Analyst Note
| Dave Meats, CFA |Marathon Oil increased its 2022 capital expenditure guidance to $1.3 billion from $1.2 billion. The original budget incorporated 10%-15% inflation, based on $80/barrel West Texas Intermediate, but higher incremental costs based on a tighter supply chain resulted in the $100 million bump. Management stressed that while a chunk of the increase was a result of commodity inflation (fuel and chemical costs), a majority of the remaining 2022 pressure pumping and rig time expenditures were accounted for.