Marathon Oil (MRO)

Risks

• A substantial decline in crude oil and condensate, NGLs and natural gas prices would reduce our operating results and cash flows and could adversely impact the carrying value of our assets.
• Estimates of crude oil and condensate, NGLs and natural gas reserves depend on many factors and assumptions, including various assumptions that are based on conditions in existence as of the dates of the estimates. Any material changes in those conditions or other factors affecting those assumptions could impair the quantity and value of our reserves.
• Our operations may be adversely affected by pipeline, rail and other transportation capacity constraints.
• If we acquire crude oil and natural gas properties, our failure to fully identify existing and potential problems, including title problems, to accurately estimate reserves, production rates or costs, or to effectively integrate the acquired properties into our operations could materially and adversely affect our business, financial condition and results of operations.
• Our operations may be affected by Native American treaty, title and other rights or claims.
• Future exploration and drilling results are uncertain and involve substantial costs.
• We operate in a highly competitive industry, and many of our competitors are larger and have available resources in excess of our own.
• We are subject to various climate-related risks, including risks related to the transition to a lower-carbon economy and physical risks resulting from climate change.
• Our offshore operations involve special risks that could negatively impact us.
• If we are unsuccessful in acquiring or finding additional reserves, our future crude oil and condensate, NGLs and natural gas production would decline, thereby reducing our cash flows and results of operations and impairing our financial condition.
• If crude oil and condensate, NGLs and natural gas prices decrease, it could adversely affect the abilities of our counterparties to perform their obligations to us, which could negatively impact our financial results.
• If we are unable to complete capital projects at their expected costs and in a timely manner, or if the market conditions assumed in our project economics deteriorate, our business, financial condition, results of operations and cash flows could be materially and adversely affected.
• Our level of indebtedness may limit our liquidity and financial flexibility.
• Difficulty in accessing capital or a significant increase in our costs of accessing capital could adversely affect our business.
• Our commodity price risk management activities may prevent us from fully benefiting from commodity price increases and may expose us to other risks, including counterparty risk.
• Many of our major projects and operations are conducted jointly with other parties, which may decrease our ability to manage risk.
• We may incur substantial capital expenditures and operating costs, and our production could be adversely affected, as a result of compliance with and changes in law, regulations or requirements or initiatives, including those addressing environmental, health, safety or security or the impact of global climate change, air emissions or water management, and, as a result, our business, financial condition, results of operations and cash flows could be materially and adversely affected.
• The potential adoption of federal, state and local legislative and regulatory initiatives related to hydraulic fracturing could result in increased compliance costs, operating restrictions or delays in the completion of oil and gas wells.
• The potential adoption of federal, state and local legislative and regulatory initiatives intended to address potential induced seismic activity in the areas in which we operate could result in increased compliance costs, operating restrictions or delays in the completion of oil and gas wells.
• Political and economic developments, possible terrorist activities and changes in law or policy in the U.S. or global markets could adversely affect our operations and materially reduce our profitability and cash flows.
• Our business, financial conditions and results of operations have been adversely affected and may continue to be adversely affected by the ongoing COVID-19 global pandemic.
• Mandatory COVID-19 vaccination of employees could impact our workforce and lead to labor disruptions, which could have a material adverse effect on our business and results of operations.
• Our business could be negatively impacted by cyberattacks targeting our computer and telecommunications systems and infrastructure, or targeting those of our third-party service providers.
• Our business may be materially adversely affected by negative publicity.
• Our operations are subject to business interruptions and casualty losses. We do not insure against all potential losses and therefore we could be seriously harmed by unexpected liabilities and increased costs.
• Litigation by private plaintiffs or government officials or entities could adversely affect our performance.