Name: Marathon Oil Corp. (NYSE:MRO) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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Marathon Oil Corp., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Accounts payable	1,110)	837)	1,307)	1,320)	1,395)
Payroll and benefits payable	74)	57)	112)	154)	108)
Accrued taxes	157)	72)	118)	181)	177)
Current portion of long-term finance lease liability	6)	—)	—)	—)	—)
Other current liabilities	254)	247)	208)	170)	288)
Long-term debt due within one year	36)	—)	—)	—)	—)
Current liabilities held for sale	—)	—)	—)	7)	—)
Current liabilities	1,637)	1,213)	1,745)	1,832)	1,968)
Long-term debt, excluding due within one year	3,978)	5,404)	5,501)	5,499)	5,494)
Deferred tax liabilities	136)	163)	186)	199)	833)
Defined benefit postretirement plan obligations	137)	180)	183)	195)	362)
Asset retirement obligations	288)	241)	243)	1,081)	1,428)
Long-term finance lease liability, excluding current portion	24)	—)	—)	—)	—)
Deferred credits and other liabilities	108)	194)	234)	279)	217)
Noncurrent liabilities held for sale	—)	—)	—)	108)	2)
Noncurrent liabilities	4,671)	6,182)	6,347)	7,361)	8,336)
Total liabilities	6,308)	7,395)	8,092)	9,193)	10,304)
Preferred stock, no par value; no shares issued or outstanding	—)	—)	—)	—)	—)
Common stock, par value $1 per share	937)	937)	937)	937)	937)
Common stock, held in treasury, at cost	(4,825)	(4,089)	(4,089)	(3,816)	(3,325)
Additional paid-in capital	7,221)	7,174)	7,207)	7,238)	7,379)
Retained earnings	7,271)	6,466)	7,993)	7,706)	6,779)
Accumulated other comprehensive income (loss)	82)	73)	105)	63)	(62)
Stockholders’ equity	10,686)	10,561)	12,153)	12,128)	11,708)
Total liabilities and stockholders’ equity	16,994)	17,956)	20,245)	21,321)	22,012)

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).

A consistent reduction in total liabilities is observed over the five-year period, with the balance declining from 10,304 million USD in 2017 to 6,308 million USD in 2021. This downward trajectory indicates a systematic deleveraging of the balance sheet, resulting in a lower overall financial risk profile over time.

Long-Term Debt and Noncurrent Liabilities: Long-term debt remained relatively stable between 2017 and 2020, fluctuating minimally around 5.4 billion USD. However, a significant contraction occurred in 2021, with the balance falling to 3,978 million USD. Noncurrent liabilities as a whole showed a steady decline from 8,336 million USD in 2017 to 4,671 million USD in 2021. This was further supported by a sharp reduction in asset retirement obligations, which fell from 1,428 million USD in 2017 to 288 million USD by 2021, and a significant drop in deferred tax liabilities after 2017.
Current Liabilities and Working Capital: Current liabilities exhibited a general downward trend from 2017 to 2020, reaching a low of 1,213 million USD before increasing to 1,637 million USD in 2021. Accounts payable, the largest component of current liabilities, followed a similar pattern, dipping to 837 million USD in 2020 before rebounding to 1,110 million USD in 2021. These fluctuations suggest sensitivity to operational cycles and market conditions during the 2020 period.
Stockholders' Equity and Capital Management: Total stockholders' equity remained relatively resilient, though it experienced a notable dip in 2020 to 10,561 million USD from a peak of 12,153 million USD in 2019, before recovering slightly to 10,686 million USD in 2021. A significant trend is observed in the common stock held in treasury, which increased in cost from 3,325 million USD in 2017 to 4,825 million USD in 2021. This indicates an aggressive share repurchase strategy throughout the period.
Retained Earnings and Comprehensive Income: Retained earnings grew steadily from 2017 to 2019, peaking at 7,993 million USD. A sharp decline was recorded in 2020 to 6,466 million USD, which suggests either significant net losses or substantial dividend distributions during that fiscal year. The balance partially recovered to 7,271 million USD by 2021. Accumulated other comprehensive income transitioned from a loss in 2017 to a consistent positive balance from 2018 through 2021.

The overall balance sheet contraction is evident in the total liabilities and stockholders' equity, which decreased from 22,012 million USD in 2017 to 16,994 million USD in 2021. The combination of reduced long-term debt and increased treasury stock indicates a strategic shift toward a leaner capital structure and the return of value to shareholders.

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