Analysis of Debt
Total Debt (Carrying Amount)
Marathon Oil Corp., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
Between 2017 and 2021, total long-term debt and finance lease liabilities exhibited a period of stability followed by a significant reduction. From 2017 through 2019, the carrying amount remained nearly constant, fluctuating minimally around the $5.5 billion mark. A downward trend emerged in 2020 and accelerated sharply in 2021, resulting in a total liability of $4.044 billion by the end of the period.
- Debt Stability Period (2017-2019)
- The total carrying amount of long-term debt and finance lease liabilities showed negligible volatility over the first three years of the analysis. The balance increased marginally from $5,494 million in 2017 to $5,501 million in 2019, indicating a consistent level of leverage during this timeframe.
- Deleveraging Trend (2020-2021)
- A notable shift in the debt profile occurred starting in 2020, with total liabilities decreasing to $5,404 million. This trend intensified in 2021, where the total carrying amount dropped to $4,044 million. This represents a reduction of approximately 25.2% in total long-term debt and finance lease liabilities between 2020 and 2021.
- Liability Composition as of December 31, 2021
- By the end of 2021, the debt structure was primarily dominated by long-term debt excluding the current portion, which accounted for $3,978 million. Other components, including long-term debt due within one year ($36 million), long-term finance lease liabilities excluding the current portion ($24 million), and the current portion of finance lease liabilities ($6 million), constituted a minimal fraction of the total carrying amount.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Total Debt (Fair Value)
| Dec 31, 2021 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Long-term debt, including current portion | 4,705) |
| Long-term finance lease liability, including current portion | 30) |
| Total long-term debt and finance lease liability, including current portion (fair value) | 4,735) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 1.17 |
Based on: 10-K (reporting date: 2021-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 4.89%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 9.38% | 32) | 3) | |
| 8.50% | 70) | 6) | |
| 8.13% | 131) | 11) | |
| 4.40% | 1,000) | 44) | |
| 6.80% | 550) | 37) | |
| 6.60% | 750) | 50) | |
| 5.20% | 500) | 26) | |
| 2.00% | 200) | 4) | |
| 2.10% | 200) | 4) | |
| 2.20% | 200) | 4) | |
| 2.13% | 200) | 4) | |
| 2.38% | 200) | 5) | |
| 2.00% | 30) | 1) | |
| Total | 4,063) | 199) | |
| 4.89% | |||
Based on: 10-K (reporting date: 2021-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 199 ÷ 4,063 = 4.89%