Houston based oil firm Marathon Oil Corp announced on Monday that the companies second-quarter profits had increased by 26%, driven by a strong production growth and higher crude oil and condensate prices in the United States.
The company’s share rose as much 2 percent in trading after the bell.
Production available for sale from continuing operations, excluding Libya, rose 6 percent in the quarter to an average of 383,000 net barrels oil equivalent per day (boed).
The increase was driven by a continued growth in North American shale production, which primarily focuses on plays in Texas, Oklahoma and North Dakota.
The company expects the region to produce 235 million to 248 million barrels oil equivalent per day (boed) in the third quarter, compared with 200 million boed produced in the corresponding quarter last year.
Marathon Oil expects overseas production available for sale, excluding Libya, to remain flat in the current quarter.
U.S. oil and gas companies are drilling more in domestic shale fields where wells bring better profits and steady production growth is easier to achieve.
Marathon Oil’s second-quarter profit rose to $540 million, or 80 cents per share, in the quarter ended June 30 from $426 million, or 60 cents per share, a year earlier.
Total oil and gas sales volumes, excluding Libya, averaged 394,000
boed, up from 361,000 net boed last year.
Houston-based Marathon Oil’s shares, which closed at $39.22 on Monday on the New York Stock Exchange, rose to $40 in aftermarket trading after the company reported results.
