer to our 20212022 Annual Report on Form 10-K for a listing of our long-term debt maturities.
Debt Remarketing
16.On April 3, 2023, we closed a $200 million remarketing to investors of sub-series 2017A-1 bonds that are part of the $1 billion St. John the Baptist Parish, State of Louisiana revenue refunding bonds Series 2017. The bonds are subject to an interest rate of 4.05% and a mandatory purchase date of July 1, 2026. At March 31, 2023, these bonds were included in long-term debt on the consolidated balance sheet.
15.    Stockholders’ Equity
Our Board of Directors has authorized a share repurchase program. During the first ninethree months of 2022,2023, we repurchased approximately $2.5 billion of13 million shares of our common stock pursuant to the share repurchase program. The totalprogram at a cost of $334 million. Our remaining share repurchase authorization was approximately $926 million$2.1 billion at September 30, 2022.March 31, 2023. Purchases under the program are made at our discretion and may be in either open market transactions, including block purchases, or in privately negotiated transactions using cash on hand, cash generated from operations or proceeds from potential asset sales. This program may be changed based upon our financial condition or changes in market conditions and is subject to termination prior to completion.
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MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)

Additionally, during the first ninethree months of 20222023 we repurchased $21$30 million of shares related to our tax withholding obligation associated with the vesting of employee restricted stock awards and restricted stock units; these repurchases do not impact our share repurchase program authorization.
Subsequent to the quarter, we repurchased approximately $230$110 million of shares of our common stock through November 2, 2022. Effective November 2, 2022, our Board of Directors increased our remaining share repurchase program authorization to $2.5 billion.May 3, 2023.
17.16.    Incentive Based Compensation
Stock options, restricted stock and restricted stock units
The following table presents a summary of activity for the first ninethree months of 2022:2023: 
Stock OptionsRestricted Stock & Units Stock OptionsRestricted Stock & Units
Number of SharesWeighted Average Exercise PriceNumber of Shares & UnitsWeighted Average Grant Date Fair ValueNumber of SharesWeighted Average Exercise PriceNumber of Shares & UnitsWeighted Average Grant Date Fair Value
Outstanding at December 31, 20214,274,304 $22.13 5,888,242 $10.98 
Outstanding at December 31, 2022Outstanding at December 31, 20221,678,524 $28.86 4,651,196 $14.89 
GrantedGranted— 

$— 1,719,757 $22.83 Granted— 

$— 1,832,506 $25.79 
Exercised/VestedExercised/Vested(1,842,093)$14.41 (2,796,967)$12.05 Exercised/Vested(10,417)$10.47 (2,597,783)$11.99 
CanceledCanceled(414,952)$33.55 (187,859)$14.14 Canceled(39,110)$33.10 (76,806)$18.38 
Outstanding at September 30, 20222,017,259 $26.82 4,623,173 $14.62 
Outstanding at March 31, 2023Outstanding at March 31, 20231,628,997 $28.88 3,809,113 $22.04 
Stock-based performance unit awards
During the first ninethree months of 2022,2023, we granted 167,043222,464 stock-based performance units to eligible officers, which are settled in shares. The grant date fair value per unit was $34.07.$32.97. During the first ninethree months of 2022,2023, we stock settled the units related to the 2020 grant. At March 31, 2023, there were 686,266 outstanding stock-based performance units to be settled in shares to officers.
During the first three months of 2023, we also granted 167,043222,464 stock-based performance units to eligible officers, which are settled in cash. At the grant date for these performance units, each unit represents the value of one share of our common stock. The fair value of each cash-settled performance unit was $23.37$24.06 as of September 30, 2022.
21
March 31, 2023. During the first three months of 2023, we also cash settled the units related to the 2021 grant. At March 31, 2023, there were 389,507 units outstanding of the stock-based performance unit awards to be settled in cash to officers.

MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)
18.17.    Defined Benefit Postretirement Plans
The following summarizes the components of net periodic benefit costs (credits):
Three Months Ended September 30,
Pension BenefitsOther Benefits
(In millions)2022202120222021
Service cost$$$— $— 
Interest cost— 
Expected return on plan assets(2)(2)— — 
Amortization:
– prior service credit(1)(1)(4)(4)
– actuarial loss— — 
Net settlement loss(a)
— — — 
Net periodic benefit costs (credits)(b)
$$$(3)$(3)

Nine Months Ended September 30,Three Months Ended March 31,
Pension BenefitsOther BenefitsPension BenefitsOther Benefits
(In millions)(In millions)2022202120222021(In millions)2023202220232022
Service costService cost$11 $12 $— $— Service cost$$$— $— 
Interest costInterest costInterest cost— 
Expected return on plan assetsExpected return on plan assets(7)(6)— — Expected return on plan assets(2)(2)— — 
Amortization:Amortization:Amortization:
– prior service credit– prior service credit(4)(4)(12)(12)– prior service credit(2)(2)(4)(4)
– actuarial loss– actuarial loss– actuarial loss— — — 
Net settlement loss(a)
Net settlement loss(a)
— — — 
Net settlement loss(a)
— — — 
Net periodic benefit costs (credits)(b)
Net periodic benefit costs (credits)(b)
$$20 $(9)$(9)
Net periodic benefit costs (credits)(b)
$$$(3)$(3)
(a)Settlements are recognized as they occur, once it is probable that lump sum payments from a plan for a given year will exceed the plan’s total service and interest cost for that year.
(b)Net periodic benefit costs (credits) reflects a calculated market-related value of plan assets which recognizes changes in fair value over three years.
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    During the first nine months of 2022, we made contributions of $17 million to our funded pension plan. We also made a payment of $7 million related to our other postretirement benefit plans. We expect to contribute an additional $4 million in contributions to our funded pension plan this year.
22

MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)

19.
    During the first three months of 2023, we made contributions of $2 million to our funded pension plan and we expect to make additional contributions of $10 million this year. We also made payments of $3 million and $2 million related to our unfunded pension plan and other postretirement benefit plans, respectively.
18.    Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
The following table presents a summary of amounts reclassified from accumulated other comprehensive income (loss):
Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2022202120222021Income Statement Line
Postretirement and postemployment plans
Amortization of prior service credit$$$16 $16 Other net periodic benefit costs
Amortization of actuarial loss— (2)(2)(6)Other net periodic benefit costs
Net settlement loss— (3)— (8)Other net periodic benefit costs
Interest rate swaps
Reclassification of de-designated forward interest rate swaps— — — (28)Net interest and other
(1)— (3)— Provision for income taxes
Total reclassifications of (income) expense, net of tax (a)
$$— $11 $(26)Net income (loss)
(a)During 2021 we had a full valuation allowance on net federal deferred tax assets in the U.S. and as such, there is no tax impact to our postretirement and postemployment plans for the three and nine months ended September 30, 2021.
Three Months Ended March 31,
(In millions)20232022Income Statement Line
Postretirement and postemployment plans
Amortization of prior service credit$$Other net periodic benefit credits
Amortization of actuarial loss— (1)Other net periodic benefit credits
Net settlement loss(1)— Other net periodic benefit credits
Income taxes(1)(1)Provision (benefit) for income taxes
Total reclassifications of (income) expense, net of tax$$Net income
20.19.    Supplemental Cash Flow Information
Nine Months Ended September 30, Three Months Ended March 31,
(In millions)(In millions)20222021(In millions)20232022
Included in operating activities:Included in operating activities:  Included in operating activities:  
Interest paid(a)Interest paid(a)$153 $185 Interest paid(a)$85 $54 
Income taxes paid, net of refunds (a)
Income taxes paid, net of refunds (a)
$128 $
Income taxes paid, net of refunds (a)
$$12 
Noncash investing activities:Noncash investing activities:  Noncash investing activities:  
Increase in asset retirement costsIncrease in asset retirement costs$$49 Increase in asset retirement costs$$
(a)The nineincrease in the three months ended September 30, 2021 includes $1 millionMarch 31, 2023 compared to the same period in 2022 was primarily related to tax refunds.interest paid on borrowings under the Term Loan Facility and Revolving Credit Facility.
Other noncash investing activities include accrued capital expenditures for the ninethree months ended September 30,March 31, 2023 and 2022 and 2021 of $99$180 million and $104$96 million, respectively.
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MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)
21.20.    Equity Method Investments
During the periods ended September 30, 2022March 31, 2023 and December 31, 20212022 our equity method investees were considered related parties. Our investment in our equity method investees are summarized in the following table:
(In millions)Ownership as of September 30, 2022September 30, 2022December 31, 2021
EGHoldings (a)
56%$293 $148 
Alba Plant LLC (b)
52%142 154 
AMPCO (c)
45%133 148 
Total $568 $450 
(In millions)Ownership as of March 31, 2023March 31, 2023December 31, 2022
EGHoldings (a)
56%$333 $287 
Alba Plant LLC (b)
52%176 155 
AMPCO (c)
45%148 135 
Total $657 $577 
(a)EGHoldings is engaged in LNG production activity.
(b)Alba Plant LLC processes LPG.
(c)AMPCO is engaged in methanol production activity.
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MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)

Summarized, 100% combined financial information for equity method investees is as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2022202120222021
Income data:
Revenues and other income$499 $325 $1,332 $806 
Income from operations358 188 893 395 
Net income$335 $155 $811 $312 

Three Months Ended March 31,
(In millions)20232022
Income data:
Revenues and other income$306 $374 
Income from operations159 229 
Net income$134 $204 
Revenues from related parties were $7$6 million and $22$8 million for the three and nine months ended September 30,March 31, 2023 and 2022, respectively, $8 million and $24 million for the three and nine months ended September 30, 2021, respectively, with the majority related to EGHoldings in allboth periods.
Cash received from equity investees is classified as dividends or return of capital on the Consolidated Statements of Cash Flows. Dividends from equity method investees are reflected in the Operating activities section in Equity Method Investments, net while return of capital is reflected in the Investing activities section. Our equity investees did not distribute dividends or return of capital during the three months ended March 31, 2023. Dividends and return of capital received by us totaled $150 million and $350 million forduring the three and nine months ended September 30,March 31, 2022 respectively, and $56 million and $137 million for the three and nine months ended September 30, 2021, respectively.totaled $54 million.
Current receivables from related parties at September 30, 2022March 31, 2023 and December 31, 20212022 were $43$20 million and $23$36 million, respectively, with the majoritywhich primarily related to Alba Plant LLC and EGHoldings in both periods. Payables to related parties at September 30,March 31, 2023 and December 31, 2022 were $6$18 million with the majority related to EGHoldings and $20 million, at December 31, 2021,respectively, with the majority related to Alba Plant LLC.
24
LLC in both periods.

MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)
22.21.    Commitments and Contingencies
Various groups, including the State of North Dakota and three Indian tribes (the “Three Affiliated Tribes”) represented by the Bureau of Indian Affairs, have been involved in a dispute regarding the ownership of certain lands underlying the Missouri River and Little Missouri River (the “Disputed Land”) from which we currently produce. As a result, as of September 30, 2022,March 31, 2023, we have a $153$164 million current liability in suspended royalty and working interest revenue, including interest, of which $138$145 million was included within accounts payable and $15$19 million related to accrued interest and was included within other current liabilities on our consolidated balance sheet. Additionally, we have a long-term receivable of $26 million for capital and expenses. The United States Department of the Interior (“DOI”) has addressed the United States’ position with respect to this dispute several times over the past five years with conflicting opinions. In January 2017, the DOI issued an opinion that the Disputed Land is held in trust for the Three Affiliated Tribes, then in June 2018 and May 2020 the DOI issued opinions concluding that the State of North Dakota held title to the Disputed Land. Most recently, on February 4, 2022, the DOI issued an opinion (“M-Opinion”) concluding the DOI’s position that the Disputed Land is held in trust for the Three Affiliated Tribes. While the latest M-Opinion is binding on all agencies within the DOI, it is not legally binding on third parties, including Marathon Oil, or a court. Depending on the ultimate outcome of this title dispute, the Three Affiliated Tribes could challenge the validity of certain of our leases relating to a portion of the disputed land, and if such challenge were successful it could result in operational delays and additional costs to us. Given the uncertainty in matters such as these, we are unable to predict the ultimate outcome of this matter at this time; however, we believe the resolution of this matter will not have a material adverse effect on our consolidated financial position, results of operations or cash flows.
We are a defendant in a number of legal and administrative proceedings arising in the ordinary course of business including, but not limited to, royalty claims, contract claims, tax disputes and environmental claims. While the ultimate outcome and impact to us cannot be predicted with certainty, we believe the resolution of these proceedings will not have a material adverse effect on our consolidated financial position, results of operations or cash flows. In addition, we may also be subject to retained liabilities with respect to certain divested assets by operation of law. For example, we are exposed to the risk that owners and/or operators of assets purchased from us become unable to satisfy plugging or abandonment obligations that attach to those assets. In that event, due to operation of law, we may be required to assume plugging or abandonment obligations for those assets. Although we have established reserves for such liabilities, we could be required to accrue additional amounts in the future and these amounts could be material.
Marathon Oil has been named in various lawsuits alleging royalty underpayments in our domestic operations. We intend to vigorously defend ourselves against such claims. For instance, Marathon Oil was named in a lawsuit alleging improper royalty deductions in certain of our Oklahoma operations, and after plaintiffs lost their attempt to certify a class action, a settlement in principle was reached, subjectand in the first quarter of 2023 such settlement was approved by the court and paid.
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MARATHON OIL CORPORATION
Notes to court approval. Consolidated Financial Statements (Unaudited)

We have accrued for potential liabilities associated with these lawsuits based on currently available information; however, actual losses may exceed our accruals or we could be required to accrue additional amounts in the future.
In January 2020, we received a Notice of Violation (“NOV”)’s from the EPA related to allegations of violations of the Clean Air Act relating to our operations on the Fort Berthold Indian Reservation between 2015 and 2019. We are actively negotiating a draft consent decree with the EPA and Department of Justice containing certain proposed injunctive terms relating to this enforcement action. TheResolution of the enforcement action will likely include monetary sanctions and implementation of both environmental mitigation projects and injunctive terms, which would increase both our development costs and operating costs. We maintain an accrual for estimated future costs related to this matter regarding actions required to retrofit or replace existing equipment, which we expect to incur over multiple years. Our accrual does not include possible monetary sanctions or costs associated with mitigation projects as we are unable to estimate those amounts. Through the date of this filing, there exists substantial uncertainty as to the ultimate result of this matter and it is reasonably possible the result could be materially different from our accrual.
In July 2022, theThe Company received an NOVNOV’s from the EPA relating to alleged Clean Air Act violations following flyovers conducted in 2020 and 2022 over certain of the Company’s oil and gas facilities in New Mexico. The notice involvesnotices involve alleged emission and permitting violations. The Company hasWe initiated discussions with the EPA to resolve these matters. As we are still investigating these allegations, we are unable to estimate the potential loss associated with this matter,these matters, however, it is reasonably possible that the resolution may result in a fine or penalty in excess of $300,000.

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MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)
We have incurred and will continue to incur capital, operating and maintenance and remediation expenditures as a result of environmental laws and regulations. If these expenditures, as with all costs, are not ultimately offset by the prices we receive for our products and services, our operating results will be adversely affected. We believe that substantially all of our competitors must comply with similar environmental laws and regulations. However, the specific impact on each competitor may vary depending on a number of factors, including the age and location of its operating facilities, marketing areas and production processes. These laws generally provide for control of pollutants released into the environment and require responsible parties to undertake remediation of hazardous waste disposal sites. Penalties may be imposed for noncompliance.
At September 30, 2022,March 31, 2023, accrued liabilities for remediation relating to environmental laws and regulations were not material. It is not presently possible to estimate the ultimate amount of all remediation cost that might be incurred or the penalties that may be imposed.
In the second quarter of 2019, Marathon E.G. Production Limited (“MEGPL”), a consolidated and wholly owned subsidiary, signed a series of agreements to process third-party Alen Unit gas through existing infrastructure located in Punta Europa, E.G. Our equity method investee, Alba Plant LLC, is also a party to some of the agreements. These agreements require (subject to certain limitations) MEGPL to indemnify the owners of the Alen Unit against injury to Alba Plant LLC’s personnel and damage to or loss of Alba Plant LLC’s automobiles, as well as third party claims caused by Alba Plant LLC and certain environmental liabilities arising from certain hydrocarbons in the custody of Alba Plant LLC. At this time, we cannot reasonably estimate this obligation as we do not have any history of prior indemnification claims or environmental discharge or contamination. Therefore, we have not recorded a liability with respect to these indemnities since the amount of potential future payments under these indemnification clauses is not determinable.
The agreements to process the third-party Alen Unit gas required the execution of third-party guarantees by Marathon Oil Corporation in favor of the Alen Unit’s owners. Two separate guarantees were executed during the second quarter of 2020; one for a maximum of approximately $91 million pertaining to the payment obligations of Equatorial Guinea LNG Operations, S.A. and another for a maximum of $25 million pertaining to the payment obligations of Alba Plant LLC. Payment by us would be required if any of those entities fails to honor its payment obligations pursuant to the relevant agreements with the owners of the Alen Unit. Certain owners of the Alen Unit, or their affiliates, are also direct or indirect shareholders in Equatorial Guinea LNG Operations, S.A. and Alba Plant LLC. Each guarantee expires no later than December 31, 2027. We measured these guarantees at fair value using the net present value of premium payments we expect to receive from our investees. Our liability for these guarantees was approximately $4 million as of September 30, 2022.March 31, 2023. Each of Equatorial Guinea LNG Operations, S.A. and Equatorial Guinea LNG Train 1, S.A. provided us with a pledge of its receivables as recourse against any payments we may make under the guaranty of Equatorial Guinea LNG Operations, S.A.’s performance.
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MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)
23.    Subsequent Event
On November 2, 2022, we executed a definitive purchase agreement to acquire the assets and certain related liabilities of Ensign Natural Resources in the Eagle Ford resource play in Texas for total cash consideration of $3.0 billion. The assets primarily consist of approximately 130,000 net proved and unproved acres, with an average 97% working interest, approximately 700 existing wells, and estimated current production of approximately 67,000 net boepd (including 22,000 net bopd of oil). We expect to fund the acquisition using a combination of cash on hand, borrowings on the company’s Credit Facility, and new prepayable debt. The transaction is subject to customary terms and conditions, including closing adjustments, and is expected to close by year-end 2022.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 
Executive Overview
Outlook
Operations
Market Conditions
Results of Operations
Critical Accounting Estimates
Accounting Standards Not Yet Adopted
Cash Flows
Liquidity and Capital Resources
Environmental Matters and Other Contingencies
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the preceding consolidated financial statements and notes in Item 1.

Executive Overview
We are an independent exploration and production company, focused on U.S. resource plays: Eagle Ford in Texas, Bakken in North Dakota, STACK and SCOOP in Oklahoma and Northern DelawarePermian in New Mexico.Mexico and Texas. Our U.S. assets are complemented by our international operations in E.G. Our overall business strategy is to responsibly deliver competitive corporate return levels, free cash flow and cash returns to shareholders, all of which are sustainable and resilient through long-term commodity price cycles. We expect to achieve our business strategy by adherence to a disciplined reinvestment rate capital allocation framework that limits our capital expenditures relative to our expected cash flow from operations. Keeping our workforce safe, maintaining a strong balance sheet, responsibly meeting global energy demand with a focus on continuously improving environmental performance, serving as a trusted partner in our local communities and maintaining best in-class corporate governance standards are foundational to the execution of our strategy.
As discussed in Note 23 to the consolidated financial statements, on November 2,In December 2022, we entered into an agreementclosed on a transaction to acquire approximately 130,000 net proved and unproved acres, with an average 97% working interest, in the Eagle Ford resource play in Texas. The transaction is subject to customary terms and conditions, including closing adjustments, and is expected to close by year-end 2022.from Ensign Natural Resources (“Ensign”) for cash consideration of $3.0 billion.
Compared to the prior year,same period of 2022, we experienced a significant increasedecrease in revenues,revenue and net income from operations and operating cash flow, all of which were drivenimpacted by higherlower commodity prices. Total company net sales volumes were slightly higher forincreased during the quarter and roughly flat for the year-to-date period. Our year-to-date cash generated from operations more than funded our capital program, dividend payments and share repurchases. These results and activities are consistent with our prioritizationfirst three months of free cash flow generation and adherence2023 when compared to our disciplined capital allocation framework.prior year quarter. Below are certain key financial and operational highlights for the quarter:
Improved financialFinancial and operational results
Our net income was $817$417 million in the thirdfirst quarter of 20222023 as compared to net income of $184 million$1.3 billion in the same period last year. Included in our financial results for the current quarter:
Revenues from contracts with customers increased $570decreased $194 million compared to the same quarter last year as a result of lower realized commodity prices, were significantly higher.
Income from equity method investments totaled $190 million, which is an increase of $104 million due to higher realized prices.partially offset by increased sales.
We recorded a net gain of $41$15 million on commodity derivatives as compared to a net loss of $79$143 million during the same quarter last year, which increased income by $120$158 million.
As a resultDepreciation, depletion and amortization was $520 million, which was an increase of higher income before taxes, our$97 million as compared to the same quarter last year.
Our provision for income taxes increased by $236$626 million compared to the same quarter last year. SeeNote 6year, primarily due to the consolidated financial statements for discussionfirst quarter of 2022 $685 million non-cash tax benefit from the partial release of a valuation allowance on certain U.S. and state deferred tax assets.
Successfully integrated the Eagle Ford assets of Ensign into our existing operations in the resource play.
In March 2023, we announced the signing of a Heads of Agreement (“HOA”) to progress the development of the increase in income taxes.Equatorial Guinea Regional Gas Mega Hub.
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IncreasedNet sales volumes in the U.S. segment increased 22% compared to the same period last year, primarily driven by increased production from the acreage acquired from Ensign.
Prioritized return of capital to investors and maintained investment grade balance sheet
In the first ninethree months of 2022,2023, we repurchased approximately $2.5 billion$334 million of shares through our share repurchase program, of which $1.1 billion occurred during the current quarter.program.
As of September 30, 2022,March 31, 2023, we have $1.1 billion$178 million of cash on hand and $3.6$2.2 billion of total liquidity.
Paid $162$63 million of dividends, or $0.23$0.10 per share, during the first ninethree months of 2022,2023, compared to dividends paid of $0.12$0.07 per share during the first ninethree months of 2021.2022.
All three primary credit rating agencies continue to rate us as investment grade.grade, with S&P reaffirming our credit rating in March 2023.
Outlook
Capital Budget
In our 2021 Form 10-K filed in February 2022,2023, we disclosedannounced a 20222023 capital budget of $1.2$1.9 billion based on assumed hydrocarbon pricesto $2.0 billion that prioritizes free cash flow generation over production growth, consistent with our disciplined capital allocation framework. Approximately 60% of $80/bbl for WTI and $4/mmbtu for Henry Hub gas, which were indicative of market conditions at that time. Given persistent inflationary pressures and our efforts to protect execution and operational momentum intothe 2023 we now expect our capital budget is weighted to increase to $1.4 billion.

the first half of the year.
Operations
    The following table presents a summary of our sales volumes for each of our segments. Refer to Results of Operations for a price-volume analysis for each of the segments.
Three Months Ended September 30,Nine Months Ended September 30,Three Months Ended March 31,
Net Sales VolumesNet Sales Volumes20222021Increase (Decrease)20222021Increase (Decrease)Net Sales Volumes20232022Increase (Decrease)
United States (mboed)
United States (mboed)
295 281%286 280%
United States (mboed)
341 28022 %
International (mboed)
International (mboed)
58 61(5)%59 64(8)%
International (mboed)
56 61(8)%
Total (mboed)
Total (mboed)
353 342%345 344— %
Total (mboed)
397 34116 %
United States
The following tables provide additional details regarding net sales volumes, sales mix and operational drilling activity for our significant operations within this segment:segment. The increase in net sales volumes in our U.S. segment compared to the same period in the prior year was primarily a result of our acquisition of the Eagle Ford assets of Ensign in December 2022.
Three Months Ended September 30,Nine Months Ended September 30,Three Months Ended March 31,
Net Sales VolumesNet Sales Volumes20222021Increase (Decrease)20222021Increase (Decrease)Net Sales Volumes20232022Increase (Decrease)
Equivalent Barrels (mboed)
Equivalent Barrels (mboed)
Equivalent Barrels (mboed)
Eagle FordEagle Ford90 95 (5)%85 88 (3)%Eagle Ford144 80 80 %
BakkenBakken118 103 15 %116 107 %Bakken95 118 (19)%
OklahomaOklahoma54 55 (2)%54 54 — %Oklahoma55 51 %
Northern Delaware24 21 14 %21 24 (13)%
PermianPermian45 20 125 %
Other United StatesOther United States29 %10 43 %Other United States11 (82)%
Total United StatesTotal United States295 281 %286 280 %Total United States341 280 22 %
Three Months Ended March 31, 2023
Sales Mix - U.S. Resource PlaysEagle FordBakkenOklahomaPermianTotal
Crude oil and condensate52 %66 %22 %55 %52 %
Natural gas liquids23 %19 %31 %23 %23 %
Natural gas25 %15 %47 %22 %25 %
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Three Months Ended September 30, 2022
Sales Mix - U.S. Resource PlaysEagle FordBakkenOklahomaNorthern DelawareTotal
Crude oil and condensate67 %64 %22 %55 %56 %
Natural gas liquids18 %23 %35 %22 %24 %
Natural gas15 %13 %43 %23 %20 %

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Three Months Ended September 30,Nine Months Ended September 30,Three Months Ended March 31,
Drilling Activity - U.S. Resource PlaysDrilling Activity - U.S. Resource Plays2022202120222021Drilling Activity - U.S. Resource Plays20232022
Gross OperatedGross OperatedGross Operated
Eagle Ford:Eagle Ford:Eagle Ford:
Wells drilled to total depthWells drilled to total depth22 23 86 76 Wells drilled to total depth35 29 
Wells brought to salesWells brought to sales48 29 95 99 Wells brought to sales36 28 
Bakken:Bakken:Bakken:
Wells drilled to total depthWells drilled to total depth12 16 36 55 Wells drilled to total depth18 14 
Wells brought to salesWells brought to sales27 49 46 Wells brought to sales17 20 
Oklahoma:Oklahoma:Oklahoma:
Wells drilled to total depthWells drilled to total depth— 13 — Wells drilled to total depth
Wells brought to salesWells brought to sales— 19 Wells brought to sales
Northern Delaware:
Permian:Permian:
Wells drilled to total depthWells drilled to total depth— 12 — Wells drilled to total depth— 
Wells brought to salesWells brought to sales13 13 Wells brought to sales— 
International
Net sales volumes were lower in the thirdfirst quarter and first nine months of of 20222023 as compared to the thirdfirst quarter and first nine months of of 20212022 primarily due to natural decline. In addition, timing of sales impacted the sales volumes of our equity method investees in the quarter. The following table provides details regarding net sales volumes for our operations within this segment:
Three Months Ended September 30,Nine Months Ended September 30,Three Months Ended March 31,
Net Sales VolumesNet Sales Volumes20222021Increase (Decrease)20222021Increase (Decrease)Net Sales Volumes20232022Increase (Decrease)
Equivalent Barrels (mboed)
Equivalent Barrels (mboed)
Equivalent Barrels (mboed)
Equatorial GuineaEquatorial Guinea58 61 (5)%59 64 (8)%Equatorial Guinea56 61 (8)%
Equity Method InvesteesEquity Method InvesteesEquity Method Investees
LNG (mtd)
LNG (mtd)
2,536 3,119 (19)%2,872 3,186 (10)%
LNG (mtd)
2,112 3,489 (39)%
Methanol (mtd)
Methanol (mtd)
956 1,218 (22)%967 1,137 (15)%
Methanol (mtd)
1,378 982 40 %
Condensate and LPG (boed)
Condensate and LPG (boed)
7,060 9,537 (26)%8,113 9,382 (14)%
Condensate and LPG (boed)
8,817 6,914 28 %
Market Conditions
Commodity prices are the most significant factor impacting our revenues, profitability, operating cash flows, the amount of capital we invest in our business, redemption of our debt, payment of dividends and funding of share repurchases. C Following the initial COVID outbreak in 2020, commodityommodity prices steadily increased due to rising oil demand as global economic activity recovered. However, more recently in 2022, commodity prices have experienced significant volatility due to geopolitical events, including in 2022 and this has continued into 2023. Russia’s invasion of Ukraine was a geopolitical shock that caused energy prices to spike significantly higher in early to mid-2022. However, Russian oil production has remained at higher levels than expected, European gas shortages were averted as record levels of LNG were imported into that market and an exceptionally warm winter in both the US and Europe has refilled gas inventories to multi year highs causing prices to fall back significantly. Economic headwinds, caused by increasing interest rates as central banks continue to fight inflation, are a threat to demand impacts tiedgrowth as we move forward, but demand growth in China could be a significant offset, as they continue to macroeconomic conditionsemerge from global inflation. Pricestrict COVID restrictions. Price volatility was also exacerbated by ongoing OPEC+ petroleum supply limitations, COVID related impacts, strategic petroleum reserve releases and economic sanctions involving producer countries. We continue to expect commodity price volatility given the complex global dynamics of supply and demand that exist in the market. market. Refer to Item 1A. Risk Factors in our 20212022 Annual Report on Form 10-K for further discussion on how volatility in commodity prices could impact us.    
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United States
    The following table presents our average price realizations and the related benchmarks for crude oil and condensate, NGLs and natural gas for the thirdfirst quarter of 2023 and first nine months of 2022 and 2021.2022.
Three Months Ended September 30,Nine Months Ended September 30,Three Months Ended March 31,
20222021Increase (Decrease)20222021Increase (Decrease)20232022Increase (Decrease)
Average Price Realizations(a)
Average Price Realizations(a)
Average Price Realizations(a)
Crude oil and condensate (per bbl)(b)
Crude oil and condensate (per bbl)(b)
$93.67 $69.40 35 %$99.28 $63.16 57 %
Crude oil and condensate (per bbl)(b)
$74.69 $94.43 (21)%
Natural gas liquids (per bbl)(c)
Natural gas liquids (per bbl)(c)
34.00 30.68 11 %37.14 26.50 40 %
Natural gas liquids (per bbl)(c)
24.27 37.32 (35)%
Natural gas (per mcf)(d)(c)
Natural gas (per mcf)(d)(c)
7.84 4.17 88 %6.52 4.35 50 %
Natural gas (per mcf)(d)(c)
2.95 4.79 (38)%
BenchmarksBenchmarksBenchmarks
WTI crude oil average of daily prices (per bbl)
WTI crude oil average of daily prices (per bbl)
$91.43 $70.52 30 %$98.25 $65.04 51 %
WTI crude oil average of daily prices (per bbl)
$75.99 $95.01 (20)%
Magellan East Houston (“MEH”) crude oil average of daily prices (per bbl)
Magellan East Houston (“MEH”) crude oil average of daily prices (per bbl)
96.12 71.64 34 %101.71 66.03 54 %
Magellan East Houston (“MEH”) crude oil average of daily prices (per bbl)
77.36 96.67 (20)%
Mont Belvieu NGLs (per bbl)(e)(d)
Mont Belvieu NGLs (per bbl)(e)(d)
36.08 32.27 12 %38.66 27.08 43 %
Mont Belvieu NGLs (per bbl)(e)(d)
25.33 38.24 (34)%
Henry Hub natural gas settlement date average (per mmbtu)
Henry Hub natural gas settlement date average (per mmbtu)
8.20 4.01 104 %6.77 3.18 113 %
Henry Hub natural gas settlement date average (per mmbtu)
3.42 4.95 (31)%
(a)Excludes gains or losses on commodity derivative instruments.
(b)Inclusion of realized gains (losses) on crude oil derivative instruments would have decreased average price realizations by $0.85 per bbl and $4.00 per bbl for the third quarter 2022 and 2021, respectively. Inclusion of realized gains (losses) on crude oil derivative instruments would have decreased average price realizations by $2.39 per bbl and $4.72$2.00 per bbl for the first nine monthsquarter of 2022 and 2021, respectively.2022.
(c)Inclusion of realized gains (losses) on NGL derivative instruments would have no impact on average price realizations for the third quarter 2022 and would have decreased average price realizations by $2.25 per bbl for the third quarter 2021. Inclusion of realized gains (losses) on NGL derivative instruments would have no impact on average price realizations for the first nine months of 2022 and would have decreased average price realizations by $1.61 per bbl for the first nine months of 2021.
(d)Inclusion of realized gains (losses) on natural gas derivative instruments would have minimal impact on average price realizations for the thirdfirst quarter 2022of 2023 and would have decreased average price realizations by $1.08 per mcf for the third quarter 2021. Inclusion of realized gains (losses) on natural gas derivative instruments would have minimal impact on average price realizations the first nine months of 2022 and 2021, respectively.2022.
(e)(d)Bloomberg Finance LLP: Y-grade Mix NGL of 55% ethane, 25% propane, 5% butane, 8% isobutane and 7% natural gasoline.
Crude oil and condensate Price realizations may differ from benchmarks due to the quality and location of the product.
Natural gas liquids The majority of our sales volumes are sold at reference to Mont Belvieu prices.
Natural gas A significant portion of our volumes are sold at bid-week prices, or first-of-month indices relative to our producing areas.
International (E.G.)    
The following table presents our average price realizations and the related benchmark for crude oil for the thirdfirst quarter of 2023 and first nine months of 2022 and 2021.2022.
Three Months Ended September 30,Nine Months Ended September 30,Three Months Ended March 31,
20222021Increase (Decrease)20222021Increase (Decrease)20232022Increase (Decrease)
Average Price RealizationsAverage Price RealizationsAverage Price Realizations
Crude oil and condensate (per bbl)
Crude oil and condensate (per bbl)
$74.01 $56.36 31 %$72.26 $51.54 40 %
Crude oil and condensate (per bbl)
$58.57 $59.63 (2)%
Natural gas liquids (per bbl)
Natural gas liquids (per bbl)
1.00 1.00 — %1.00 1.00 — %
Natural gas liquids (per bbl)
1.00 1.00 — %
Natural gas (per mcf)
Natural gas (per mcf)
0.24 0.24 — %0.24 0.24 — %
Natural gas (per mcf)
0.24 0.24 — %
BenchmarkBenchmarkBenchmark
Brent (Europe) crude oil (per bbl)(a)
Brent (Europe) crude oil (per bbl)(a)
$100.71 $73.47 37 %$104.85 $67.71 55 %
Brent (Europe) crude oil (per bbl)(a)
$81.17 $100.30 (19)%
(a)Average of monthly prices obtained from the United States Energy Information Agency website.
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Crude oil and condensate Alba field liquids production is primarily condensate. MEGPL and Marathon E.G. International LimitedWe generally sell theirour share of condensate in relation to the Brent crude benchmark. Alba Plant LLC processes the rich hydrocarbon gas which is supplied by the Alba field under a fixed-price long-termlong term contract. Alba Plant LLC extracts NGLs and secondary condensate which is then sold by Alba Plant LLC at market prices, with our share of the revenue reflected in income from equity method investments on the consolidated statements of income. Alba Plant LLC delivers the processed dry natural gas to the Alba Unit Parties for distribution and sale to AMPCO and EG LNG.
Natural gas liquids Wet gas is sold to Alba Plant LLC at a fixed-price long-termlong term contract resulting in realized prices not tracking market price. Alba Plant LLC extracts and keeps NGLs, which are sold at market price, with our share of income from Alba Plant LLC being reflected in the income from equity method investments on the consolidated statements of income.
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Natural gas Dry natural gas, processed by Alba Plant LLC on behalf of the Alba Unit Parties, is sold by the Alba field to EG LNG and AMPCO at fixed-price long-term contracts resulting in realized prices not tracking market price. The gas sales contracts between Alba Unit and EG LNG and AMPCO expire on December 31, 2023 and in 2026, respectively. We derive additional value from the equity investment in our downstream gas processing units EG LNG and AMPCO. EG LNG sells LNG on a market-based long-term contract and AMPCO markets methanol at market prices. In March 2023, we announced the signing of a HOA to progress the development of the Equatorial Guinea Regional Gas Mega Hub. The next phase involves processing Alba Unit gas under new contractual terms effective January 1, 2024 that would increase our exposure to global LNG market prices. In addition to processing Alba Unit gas, Alba Plant LLC and EG LNG process third partythird-party gas from the Alen field under a combination of a tolling and a market linked profit-sharing arrangement, the benefits of which are included in our respective share of income from equity method investees. This profit-sharing arrangement provides exposure to global LNG market prices.
Results of Operations
Three Months Ended September 30, 2022March 31, 2023 vs. Three Months Ended September 30, 2021March 31, 2022
Revenues from contracts with customers are presented by segment in the table below:
Three Months Ended September 30, Three Months Ended March 31,
(In millions)(In millions)20222021(In millions)20232022
Revenues from contracts with customersRevenues from contracts with customersRevenues from contracts with customers
United StatesUnited States$1,927 $1,375 United States$1,503 $1,714 
InternationalInternational81 63 International64 47 
Segment revenues from contracts with customersSegment revenues from contracts with customers$2,008 $1,438 Segment revenues from contracts with customers$1,567 $1,761 
Below is a price/volume analysis for each segment. Refer to the preceding Operations and Market Conditions sections for additional detail related to our net sales volumes and average price realizations.
Increase (Decrease) Related toIncrease (Decrease) Related to
(In millions)(In millions)Three Months Ended September 30, 2021Price RealizationsNet Sales VolumesThree Months Ended September 30, 2022(In millions)Three Months Ended March 31, 2022Price RealizationsNet Sales VolumesThree Months Ended March 31, 2023
United States Price/Volume AnalysisUnited States Price/Volume AnalysisUnited States Price/Volume Analysis
Crude oil and condensateCrude oil and condensate$984 $370 $74 $1,428 Crude oil and condensate$1,341 $(313)$157 $1,185 
Natural gas liquidsNatural gas liquids183 21 12 216 Natural gas liquids216 (91)44 169 
Natural gasNatural gas144 122 (5)261 Natural gas151 (86)74 139 
Other salesOther sales64 22 Other sales10 
TotalTotal$1,375 $1,927 Total$1,714 $1,503 
International Price/Volume AnalysisInternational Price/Volume AnalysisInternational Price/Volume Analysis
Crude oil and condensateCrude oil and condensate$56 $19 $— $75 Crude oil and condensate$40 $(1)$18 $57 
Natural gas liquidsNatural gas liquids— — Natural gas liquids— — 
Natural gasNatural gas— (1)Natural gas— — 
Other salesOther sales— Other sales
TotalTotal$63 $81 Total$47 $64 
Net gain (loss) on commodity derivatives in the thirdfirst quarter of 2022,2023 was a gain of $41$15 million, compared to a net loss of $79$143 million for the same period in 2021.2022. We have multiple crude oil, natural gas and NGLcommodity derivative contracts thatwhich settle against various indices.the Henry Hub index. We record commodity derivative gains/losses as the index pricing and forward curves change each period. See Note 1312 to the consolidated financial statements for further information.
Income from equity method investments increased $104decreased $47 million in thirdthe first quarter of 2022. Our2023, when compared to the first quarter of 2022, primarily as a result of lower prices realized by our equity method investees benefited from higher price realizations in 2022.during the first quarter of 2023.
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Production expenses increased $62$49 million in the thirdfirst quarter of 20222023 versus the same period in 2021,2022, primarily as a result of our acquisition of the U.S. segment’s higher workover activityEagle Ford assets of Ensign in December 2022 and inflationary pressures on labor, fuel, chemicals and services.when compared to the first quarter of 2022. In addition, in our International segment, production expenses were higher due to planned major non-routine maintenance that was completed in April 2023.
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The following table provides production expense and production expense rates (expense per boe) for each segment:
Three Months Ended September 30,Three Months Ended March 31,
($ in millions; rate in $ per boe)($ in millions; rate in $ per boe)20222021Increase (Decrease)20222021Increase (Decrease)($ in millions; rate in $ per boe)20232022Increase (Decrease)20232022Increase (Decrease)
Production Expense and RateProduction Expense and RateExpenseRateProduction Expense and RateExpenseRate
United StatesUnited States$173 $119 45 %$6.40 $4.59 39 %United States$178 $141 26 %$5.82 $5.59 %
InternationalInternational$20 $12 67 %$3.55 $2.17 64 %International$23 $11 109 %$4.54 $1.92 136 %
Shipping, handling and other operating decreased $20$23 million in the thirdfirst quarter of 20222023 versus the same period in 2021,2022, primarily dueas a result of costs related to lower purchasesretrofit or replacement of commodity volumes for resale (used to satisfy transportation commitments) as compared toequipment in the prior period.Bakken recorded in the first quarter of 2022. See
Exploration expensesNote 21 include unproved property impairments, dry well costs, geological and geophysical and other costs. The dry well costs into the third quarter of 2022 includes the write-off of drilled and uncompleted exploratory wells, primarily in Louisiana Austin Chalk.consolidated financial statements for further information.
The following table summarizes the components of exploration expenses:
 Three Months Ended September 30,
(In millions)20222021Increase (Decrease)
Exploration Expenses
Unproved property impairments$45 $48 (6)%
Dry well costs26 14 86 %
Other100 %
Total exploration expenses$73 $63 16 %
Depreciation, depletion and amortization decreased $62increased $97 million in the thirdfirst quarter of 20222023 primarily as a result of lower DD&A (expense per boe) rate impacted by field-level changes in reserves.higher production volumes. In addition, the DD&A rate is impacted by capitalized costs and the sales volume mix between fields.
Our segments apply the units-of-production method to the majority of assets, including capitalized asset retirement costs; therefore, volumes have an impact on DD&A expense. The following table provides DD&A expense and DD&A expense rates for each segment:
Three Months Ended September 30,Three Months Ended March 31,
($ in millions; rate in $ per boe)($ in millions; rate in $ per boe)20222021Increase (Decrease)20222021Increase (Decrease)($ in millions; rate in $ per boe)20232022Increase (Decrease)20232022Increase (Decrease)
DD&A Expense and RateDD&A Expense and RateExpenseRateDD&A Expense and RateExpenseRate
United StatesUnited States$441 $499 (12)%$16.20 $19.29 (16)%United States$505 $404 25 %$16.46 $16.02 %
InternationalInternational$14 $17 (18)%$2.82 $3.12 (10)%International$12 $15 (20)%$2.41 $2.80 (14)%
TaxesNet interest and other than income include production, severance and ad valorem taxes, primarilyincreased $60 million in the U.S., which tend to increase or decrease in relation to revenuefirst quarter of 2023 primarily as a result of increased interest expense associated with borrowings on our Term Loan Facility and sales volumes. Taxes other than income increased $49Revolving Credit Facility and the recording of a $17 million primarily due to higher price realizationsgain on the settlement of interest rate swaps in the U.S. segment in the thirdfirst quarter of 2022.
Loss on early extinguishment of debt decreased $102 million due to make-whole call provisions paid upon redemption of $900 million in senior unsecured notes in the third quarter of 2021. See Note 1512 to the consolidated financial statements for further detail.information.
Provision for income taxes reflects an effective income tax rate of 23%21% in the thirdfirst quarter of 2023. The provision for income taxes in the first quarter of 2022 as compared to an effective income tax rate of 2% in the third quarter of 2021. See Note 6 to the consolidated financial statements for a more detailed discussion concerning the changes in the effective tax rate.
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Segment Income
Segment income represents income that excludes certain items not allocated to our operating segments, net of income taxes. A portion of our corporate and operations general and administrative support costs are not allocated to the operating segments. These unallocated costs primarily consist of employment costs (including pension effects), professional services, facilities and other costs associated with corporate and operations support activities. Additionally, items which affect comparability such as: gains or losses on dispositions, impairments of proved and certain unproved properties, goodwill and equity method investments, changes in our valuation allowance, unrealized gains or losses on commodity and interest rate derivative instruments, effects of pension settlements and curtailments or other items (as determined by the chief operating decision maker (“CODM”)) are not allocated to operating segments.
The following table reconciles segment income to net income:
 Three Months Ended September 30,
(In millions)20222021
United States$723 $305 
International181 93 
Segment income904 398 
Items not allocated to segments, net of income taxes(87)(214)
Net income$817 $184 
United States segment income in the third quarter of 2022 was$723 million of income versus $305 million of income for the same period in 2021. The increase in income was primarily due to higher price realizations and lower realized commodity derivative losses, partially offset by higher income taxes, production taxes and production expense in the third quarter of 2022.
International segment income in the third quarter of 2022 was$181 million of income versus $93 million of income for the same period in 2021, primarily due to higher prices realized by our equity method investees.
Items not allocated to segments, net of income taxes in the third quarter of 2022 was a loss of $87 million versus a loss of $214 million for the same period in 2021, primarily due to higher costs in the prior period for the extinguishment of debt and an increase in unrealized net gains on commodity derivatives in the third quarter of 2022.
Results of Operations
Nine Months Ended September 30, 2022 vs. Nine Months Ended September 30, 2021
Revenues from contracts with customers are presented by segment in the table below:
 Nine Months Ended September 30,
(In millions)20222021
Revenues from contracts with customers
United States$5,730 $3,696 
International207 173 
Segment revenues from contracts with customers$5,937 $3,869 
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Below is a price/volume analysis for each segment. Refer to Operations and Market Conditions for additional detail related to our net sales volumes and average price realizations.
Increase (Decrease) Related to
(In millions)Nine Months Ended September 30, 2021Price RealizationsNet Sales VolumesNine Months Ended September 30, 2022
United States Price/Volume Analysis
Crude oil and condensate$2,711 $1,580 $51 $4,342 
Natural gas liquids430 192 49 671 
Natural gas450 213 (23)640 
Other sales105 77 
Total$3,696 $5,730 
International Price/Volume Analysis
Crude oil and condensate$151 $53 $(18)$186 
Natural gas liquids— — 
Natural gas18 — (1)17 
Other sales
Total$173 $207 
Net loss on commodity derivatives decreased $269 million when compared to the same period in 2021. We have multiple crude oil, natural gas and NGL derivative contracts that settle against various indices. We record commodity derivative gains/losses as the index pricing and forward curves change each period. SeeNote 13 to the consolidated financial statements for further information.
Income from equity method investmentsincreased $290 million for the first nine months of 2022. Our investees benefited from higher price realizations in the first nine months of 2022.
Production expenses for the first nine months of 2022 increased by $131 million compared to the same period in 2021, primarily as a result of the U.S. segment’s higher workover activity and inflationary pressures on labor, fuel, chemicals and services.
The following table provides production expense and production expense rates for each segment:
Nine Months Ended September 30,
($ in millions; rate in $ per boe)20222021Increase (Decrease)20222021Increase (Decrease)
Production Expense and RateExpenseRate
United States$464 $343 35 %$5.94 $4.49 32 %
International$45 $35 29 %$2.76 $2.00 38 %
Shipping, handling and other operating expensesincreased$37 million in the first nine months of 2022 from the comparable 2021 period. As disclosed in our Form 10-K, certain of our processing arrangements with midstream entities are percentage-of-proceeds contracts. We classify the proceeds retained by the midstream companies as shipping and handling costs. The increase in shipping and handling costs of these percentage-of-proceeds contracts coincides with the increase in realized natural gas liquids prices. In addition, we have experienced an increase in legal costs from the comparable 2021 period.
Exploration expensesinclude unproved property impairments, dry well costs, geological and geophysical and other costs. The decrease in exploration expenses was primarily driven by lower impairment of unproved property leases, partially offset by higher dry well costs associated with the write-off of drilled and uncompleted exploratory wells, primarily in Louisiana Austin Chalk.
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The following table summarizes the components of exploration expenses:
 Nine Months Ended September 30,
(In millions)20222021Increase (Decrease)
Exploration Expenses
Unproved property impairments$59 $85 (31)%
Dry well costs26 16 63 %
Geological and geophysical(67)%
Other20 %
Total exploration expenses$92 $109 (16)%
Depreciation, depletion and amortization decreased $231 million in the first nine months of 2022 primarily as a result of lower DD&A (expense per boe) rate impacted by field-level changes in reserves. In addition, the DD&A rate is impacted by capitalized costs and the sales volume mix between fields.
Our segments apply the units-of-production method to the majority of their assets, including capitalized asset retirement costs; therefore volumes have an impact on DD&A expense. The following table provides DD&A expense and DD&A expense rates for each segment:
Nine Months Ended September 30,
($ in millions; rate in $ per boe)20222021Increase (Decrease)20222021Increase (Decrease)
DD&A Expense and RateExpenseRate
United States$1,260 $1,477 (15)%$16.11 $19.33 (17)%
International$45 $54 (17)%$2.80 $3.10 (10)%
Impairments decreased $56 million in the first nine months of 2022. Impairments in 2021 included a $30 million impairment related to an increase in the estimated future decommissioning costs of certain non-producing wells, pipelines and production facilities for previously divested offshore assets located in the Gulf of Mexico and a $24 million impairment as we decommissioned certain Eagle Ford central facilities. See Note 10 to the consolidated financial statements for discussion of the impairments in further detail.
Taxes other than income include production, severance and ad valorem taxes, primarily in the U.S., which tend to increase or decrease in relation to revenue and sales volumes. Taxes other than income increased $145 million primarily due to higher price realizations in the U.S. segment in the first nine months of 2022.
Loss on early extinguishment of debt decreased $121 million due to make-whole call provisions paid upon redemption of our $500 million 2022 Notes in the second quarter of 2021 and our $900 million 2025 Notes in the third quarter of 2021. See Note 15 to the consolidated financial statements for further detail.
Provision for income taxes for current year includes anon-cash tax benefit of $685 million arising from the partial release of a valuation allowance on certain U.S. and state deferred tax assets in first quarter of 2022. This was fully offset by the provision related to current year income earned by our operations.assets. See Note 6 to the consolidated financial statements for a more detailed discussion concerning the rate changes.further information.
Segment Income
Segment income represents income that excludes certain items not allocated to our operating segments, net of income taxes. A portion of our corporate and operations general and administrative support costs areSee Note 5 to the consolidated financial statements for further details regarding items not allocated to the operating segments. These unallocated costs primarily consist of employment costs (including pension effects), professional services, facilities and other costs associated with corporate and operations support activities. Additionally, items which affect comparability such as: gains or losses on dispositions, impairments of proved and certain unproved properties, goodwill and equity method investments, changes in our valuation allowance, unrealized gains or losses on commodity and interest rate derivative instruments, effects of pension settlements and curtailments or other items (as determined by the chief operating decision maker (“CODM”)) are not allocated to operating segments.
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The following table reconciles segment income to net income:
Nine Months Ended September 30, Three Months Ended March 31,
(In millions)(In millions)20222021(In millions)20232022
United StatesUnited States$2,230 $724 United States$425 $661 
InternationalInternational456 211 International89 115 
Segment incomeSegment income2,686 935 Segment income514 776 
Items not allocated to segments, net of income taxesItems not allocated to segments, net of income taxes401 (638)Items not allocated to segments, net of income taxes(97)528 
Net incomeNet income$3,087 $297 Net income$417 $1,304 
United States segment income forin the first nine monthsquarter of 20222023 was $2,230$425 million of income versus a $724$661 million of income for the same period in 2021. This increase2022. The decrease in income was primarily due to higherlower price realizations, and loweran increase in DD&A expenses. These favorable changes wereexpense and production expense, partially offset by higher income taxes, production taxesan increase in net sales volumes and production expenserealized net gains on commodity derivatives in the first nine monthsquarter of 2022.2023.
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International segment income forin the first nine monthsquarter of 20222023 was $456$89 million of income versus $211$115 million of income for the same period in 2021,2022. The decrease was primarily due to higher prices realizedlower price realizations by our equity method investees.
Items not allocated to segments, net of income taxes forin the first nine monthsquarter of 20222023 was $401a loss of $97 million versus $528 million of income versus a $638 million loss for the same period in 2021.2022. The increasedecrease was primarily duelargely attributable to the first quarter 2022partial release of thea valuation allowance on certain U.S. and state deferred tax assets resultingin the first quarter of 2022, which resulted in a non-cash deferred tax benefit of $685 million. In addition, compared to the same period in 2021, net unrealized losses on commodity derivatives decreased by $126 million, and current yearwe had increased interest expense not allocated to segments is lower by $121 million as a result of debt extinguishment costs recognizedoutstanding borrowings on our Term Loan Facility and Revolving Credit Facility, offset by unrealized net gains on commodity derivatives in the prior year.first quarter of 2023.
Critical Accounting Estimates 
Other than the item set forth below, thereThere have been no material changes or developments in the evaluation of the accounting estimates and the underlying assumptions or methodologies pertaining to our Critical Accounting Estimates disclosed in our Form 10-K for the year ended December 31, 2021.2022.
Income Taxes
We have recorded deferred tax assets and liabilities, measured at enacted tax rates, for temporary differences between book basis and tax basis, tax credit carryforwards and operating loss carryforwards. In accordance with U.S. GAAP, we routinely assess the realizability of our deferred tax assets and reduce such assets to the expected realizable amount by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. In assessing the need for additional or adjustments to existing valuation allowances, we consider all available positive and negative evidence. Positive evidence includes reversals of temporary differences, forecasts of future taxable income, assessment of future business assumptions and applicable tax planning strategies that are prudent and feasible. Negative evidence includes losses in recent years as well as the forecasts of future losses in the realizable period. In making our assessment regarding valuation allowances, we weight the evidence based on objectivity.
We base our future taxable income estimates on projected financial information which we believe to be reasonably likely to occur. Numerous judgments and assumptions are inherent in the estimation of future taxable income, including factors such as future operating conditions and the assessment of the effects of foreign taxes on our U.S. federal income taxes. Future operating conditions can be affected by numerous factors, including (i) future crude oil and condensate, NGLs and natural gas prices, (ii) estimated quantities of crude oil and condensate, NGLs and natural gas, (iii) expected timing of production, and (iv) future capital requirements. An estimate of the sensitivity to changes in assumptions resulting in future taxable income calculations is not practicable, given the numerous assumptions that can materially affect our estimates. Unfavorable adjustments to some of the above listed assumptions would likely be offset by favorable adjustments in other assumptions. For example, the impact of sustained reduced commodity prices on future taxable income would likely be partially offset by lower capital expenditures.
Based on the assumptions and judgments described above, during the first quarter of 2022, we re-evaluated the realizability of U.S. and state deferred tax assets and determined that a valuation allowance against certain deferred tax assets was no longer necessary. As such, we recorded a non-cash deferred tax benefit in the first quarter of 2022 for $685 million. See Note 6 to the consolidated financial statements for further detail.
Accounting Standards Not Yet Adopted
See Note 2 to the consolidated financial statements.
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Cash Flows
    Commodity prices are the most significant factor impacting our revenues, profitability, operating cash flows, the amount of capital we invest in our business, principal debt repayments, payment of dividends and funding of share repurchases. We generated significant positive cash flow from operations during the first nine months of 2022. We continue to expect volatility in commodity prices and that could impact the amount of cash flow from operations we generate.    The following table presents sources and uses of cash and cash equivalents:
Nine Months Ended September 30,Three Months Ended March 31,
(In millions)(In millions)20222021(In millions)20232022
Sources of cash and cash equivalentsSources of cash and cash equivalents  Sources of cash and cash equivalents  
Operating activities$4,301 $2,093 
Net cash provided by operating activitiesNet cash provided by operating activities$865 $1,067 
Disposal of assets, net of cash transferred to the buyer29 
Proceeds from revolving credit facilityProceeds from revolving credit facility175 — 
Equity method investments - return of capitalEquity method investments - return of capital— 
OtherOther29 15 Other11 24 
Total sources of cash and cash equivalentsTotal sources of cash and cash equivalents$4,338 $2,137 Total sources of cash and cash equivalents$1,051 $1,098 
Uses of cash and cash equivalentsUses of cash and cash equivalentsUses of cash and cash equivalents
Additions to property, plant and equipmentAdditions to property, plant and equipment$(1,117)$(772)Additions to property, plant and equipment$(532)$(332)
Repayments of revolving credit facilityRepayments of revolving credit facility(175)— 
Debt repaymentDebt repayment(35)(1,400)Debt repayment(70)— 
Debt extinguishment costs— (117)
Shares repurchased under buyback programsShares repurchased under buyback programs(2,474)— Shares repurchased under buyback programs(334)(592)
Dividends paidDividends paid(162)(94)Dividends paid(63)(52)
Purchases of shares for tax withholding obligationsPurchases of shares for tax withholding obligations(21)(10)Purchases of shares for tax withholding obligations(30)(21)
OtherOther— (1)Other(3)— 
Total uses of cash and cash equivalentsTotal uses of cash and cash equivalents$(3,809)$(2,394)Total uses of cash and cash equivalents$(1,207)$(997)
Sources of cash and cash equivalents
Cash flows generated from operating activities induring the first nine monthsquarter of 20222023 were significantly higher19% lower compared to the same period in 2021,2022, primarily as a result of higherlower realized commodity prices.prices, partially offset by higher volumes resulting from our acquisition of the Eagle Ford assets of Ensign in December 2022.
During the first three months of 2023, we borrowed and repaid $175 million under our Revolving Credit Facility. See the Liquidity and Capital Resources section below for further information.
Uses of cash and cash equivalents
During the first three months of 2023, we repurchased approximately 13 million shares of our common stock pursuant to the share repurchase program at a cost of $334 million, paid dividends of $63 million and redeemed the $70 million 8.5% Senior Notes on the maturity date. Additionally, we repurchased $30 million of shares during the first three months of 2023 related to our tax withholding obligations associated with the vesting of employee restricted stock awards and restricted stock units; these repurchases do not impact our share repurchase program authorization.
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The following table shows capital expenditures by segment and reconciles to additions to property, plant and equipment as presented in the consolidated statements of cash flows:
Nine Months Ended September 30,Three Months Ended March 31,
(In millions)(In millions)20222021(In millions)20232022
United StatesUnited States$1,124 $770 United States$597 $346 
InternationalInternationalInternational(1)
Corporate11 
Not Allocated to Segments (Corporate)Not Allocated to Segments (Corporate)
Total capital expenditures (accrued)Total capital expenditures (accrued)1,136 781 Total capital expenditures (accrued)601 348 
Change in capital expenditure accrualChange in capital expenditure accrual(19)(9)Change in capital expenditure accrual(69)(16)
Total use of cash and cash equivalents for property, plant and equipmentTotal use of cash and cash equivalents for property, plant and equipment$1,117 $772 Total use of cash and cash equivalents for property, plant and equipment$532 $332 
The increase in our capital expenditures for the U.S. segment in the first ninethree months of 20222023 compared to the same period in 20212022 was largely reflectsdriven by increased investment and drilling related to the Eagle Ford acreage we acquired from Ensign in December 2022. Additionally, inflationary pressures related to oil field services, labor, drilling materials and equipment, as well as differencesincreased activity in timing of activitiesthe current quarter compared to the same period in our drilling and completion program.2022, contributed to the increase in capital expenditures.
Liquidity and Capital Resources
Capital Resources and Available Liquidity
Our main sources of liquidity are cash and cash equivalents, internally generated cash flow from operations, sales of non-core assets, capital market transactions and our revolvingRevolving Credit Facility. At September 30, 2022,March 31, 2023, we had approximately $3.6$2.2 billion of liquidity consisting of $1.1 billion$178 million in cash and cash equivalents and $2.5$2.1 billion available under our revolvingRevolving Credit Facility. On July 28, 2022, we executed the seventh amendment to our Credit Facility. The primary changes to the Credit Facility effected by this amendment were to (i) extend the maturity date of the Credit Facility by three years to July 28, 2027, (ii) decrease the size of the Credit Facility from $3.1 billion to $2.5 billion, (iii) replace the LIBOR interest rate benchmark with the secured overnight financing rate (“SOFR”) and (iv) implement certain revisions to the Pricing Schedule.
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Our working capital requirements are supported by our cash and cash equivalents and our Revolving Credit Facility. We may draw on our revolvingRevolving Credit Facility to meet short-term cash requirements or issue debt or equity securities through the shelf registration statement discussed below as part of our longer-term liquidity and capital management program. Because of the alternatives available to us as discussed above, we believe that our short-term and long-term liquidity are adequate to fund not only our current operations, but also our near-term and long-term funding requirements including our capital spending programs, defined benefit plan contributions, repayment of debt maturities, dividends and other amounts that may ultimately be paid in connection with contingencies. See Note 21 to the consolidated financial statements for further discussion of how our commitments and contingencies could affect our available liquidity. General economic conditions, commodity prices, and financial, business and other factors including the global pandemic, could affect our operations and our ability to access the capital markets.
We continue to be ratedmaintain investment grade ratings at all three primary credit rating agencies. A downgrade in our credit ratings could increase our future cost of financing or limit our ability to access capital and could result in additional credit support requirements. We do not have any triggers on any of our corporate debt that would cause an event of default in the case of a downgrade of our credit ratings. See Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 20212022 for a discussion of how a downgrade in our credit ratings could affect us.
As discussedWe may incur additional debt in Note 23 to the consolidated financial statements, on November 2, 2022, we entered into an agreement to acquire approximately 130,000 net proved and unproved acres, with an average 97% working interest, in the Eagle Ford resource play in Texas for total cash consideration of $3.0 billion. We expectorder to fund our working capital requirements, capital expenditures, acquisitions or development activities or for general corporate or other purposes. A higher level of indebtedness could increase the acquisition usingrisk that our liquidity and financial flexibility deteriorates. See Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2022 for a combinationfurther discussion of cash on hand, borrowings on the company’s Credit Facility, and new prepayable debt. The transaction is subject to customary terms and conditions, including closing adjustments, and is expected to close by year-end 2022.how our level of indebtedness could affect us.
Credit Arrangements and Borrowings
OurIn November 2022, we entered into a two-year $1.5 billion Term Loan Facility and borrowed the full amount thereunder in December 2022. The Term Loan Facility can be prepaid without penalty.
As of March 31, 2023, we had net borrowings of $450 million against our $2.5 billion Revolving Credit Facility includesand $5.9 billion of total long-term debt outstanding, of which $131 million is due within the next year.
Both our Term Loan Facility and Revolving Credit Facility include a covenant requiring that our total debt to total capitalization ratio not exceed 65% as of the last day of the fiscal quarter. Our total debt-to-capital ratio was 20%26% at both September 30, 2022March 31, 2023 and December 31, 2021.2022. See Note 1514 to the consolidated financial statements for further information.
At September 30, 2022, we had no borrowings on our $2.5 billion Credit Facility and $4.0 billion of total long-term debt outstanding, of which $402 million is due within the next year. In May 2022, we redeemed the $32 million 9.375% Senior Notes on the maturity date. Our next significant long-term debt maturity is in the amount of $1.0 billion due 2027. Refer to our 20212022 Annual Report on Form 10-K for a listing of our long-term debt maturities.
Shelf Registration
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On April 3, 2023, we closed a $200 million remarketing to investors of sub-series 2017A-1 bonds that are part of the $1 billion St. John the Baptist, State of Louisiana revenue refunding bonds Series 2017. The bonds are subject to an interest rate of 4.05% and a mandatory purchase date of July 1, 2026.
Other sources of liquidity
We have aan effective universal shelf registration statement filed with the SEC underpursuant to which we, as a “well-known seasoned issuer” for purposes of SEC rules, have the abilitysubject to market conditions, are permitted to issue and sell an indeterminate amount of various types of debt, equity securities and equity securities.other capital instruments, if and when necessary or perceived by us to be opportune, in one or more public offerings. 
Capital Requirements
Share Repurchase Program
During the first nine monthsOur Board of 2022, we repurchased approximately $2.5 billion of shares of our common stock. The total remainingDirectors has authorized a share repurchase program. Our remaining authorization at March 31, 2023 was approximately $926 million at September 30, 2022. Additionally, we repurchased $21 million of shares during the first nine months of 2022 related to our tax withholding obligations associated with the vesting of employee restricted stock awards and restricted stock units; these repurchases do not impact our share repurchase program authorization.$2.1 billion.
Subsequent to the quarter, we repurchased approximately $230$110 million of shares of our common stock through November 2, 2022. Effective November 2, 2022, our Board of Directors increased our remaining share repurchase program authorization to $2.5 billion.May 3, 2023.
Dividends
On OctoberApril 26, 2022,2023, our Board of Directors approved a dividend of $0.09$0.10 per share payable DecemberJune 12, 20222023 to stockholders of record at the close of business on November 16,May 17, 2023.
Income Taxes
As described in Note 6 to the consolidated financial statements, the IRA was signed into law during 2022. Under current law and guidance, we do not anticipate being subject to the corporate book minimum tax in 2023. The U.S. Treasury is expected to publish further guidance and regulations that will be relevant to scoping considerations and the calculation of minimum income tax liabilities. As this guidance is issued, we will continue to evaluate and assess the impact the IRA may have on our current and future period income taxes. If we conclude that we do trigger the minimum income tax, we may have to make estimated tax payments.
Other Contractual Cash Obligations
As of September 30, 2022,March 31, 2023, there are no material changes to our consolidated cash obligations to make future payments under existing contracts, as disclosed in our 20212022 Annual Report on Form 10-K. Refer to Note 23 to the consolidated financial statements for discussion of the recently announced acquisition of Eagle Ford acreage.
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Environmental Matters and Other Contingencies
We have incurred and will continue to incur capital, operating and maintenance and remediation expenditures as a result of environmental laws and regulations. If these expenditures, as with all costs, are not ultimately offset by the prices we receive for our products and services, our operating results will be adversely affected. We believe that substantially all of our competitors must comply with similar environmental laws and regulations. However, the specific impact on each competitor may vary depending on a number of factors, including the age and location of its operating facilities, marketing areas and production processes. These laws generally provide for control of pollutants released into the environment and require responsible parties to undertake remediation of hazardous waste disposal sites. Penalties may be imposed for noncompliance.
Other than the items set forth in Part II - Item 1. Legal Proceedings, there have been no significant changes to the environmental, health and safety matters under Item 1. Business or Item 3. Legal Proceedings in our 20212022 Annual Report on Form 10-K. See Note 2221 to the consolidated financial statements for a description of other contingencies.
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Forward-Looking Statements
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”). All statements, other than statements of historical fact, including without limitation statements regarding our future performance, business strategy, 2022 capital budget and allocations, reserve estimates, asset quality, production guidance, drilling plans, capital plans, future debt retirement, cost and expense estimates, asset acquisitions and dispositions, expected impacts of the IRA, tax assumptions and allowances, future financial position, statements regarding future commodity prices, statements regardinganticipated benefits of the Ensign acquisition, and the anticipated timing and benefits thereof, anticipated acquisition financing and statements regarding management’s other plans and objectives for future operations, are forward-looking statements. Words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,,” “intend,” “may,” “outlook,” “plan,” “positioned,” “project,” “seek,” “should,” “target,” “will,” “would” or similar words may be used to identify forward-looking statements; however, the absence of these words does not mean that the statements are not forward-looking. While we believe that our assumptions concerning future events are reasonable, athese expectations may not prove to be correct. A number of factors could cause results to differ materially from those projected,indicated by such forward-looking statements including, but not limited to:
conditions in the oil and gas industry, including supply and demand levels for crude oil and condensate, NGLs and natural gas and the resulting impact on price;
changes in expected reserve or production levels;
changes in political andor economic conditions in the U.S. and E.G., including changes in foreign currency exchange rates, interest rates, inflation rates and global and domestic market conditions;
actions taken by the members of OPEC and Russia affecting the production and pricing of crude oil;oil and other global and domestic political, economic or diplomatic developments;
capital available for exploration and development;
risks related to our hedging activities;
voluntary andor involuntary curtailments, delays or cancellations of certain drilling activities;
well production timing;
liabilities or corrective actions resulting from litigation, other proceedings and investigations or alleged violations of law or permits;
capital available for exploration and development;
the inability of any party to satisfy closing conditions or delays in execution with respect to our asset acquisitions and dispositions;
drilling and operating risks;
lack of, or disruption in, access to storage capacity, pipelines or other transportation methods;
well production timing;
availability of drilling rigs, materials and labor, including the costs associated therewith;
difficulty in obtaining necessary approvals and permits;
the availability, cost, terms and timing of issuance or execution of, competition for, and challenges to, mineral licenses and leases and governmental and other permits and rights-of-way, and our ability to retain mineral licenses and leases;
non-performance by third parties of their contractual or legal obligations, including due to bankruptcy;
administrative impediments or unexpected events that may impact dividends or other distributions, and the timing thereof, from our equity method investees;
changes in our credit ratings;
unforeseen hazards such as weather conditions, a health pandemic (including COVID-19), acts of war or terrorist acts and the governmental or military response thereto;
shortagesthe impacts of key personnel, including employees, contractorssupply chain disruptions that began during the COVID-19 pandemic and subcontractors;the resulting inflationary environment;
security threats, including cybersecurity threats and disruptions to our business and operations from breaches of our information technology systems, or breaches of the information technology systems, facilities and infrastructure of third parties with which we transact business;
changes in safety, health, environmental, taxour ability to achieve, reach or otherwise meet initiatives, plans or ambitions with respect to ESG matters;
our ability to pay dividends and other regulations or requirements or initiatives including those addressing the impact ofmake share repurchases;
our ability to secure increased exposure to global climate change, air emissions or water management;LNG market prices;
impacts of the Inflation Reduction Act of 2022;IRA;
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delay or failure to consummate the Ensign transaction due to unsatisfied closing conditions or otherwise;
changes in the ultimate amount of cash consideration to be paid in the Ensign transaction due to purchase price adjustments or otherwise, and the risk that if acquired, the Ensign assets do not perform consistent with our expectations, including with respect to future production or drilling inventory;
other geological, operating and economic considerations; and
the risk factors, forward-looking statements and challenges and uncertainties described in our 20212022 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other filings with the SEC.
All forward-looking statements included in this report are based on information available to us on the date of this report. Except as required by law, we undertake no obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise.
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Item 3. Quantitative and Qualitative Disclosures About Market Risk
    We are exposed to market risks in the normal course of business including commodity price risk and interest rate risk. We employ various strategies, including the use of financial derivatives to manage the risks related to commodity price and interest rate fluctuations. See Note 1312 and Note 1413 to the consolidated financial statements for detail relating to our open commodity derivative positions, including underlying notional quantities, how they are reported in our consolidated financial statements and how their fair values are measured.
Commodity Price Risk
As of September 30, 2022,March 31, 2023, we had various open commodity derivatives.derivatives related to natural gas. Based on the September 30, 2022March 31, 2023 published NYMEX WTI and natural gas futures prices, a hypothetical 10% change (per bblMMBtu for crude oil and per MMBtu fornatural gas) would change the fair values of our commodity derivative positions to the following:
(In millions)(In millions)Fair Value at September 30, 2022Hypothetical Price Increase of 10%Hypothetical Price Decrease of 10%(In millions)Fair Value at March 31, 2023Hypothetical Price Increase of 10%Hypothetical Price Decrease of 10%
Derivative asset (liability) - Crude Oil$(7)$(12)$(4)
Derivative asset (liability) - Natural GasDerivative asset (liability) - Natural Gas(4)(8)— Derivative asset (liability) - Natural Gas$12 $11 $14 
Total$(11)$(20)$(4)
Interest Rate Risk
At September 30, 2022,March 31, 2023, our portfolio of current and long-term debt is comprised of floating rate debt and fixed-rate instruments. Our Term Loan Facility and Revolving Credit Facility are floating rate debt instruments, with anwhich expose us to the risk of earnings or cash flow losses as the result of potential increases in market interest rates. At March 31, 2023, we had $2.0 billion outstanding balanceborrowings under floating rate debt instruments. Assuming no change in the amount of $4.0 billion.floating rate debt outstanding, a hypothetical 100 basis point increase in the average interest rate under these borrowings would increase our annual interest expense by approximately $20 million. Actual results may vary due to changes in the amount of floating rate debt outstanding.
At March 31, 2023, we had $3.9 billion outstanding borrowings under fixed-rate debt instruments. Our sensitivity to interest rate movements and corresponding changes in the fair value of our fixed-rate debt portfolio affects our results of operations and cash flows only when we elect to repurchase or otherwise retire fixed-rate debt at prices different than carrying value.
At September 30, 2022,March 31, 2023, we had forward starting interest rate swap agreements with a total notional amount of $295 million designated as cash flow hedges. We utilize cash flow hedges to manage our exposure to interest rate movements by utilizing interest rate swap agreements to hedge variations in cash flows related to the 1-month LIBORSOFR interest component of future lease payments on our Houston office. A hypothetical 10% change in interest rates would change the fair values of our cash flow hedgehedges to the following as of September 30, 2022:March 31, 2023:
(In millions)(In millions)Fair Value at September 30, 2022Hypothetical Interest Rate Increase of 10%Hypothetical Interest Rate Decrease of 10%(In millions)Fair Value at March 31, 2023Hypothetical Interest Rate Increase of 10%Hypothetical Interest Rate Decrease of 10%
Interest rate asset (liability) - designated as cash flow hedgesInterest rate asset (liability) - designated as cash flow hedges$26 $31 $22 Interest rate asset (liability) - designated as cash flow hedges$20 $23 $16 
Item 4. Controls and Procedures
An evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) was carried out under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer. As of the end of the period covered by this Report based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the design and operation of these disclosure controls and procedures were effective as of September 30, 2022.March 31, 2023.
During the first ninethree months of 2022,2023, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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Part II – OTHER INFORMATION
Item 1. Legal Proceedings
In January 2020, weWe have received a Notice of Violation (“NOV”)NOV’s from the EPA related to allegations of violations of the Clean Air Act relating to our operations on the Fort Berthold Indian Reservation between 2015 and 2019. We continue to actively negotiate a draft consent decree with the EPA and Department of Justice containing certain proposed injunctive terms relating to this enforcement action. The resolution of the enforcement action will likely include monetary sanctions and implementation of both environmental mitigation projects and injunctive terms, which would increase both our development costs and operating costs. We do not believe resolution of this matter will have a material adverse effect on our business or operations. We maintain an accrual for estimated future costs related to this matter regarding actions required to retrofit or replace existing equipment, which we expect to incur over multiple years. Our accrual does not include possible monetary sanctions or costs associated with mitigation projects as we are unable to estimate those amounts. Through the date of this filing, there exists substantial uncertainty as to the ultimate result of this matter and it is reasonably possible the result could be materially different from our accrual.
In July 2022, theThe Company received an NOVNOV’s from the EPA relating to alleged Clean Air Act violations following flyovers conducted in 2020 and 2022 over certain of the Company’s oil and gas facilities in New Mexico. The notice involvesnotices involve alleged emission and permitting violations. The Company has initiated discussions with the EPA to resolve these matters. As we are still investigating these allegations, we are unable to estimate the potential loss associated with this matter,these matters, however, it is reasonably possible that the resolution may result in a fine or penalty in excess of $300,000.
Marathon Oil has been named in various lawsuits alleging royalty underpayments in our domestic operations. We intend to vigorously defend ourselves against such claims. For instance, Marathon Oil was named in a lawsuit alleging improper royalty deductions in certain of our Oklahoma operations, and after plaintiffs lost their attempt to certify a class action, a settlement in principle was reached, subject to court approval. We have accrued for potential liabilities associated with these lawsuits based on currently available information; however, actual losses may exceed our accruals or we could be required to accrue additional amountsand in the future.first quarter of 2023 such settlement was approved by the court and paid.
Other than the items set forth above, there have been no significant changes to Item 3. Legal Proceedings in our 20212022 Annual Report on Form 10-K. See Note 2221 to the consolidated financial statements included in Part I, Item I for a description of such legal and administrative proceedings and Item 3. Legal Proceedings in our 20212022 Annual Report on Form 10-K.
Item 1A. Risk Factors
We are subject to various risks and uncertainties in the course of our business. In addition to the other information set forth in this Quarterly Report on Form 10-Q, the reader should carefully consider the factors discussed in Item 1A. Risk Factors in our 20212022 Annual Report on Form 10-K. Other than the risk factor set forth below, thereThere have been no material changes or updates to the risk factors from those listed in Item 1A. Risk Factorspreviously disclosed in our 20212022 Annual Report on Form 10-K.
Our sector and the broader US economy have experienced higher than expected inflationary pressures in the first nine months of 2022, related to continued supply chain disruptions, labor shortages and geopolitical instability. Should these conditions persist, it may impact our ability to procure materials and equipment on a cost-effective basis, or at all, and, as a result, our business, results of operations and cash flows could be materially and adversely affected.
Throughout the first nine months of 2022, we have experienced significant increases in the costs of certain materials, including steel, sand and fuel, as a result of availability constraints, supply chain disruption, increased demand, labor shortages associated with a fully employed US labor force, inflation and other factors. Though we incorporated inflationary factors into our 2022 business plan, inflation has outpaced those original assumptions. These challenges are due in large measure to increased demand for oil and gas production driven by the continued economic recovery from the COVID-19 pandemic and more broadly, systemic underinvestment in global oil and gas development. These supply and demand fundamentals have been further aggravated by disruptions in global energy supply caused by multiple geopolitical events, including the ongoing conflict between Russia and Ukraine. We continue to undertake actions and implement plans to strengthen our supply chain to address these pressures and protect the requisite access to commodities and services. Nevertheless, we expect for the foreseeable future to experience supply chain constraints and inflationary pressure on our cost structure. These supply chain constraints and inflationary pressures will likely continue to adversely impact our cost of operations and if we are unable to manage our global supply chain, it may impact our ability to procure materials and equipment in a timely and cost-effective manner, if at all, which could result in reduced margins and production delays and, as a result, our business, financial condition, results of operations and cash flows could be materially and adversely affected.
Changes in U.S. and international tax rules and regulations, or interpretations thereof, may materially and adversely affect our cash flows, results of operations and financial condition.
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We are subject to income- and non-income-based taxes in the United States under federal, state, and local jurisdictions and in the foreign jurisdictions in which we operate. Tax laws, regulations and administrative practices in various jurisdictions may be subject to significant change, with or without advance notice, due to economic, political and other conditions, and significant judgment is required in evaluating and estimating our provision and accruals for these taxes. Our tax liabilities could be affected by numerous factors, such as changes in tax, accounting and other laws, regulations, administrative practices, principles and interpretations, the mix and level of earnings in a given taxing jurisdiction or our ownership or capital structure. For example, on August 16, 2022, the United States enacted the Inflation Reduction Act of 2022 (IRA), which is highly complex, subject to interpretation, and contains significant changes to U.S. tax law including, but not limited to, a corporate minimum tax and a 1% excise tax on stock repurchases. The U.S. Department of the Treasury and the U.S. Internal Revenue Service (IRS) are expected to release regulations and interpretive guidance implementing the legislation contained in the IRA, but the details and timing of such regulations are subject to uncertainty at this time. The tax provisions of the IRA which may apply to us are generally effective in 2023 or later and therefore tax impacts to us in 2022 are expected to be immaterial. However, it is possible that the enactment of changes in the U.S. corporate tax system, including in connection with the IRA, could have a material effect on our consolidated cash taxes in the future.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
The following table provides information about purchases by Marathon Oil, during the quarter ended September 30, 2022March 31, 2023 of equity securities that are registered by Marathon Oil pursuant to Section 12 of the Securities Exchange Act of 1934:1934.
Period
Total Number of Shares Purchased(a)
Average Price Paid per Share
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(b)
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs(b)
07/01/2022 - 07/31/202211,256,188 $21.77 11,256,188 $1,801,759,039 
08/01/2022 - 08/31/202210,434,951 $23.81 10,415,936 $1,553,750,872 
09/01/2022 - 09/30/202224,417,720 $25.73 24,406,892 $925,752,032 
Total46,108,859 $24.33 46,079,016 
Period
Total Number of Shares Purchased(a)
Average Price Paid per Share(b)
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(c)
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs(b)(c)
01/01/2023 - 01/31/20232,011,312 $27.85 2,010,438 $2,414,000,321 
02/01/2023 - 02/28/20234,971,788 $26.41 4,922,742 $2,284,000,156 
03/01/2023 - 03/31/20236,489,962 $23.76 6,248,996 $2,136,000,136 
Total13,473,062 $25.35 13,182,176 
(a)29,843290,886 shares of restricted stock were delivered by employees to Marathon Oil, upon vesting, to satisfy tax withholding requirements.
(b)Excludes 1% excise tax on share repurchases.
(c)Refer to our 20212022 Annual Report on Form 10-K for historical share repurchase program authorizations and repurchase activity through December 31, 2021. Effective November 2, 2022, our Board2022. As of Directors increased ourMarch 31, 2023, we have approximately $2.1 billion of authorization remaining under the share repurchase program authorization to $2.5 billion.program. Purchases under the program are made at our discretion and may be in either open market transactions, including block purchases or in privately negotiated transactions using cash on hand, cash generated from operations or proceeds from potential asset sales. This program may be changed based upon our financial condition or changes in market conditions and is subject to termination prior to completion. Shares repurchased as of September 30, 2022March 31, 2023 were held as treasury stock.
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Item 6. Exhibits
  Incorporated by Reference
(File No. 001-05153, unless otherwise indicated)
Exhibit NumberExhibit DescriptionFormExhibitFiling Date
3.18-K3.16/1/2018
3.210-Q3.28/4/2016
3.310-K3.32/28/2014
4.110-K4.22/28/2014
10.18-K10.18/2/2022
10.2†*
31.1*
31.2*
32.1*
32.2*
101.INS*XBRL Instance Document - the XBRL Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH*XBRL Taxonomy Extension Schema
101.CAL*XBRL Taxonomy Extension Calculation Linkbase
101.DEF*XBRL Taxonomy Extension Definition Linkbase
101.LAB*XBRL Taxonomy Extension Label Linkbase
101.PRE*XBRL Taxonomy Extension Presentation Linkbase
104*
Cover Page Interactive Data File, formatted in iXBRL and contained in Exhibit 101
*Filed herewith.
Management contract or compensatory plan or arrangement.
  Incorporated by Reference
(File No. 001-05153, unless otherwise indicated)
Exhibit NumberExhibit DescriptionFormExhibitFiling Date
3.18-K3.16/1/2018
3.210-Q3.28/4/2016
3.310-K3.32/28/2014
4.110-K4.22/28/2014
10.1†*
10.2†*
31.1*
31.2*
32.1*
32.2*
101.INS*XBRL Instance Document - the XBRL Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH*XBRL Taxonomy Extension Schema
101.CAL*XBRL Taxonomy Extension Calculation Linkbase
101.DEF*XBRL Taxonomy Extension Definition Linkbase
101.LAB*XBRL Taxonomy Extension Label Linkbase
101.PRE*XBRL Taxonomy Extension Presentation Linkbase
104*
Cover Page Interactive Data File, formatted in iXBRL and contained in Exhibit 101
*Filed herewith.
Management contract or compensatory plan or arrangement.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
November 3, 2022May 4, 2023MARATHON OIL CORPORATION
  
 By:/s/ Rob L. White
 Rob L. White
 Vice President, Controller and Chief Accounting Officer
(Duly Authorized Officer)
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