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USX-MARATHON GROUP ANNOUNCES FIRST QUARTER FINANCIAL RESULTS

 USX-MARATHON GROUP ANNOUNCES FIRST QUARTER FINANCIAL RESULTS
 PITTSBURGH, April 28 /PRNewswire/ -- USX Corporation Board Chairman Charles A. Corry today announced first quarter 1992 net income for the USX-Marathon Group (NYSE: MRO) of $35 million, or $.12 per share, compared with net income of $71 million, or $.27 per share, in the first quarter of 1991.
 First quarter 1992 sales were $2.9 billion, compared with $3.4 billion in 1991.
 The Marathon Group reported first quarter 1992 operating income of $128 million, compared with operating income of $214 million in the 1991 quarter. First quarter 1992 operating income included a $24 million favorable inventory market valuation reserve adjustment. Other income for the first quarter of 1992 included a charge of $19 million for the impairment of an interest in a natural gas transmission partnership. Last year's first quarter operating income included a restructuring charge of $24 million.
 "It was a difficult quarter for our energy operations," Corry said. "First quarter operating income was down substantially from last year's level mainly as a result of lower refined product margins and lower worldwide prices for liquid hydrocarbons and natural gas."
 Operating income from worldwide exploration and production ("upstream") activities was $57 million in the first quarter of 1992, compared with $134 million in the first quarter of 1991. Operating income was $20 million for domestic upstream and $37 million for international upstream. These results were down from $68 million and $66 million, respectively, in the same 1991 period when the Persian Gulf war created higher crude prices. The decrease in domestic upstream operating income was mainly due to lower liquid hydrocarbon and natural gas prices and volumes. The decline in international upstream operating income resulted primarily from lower liquid hydrocarbon and natural gas prices partially offset by increased natural gas production volumes and liquid hydrocarbon liftings.
 First quarter 1992 operating income from refining, marketing and transportation ("downstream") activities was $44 million compared with $102 million in the prior year. The decline from a year earlier was primarily due to a reduction in average refined product margins.
 Gas gathering and processing reported operating income of $13 million for the first quarter of 1992, compared with $21 million a year earlier.
 Production from Marathon's Belli No. 1 well in Tunisia began in mid-January, and averaged over 10,000 barrels of oil per day during the remainder of the first quarter. In February, another well nearly a mile away encountered a comparable quality of reservoir rock in the same formation from which the Belli No. 1 is producing. Exploration is continuing in this and other areas of this African nation.
 In Indonesia, two successful first quarter delineation wells on Marathon's KRA Field tested at rates of 4,000 and 15,600 barrels of oil per day. Feasibility studies have begun for development of the field, which would be able to utilize Marathon's existing Kakap Block production facilities.
 In late March, Marathon began drilling its first well on its 290,000-acre Sierras Blancas Block in Argentina's Neuquen Basin. Marathon will earn a 75 percent interest in the block with the completion of this well.
 Also in late March, Marathon and its partners signed an agreement to do a detailed feasibility study for the development of two oil and gas fields offshore Sakhalin Island in the Russian Far East. The fields are estimated to contain over 750 million barrels of oil and more than 14 trillion cubic feet of natural gas. The study is due by the end of 1992, at which time government bodies will review the findings and make a final decision on committing to actual development. Russia's minister of fuel and energy has stated that the government expects the Sakhalin project to serve as a model for international cooperation in developing Russia's mineral resources.
 In early January, Marathon announced it had been awarded interests in oil and gas production sharing contracts for two blocks covering more than 1.2 million acres in the Timor Sea between Indonesia and Australia. A treaty between these countries provides joint operating authority over these concessions. Marathon will be the operator on both blocks.
 In the Gulf of Mexico, platform "C" was set in place in March to develop the South Pass 89 Field in which Marathon has a one-third interest. Marathon expects production from this 20-slot, eight-pile facility will eventually peak at about 20,000 gross barrels of liquid hydrocarbons per day. Gas facilities on the platform have been designed to initially process up to 100 million cubic feet per day.
 During the quarter, Marathon extended its Marathon-brand service station activities into Tennessee through an affiliation which added 70 stations to the Marathon chain of outlets. On the refining side, all five of Marathon's refineries received industry recognition for exemplary safety records. Each installation went through 1991 without a lost-time accident.
 As a prelude to a planned reorganization, Marathon offered an enhanced early retirement program to 1,100 employees in targeted organizations. Marathon has not forecast the anticipated number of acceptances. The program concludes May 13, with retirements effective June 1 of this year.
 Corry announced that the board of directors declared a dividend of 35 cents per share on USX-Marathon Group common stock, payable June 10, 1992, to stockholders of record at the close of business May 8, 1992. Prior thereto, the directors also declared a dividend of $1.09375 per share on USX Corporation's adjustable rate cumulative preferred stock, payable June 30, 1992, to stockholders of record at the close of business June 1, 1992.
 USX-Marathon Group's supplemental statistics and condensed financial statements, as well as USX Corporation's condensed consolidated financial statements, follow.
 USX - MARATHON GROUP
 (Dollars in Millions Except Per Share Data)
 CONDENSED STATEMENT OF INCOME (Unaudited)
 First Qtr. Ended
 March 31
 1992 1991
 SALES $ 2,941 $ 3,413
 Total operating costs (2,813) (3,199)
 ------- -------
 Operating income 128 214
 Other income (loss) (16) 11
 Net interest and other financial costs (72) (94)
 ------- -------
 Total income before taxes on income 40 131
 Less provision for estimated United
 States and Foreign income taxes 5 60
 ------- -------
 NET INCOME 35 71
 Dividends on preferred stock (2) (2)
 ------- -------
 NET INCOME APPLICABLE TO MARATHON STOCK $ 33 $ 69
 Per common share data:
 Primary:
 Weighted average shares, in thousands 277,784 254,370
 Net income $ .12 $ .27
 Fully diluted:
 Weighted average shares, in thousands 277,784 254,375
 Net income $ .12(A) $ .27(A)
 Dividends paid .35 .31
 CONDENSED BALANCE SHEET (Unaudited)
 March 31 Dec. 31
 1992 1991
 ASSETS
 Cash and cash
 equivalents $ 94 $ 200
 Receivables - net 456 621
 Inventories 1,260 1,235
 Other current assets 95 97
 ------- -------
 Total current assets 1,905 2,153
 Property, plant and
 equipment - net 8,756 8,796
 Other assets 710 695
 ------- -------
 Total $11,371 $11,644
 CONDENSED BALANCE SHEET (Unaudited)
 March 31 Dec. 31
 1992 1991
 LIABILITIES AND
 STOCKHOLDERS' EQUITY
 Current liabilities $ 2,042 $ 2,467
 Long-term debt 3,704 4,073
 Other liabilities 1,832 1,809
 ------- -------
 Total liabilities 7,578 8,349
 Preferred stock 80 80
 Common stockholders'
 equity 3,713 3,215
 ------- -------
 Total $11,371 $11,644
 (A) Conversion of convertible debentures excluded from fully diluted computation because of antidilutive effects.
 The following notes are an integral part of these financial statements.
 USX - MARATHON GROUP
 SELECTED NOTES TO CONDENSED FINANCIAL STATEMENTS
 The condensed financial statements of the Marathon Group include the results of operations and financial position for the Energy segment and a portion of the corporate assets, liabilities and related transactions not separately identified with ongoing operations of reportable industry segments of USX. These condensed financial statements should be read in connection with the condensed consolidated financial statements of USX.
 In the first quarter of 1992, the inventory market valuation reserve was reduced $24 million to $236 million which increased operating income and net income $24 million. In the first quarter of 1991, operating income included a $24 million pretax charge for a number of restructuring actions.
 Other income in the first quarter of 1992 included a $19 million impairment of a 25 percent interest in a natural gas transmission partnership.
 The provision for estimated U.S. and foreign income taxes for the periods reported is based on tax rates and amounts which recognize management's best estimate of annual financial and taxable income. The inventory market valuation credit is excluded from determining the U.S. income tax provision, since the adjusted book inventory value exceeds the tax inventory value.
 In January 1992, USX sold 25 million shares of Marathon Stock to the public. Substantially all of the $541 million net proceeds will be used to fund the Marathon Group's capital projects worldwide.
 USX-MARATHON GROUP
 SUPPLEMENTAL STATISTICS
 ($'s in Millions)
 First Quarter
 Ended
 March 31
 1992 1991
 SALES $2,941 $3,413
 OPERATING INCOME (LOSS)
 Energy Segment
 Explorat. & Product. $ 57 $ 134
 Refin., Market. & Trans. 44 102
 Gas Gathering & Processing 13 21
 Unallocated Administrative (7) (4)
 Special Items 24 (24)
 ------ ------
 Total Energy Segment 131 229
 USX Corporate (3) (15)
 ------ ------
 Total Marathon Group $ 128 $ 214
 CAPITAL EXPENDITURES $ 187 $ 130
 EXPLORATION EXPENSE $ 31 $ 36
 OPERATING STATISTICS
 Net Liquids Production:
 Domestic (A) 122.0 128.5
 International (A) 61.1 58.9
 ----- -----
 Worldwide 183.1 187.4
 Net Natural Gas Production:
 Domestic (B) 665.3 764.0
 International (B) 381.8 361.4
 ------- -------
 Worldwide 1,047.1 1,125.4
 Average Sales Prices:
 Liquid Hydrocarbons (per Bbl)
 Domestic $14.79 $17.97
 International 18.16 20.05
 Natural Gas (per Mcf)
 Domestic $ 1.52 $ 1.87
 International 2.07 2.61
 Crude Oil Refined (A) 548.6 569.1
 Refined Products Sold (A) 661.9 681.4
 Gas Gathering Throughput (B) 1,003.6 910.7
 (A) 000 BPD
 (B) MMCFPD
 USX CORPORATION AND SUBSIDIARY COMPANIES
 CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 (Dollars in Millions Except Per Share Data)
 CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited)
 First Qtr. Ended
 March 31
 1992 1991
 SALES $ 4,106 $ 4,524
 Total operating costs (3,954) (4,759)
 ------- -------
 Operating income (loss) 152 (235)
 Other income (loss) (20) -
 Net interest and other financial costs (111) (127)
 ------- ------
 Total income (loss) before taxes on income 21 (362)
 Less provision (credit) for estimated
 United States and foreign income taxes (1) (125)
 ------- ------
 NET INCOME (LOSS) 22 (237)
 Dividends on preferred stock (2) (2)
 ------- ------
 NET INCOME (LOSS) APPLICABLE TO COMMON STOCKS$ 20 $ (239)
 Common share data - Marathon Stock
 Net income $ 33 $ 69
 Net income per share:
 - primary .12 .27
 - fully diluted .12(A) .27(A)
 Dividends paid per share .35 .31
 Common share data - Steel Stock
 Net income (loss) $ (13) $ (308)
 Net income (loss) per share:
 - primary (.27) (6.06)
 - fully diluted (.27)(A)(6.06)(A)
 Dividends paid per share .25 .22
 CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
 March 31 Dec. 31
 1992 1991
 ASSETS
 Cash and cash
 equivalents $ 95 $ 279
 Receivables - net 912 1,098
 Inventories 1,936 1,858
 Other current assets 96 101
 ------- -------
 Total current assets 3,039 3,336
 Property, plant and
 equipment - net 11,558 11,593
 Other assets 2,153 2,110
 ------- -------
 Total $16,750 $17,039
 CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
 March 31 Dec. 31
 1992 1991
 LIABILITIES AND
 STOCKHOLDERS' EQUITY
 Current liabilities $ 3,111 $ 3,551
 Long-term debt 5,642 5,921
 Other liabilities 2,535 2,580
 ------- -------
 Total liabilities 11,288 12,052
 Preferred stock 105 105
 Common stockholders'
 equity 5,357 4,882
 ------- -------
 Total $16,750 $17,039
 (A) Conversion of convertible debentures excluded from fully diluted computation because of antidilutive effects.
 The following notes are an integral part of these financial statements.
 USX CORPORATION AND SUBSIDIARY COMPANIES
 SELECTED NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 The financial information for the Marathon Group and U.S. Steel Group, taken together, includes all accounts which comprise the corresponding consolidated financial information for USX.
 The numbers of shares used in the computation of earnings per share were as follows:
 (In Thousands)
 -------------------
 First Quarter Ended
 March 31
 1992 1991
 Marathon Stock - primary 277,784 254,370
 - fully diluted 277,784 254,375
 Steel Stock - primary 51,073 50,855
 - fully diluted 51,073 50,855
 In the first quarter of 1992, the inventory market valuation reserve was reduced $24 million to $236 million which increased operating income and net income $24 million. In the first quarter of 1991, operating income included a $346 million pretax charge for a number of restructuring actions primarily related to steel operations.
 Other income in the first quarter of 1992 included a $19 million impairment of a 25 percent interest in a natural gas transmission partnership.
 The provision for estimated U.S. and foreign income taxes for the periods reported is based on tax rates and amounts which recognize management's best estimate of annual financial and taxable income. The inventory market valuation credit is excluded from determining the U.S. income tax provision, since the adjusted book inventory value exceeds the tax inventory value.
 In January 1992, USX sold 25 million shares of Marathon Stock to the public. Substantially all of the $541 million net proceeds will be used to fund the Marathon Group's capital projects worldwide.
 /delval/
 -0- 4/28/92
 /CONTACT: W.E. Keslar or D.H. Herring of USX, 412-433-6870/
 (MRO X) CO: USX Corporation; USX-Marathon Group ST: Pennsylvania IN: OIL SU: ERN


DM -- PG013 -- 3914 04/28/92 14:44 EDT
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