"Marathon's strong and balanced portfolio of businesses performed well in the third quarter, despite ongoing uncertainties throughout the global economy," said Clarence P. Cazalot [image-nocss] Jr., president and CEO of Marathon Oil. "In our Exploration & Production segment, production available for sale rose 5% from the year-ago quarter.... Our Refining, Marketing & Transportation segment once again out-performed its peers in the domestic market that saw significantly lower gross margins versus a year ago."
He added, "Another bright spot was our Speedway SuperAmerica LLC business, which recorded higher same-store gasoline sales volumes and merchandise sales in the third quarter of 2009 from the year-ago period."
Total segment income was $687 million in third-quarter 2009, compared to $1.993 billion in third-quarter 2008.
The Exploration & Production (E&P) segment income totaled $491 million in third-quarter 2009, compared to $869 million in third-quarter 2008.
The Refining, Marketing & Transportation (RM&T) segment income was $158 million in third-quarter of 2009 compared to $771 million in third-quarter 2008. The third-quarter 2009 refining and wholesale marketing gross margin decreased to 7.62 cents per gallon from 25.19 cents in third-quarter of 2008. Marathon's third-quarter 2009 refining and wholesale marketing gross margin included a pretax derivative loss of $17 million. The third-quarter 2008 gross margin included pretax derivative gains of $156 million.
Marathon Oil's RM&T segment achieved operating costs reductions of approximately 9% for the first nine months of 2009 compared to the same period of 2008, excluding changes in crude and product purchases, depreciation, energy prices and other variable expenses.
Speedway SuperAmerica LLC (SSA) gasoline and distillate gross margin per gallon averaged 14 cents in third-quarter 2009, compared to 16.9 cents in third-quarter 2008. SSA's third-quarter 2009 same-store gasoline sales volumes increased approximately 3% over third-quarter 2008, while same-store merchandise sales increased approximately 12% for the same period.
Enon, Ohio-based Speedway SuperAmerica is one of the nation's largest company-owned and -operated convenience-store chains and the largest in the Midwest with approximately 1,500 stores located in nine states. Most of the stores are operated under the Speedway and SuperAmerica brand names. SSA is a wholly owned subsidiary of Houston-based Marathon Oil.
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