Document
false--12-31Q1202000001017781800300000018641000000110000003000000001119250000001925000000937000000937000000191000000106000000002600000026000000000020000000141000000146000000<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;padding-top:20px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Acquisitions</font></div><div style="line-height:120%;padding-bottom:6px;padding-top:6px;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In the fourth quarter of 2019, we acquired approximately </font><font style="font-family:inherit;font-size:10pt;">40,000</font><font style="font-family:inherit;font-size:10pt;"> net acres in a Texas Delaware oil play in West Texas for </font><font style="font-family:inherit;font-size:10pt;">$106 million</font><font style="font-family:inherit;font-size:10pt;">. We accounted for these transactions as an asset acquisition, allocating the purchase price to unproved property within property, plant and equipment. </font></div><div style="line-height:120%;padding-bottom:6px;padding-top:6px;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">During the fourth quarter of 2019, we acquired a 100% working interest in approximately </font><font style="font-family:inherit;font-size:10pt;">18,000</font><font style="font-family:inherit;font-size:10pt;"> net acres in the Eagle Ford from Rocky Creek Resources, LLC and RCR Midstream, LLC for </font><font style="font-family:inherit;font-size:10pt;">$191 million</font><font style="font-family:inherit;font-size:10pt;"> in cash, subject to closing adjustments. </font></div></div> 0000101778 2020-01-01 2020-03-31 0000101778 2019-01-01 2019-03-31 0000101778 2020-04-30 0000101778 2019-12-31 0000101778 2020-03-31 0000101778 2019-03-31 0000101778 2018-12-31 0000101778 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-03-31 0000101778 us-gaap:RetainedEarningsMember 2020-03-31 0000101778 us-gaap:CommonStockMember 2020-03-31 0000101778 us-gaap:TreasuryStockMember 2019-12-31 0000101778 us-gaap:TreasuryStockMember 2020-03-31 0000101778 us-gaap:PreferredStockMember 2019-12-31 0000101778 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0000101778 us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0000101778 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0000101778 us-gaap:PreferredStockMember 2020-03-31 0000101778 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0000101778 us-gaap:RetainedEarningsMember 2019-12-31 0000101778 us-gaap:CommonStockMember 2019-12-31 0000101778 us-gaap:TreasuryStockMember 2020-01-01 2020-03-31 0000101778 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-03-31 0000101778 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0000101778 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0000101778 us-gaap:TreasuryStockMember 2019-03-31 0000101778 us-gaap:PreferredStockMember 2018-12-31 0000101778 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0000101778 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0000101778 us-gaap:CommonStockMember 2019-03-31 0000101778 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0000101778 us-gaap:CommonStockMember 2018-12-31 0000101778 us-gaap:RetainedEarningsMember 2019-03-31 0000101778 us-gaap:PreferredStockMember 2019-03-31 0000101778 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0000101778 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000101778 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0000101778 us-gaap:TreasuryStockMember 2019-01-01 2019-03-31 0000101778 us-gaap:RetainedEarningsMember 2018-12-31 0000101778 us-gaap:TreasuryStockMember 2018-12-31 0000101778 mro:EagleFordMember 2019-10-01 2019-12-31 0000101778 mro:TexasDelawareMember 2019-10-01 2019-12-31 0000101778 us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember mro:U.K.BusinessMember mro:InternationalExplorationAndProductionMember 2019-07-01 2019-07-31 0000101778 us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember mro:U.K.BusinessMember mro:InternationalExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:CrudeOilMember country:GB mro:InternationalExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:NaturalGasReservesMember mro:OtherInternationalMember mro:InternationalExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:CrudeOilMember country:GQ mro:InternationalExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 mro:InternationalExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 mro:MiscellaneousotherMember mro:InternationalExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:CrudeOilMember mro:OtherInternationalMember mro:InternationalExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:NaturalGasReservesMember country:GB mro:InternationalExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:NaturalGasLiquidsReservesMember mro:InternationalExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 country:GQ mro:InternationalExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 mro:MiscellaneousotherMember mro:OtherInternationalMember mro:InternationalExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 mro:MiscellaneousotherMember country:GQ mro:InternationalExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 mro:OtherInternationalMember mro:InternationalExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:NaturalGasLiquidsReservesMember country:GQ mro:InternationalExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:CrudeOilMember mro:InternationalExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:NaturalGasReservesMember country:GQ mro:InternationalExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:NaturalGasLiquidsReservesMember mro:OtherInternationalMember mro:InternationalExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 mro:MiscellaneousotherMember country:GB mro:InternationalExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 country:GB mro:InternationalExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:NaturalGasLiquidsReservesMember country:GB mro:InternationalExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:NaturalGasReservesMember mro:InternationalExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 mro:MiscellaneousotherMember stpr:OK mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 srt:NaturalGasLiquidsReservesMember mro:OtherU.S.Member mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 mro:NorthernDelawareMember mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 mro:MiscellaneousotherMember mro:EagleFordMember mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 srt:CrudeOilMember mro:NorthernDelawareMember mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 srt:CrudeOilMember mro:BakkenMember mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 mro:MiscellaneousotherMember mro:BakkenMember mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 srt:NaturalGasReservesMember mro:OtherU.S.Member mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 srt:NaturalGasReservesMember stpr:OK mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 srt:NaturalGasLiquidsReservesMember mro:NorthernDelawareMember mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 mro:BakkenMember mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 srt:NaturalGasReservesMember mro:EagleFordMember mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 srt:CrudeOilMember mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 srt:NaturalGasLiquidsReservesMember mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 mro:MiscellaneousotherMember mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 srt:NaturalGasLiquidsReservesMember stpr:OK mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 srt:NaturalGasLiquidsReservesMember mro:BakkenMember mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 srt:CrudeOilMember mro:OtherU.S.Member mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 srt:CrudeOilMember mro:EagleFordMember mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 srt:NaturalGasReservesMember mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 mro:OtherU.S.Member mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 stpr:OK mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 srt:NaturalGasReservesMember mro:NorthernDelawareMember mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 srt:CrudeOilMember stpr:OK mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 mro:MiscellaneousotherMember mro:NorthernDelawareMember mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 srt:NaturalGasLiquidsReservesMember mro:EagleFordMember mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 mro:EagleFordMember mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 srt:NaturalGasReservesMember mro:BakkenMember mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 mro:MiscellaneousotherMember mro:OtherU.S.Member mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 srt:CrudeOilMember stpr:OK mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:NaturalGasReservesMember mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 mro:MiscellaneousotherMember mro:BakkenMember mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:NaturalGasLiquidsReservesMember mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:NaturalGasReservesMember mro:EagleFordMember mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:NaturalGasLiquidsReservesMember mro:NorthernDelawareMember mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 mro:MiscellaneousotherMember mro:NorthernDelawareMember mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 mro:EagleFordMember mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 mro:BakkenMember mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:NaturalGasReservesMember stpr:OK mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 mro:MiscellaneousotherMember mro:OtherU.S.Member mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:CrudeOilMember mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:NaturalGasReservesMember mro:NorthernDelawareMember mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:NaturalGasReservesMember mro:BakkenMember mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:CrudeOilMember mro:BakkenMember mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 mro:MiscellaneousotherMember mro:EagleFordMember mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:CrudeOilMember mro:EagleFordMember mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:NaturalGasReservesMember mro:OtherU.S.Member mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 mro:MiscellaneousotherMember stpr:OK mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 mro:OtherU.S.Member mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:NaturalGasLiquidsReservesMember stpr:OK mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 mro:MiscellaneousotherMember mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:CrudeOilMember mro:NorthernDelawareMember mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:CrudeOilMember mro:OtherU.S.Member mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:NaturalGasLiquidsReservesMember mro:BakkenMember mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 mro:NorthernDelawareMember mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:NaturalGasLiquidsReservesMember mro:OtherU.S.Member mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:NaturalGasLiquidsReservesMember mro:EagleFordMember mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 stpr:OK mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 srt:CrudeOilMember country:GQ mro:InternationalExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 srt:NaturalGasLiquidsReservesMember country:GQ mro:InternationalExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 country:GQ mro:InternationalExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 srt:NaturalGasReservesMember country:GQ mro:InternationalExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 us-gaap:OperatingSegmentsMember mro:NorthAmericaExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 us-gaap:CorporateNonSegmentMember 2020-01-01 2020-03-31 0000101778 us-gaap:OperatingSegmentsMember mro:InternationalExplorationAndProductionMember 2020-01-01 2020-03-31 0000101778 us-gaap:OperatingSegmentsMember mro:NorthAmericaExplorationAndProductionMember 2020-03-31 0000101778 us-gaap:OperatingSegmentsMember mro:InternationalExplorationAndProductionMember 2020-03-31 0000101778 us-gaap:CorporateNonSegmentMember 2020-03-31 0000101778 us-gaap:OperatingSegmentsMember mro:InternationalExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 us-gaap:OperatingSegmentsMember mro:NorthAmericaExplorationAndProductionMember 2019-01-01 2019-03-31 0000101778 us-gaap:CorporateNonSegmentMember 2019-01-01 2019-03-31 0000101778 us-gaap:CorporateNonSegmentMember 2019-03-31 0000101778 us-gaap:OperatingSegmentsMember mro:NorthAmericaExplorationAndProductionMember 2019-03-31 0000101778 us-gaap:OperatingSegmentsMember mro:InternationalExplorationAndProductionMember 2019-03-31 0000101778 mro:CumulativeEffectPeriodofAdoptionAdjustmentMember 2019-12-31 0000101778 us-gaap:TradeAccountsReceivableMember 2019-01-01 2019-03-31 0000101778 mro:JointInterestBillingJIBReceivablesMember 2019-01-01 2019-03-31 0000101778 us-gaap:CorporateNonSegmentMember 2019-12-31 0000101778 us-gaap:OperatingSegmentsMember mro:NorthAmericaExplorationAndProductionMember 2019-12-31 0000101778 us-gaap:OperatingSegmentsMember mro:InternationalExplorationAndProductionMember 2019-12-31 0000101778 us-gaap:FairValueMeasurementsNonrecurringMember 2019-01-01 2019-03-31 0000101778 us-gaap:FairValueMeasurementsNonrecurringMember 2019-03-31 0000101778 us-gaap:FairValueMeasurementsNonrecurringMember 2020-01-01 2020-03-31 0000101778 us-gaap:FairValueMeasurementsNonrecurringMember 2020-03-31 0000101778 us-gaap:CommodityContractMember 2020-01-01 2020-03-31 0000101778 us-gaap:CommodityContractMember 2019-01-01 2019-03-31 0000101778 mro:InterestRateContractMaturingSeptember92026Member 2019-12-31 0000101778 mro:InterestRateContractMaturingNovember12022Member 2020-03-31 0000101778 mro:InterestRateContractMaturingSeptember92026Member 2020-03-31 0000101778 mro:InterestRateContractMaturingJune12025Member 2020-03-31 0000101778 mro:FixedRateSwapsCrudeOil2020Q3Member us-gaap:NondesignatedMember 2020-03-31 0000101778 mro:NYMEXRollBasisSwapsCrudeOil2021Member us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:ArgusWTIHoustonBasisSwapsCrudeOil2021Member us-gaap:NondesignatedMember 2020-03-31 0000101778 mro:FixedRateSwapsCrudeOil2021Member us-gaap:NondesignatedMember 2020-03-31 0000101778 mro:MidlandBasisSwapsCrudeOil2020Q4Member us-gaap:NondesignatedMember 2020-03-31 0000101778 mro:ThreeWayCollarsCrudeOil2020Q2SoldPutMember us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:ThreeWayCollarsCrudeOil2020Q4SoldPutMember us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:ArgusWTIHoustonBasisSwapsCrudeOil2021Member us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:ArgusWTIHoustonBasisSwapsCrudeOil2020Q2Member us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:BrentBasisSwapsCrudeOil2020Q4Member us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:ThreeWayCollarsCrudeOil2021Member us-gaap:NondesignatedMember 2020-03-31 0000101778 mro:ArgusWTIHoustonBasisSwapsCrudeOil2020Q4Member us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:ThreeWayCollarsCrudeOil2020Q3Member us-gaap:NondesignatedMember 2020-03-31 0000101778 mro:MidlandBasisSwapsCrudeOil2020Q3Member us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:FixedRateSwapsCrudeOil2020Q2Member us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:NYMEXRollBasisSwapsCrudeOil2020Q4Member us-gaap:NondesignatedMember 2020-03-31 0000101778 mro:NYMEXRollBasisSwapsCrudeOil2020Q2Member us-gaap:NondesignatedMember 2020-03-31 0000101778 mro:MidlandBasisSwapsCrudeOil2020Q2Member us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:NYMEXRollBasisSwapsCrudeOil2020Q2Member us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:BrentBasisSwapsCrudeOil2020Q3Member us-gaap:NondesignatedMember 2020-03-31 0000101778 mro:MidlandBasisSwapsCrudeOil2021Member us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:ArgusWTIHoustonBasisSwapsCrudeOil2020Q4Member us-gaap:NondesignatedMember 2020-03-31 0000101778 mro:ThreeWayCollarsCrudeOil2020Q4Member us-gaap:NondesignatedMember 2020-03-31 0000101778 mro:ThreeWayCollarsCrudeOil2020Q3SoldPutMember us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:NYMEXRollBasisSwapsCrudeOil2021Member us-gaap:NondesignatedMember 2020-03-31 0000101778 mro:MidlandBasisSwapsCrudeOil2020Q4Member us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:BrentBasisSwapsCrudeOil2020Q2Member us-gaap:NondesignatedMember 2020-03-31 0000101778 mro:FixedRateSwapsCrudeOil2020Q3Member us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:MidlandBasisSwapsCrudeOil2020Q3Member us-gaap:NondesignatedMember 2020-03-31 0000101778 mro:BrentBasisSwapsCrudeOil2020Q2Member us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:FixedRateSwapsCrudeOil2021Member us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:ThreeWayCollarsCrudeOil2021CeilingMember us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:NYMEXRollBasisSwapsCrudeOil2020Q3Member us-gaap:NondesignatedMember 2020-03-31 0000101778 mro:ThreeWayCollarsCrudeOil2021FloorMember us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:ArgusWTIHoustonBasisSwapsCrudeOil2020Q2Member us-gaap:NondesignatedMember 2020-03-31 0000101778 mro:ThreeWayCollarsCrudeOil2020Q4FloorMember us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:NYMEXRollBasisSwapsCrudeOil2020Q4Member us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:FixedRateSwapsCrudeOil2020Q2Member us-gaap:NondesignatedMember 2020-03-31 0000101778 mro:ThreeWayCollarsCrudeOil2020Q2FloorMember us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:ArgusWTIHoustonBasisSwapsCrudeOil2020Q3Member us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:ArgusWTIHoustonBasisSwapsCrudeOil2020Q3Member us-gaap:NondesignatedMember 2020-03-31 0000101778 mro:ThreeWayCollarsCrudeOil2020Q3CeilingMember us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:ThreeWayCollarsCrudeOil2020Q3FloorMember us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:ThreeWayCollarsCrudeOil2020Q2CeilingMember us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:BrentBasisSwapsCrudeOil2020Q4Member us-gaap:NondesignatedMember 2020-03-31 0000101778 mro:NYMEXRollBasisSwapsCrudeOil2020Q3Member us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:BrentBasisSwapsCrudeOil2020Q3Member us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:MidlandBasisSwapsCrudeOil2020Q2Member us-gaap:NondesignatedMember 2020-03-31 0000101778 mro:FixedRateSwapsCrudeOil2020Q4Member us-gaap:NondesignatedMember 2020-03-31 0000101778 mro:BrentBasisSwapsCrudeOil2021Member us-gaap:NondesignatedMember 2020-03-31 0000101778 mro:ThreeWayCollarsCrudeOil2020Q4CeilingMember us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:ThreeWayCollarsCrudeOil2020Q2Member us-gaap:NondesignatedMember 2020-03-31 0000101778 mro:MidlandBasisSwapsCrudeOil2021Member us-gaap:NondesignatedMember 2020-03-31 0000101778 mro:FixedRateSwapsCrudeOil2020Q4Member us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:ThreeWayCollarsCrudeOil2021SoldPutMember us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 mro:BrentBasisSwapsCrudeOil2021Member us-gaap:NondesignatedMember 2020-01-01 2020-03-31 0000101778 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember 2020-03-31 0000101778 mro:TwoWayCollarsCrudeOil2020Q2Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 0000101778 us-gaap:InterestRateContractMember 2020-01-01 2020-03-31 0000101778 us-gaap:InterestRateContractMember mro:NotesDue2025Member us-gaap:SubsequentEventMember 2020-05-04 0000101778 mro:TwoWayCollarsCrudeOil2020Q2CeilingMember us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-04-01 2020-05-04 0000101778 us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember 2019-12-31 0000101778 mro:TwoWayCollarsCrudeOil2020Q2FloorMember us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-04-01 2020-05-04 0000101778 us-gaap:InterestRateContractMember mro:NotesDue2022Member us-gaap:SubsequentEventMember 2020-05-04 0000101778 mro:TwoWayCollarsCrudeOil2020Q2AveragePriceMember us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-04-01 2020-05-04 0000101778 us-gaap:CashFlowHedgingMember 2020-03-31 0000101778 us-gaap:NondesignatedMember 2020-03-31 0000101778 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember 2020-03-31 0000101778 us-gaap:OtherCurrentAssetsMember us-gaap:CommodityContractMember us-gaap:NondesignatedMember 2020-03-31 0000101778 mro:TwoWayCollarsCrudeOil2020Q4FloorMember us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:FixedRateWTISwapsCrudeOil2021Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 0000101778 mro:ArgusWTIHoustonBasisSwapsCrudeOil2020Q4Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 0000101778 mro:ThreeWayCollarsCrudeOil2020Q4SoldPutMember us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:BrentBasisSwapsCrudeOil2020Q4Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 0000101778 mro:MidlandBasisSwapsCrudeOil2020Q2Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:NYMEXRollBasisSwapsCrudeOil2020Q2Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 0000101778 mro:TwoWayCollarsCrudeOil2020Q3CeilingMember us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:ThreeWayCollarsCrudeOil2020Q4FloorMember us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:MidlandBasisSwapsCrudeOil2021Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 0000101778 mro:ThreeWayCollarsCrudeOil2020Q2Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 0000101778 mro:ThreeWayCollarsCrudeOil2020Q4Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 0000101778 mro:ThreeWayCollarsCrudeOil2020Q3CeilingMember us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:BrentBasisSwapsCrudeOil2020Q4Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:BrentBasisSwapsCrudeOil2020Q2Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:MidlandBasisSwapsCrudeOil2020Q3Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:NYMEXRollBasisSwapsCrudeOil2020Q3Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:MidlandBasisSwapsCrudeOil2020Q3Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 0000101778 mro:ArgusWTIHoustonBasisSwapsCrudeOil2020Q3Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:MidlandBasisSwapsCrudeOil2020Q4Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:ThreeWayCollarsCrudeOil2020Q3SoldPutMember us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:ThreeWayCollarsCrudeOil2021Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 0000101778 mro:NYMEXRollBasisSwapsCrudeOil2021Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 0000101778 mro:BrentBasisSwapsCrudeOil2020Q2Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 0000101778 mro:ArgusWTIHoustonBasisSwapsCrudeOil2020Q2Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:FixedRateWTISwapsCrudeOil2020Q3Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:FixedRateWTISwapsCrudeOil2020Q3Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 0000101778 mro:TwoWayCollarsCrudeOil2021CeilingMember us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:NYMEXRollBasisSwapsCrudeOil2020Q3Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 0000101778 mro:BrentBasisSwapsCrudeOil2021Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 0000101778 mro:FixedRateWTISwapsCrudeOil2020Q2Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:NYMEXRollBasisSwapsCrudeOil2020Q4Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:ThreeWayCollarsCrudeOil2020Q4CeilingMember us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:ThreeWayCollarsCrudeOil2020Q3Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 0000101778 mro:NYMEXRollBasisSwapsCrudeOil2020Q2Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:NYMEXRollBasisSwapsCrudeOil2021Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:TwoWayCollarsCrudeOil2020Q4Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 0000101778 mro:ArgusWTIHoustonBasisSwapsCrudeOil2020Q4Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:TwoWayCollarsCrudeOil2020Q3FloorMember us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:TwoWayCollarsCrudeOil2021FloorMember us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:TwoWayCollarsCrudeOil2020Q3Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 0000101778 mro:ArgusWTIHoustonBasisSwapsCrudeOil2020Q2Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 0000101778 mro:ArgusWTIHoustonBasisSwapsCrudeOil2021Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 0000101778 mro:TwoWayCollarsCrudeOil2020Q2FloorMember us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:MidlandBasisSwapsCrudeOil2020Q4Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 0000101778 mro:MidlandBasisSwapsCrudeOil2021Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:BrentBasisSwapsCrudeOil2021Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:ThreeWayCollarsCrudeOil2020Q2CeilingMember us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:BrentBasisSwapsCrudeOil2020Q3Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 0000101778 mro:BrentBasisSwapsCrudeOil2020Q3Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:ThreeWayCollarsCrudeOil2021CeilingMember us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:FixedRateWTISwapsCrudeOil2020Q2Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 0000101778 mro:ThreeWayCollarsCrudeOil2020Q2SoldPutMember us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:ThreeWayCollarsCrudeOil2020Q2FloorMember us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:MidlandBasisSwapsCrudeOil2020Q2Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 0000101778 mro:ThreeWayCollarsCrudeOil2020Q3FloorMember us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:ArgusWTIHoustonBasisSwapsCrudeOil2020Q3Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 0000101778 mro:TwoWayCollarsCrudeOil2020Q2CeilingMember us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:FixedRateWTISwapsCrudeOil2020Q4Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:ThreeWayCollarsCrudeOil2021SoldPutMember us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:ArgusWTIHoustonBasisSwapsCrudeOil2021Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:NYMEXRollBasisSwapsCrudeOil2020Q4Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 0000101778 mro:TwoWayCollarsCrudeOil2020Q4CeilingMember us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:TwoWayCollarsCrudeOil2021Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 0000101778 mro:FixedRateWTISwapsCrudeOil2021Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:ThreeWayCollarsCrudeOil2021FloorMember us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 2020-05-04 0000101778 mro:FixedRateWTISwapsCrudeOil2020Q4Member us-gaap:NondesignatedMember us-gaap:SubsequentEventMember 2020-05-04 0000101778 us-gaap:OtherCurrentAssetsMember us-gaap:CommodityContractMember us-gaap:NondesignatedMember 2019-12-31 0000101778 us-gaap:NondesignatedMember 2019-12-31 0000101778 us-gaap:OtherCurrentLiabilitiesMember us-gaap:CommodityContractMember us-gaap:NondesignatedMember 2019-12-31 0000101778 us-gaap:CashFlowHedgingMember 2019-12-31 0000101778 us-gaap:OtherNoncurrentAssetsMember us-gaap:CommodityContractMember us-gaap:NondesignatedMember 2019-12-31 0000101778 us-gaap:OtherNoncurrentAssetsMember us-gaap:InterestRateContractMember us-gaap:CashFlowHedgingMember 2019-12-31 0000101778 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-12-31 0000101778 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-12-31 0000101778 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-03-31 0000101778 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-03-31 0000101778 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000101778 us-gaap:CommodityContractMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000101778 us-gaap:CommodityContractMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000101778 us-gaap:InterestRateContractMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000101778 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000101778 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000101778 us-gaap:CommodityContractMember us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000101778 us-gaap:InterestRateContractMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000101778 us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000101778 us-gaap:CommodityContractMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000101778 us-gaap:InterestRateContractMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000101778 us-gaap:InterestRateContractMember us-gaap:FairValueMeasurementsRecurringMember 2020-03-31 0000101778 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000101778 us-gaap:CommodityContractMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000101778 us-gaap:CommodityContractMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000101778 us-gaap:CommodityContractMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000101778 us-gaap:InterestRateContractMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000101778 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000101778 us-gaap:InterestRateContractMember us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000101778 us-gaap:CommodityContractMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000101778 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000101778 us-gaap:InterestRateContractMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000101778 us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000101778 us-gaap:InterestRateContractMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-12-31 0000101778 us-gaap:RevolvingCreditFacilityMember 2020-03-31 0000101778 us-gaap:RevolvingCreditFacilityMember 2020-03-31 0000101778 mro:SeniorUnsecuredNoteDue2022Member 2020-03-31 0000101778 mro:ShareRepurchaseProgramMember 2020-03-31 0000101778 mro:ShareRepurchaseProgramMember 2020-01-01 2020-03-31 0000101778 mro:PerformanceUnitMember 2020-03-31 0000101778 mro:GrantedOfficerMember mro:PerformanceUnitMember 2020-01-01 2020-03-31 0000101778 mro:RestrictedStockAwardsAndRestrictedStockUnitsMember 2020-01-01 2020-03-31 0000101778 mro:RestrictedStockAwardsAndRestrictedStockUnitsMember 2020-03-31 0000101778 mro:RestrictedStockAwardsAndRestrictedStockUnitsMember 2019-12-31 0000101778 us-gaap:FundedPlanMember 2020-01-01 2020-03-31 0000101778 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2020-01-01 2020-03-31 0000101778 us-gaap:UnfundedPlanMember 2020-01-01 2020-03-31 0000101778 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2019-01-01 2019-03-31 0000101778 us-gaap:PensionPlansDefinedBenefitMember 2020-01-01 2020-03-31 0000101778 us-gaap:PensionPlansDefinedBenefitMember 2019-01-01 2019-03-31 0000101778 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember mro:AccumulatedDefinedBenefitPlanAdjustmentNetGainLossDueToSettlementAttributableToParentMember 2019-01-01 2019-03-31 0000101778 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2020-01-01 2020-03-31 0000101778 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2019-01-01 2019-03-31 0000101778 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-01-01 2019-03-31 0000101778 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember mro:AccumulatedDefinedBenefitPlanAdjustmentNetGainLossDueToSettlementAttributableToParentMember 2020-01-01 2020-03-31 0000101778 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2019-01-01 2019-03-31 0000101778 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-01-01 2020-03-31 0000101778 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2020-01-01 2020-03-31 0000101778 mro:EgHoldingsMember 2019-12-31 0000101778 mro:AmpcoMember 2020-03-31 0000101778 mro:AlbaPlantLlcMember 2019-12-31 0000101778 mro:AmpcoMember 2019-12-31 0000101778 mro:AlbaPlantLlcMember 2020-03-31 0000101778 mro:EgHoldingsMember 2020-03-31 0000101778 mro:PerformanceofAlbaPlantLLC.Member 2020-03-31 0000101778 mro:PerformanceofEquatorialGuineaLNGOperationsS.A.Member 2020-03-31 iso4217:USD xbrli:pure mro:segment iso4217:USD utreg:bbl xbrli:shares iso4217:USD xbrli:shares mro:Bbls_per_day utreg:Rate


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
FORM 10-Q
(Mark One)
 
 
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
For the Quarterly Period Ended
March 31, 2020
 
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
For the transition period from _____ to _____
 
Commission file number 1-1513
Marathon Oil Corporation
(Exact name of registrant as specified in its charter)
Delaware
 
25-0996816
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)
5555 San Felipe Street, Houston, Texas  
77056-2723
(Address of principal executive offices)
(713) 629-6600
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading Symbol
 
Name of each exchange on which registered
Common Stock, par value $1.00
 
MRO
 
New York Stock Exchange
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.       Yes þ No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes þ No o
 Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer
þ
Accelerated filer
o  
Non-accelerated filer
o   
 
 
Smaller reporting company
Emerging growth company

 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o    
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes No þ
 
There were 790,312,454 shares of Marathon Oil Corporation common stock outstanding as of April 30, 2020.




MARATHON OIL CORPORATION
 
Unless the context otherwise indicates, references to “Marathon Oil,” “we,” “our,” or “us” in this Form 10-Q are references to Marathon Oil Corporation, including its wholly owned and majority-owned subsidiaries, and its ownership interests in equity method investees (corporate entities, partnerships, limited liability companies and other ventures over which Marathon Oil exerts significant influence by virtue of its ownership interest).
For certain industry specific terms used in this Form 10-Q, please see “Definitions” in our 2019 Annual Report on Form 10-K.

 
Table of Contents
 
 
 
Page
 
 
 
 
 
 
 
 
 
 
 


1



Part I – FINANCIAL INFORMATION
Item 1. Financial Statements

MARATHON OIL CORPORATION
Consolidated Statements of Income (Unaudited)
 
Three Months Ended
 
 
March 31,
 
(In millions, except per share data)
2020
 
2019
 
Revenues and other income:
 
 
 
 
Revenues from contracts with customers
$
1,024

 
$
1,200

 
Net gain (loss) on commodity derivatives
202

 
(91
)
 
Income (loss) from equity method investments
(12
)
 
11

 
Net gain on disposal of assets
9

 
42

 
Other income
7

 
35

 
Total revenues and other income
1,230

 
1,197

 
Costs and expenses:
 

 
 

 
Production
160

 
187

 
Shipping, handling and other operating
144

 
154

 
Exploration
28

 
59

 
Depreciation, depletion and amortization
644

 
554

 
Impairments
97

 
6

 
Taxes other than income
66

 
72

 
General and administrative
76

 
94

 
Total costs and expenses
1,215

 
1,126

 
Income from operations
15

 
71

 
Net interest and other
(64
)
 
(49
)
 
Other net periodic benefit costs

 
5

 
Income (loss) before income taxes
(49
)
 
27

 
Benefit for income taxes
(3
)
 
(147
)
 
Net income (loss)
$
(46
)
 
$
174

 
Net income (loss) per share:
 

 
 

 
Basic
$
(0.06
)
 
$
0.21

 
Diluted
$
(0.06
)
 
$
0.21

 
Weighted average common shares outstanding:
 

 
 

 
Basic
794

 
819

 
Diluted
794

 
820

 
 The accompanying notes are an integral part of these consolidated financial statements.

2



MARATHON OIL CORPORATION
Consolidated Statements of Comprehensive Income (Unaudited)
 
Three Months Ended
 
 
March 31,
 
(In millions)
2020
 
2019
 
Net income (loss)
$
(46
)
 
$
174

 
Other comprehensive income (loss), net of tax
 
 
 

 
Change in actuarial (loss) for postretirement and postemployment plans

 
(4
)
 
Change in derivative hedges unrecognized loss
(22
)
 

 
Other comprehensive loss
(22
)
 
(4
)
 
Comprehensive income (loss)
$
(68
)

$
170


 The accompanying notes are an integral part of these consolidated financial statements.


3




MARATHON OIL CORPORATION
Consolidated Balance Sheets (Unaudited)
 
March 31,
 
December 31,
(In millions, except par value and share amounts)
2020
 
2019
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
817

 
$
858

Receivables, less reserve of $30 and $11
703

 
1,122

Inventories
78

 
72

Derivative assets
193

 
9

Other current assets
118

 
74

Total current assets
1,909

 
2,135

Equity method investments
628

 
663

Property, plant and equipment, less accumulated depreciation, depletion and amortization of $18,641 and $18,003
16,903

 
17,000

Goodwill

 
95

Other noncurrent assets
275

 
352

Total assets
$
19,715

 
$
20,245

Liabilities
 

 
 

Current liabilities:
 

 
 

Accounts payable
$
1,104

 
$
1,307

Payroll and benefits payable
68

 
112

Accrued taxes
72

 
118

Other current liabilities
198

 
208

Total current liabilities
1,442

 
1,745

Long-term debt
5,502

 
5,501

Deferred tax liabilities
185

 
186

Defined benefit postretirement plan obligations
172

 
183

Asset retirement obligations
236

 
243

Deferred credits and other liabilities
220

 
234

Total liabilities
7,757

 
8,092

Commitments and contingencies


 


Stockholders’ Equity
 

 
 

Preferred stock - no shares issued or outstanding (no par value, 26 million shares authorized)
$

 
$

Common stock:
 

 
 

Issued – 937 million shares (par value $1 per share, 1.925 billion shares authorized at March 31, 2020 and December 31, 2019)
937

 
937

Held in treasury, at cost – 146 million shares and 141 million shares
(4,059
)
 
(4,089
)
Additional paid-in capital
7,102

 
7,207

Retained earnings
7,895

 
7,993

Accumulated other comprehensive income
83

 
105

Total stockholders’ equity
11,958

 
12,153

Total liabilities and stockholders’ equity
$
19,715

 
$
20,245

 The accompanying notes are an integral part of these consolidated financial statements.

4



MARATHON OIL CORPORATION
Consolidated Statements of Cash Flows (Unaudited)
 
Three Months Ended
 
March 31,
(In millions)
2020
 
2019
Increase (decrease) in cash and cash equivalents
 
 
 
Operating activities:
 

 
 

Net income (loss)
$
(46
)
 
$
174

Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 

 
 

Depreciation, depletion and amortization
644

 
554

Impairments
97

 
6

Exploratory dry well costs and unproved property impairments
22

 
49

Net gain on disposal of assets
(9
)
 
(42
)
Deferred income taxes
(1
)
 
(31
)
Net (gain) loss on derivative instruments
(202
)
 
91

Net settlements of derivative instruments
31

 
22

Pension and other post retirement benefits, net
(11
)
 
(25
)
Stock-based compensation
15

 
14

Equity method investments, net
28

 
14

Changes in:
 
 
 

Current receivables
407

 
(73
)
Inventories
(6
)
 
4

Current accounts payable and accrued liabilities
(234
)
 
(102
)
Other current assets and liabilities
(16
)
 
14

All other operating, net
(18
)
 
(154
)
Net cash provided by operating activities
701

 
515

Investing activities:
 

 
 

Additions to property, plant and equipment
(620
)
 
(615
)
Additions to other assets
(1
)
 
14

Disposal of assets, net of cash transferred to the buyer
3

 
13

Equity method investments - return of capital
7

 
12

All other investing, net

 
12

Net cash used in investing activities
(611
)
 
(564
)
Financing activities:
 

 
 

Purchases of common stock
(92
)
 
(30
)
Dividends paid
(40
)
 
(41
)
All other financing, net
1

 
(1
)
Net cash used in financing activities
(131
)
 
(72
)
Effect of exchange rate on cash and cash equivalents

 
1

Net decrease in cash and cash equivalents
(41
)
 
(120
)
Cash and cash equivalents at beginning of period
858

 
1,462

Cash and cash equivalents at end of period
$
817

 
$
1,342

Reconciliation of cash and cash equivalents
 
 
 
Cash and cash equivalents
$
817

 
$
1,019

Cash and cash equivalents included in current assets held for sale

 
323

Total cash and cash equivalents
$
817

 
$
1,342

The accompanying notes are an integral part of these consolidated financial statements.

5



MARATHON OIL CORPORATION
Consolidated Statements of Stockholders’ Equity (Unaudited)

 
 
Total Equity of Marathon Oil Stockholders
(In millions)
 
Preferred
Stock
 
Common
Stock
 
Treasury
Stock
 
Additional
Paid-in
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Total
Equity
Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018 Balance
 
$

 
$
937

 
$
(3,816
)
 
$
7,238

 
$
7,706

 
$
63

 
12,128

Cumulative-effect adjustment
 

 

 

 

 
(31
)
 

 
(31
)
Shares issued - stock-based compensation
 

 

 
101

 
(39
)
 

 

 
62

Shares repurchased
 

 

 
(30
)
 

 

 

 
(30
)
Stock-based compensation
 

 

 

 
(50
)
 

 

 
(50
)
Net income
 

 

 

 

 
174

 

 
174

Other comprehensive income (loss)
 

 

 

 

 

 
(4
)
 
(4
)
Dividends paid (per share amount of $0.05)
 

 

 

 

 
(41
)
 

 
(41
)
March 31, 2019 Balance
 
$

 
$
937

 
$
(3,745
)
 
$
7,149

 
$
7,808

 
$
59

 
$
12,208

Three Months Ended March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2019 Balance
 
$

 
$
937

 
$
(4,089
)
 
$
7,207

 
$
7,993

 
$
105

 
12,153

Cumulative-effect adjustment (Note 2)
 

 

 

 

 
(12
)
 

 
(12
)
Shares issued - stock based compensation
 

 

 
121

 
(83
)
 

 

 
38

Shares repurchased
 

 

 
(91
)
 

 

 

 
(91
)
Stock-based compensation
 

 

 

 
(22
)
 

 

 
(22
)
Net income (loss)
 

 

 

 

 
(46
)
 

 
(46
)
Other comprehensive income (loss)
 

 

 

 

 

 
(22
)
 
(22
)
Dividends paid (per share amount of $0.05)
 

 

 

 

 
(40
)
 

 
(40
)
March 31, 2020 Balance
 
$

 
$
937

 
$
(4,059
)
 
$
7,102

 
$
7,895

 
$
83

 
$
11,958

The accompanying notes are an integral part of these consolidated financial statements.





6

MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)


1.
Basis of Presentation
These consolidated financial statements are unaudited; however, in the opinion of management, these statements reflect all adjustments necessary for a fair statement of the results for the periods reported. All such adjustments are of a normal recurring nature unless disclosed otherwise. These consolidated financial statements, including notes, have been prepared in accordance with the applicable rules of the SEC and do not include all of the information and disclosures required by U.S. GAAP for complete financial statements.
These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2019 Annual Report on Form 10-K. The results of operations for the first quarter of 2020 are not necessarily indicative of the results to be expected for the full year.
2.    Accounting Standards
Recently Adopted
Financial instruments – credit losses    
In June 2016, the FASB issued a new accounting standards update that changes the impairment model for trade receivables, net investments in leases, debt securities, loans and certain other instruments. On January 1, 2020 we adopted this standard using the modified retrospective transition method through a cumulative-effect adjustment of $12 million to retained earnings as of the beginning of the adoption period. The standard requires the use of a forward-looking “expected loss” model as opposed to the “incurred loss” model used previously. See Note 8 for more information on credit losses.
3.    Income (loss) and Dividends per Common Share
Basic income (loss) per share is based on the weighted average number of common shares outstanding. Diluted income (loss) per share assumes exercise of stock options in all periods, provided the effect is not antidilutive. The per share calculations below exclude 6 million and 5 million of stock options for the three months ended March 31, 2020 and 2019 that were antidilutive.
 
Three Months Ended March 31,
 
(In millions, except per share data)
2020
 
2019
 
Net income (loss)
$
(46
)
 
$
174

 
 
 
 
 
 
Weighted average common shares outstanding
794

 
819

 
Effect of dilutive securities

 
1

 
Weighted average common shares, diluted
794

 
820

 
Net income (loss) per share:
 
 
 
 
Basic
$
(0.06
)
 
$
0.21

 
Diluted
$
(0.06
)
 
$
0.21

 
 
 
 
 
 
Dividends per share
$
0.05

 
$
0.05

 

4.    Dispositions
International Segment
In the first quarter of 2019, we entered into an agreement to sell our U.K. business (Marathon Oil U.K. LLC and Marathon Oil West of Shetlands Limited). This transaction closed on July 1, 2019 for proceeds of $95 million which reflects the assumption by RockRose Energy PLC (“RockRose”) of the U.K. business’ cash equivalent balance and working capital balance as of year-end 2018. Our income before taxes relating to our U.K. business for the three months ended March 31, 2019, was $10 million.


7

MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)

5.    Revenues
The majority of our revenues are derived from the sale of crude oil and condensate, NGLs and natural gas under spot and term agreements with our customers in the United States and various international locations.
As of March 31, 2020 and December 31, 2019, receivables from contracts with customers, included in receivables, less reserves were $477 million and $837 million, respectively.
The following tables present our revenues from contracts with customers disaggregated by product type and geographic areas for the three months ended March 31 as follows:
United States
 
March 31, 2020
(In millions)
Eagle Ford
 
Bakken
 
Oklahoma
 
Northern Delaware
 
Other U.S.
 
Total
Crude oil and condensate
$
307

 
$
330

 
$
84

 
$
74

 
$
33

 
$
828

Natural gas liquids
16

 
10

 
21

 
3

 
2

 
52

Natural gas
23

 
8

 
29

 
3

 
3

 
66

Other
2

 

 

 

 
22

 
24

Revenues from contracts with customers
$
348

 
$
348

 
$
134

 
$
80

 
$
60

 
$
970

 
March 31, 2019
(In millions)
Eagle Ford
 
Bakken
 
Oklahoma
 
Northern Delaware
 
Other U.S.
 
Total
Crude oil and condensate
$
318

 
$
372

 
$
77

 
$
64

 
$
28

 
$
859

Natural gas liquids
35

 
10

 
22

 
8

 
2

 
77

Natural gas
34

 
12

 
45

 
6

 
6

 
103

Other
2

 

 

 

 
21

 
23

Revenues from contracts with customers
$
389

 
$
394

 
$
144

 
$
78

 
$
57

 
$
1,062

International
 
March 31, 2020
(In millions)
E.G.
 
Crude oil and condensate
$
45

 
Natural gas liquids
1

 
Natural gas
8

 
Revenues from contracts with customers
$
54

 

 
March 31, 2019
(In millions)
E.G.
 
U.K.
 
Other Int’l
 
Total
Crude oil and condensate
$
47

 
$
56

 
$
10

 
$
113

Natural gas liquids
1

 
1

 

 
2

Natural gas
7

 
8

 

 
15

Other

 
8

 

 
8

Revenues from contracts with customers
$
55

 
$
73

 
$
10

 
$
138



8

MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)

6.    Segment Information
We have two reportable operating segments. Both of these segments are organized and managed based upon geographic location and the nature of the products and services offered.
United States (“U.S.”) – explores for, produces and markets crude oil and condensate, NGLs and natural gas in the United States
International (“Int’l”) – explores for, produces and markets crude oil and condensate, NGLs and natural gas outside of the United States as well as produces and markets products manufactured from natural gas, such as LNG and methanol, in Equatorial Guinea (“E.G.”)
Segment income represents income which excludes certain items not allocated to our operating segments, net of income taxes. A portion of our corporate and operations general and administrative support costs are not allocated to the operating segments. These unallocated costs primarily consist of employment costs (including pension effects), professional services, facilities and other costs associated with corporate and operations support activities. Additionally, items which affect comparability such as: gains or losses on dispositions, certain property and goodwill impairments, unrealized gains or losses on commodity derivative instruments, pension settlement losses or other items (as determined by the chief operating decision maker (“CODM”)) are not allocated to operating segments.
 
Three Months Ended March 31, 2020
(In millions)
U.S.
 
Int’l
 
Not Allocated to Segments
 
Total
Revenues from contracts with customers
$
970

 
$
54

 
$

 
$
1,024

Net gain (loss) on commodity derivatives
31

 

 
171

(b) 
202

Income (loss) from equity method investments

 
(12
)
 

 
(12
)
Net gain on disposal of assets

 

 
9

 
9

Other income
4

 
2

 
1

 
7

Less costs and expenses:
 
 
 
 
 
 
 
Production
143

 
17

 

 
160

Shipping, handling and other operating
140

 
3

 
1

 
144

Exploration
28

 

 

 
28

Depreciation, depletion and amortization
617

 
21

 
6

 
644

Impairments

 

 
97

(c) 
97

Taxes other than income
66

 

 

 
66

General and administrative
32

 
4

 
40

 
76

Net interest and other

 

 
64

 
64

Other net periodic benefit costs

 

 

 

Income tax benefit
(1
)
 

 
(2
)
 
(3
)
Segment loss
$
(20
)
 
$
(1
)
 
$
(25
)
 
$
(46
)
Total assets
$
17,453

 
$
1,405

 
$
857

 
$
19,715

Capital expenditures(a)
$
561

 
$

 
$
7

 
$
568

(a) 
Includes accruals.
(b) 
Unrealized gain on commodity derivative instruments (See Note 15).
(c) 
Includes the full impairment of the International reporting unit goodwill of $95 million (See Note 14).


9

MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)

 
Three Months Ended March 31, 2019
(In millions)
U.S.
 
Int’l
 
Not Allocated to Segments
 
Total
Revenues from contracts with customers
$
1,062

 
$
138

 
$

 
$
1,200

Net gain (loss) on commodity derivatives
22

 

 
(113
)
(b) 
(91
)
Income from equity method investments

 
11

 

 
11

Net gain on disposal of assets

 

 
42

(c) 
42

Other income
1

 
3

 
31

(d) 
35

Less costs and expenses:
 
 
 
 
 
 
 
Production
139

 
50

 
(2
)
 
187

Shipping, handling and other operating
140

 
13

 
1

 
154

Exploration
59

 

 

 
59

Depreciation, depletion and amortization
514

 
34

 
6

 
554

Impairments

 

 
6

(e) 
6

Taxes other than income
74

 

 
(2
)
 
72

General and administrative
29

 
7

 
58

 
94

Net interest and other

 

 
49

 
49

Other net periodic benefit costs

 
(2
)
 
(3
)
 
(5
)
Income tax benefit
(2
)
 
(11
)
 
(134
)
(f) 
(147
)
Segment income (loss)
$
132

 
$
61

 
$
(19
)
 
$
174

Total assets
$
17,503

 
$
2,668

 
$
1,239

 
$
21,410

Capital expenditures(a)
$
606

 
$
5

 
$
3

 
$
614


(a) 
Includes accruals.
(b) 
Unrealized loss on commodity derivative instruments (See Note 15).
(c) 
Primarily related to the sale of our working interest in the Droshky field (Gulf of Mexico), which closed during the first quarter of 2019.
(d) 
Primarily related to the indemnification of certain tax liabilities in connection with the 2010-2011 Federal Tax Audit with the IRS (See Note 7).
(e) 
Due to the anticipated sale of non-operated interest in the Atrush block in Kurdistan (See Note 11).
(f) 
Primarily relates to the settlement of the 2010-2011 Federal Tax Audit (See Note 7).











10

MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)

7.    Income Taxes
Effective Tax Rate
The effective income tax rate is influenced by a variety of factors including the geographic and functional sources of income and the relative magnitude of these sources of income. The difference between the total provision and the sum of the amounts allocated to segments is reported in the “Not Allocated to Segments” column of the tables in Note 6.
For the three months ended March 31, 2020 and 2019, our effective income tax rates were as follows:
 
Three Months Ended March 31,
 
 
2020
 
2019
 
Effective income tax rate(a)
6
%
 
(544
)%
 

(a) 
In all periods presented, we maintained our valuation allowance on our net federal deferred tax assets in the U.S.
The following items caused the effective income tax rates to be different from our U.S. statutory tax rate of 21% for 2020 and 2019:
Income taxes for the first quarter of 2020 were impacted by the income mix within E.G. between equity method investees and subsidiaries, which reduces the annual effective tax rate below the statutory tax rate.
Income taxes for the three months ended March 31, 2019 were impacted by the settlement of the 2010-2011 U.S. Federal Tax Audit (“IRS Audit”) in the first quarter of 2019, resulting in a tax benefit of $126 million. Additionally, in the first quarter of 2019, we recorded a non-cash deferred tax benefit of $18 million in the U.K. related to an internal restructuring. These two items are discrete to the first quarter of 2019. Excluding these discrete adjustments, the effective income tax rate for the first quarter of 2019 was an expense of 8%.
On March 27, 2020, the U.S. enacted the Coronavirus Aid, Relief, and Economic Security Act, commonly referred to as the CARES Act.  This legislation included certain provisions which accelerate income tax refunds, and as a result, in the first quarter of 2020, long term receivable balances related to alternative minimum tax credits have been reclassified as short term. We expect to receive cash tax refunds of $86 million related to alternative minimum tax credits in 2020.
8.    Credit Losses
The majority of our receivables are from purchasers of commodities or joint interest owners in properties we operate, both of which are recorded at estimated or invoiced amounts and do not bear interest. The majority of these receivables have payment terms of 30 days or less. At the end of each reporting period, we assess the collectability of our receivables and estimate the expected credit losses using historical data, current market conditions and reasonable and supportable forecasts of future economic conditions.
We are exposed to credit losses through the receivables generated from sales of crude oil, NGLs and natural gas to our customers. When dealing with the commodity purchasers, we conduct a credit review to assess each counterparty’s ability to pay. The credit review considers our expected billing exposure, timing for payment and the counterparty’s established credit rating with the rating agencies or our internal assessment of the counterparty’s creditworthiness based on our analysis of their financial statements. Our evaluation also considers contract terms and other factors, such as country and/or political risk. A credit limit is established for each counterparty based on the outcome of this review. We may require a bank letter of credit or a prepayment to mitigate credit risk. We monitor our ongoing credit exposure through active review of counterparty balances against contract terms and due dates. The expected credit losses related to receivables with the commodity purchasers were determined using the weighted average probability of default method. We also collect revenues from our non-operated joint properties where other oil and gas exploration and production companies operate the properties and market our share of production and remit payments to us. The current expected credit losses related to these receivables were determined using the loss rate method applied to aging pools.
We are exposed to credit losses from joint interest billings to other joint interest owners for properties we operate. For this group of receivables, the expected credit losses are determined using the loss rate method applied to aging pools. Our counterparties in this group include numerous large, mid-size and small oil and gas exploration and production companies. Although we may have the ability to withhold future revenue disbursements to recover any non-payment of joint interest billings or require a prepayment of future costs through cash calls, our credit loss exposure with this group is more significant due to inherent ownership or billing adjustments. Also, some of our counterparties may experience liquidity problems and may

11

MARATHON OIL CORPORATION
Notes to Consolidated Financial Statements (Unaudited)

not be able to meet their financial obligations to us. We expect that liquidity problems will increase in the future as a result of the recent demand and pricing decline for hydrocarbons. Our current-period provision reflects the anticipated effects caused by the recent market deterioration.
Changes in the allowance for doubtful accounts balance for the three months ended were as follows:    
 
March 31,
(In millions)
2020
Beginning balance
$
11

Cumulative-effect adjustment
12