UPDATE 1 - Marathon Oil sees drop in Q2 crude refining

* Sees Q2 refinery output down, oil and gas output up

* Sees $100 million Q2 charge for foreign exchange

* Stock up 1.9 percent

NEW YORK, July 14 (Reuters) - Marathon Oil Corp (MRO.N) said on Tuesday it refined less crude oil in the second quarter than a year ago and said it will take a charge related to foreign currency and taxes when it reports its quarterly earnings next month.

But oil and natural gas production available for sale from continuing operations during the second quarter will be approximately 411,000 barrels of oil equivalent per day (boepd) -- above the 385,000 to 405,000 boepd the company preciously estimated.

The Houston-based company said the amount of crude oil it refined likely averaged about 960,000 barrels per day (bpd) for the second quarter, compared to 1.023 million bpd in the same quarter 2008.

Total refinery throughputs for the second quarter are expected to be about 1.16 million bpd compared to 1.203 million bpd in the second quarter of 2008, Marathon said.

Marathon expects to record a second-quarter charge of about $100 million related to foreign currency effects on deferred taxes. Second-quarter exploration expense is expected to be about $65 million, which is within the previous estimate, it said.

Marathon will report its second-quarter results on Aug 3.

Its stock was up 55 cents or 1.9 percent at $29.53 in morning trading on the New York Stock Exchange.

(Reporting by Steve James, editing by Matt Daily)