Marathon Oil Corporation (NYSE: MRO) reported robust third-quarter 2024 results, beating Wall Street's earnings estimates as higher production and resilient oil demand boosted the company's financial performance.

For the quarter ended September 30, 2024, the Houston-based oil and gas producer reported adjusted earnings of $0.64 per diluted share, surpassing the consensus estimate of $0.63 per share. Revenues for the quarter stood at $1.74 billion, down 4% year-over-year but exceeding analysts' expectations of $1.72 billion.

The strong performance was driven by a significant increase in Marathon Oil's total production, which rose to 421,000 barrels of oil equivalent per day (boed) in the third quarter, up from 393,000 boed in the previous quarter. This growth was fueled by strong new well productivity and ongoing drilling and completion efficiency gains across the company's operations.

Encouraged by the robust operational performance, Marathon Oil raised its full-year 2024 production guidance to 393,000 boed from the prior midpoint of 390,000 boed. Notably, the company achieved this upward revision without increasing its original capital spending guidance range for the year.

Marathon Oil's third-quarter results were further bolstered by resilient oil and gas prices. The company realized an average selling price of $73.92 per barrel for crude oil and condensate in the United States, while its natural gas fetched an average price of $1.45 per thousand cubic feet (mcf). Internationally, Marathon Oil's Alba LNG sales achieved a realized price of $10.76 per mcf, benefiting from the uplift in value from global LNG pricing.

The company's strong cash flow generation during the quarter enabled it to return $61 million to shareholders through its base dividend. Marathon Oil also reduced its gross debt by $545 million sequentially and increased its cash and cash equivalents by $57 million.