Analysis of Debt
Total Debt (Carrying Amount)
Marathon Oil Corp., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
- Long-term debt excluding current portion
- The long-term debt, excluding amounts due within one year, showed a stable trend from 2017 to 2019, with figures around 5,494 to 5,501 million US dollars. There was a slight decrease in 2020 to 5,404 million US dollars, followed by a more pronounced reduction in 2021 to 3,978 million US dollars. This indicates a strategic reduction of long-term debt commitments in the most recent year.
- Current portion of long-term liabilities
- The current portion of the long-term finance lease liability and long-term debt due within one year is only reported for 2021, with values of 6 million and 36 million US dollars respectively. This could reflect a reclassification or increased focus on short-term debt obligations that was not separately disclosed in prior years.
- Long-term finance lease liability
- Long-term finance lease liabilities, excluding the current portion, are disclosed only in 2021 at 24 million US dollars. This emergence of finance lease liabilities suggests the company may have adopted new financing strategies or accounting practices related to lease obligations.
- Total long-term debt and finance lease liabilities
- The total long-term debt and finance lease liability, including current portions, remained consistent near 5,494-5,501 million US dollars from 2017 through 2019, decreased slightly in 2020 to 5,404 million US dollars, and then decreased more substantially to 4,044 million US dollars in 2021. The decline in total carrying amount corresponds with the noted reduction in long-term debt and the addition of short-term finance lease liabilities, indicating overall deleveraging over the latest reported period.
Total Debt (Fair Value)
| Dec 31, 2021 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Long-term debt, including current portion | 4,705) |
| Long-term finance lease liability, including current portion | 30) |
| Total long-term debt and finance lease liability, including current portion (fair value) | 4,735) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 1.17 |
Based on: 10-K (reporting date: 2021-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 4.89%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 9.38% | 32) | 3) | |
| 8.50% | 70) | 6) | |
| 8.13% | 131) | 11) | |
| 4.40% | 1,000) | 44) | |
| 6.80% | 550) | 37) | |
| 6.60% | 750) | 50) | |
| 5.20% | 500) | 26) | |
| 2.00% | 200) | 4) | |
| 2.10% | 200) | 4) | |
| 2.20% | 200) | 4) | |
| 2.13% | 200) | 4) | |
| 2.38% | 200) | 5) | |
| 2.00% | 30) | 1) | |
| Total | 4,063) | 199) | |
| 4.89% | |||
Based on: 10-K (reporting date: 2021-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 199 ÷ 4,063 = 4.89%