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

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Marathon Oil Corp., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income (loss)	946)	(1,451)	480)	1,096)	(5,723)
Discontinued operations	—)	—)	—)	—)	4,893)
Depreciation, depletion and amortization	2,066)	2,316)	2,397)	2,441)	2,372)
Impairments	60)	144)	24)	75)	229)
Exploratory dry well costs and unproved property impairments	125)	159)	114)	255)	323)
Net (gain) loss on disposal of assets	19)	(9)	(50)	(319)	(58)
Loss on early extinguishment of debt	121)	28)	3)	—)	51)
Deferred income taxes	(27)	(22)	(34)	52)	(61)
Unrealized (gain) loss on derivative instruments, net	(16)	27)	124)	(267)	87)
Pension and other post retirement benefits, net	(31)	(43)	(52)	(65)	(46)
Stock-based compensation	40)	57)	60)	53)	49)
Equity method investments, net	(76)	210)	18)	45)	20)
Current receivables	(389)	367)	52)	(133)	(334)
Inventories	(1)	(4)	3)	(1)	10)
Current accounts payable and accrued liabilities	369)	(381)	(187)	179)	297)
Other current assets and liabilities	46)	75)	(4)	(22)	1)
Changes in current assets and liabilities	25)	57)	(136)	23)	(26)
All other operating, net	(13)	—)	(199)	(155)	(122)
Adjustments to reconcile net income (loss) to net cash provided by operating activities	2,293)	2,924)	2,269)	2,138)	7,711)
Net cash provided by operating activities	3,239)	1,473)	2,749)	3,234)	1,988)
Additions to property, plant and equipment	(1,046)	(1,343)	(2,550)	(2,753)	(1,974)
Additions to other assets	—)	15)	36)	(26)	(25)
Acquisitions, net of cash acquired	(47)	(1)	(293)	(25)	(1,891)
Disposal of assets, net of cash transferred to the buyer	22)	18)	(76)	1,264)	1,787)
Equity method investments, return of capital	61)	7)	64)	57)	64)
All other investing, net	—)	1)	1)	13)	(5)
Net cash used in investing activities	(1,010)	(1,303)	(2,818)	(1,470)	(2,044)
Borrowings	—)	400)	600)	—)	988)
Debt repayments	(1,400)	(500)	(600)	—)	(2,764)
Debt extinguishment costs	(117)	(27)	(2)	—)	(46)
Purchases of common stock	(734)	(92)	(362)	(713)	(11)
Dividends paid	(141)	(64)	(162)	(169)	(170)
All other financing, net	1)	(3)	(9)	23)	—)
Net cash used in financing activities	(2,391)	(286)	(535)	(859)	(2,003)
Operating activities	—)	—)	—)	—)	141)
Investing activities	—)	—)	—)	—)	(13)
Changes in cash included in current assets held for sale	—)	—)	—)	—)	2)
Net increase in cash and cash equivalents of discontinued operations	—)	—)	—)	—)	130)
Effect of exchange rate on cash and cash equivalents	—)	—)	—)	(2)	4)
Net increase (decrease) in cash and cash equivalents	(162)	(116)	(604)	903)	(1,925)
Cash and cash equivalents at beginning of period	742)	858)	1,462)	563)	2,488)
Cash and cash equivalents included in current assets held for sale	—)	—)	—)	(4)	—)
Cash and cash equivalents at end of period	580)	742)	858)	1,462)	563)

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).

The cash flow profile from 2017 to 2021 is characterized by significant volatility in net income, contrasted by a more resilient capacity to generate cash from operating activities. While net income fluctuated sharply, including substantial losses in 2017 and 2020, the net cash provided by operating activities remained positive throughout the period, peaking in 2018 and 2021 at approximately 3.2 billion US dollars.

Operating Cash Flow and Reconciliation: A recurring pattern is observed where net income is heavily adjusted by non-cash charges to arrive at operating cash flow. Depreciation, depletion, and amortization remained a consistent primary add-back, ranging between 2.0 billion and 2.4 billion US dollars annually. The significant discrepancy between net income and operating cash flow in 2017 was largely driven by a substantial adjustment of 7.7 billion US dollars, which mitigated a net loss of 5.7 billion US dollars.
Investing Activities and Capital Expenditure: Cash used in investing activities shows a clear trend toward capital discipline. Additions to property, plant, and equipment peaked in 2018 at 2.75 billion US dollars and declined steadily to 1.05 billion US dollars by 2021. This reduction in capital expenditure is accompanied by a decrease in large-scale acquisitions after 2017 and a tapering of cash inflows from asset disposals, which were most prominent in 2017 and 2018.
Financing Activities and Shareholder Returns: Financing activities consistently resulted in net cash outflows, reflecting a strategy of debt reduction and shareholder remuneration. Debt repayments were particularly aggressive in 2017 and 2021, with 2.76 billion and 1.4 billion US dollars respectively. Shareholder returns through common stock purchases were significant in 2018 and 2021, while dividend payments remained relatively stable, with a notable exception in 2020 when payments dropped to 64 million US dollars.

The overall liquidity position demonstrates a fluctuating cash balance, ending 2021 at 580 million US dollars. The transition from high capital spending and large asset disposals in the early part of the period toward lower capital expenditures and consistent debt repayment in the latter years suggests a strategic shift toward operational efficiency and balance sheet strengthening.

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