Analysis of Geographic Areas
Marathon Oil Corp. operates in 3 regions: United States; Equatorial Guinea; and Other international.
Area Asset Turnover
Marathon Oil Corp., asset turnover by geographic area
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| United States | 0.38 | 0.19 | 0.28 | 0.30 | 0.19 |
| Equatorial Guinea | 0.34 | 0.20 | 0.27 | 0.29 | 0.34 |
| Other international | — | — | — | 5.18 | 0.79 |
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 data presents the annual geographic area asset turnover ratios for a five-year period ending in 2021. The asset turnover ratio is an efficiency metric indicating how effectively a company uses its assets to generate revenue in different geographic regions.
- United States
- The asset turnover ratio in the United States exhibited variability over the five years. It started at 0.19 in 2017, increased to 0.30 in 2018, slightly declined to 0.28 in 2019, dropped again to 0.19 in 2020, and then reached the highest point of 0.38 in 2021. The initial upward trend from 2017 to 2018 was followed by a mild decline and stabilization before a significant increase in the last recorded year. This suggests improving asset utilization in the U.S. market in 2021 after some fluctuations.
- Equatorial Guinea
- The ratio for Equatorial Guinea showed an overall downward trend from 2017 to 2020. Starting at 0.34 in 2017, it decreased gradually to 0.29 in 2018, 0.27 in 2019, and then to 0.20 in 2020. However, in 2021, the ratio rose again to 0.34, returning to the original 2017 level. This indicates a reduction in asset turnover efficiency prior to 2021, followed by a recovery to previous levels.
- Other International
- The "Other international" category had an unusual pattern with significant variation. The ratio was 0.79 in 2017, but then experienced a sharp increase to 5.18 in 2018, indicating a substantial improvement in asset utilization for that year. No data is available for the years 2019, 2020, and 2021, rendering trend analysis for those years impossible. The large increase in 2018 may suggest either a one-time event or a change in asset management strategy within these international operations.
Overall, the United States and Equatorial Guinea regions showed fluctuations but ended with improved or restored asset turnover levels by 2021. The "Other international" segment demonstrated a dramatic but isolated increase, lacking subsequent data to confirm any sustained trend. The results indicate region-specific variations in asset use efficiency, with a notable recovery phase in both primary areas during the final year of record.
Area Asset Turnover: United States
Marathon Oil Corp.; United States; area asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues from contracts with customers | 5,334) | 2,924) | 4,602) | 4,886) | 3,086) |
| Long-lived assets | 14,152) | 15,224) | 16,507) | 16,094) | 15,971) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 0.38 | 0.19 | 0.28 | 0.30 | 0.19 |
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).
1 2021 Calculation
Area asset turnover = Revenues from contracts with customers ÷ Long-lived assets
= 5,334 ÷ 14,152 = 0.38
- Revenues from contracts with customers
- Revenues exhibited considerable fluctuations over the five-year period. The values increased significantly from 3,086 million USD in 2017 to 4,886 million USD in 2018, indicating strong growth. However, a slight decline occurred in 2019 to 4,602 million USD. Revenues then sharply decreased in 2020 to 2,924 million USD, likely reflecting adverse market conditions or challenges during that year. The trend reversed in 2021 with revenues rising substantially to 5,334 million USD, reaching the highest level recorded in the period.
- Long-lived assets
- The value of long-lived assets showed a gradual downward trend after a slight increase early on. Starting at 15,971 million USD in 2017, there was a modest increase to 16,094 million USD in 2018 and to 16,507 million USD in 2019, representing modest investment or asset growth. However, this trend reversed subsequently with assets decreasing to 15,224 million USD in 2020 and further declining to 14,152 million USD in 2021, suggesting potential asset disposals, depreciation, or impairment impacts during these years.
- Area asset turnover
- The area asset turnover ratio, which measures the efficiency of asset utilization to generate revenues, showed considerable variability. After starting at a low 0.19 in 2017, it improved to 0.30 in 2018, indicating enhanced asset efficiency. A slight decrease to 0.28 occurred in 2019, followed by a drop back to 0.19 in 2020, correlating with the revenue decline and possibly reflecting lower asset productivity during that period. The ratio rebounded sharply to 0.38 in 2021, the highest in the period, indicating a significant improvement in how assets were leveraged to generate revenues.
Area Asset Turnover: Equatorial Guinea
Marathon Oil Corp.; Equatorial Guinea; area asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues from contracts with customers | 267) | 173) | 307) | 384) | 530) |
| Long-lived assets | 797) | 861) | 1,156) | 1,333) | 1,582) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 0.34 | 0.20 | 0.27 | 0.29 | 0.34 |
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).
1 2021 Calculation
Area asset turnover = Revenues from contracts with customers ÷ Long-lived assets
= 267 ÷ 797 = 0.34
- Revenues from contracts with customers
- The revenues exhibit a declining trend from 2017 to 2020, dropping from $530 million to a low of $173 million. However, there is a noticeable recovery in 2021, with revenues increasing to $267 million.
- Long-lived assets
- Long-lived assets demonstrate a consistent downward trajectory over the five-year period, decreasing from $1,582 million in 2017 to $797 million in 2021. The decline appears relatively steady each year.
- Area asset turnover
- The area asset turnover ratio initially decreases from 0.34 in 2017 to a low of 0.20 in 2020, indicating a reduction in efficiency in generating revenue from assets. In 2021, the ratio rebounds back to 0.34, suggesting improved asset productivity.
Area Asset Turnover: Other international
Marathon Oil Corp.; Other international; area asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues from contracts with customers | —) | —) | 154) | 632) | 757) |
| Long-lived assets | —) | —) | —) | 122) | 959) |
| Area Activity Ratio | |||||
| Area asset turnover1 | — | — | — | 5.18 | 0.79 |
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).
1 2021 Calculation
Area asset turnover = Revenues from contracts with customers ÷ Long-lived assets
= 0 ÷ 0 = —
The data for the "Other international" geographic area indicates significant variability over the recorded periods, with incomplete data for the later years.
- Revenues from Contracts with Customers
- Revenues show a declining trend from 2017 to 2019, falling from 757 million US dollars in 2017 to 154 million US dollars in 2019. Data for 2020 and 2021 is missing, thus preventing trend analysis beyond 2019.
- Long-lived Assets
- Long-lived assets were reported as 959 million US dollars in 2017 but declined sharply to 122 million US dollars in 2018. There are no available data points for 2019, 2020, and 2021, limiting assessment of asset base changes after 2018.
- Area Asset Turnover
- The area asset turnover ratio significantly increased from 0.79 in 2017 to 5.18 in 2018, indicating improved efficiency in asset utilization during that period. However, the lack of subsequent data restricts evaluation of this metric's sustainability or trend beyond 2018.
Overall, the available data suggest a substantial decrease in revenues and long-lived assets from 2017 to 2018/2019, coupled with a marked increase in asset turnover efficiency in 2018. The incomplete data for the most recent years hinder a comprehensive longitudinal analysis.
Revenues from contracts with customers
Marathon Oil Corp., revenues from contracts with customers by geographic area
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| United States | 5,334) | 2,924) | 4,602) | 4,886) | 3,086) |
| Equatorial Guinea | 267) | 173) | 307) | 384) | 530) |
| Other international | —) | —) | 154) | 632) | 757) |
| Total | 5,601) | 3,097) | 5,063) | 5,902) | 4,373) |
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).
- United States Revenue Trend
- Revenues from the United States experienced a generally increasing trend over the period, though with fluctuations. Beginning at 3,086 million USD in 2017, revenues peaked at 4,886 million USD in 2018, then slightly declined to 4,602 million USD in 2019. A significant decrease occurred in 2020, dropping to 2,924 million USD, likely reflective of broader market or operational challenges. However, a strong recovery took place in 2021, with revenues surging to a high of 5,334 million USD, surpassing all prior years.
- Equatorial Guinea Revenue Trend
- Revenues from Equatorial Guinea demonstrated a consistent decline from 2017 through 2020, starting at 530 million USD and falling progressively each year to 173 million USD in 2020. This was followed by a partial recovery in 2021, with revenues increasing to 267 million USD. Despite this uptick, 2021 revenues remained below the 2017 baseline, indicating ongoing challenges or reduced contract volumes in this geography.
- Other International Revenues
- The category labeled as Other international showed a clear downward trajectory from 2017 to 2019, with revenues decreasing from 757 million USD in 2017 to 154 million USD in 2019. Data for 2020 and 2021 is missing, making it impossible to evaluate recent trends or recovery in this segment.
- Total Revenue Analysis
- Total revenues over the five-year period mirror the fluctuations seen in the United States revenues, reflecting its significant contribution to overall income. Total revenue rose from 4,373 million USD in 2017 to 5,902 million USD in 2018, declined to 5,063 million USD in 2019, and sharply fell to 3,097 million USD in 2020. In 2021, total revenue recovered substantially, reaching 5,601 million USD. The decline in 2020 suggests significant external pressures, while recovery in 2021 indicates improved market conditions or operational performance.
- Summary Insights
- The geographic revenue data indicates that the United States is the dominant market and the primary driver of overall revenue trends. The substantial dip in 2020 across major regions corresponds to a broader contraction, with evidence of rebound in 2021 for both the United States and Equatorial Guinea. Limited data availability for the Other international segment post-2019 restricts comprehensive analysis of that category. The variability highlights the company's exposure to regional market dynamics and operational factors impacting contract revenues over the analyzed period.
Long-lived assets
Marathon Oil Corp., long-lived assets by geographic area
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| United States | 14,152) | 15,224) | 16,507) | 16,094) | 15,971) |
| Equatorial Guinea | 797) | 861) | 1,156) | 1,333) | 1,582) |
| Other international | —) | —) | —) | 122) | 959) |
| Total | 14,949) | 16,085) | 17,663) | 17,549) | 18,512) |
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).
- United States
- The value of long-lived assets in the United States exhibits a generally declining trend over the analyzed period. Beginning at 15,971 million US dollars in 2017, the figure increases slightly to 16,507 million in 2019 but subsequently decreases each year, reaching 14,152 million by the end of 2021. This reflects a reduction of approximately 11.4% from 2017 to 2021.
- Equatorial Guinea
- A consistent downward trajectory is evident for assets in Equatorial Guinea. The value declines from 1,582 million US dollars in 2017 to 797 million by 2021. The largest single-year drop occurs from 2019 to 2020, falling from 1,156 million to 861 million. Overall, the assets decrease by nearly 50% over the five-year span.
- Other International
- The "Other international" category shows limited data availability. The value was 959 million US dollars in 2017, rising to 1,229 million in 2018, after which no data is reported for subsequent years. The lack of information restricts analysis of trend or performance for this segment beyond 2018.
- Total
- Total long-lived assets across all geographic areas demonstrate a decreasing pattern. From 18,512 million US dollars in 2017, the total fell to 14,949 million by the end of 2021. This represents a decline of approximately 19.2% over the period, largely influenced by reductions in both the United States and Equatorial Guinea assets, compounded by missing data in the "Other international" category after 2018.