Marathon Oil on Tuesday followed a pattern established by peers during the third quarter, reporting a plunge in profit compared with the same period last year but improving conditions that have led to some healthy production numbers.

Crude prices fell away earlier this year, a threat to exploration and production even for some of the largest producers. A sharp rebound in energy prices and some big finds in the Gulf of Mexico and off the coast of Africa have encouraged companies to keep the oil and gas flowing.

The quick rebound in prices has hurt integrated oil companies like Marathon, too, cutting into the profit margins of its refineries.

Marathon, based in Houston, said it made $413 million, or 58 cents per share, for the quarter ended Sept. 30, down from profit of $2.1 billion, or $2.90 per share, in the year ago quarter when crude reached $147 a barrel and gasoline topped $4 per gallon.

Discounting charges, Marathon said it made 61 cents per share in the quarter. Not including a $101 million gain, the year-ago profit would have been $2 billion, or $2.76 per share.

Revenue for the quarter was $14.5 billion, down 38 percent from revenue of $23.3 billion in the year ago quarter.

More attention is being paid to sequential quarters this year because profits during the same period last year were more robust than any other in industry history.

In this case, Marathon's third quarter profit was well above the $251 million it made in the second quarter when prices were about half what they are now.

Profit from exploration and production operations in the U.S. totaled $32 million in the quarter, better than the $41 million loss in had in the second quarter. Last year, domestic operations brought in $285 million during the third quarter.

The story was the same for its international operations where profit was $459 million in the quarter, up from $261 million in the second quarter, but down from $584 million in the year ago quarter.

Marathon has announced discoveries in Norway and offshore Angola, where China also is looking to snap up crude supplies to keep its growing economy humming. Marathon also it is continuing to make progress on wells for its Droshky development in the Gulf of Mexico. Continued...