Name: Marathon Oil Corp. (NYSE:MRO) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Marathon Oil Corp., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Revenues from contracts with customers	5,601)	3,097)	5,063)	5,902)	4,211)
Marketing revenues	—)	—)	—)	—)	162)
Revenues	5,601)	3,097)	5,063)	5,902)	4,373)
Net gain (loss) on commodity derivatives	(383)	116)	(72)	(14)	—)
Income (loss) from equity method investments	253)	(161)	87)	225)	256)
Net gain (loss) on disposal of assets	(19)	9)	50)	319)	58)
Other income	15)	25)	62)	150)	78)
Revenues and other income	5,467)	3,086)	5,190)	6,582)	4,765)
Production	(534)	(555)	(712)	(842)	(706)
Marketing, including purchases from related parties	—)	—)	—)	—)	(168)
Shipping, handling and other operating	(727)	(596)	(605)	(575)	(431)
Exploration	(136)	(181)	(149)	(289)	(409)
Depreciation, depletion and amortization	(2,066)	(2,316)	(2,397)	(2,441)	(2,372)
Impairments	(60)	(144)	(24)	(75)	(229)
Taxes other than income	(345)	(200)	(311)	(299)	(183)
General and administrative	(291)	(274)	(356)	(394)	(400)
Costs and expenses	(4,159)	(4,266)	(4,554)	(4,915)	(4,898)
Income (loss) from operations	1,308)	(1,180)	636)	1,667)	(133)
Interest income	1)	5)	25)	32)	34)
Interest expense	(257)	(279)	(280)	(280)	(377)
Gain on interest rate swaps	54)	12)	—)	—)	53)
Interest	(202)	(262)	(255)	(248)	(290)
Net foreign currency gain	—)	—)	4)	9)	8)
Other	14)	6)	7)	13)	12)
Other	14)	6)	11)	22)	20)
Net interest and other	(188)	(256)	(244)	(226)	(270)
Other net periodic benefit (costs) credits	5)	(1)	3)	(14)	—)
Loss on early extinguishment of debt	(121)	(28)	(3)	—)	(51)
Income (loss) before income taxes	1,004)	(1,465)	392)	1,427)	(454)
(Provision) benefit for income taxes	(58)	14)	88)	(331)	(376)
Income (loss) from continuing operations	946)	(1,451)	480)	1,096)	(830)
Loss from discontinued operations	—)	—)	—)	—)	(4,893)
Net income (loss)	946)	(1,451)	480)	1,096)	(5,723)

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).

Revenue performance between 2017 and 2021 was characterized by significant volatility, mirroring the cyclical nature of the energy sector. A peak in revenues occurred in 2018 at 5.9 billion US$, followed by a sharp decline to a period low of 3.1 billion US$ in 2020, before rebounding to 5.6 billion US$ in 2021. This fluctuation in the top line directly impacted operational results, leading to alternating years of profit and loss.

Operational Expense Trends: Total costs and expenses demonstrated a gradual downward trend, decreasing from 4.9 billion US$ in 2017 to 4.2 billion US$ in 2020, and reaching 4.1 billion US$ in 2021. Depreciation, depletion, and amortization remained the most significant cost driver throughout the period, though it declined from a peak of 2.4 billion US$ in 2018 to 2.1 billion US$ in 2021. Exploration costs were also significantly reduced over the five-year span, falling from 409 million US$ in 2017 to 136 million US$ in 2021.
Operating Profitability: Income from operations showed extreme variance, fluctuating from a loss of 133 million US$ in 2017 to a gain of 1.7 billion US$ in 2018. A substantial operational loss of 1.2 billion US$ was recorded in 2020, coinciding with the lowest revenue year. By 2021, operational income recovered to 1.3 billion US$, suggesting a restoration of profitability driven by both revenue growth and disciplined cost management.
Financial and Non-Operating Items: Interest expenses showed a consistent decline, moving from 377 million US$ in 2017 to 257 million US$ in 2021, which reduced the overall financial burden on the company. Net gains or losses on commodity derivatives introduced additional volatility, notably resulting in a 383 million US$ loss in 2021. Additionally, the impact of equity method investments was inconsistent, shifting from a 256 million US$ gain in 2017 to a 161 million US$ loss in 2020, before recovering to 253 million US$ in 2021.
Net Income Analysis: The net income figures were heavily skewed by non-recurring items. A massive net loss of 5.7 billion US$ in 2017 was primarily driven by a 4.9 billion US$ loss from discontinued operations. Excluding that anomaly, the company faced another significant net loss of 1.4 billion US$ in 2020. The period concluded with a positive net income of 946 million US$ in 2021, indicating a recovery from the operational troughs of the preceding year.

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