(Reuters) - U.S. shale producer Marathon Oil (NYSE:MRO) beat Wall Street estimates for third-quarter profit on Wednesday, helped by higher production and resilient demand for oil.
Benchmark Brent crude averaged $78.3 a barrel in the reported quarter, a level at which producers can drill profitably. Meanwhile, natural gas prices increased toward the end of the third quarter after Hurricane Helene forced producers to shut in their output.
Marathon — which operates in the Bakken, Permian and Eagle Ford (NYSE:F) basins — said its total production for the quarter rose to 421,000 barrels of oil equivalent per day (boepd), compared to 393,000 boepd during the second quarter.
Total (EPA:TTEF) oil production rose to 207,000 barrels per day in the three months ended Sept. 30, compared to 191,000 in the preceding quarter.
Marathon Oil is set to be acquired by larger rival ConocoPhillips (NYSE:COP) for $22.5 billion. The deal, approved by Marathon's shareholders in August, is currently undergoing a Federal Trade Commission review and is expected to close late in the fourth quarter of 2024.
Last week, ConocoPhillips surpassed Wall Street's expectations for third-quarter profit and elevated its full-year output forecast.
Marathon also raised its full-year production forecast, expecting to benefit from the increase in U.S. oil consumption, which, in July, rose to its highest seasonal level since 2019.
The company now expects a total production of 393,000 boepd in 2024, which is higher than the midpoint of its prior forecast of 391,000 boepd.
Marathon reported adjusted earnings of 64 cents per share for the quarter, compared with analysts' average estimate of 63 cents per share, according to data compiled by LSEG.