| Marathon Oil Corporation | |
| Former Names: | The Ohio Oil Company (1887–1962) |
| Type: | Public |
| Fate: | Acquired by Standard Oil in 1889; after the SO breakup of 1911 it continued as an independent company |
| Traded As: | S&P 500 component |
| Predecessor: | |
| Foundation: | as "The Ohio Oil Company" |
| Hq Location: | 990 Town and Country Boulevard Houston, Texas U.S. |
| Industry: | Petroleum |
| Products: | Fuel Natural gas |
| Production: | 383e3BOE per day |
| Revenue: | $3.086 billion (2020) |
| Net Income: | -$1.451 billion (2020) |
| Assets: | $17.956 billion (2020) |
| Equity: | $10.561 billion (2020) |
| Num Employees: | 1,672 (2020) |
| Subsid: |
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| Brands: | Marathon (1930–) |
| Footnotes: | [1] |
Marathon Oil Corporation is an American petroleum company that has existed since 1887. Marathon was founded in Lima, Ohio as the Ohio Oil Company. In 1899, the company was acquired by the Standard Oil Company (New Jersey). After the antitrust case against Jersey Standard in 1911 and subsequent breakup of its holdings, Ohio Oil once again became an independent company. In 1930, Ohio Oil acquired the Transcontinental Oil Company, which operated the "Marathon" brand of retail gasoline stations. Ohio Oil continued to use the Marathon brand, and in 1962, Ohio changed its name to the Marathon Oil Company.
In January 1982, Marathon was acquired by United States Steel. After the acquisition, the USX Corporation was created to act as the parent of U.S. Steel and Marathon Oil, which operated as divisions. In 2001, USX spun off Marathon under the name Marathon Oil Corporation. In 2011, Marathon Oil spun off its downstream operations as Marathon Petroleum. Since 2011, Marathon Oil has operated as an independent exploration and production company.
The company is ranked 534th on the Fortune 500[2] and 1900th on the Forbes Global 2000.[3] As of December 31, 2020, the company had 972e6BOE of estimated proven reserves, of which 86% was in the United States and 14% was in Equatorial Guinea.[1] The company's proved reserves consisted 52% of petroleum, 30% natural gas and 18% natural gas liquids. In 2020, the company sold 383e3BOE per day, of which 26% was from the Eagle Ford Group, 27% was from the Bakken formation, 17% was from Oklahoma, 7% was from the Northern Delaware Basin, 2% was from other U.S. sources, and 20% was from Equatorial Guinea.
On May 29, 2024, ConocoPhillips announced its intent to acquire Marathon for $22.5 billion in an all-stock transaction, including debt, expected to close in the fourth quarter of 2024.[4] [5]
Marathon Oil began as "The Ohio Oil Company" in 1887.[6] In 1889, the company was purchased by John D. Rockefeller's Standard Oil. It remained a part of Standard Oil until Standard Oil was broken up in 1911. In 1930, The Ohio Oil Company bought the Transcontinental Oil Company, including the "Marathon" brand name. In 1962, the company changed its name to "Marathon Oil Company".[7]
In 1959, the Ohio Oil Company acquired Detroit based Aurora Oil Company which operated Speedway 79 stations and became an Ohio Oil subsidiary.[8]
In 1962, the Speedway 79 and Marathon stations were consolidated under the Marathon name and the Ohio Oil Company is renamed Marathon Oil Company.[9] [10]
In 1981, Mobil made a hostile takeover offer to buy the company.[11] [12] However, the board of Marathon Oil rejected the offer and instead sold the company to United States Steel. A legal battle ensued thereafter.[13]
In 1990, the headquarters was moved to Houston, Texas, but the company's refining subsidiary maintained its headquarters in Findlay, Ohio.[14]
In 1984, Marathon purchased the U.S. unit of Husky Energy for $505 million.[15]
In 1998, Marathon and Ashland Global contributed their refining operations to Marathon Ashland Petroleum LLC (MAP), now Marathon Petroleum.[16]
In 2001, USX, the holding company that owned United States Steel and Marathon, spun off the steel business and, in 2002, USX renamed itself Marathon Oil Corporation.[17]
In 2003, Marathon sold its Canadian operations to Husky Energy.[18]
In 2003, the company sold its interest in the Yates Oil Field to Kinder Morgan for $225 million.[19] [20]
In 2007, Marathon acquired Western Oil Sands for $6.6 billion and gained ownership of its 20% stake in the Athabasca oil sands in northern Alberta, Canada and other assets in the midwestern United States.[21]
In 2011, Marathon completed the corporate spin-off of Marathon Petroleum, distributing a 100% interest to its shareholders.[22]
In June 2013, Marathon sold its Angolan oil and gas field to Sinopec for $1.52 billion.[23]
In September 2013, Marathon sold a 10% stake in an oil and gas field offshore Angola for $590 million to Sonangol Group.[24]
In October 2014, the company sold its business in Norway to Det Norske Oljeselskap ASA for $2.1 billion.[25]
In 2017, it sold its interests in the Athabasca oil sands for $2.5 billion and acquired assets in the Permian Basin for $1.2 billion.[26] [27]
In March 2018, it sold its assets in Libya for $450 million to TotalEnergies SE.[28] [29]
In 2020, the company derived 13% of its revenues from sales to Marathon Petroleum and 12% of its revenues from sales to Koch Industries.
In July 2024, Marathon agreed to a $241.5 million settlement with the US Department of Justice and the Environmental Protection Agency to resolve allegations of failing to obtain required permits at dozens of the company's oil and gas facilities on the Fort Berthold Indian Reservation in North Dakota and releasing thousands of tons of illegal air pollution as a result.[30] The settlement included Marathon denying liability for the allegations but agreeing to pay a $64.5 million civil penalty, the largest fine ever imposed for violations of the Clean Air Act from stationary sources, as well as agreeing to invest $177 million to bring its facilities into compliance.
Since 2003, Marathon Oil and its partners Noble Energy and AMPCO have invested in the Bioko Island Malaria Control Project (BIMCP) in Equatorial Guinea. The project includes distribution of insecticide nets, indoor residual spraying and larval source management, preventive therapy for pregnant women and malaria case management, and investment in a possible malaria vaccine. The project has resulted in a 63% reduction in malaria parasite prevalence and a 63% reduction in the mortality rate and 97% reduction in severe anemia in children under 5 years old.[31]
According to a 2017 study, the company was responsible for 0.19% of global industrial greenhouse gas emissions from 1988 to 2015.[32]
As of 2022, Marathon was the seventh-largest emitter of greenhouse gas emissions in the oil and gas industry.[33]
The company was investigated for payments made to Teodoro Obiang Nguema Mbasogo, the president of Equatorial Guinea.[34] The SEC completed its investigation in 2009 and did not recommend any enforcement action in the matter.[35]
James C. Donnell, 1911–1927
Otto D. Donnell, 1927–1948
James C. Donnell, II, 1948–1972
Harold D. Hoopman, 1972–1985
William E. Swales, 1985–1987
Victor G. Beghini, 1987–1999
Clarence P. Cazalot, Jr., 2000–2013
Lee M. Tillman, 2013–
James C. Donnell, II, 1972–1975
Thomas J. Usher, 2001–2011
Clarence P. Cazalot, Jr., 2011–2013
Dennis H. Reilley, 2013–2019
Lee M. Tillman, 2019–