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Marathon Oil Corporation (NYSE:MRO) is scheduled to report its Q2 2012 results on August 1, 2012, after the bell. The Street expects EPS and revenue of $0.59 and $3.35B, respectively.

In this article, I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from MRO and the news from its closest competitors.

Marathon Oil Corporation Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has failed to meet analysts' estimates in the last two quarters. In the last quarter, it reported $0.67 EPS, failing to meet analyst estimates of $0.87.

Marathon Oil Corporation EPS Historical Results vs Estimates

The consensus EPS estimate is $0.59 based on 19 analysts' estimates, down from $0.96 a year ago. Revenue estimates are $3.35B, down from $3.86B a year ago. The median target price by analysts for the stock is $33.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On May 7, 2012, Howard Weil downgraded the company from Focus Stock to Market Outperform.
  • On March 6, 2012, Global Hunter Securities initiated Neutral rating for the company.
  • On February 28, 2012, Deutsche Bank downgraded the company from Buy to Hold.
  • On February 2, 2012, Argus downgraded the company from Buy to Hold.

Latest News

  • On July 25, 2012, Marathon Oil Corporation announced that the company's board of directors has declared a dividend of $0.17 per share on Marathon Oil Corporation common stock.
  • On July 23, 2012, Africa Oil Corp. announced that it has signed a definitive farmout agreement with Marathon Oil Corporation whereby Marathon Oil will acquire the rights to obtain an interest in two of Africa Oil's Kenyan exploration blocks.
  • On June 22, 2012, Total Gabon SA announced that it has agreed to sell a 21.25% stake in the Diaba permit to Marathon Upstream Gabon Ltd, a subsidiary of Marathon Oil Corporation.
  • On May 16, 2012, Statoil ASA announced that it has decided to transfer the operatorship of the Vilje field in the North Sea to Marathon Oil Norge, a subsidiary of Marathon Oil Corp.
  • On April 25, 2012, Marathon Oil Corporation announced that the Company's board of directors have declared a dividend of 0.17 per share on the Company's common stock. The dividend is payable on June 11, 2012, to stockholders of record on May 16, 2012.
  • On April 10, 2012, Marathon Oil Corporation announced that it has entered into a definitive agreement with Hilcorp Alaska LLC, under which Hilcorp will purchase substantially all of Marathon Oil's Alaska assets.

Competitors

ConocoPhillips (NYSE:COP), Chevron (NYSE:CVX), Devon Energy (NYSE:DVN), EOG Resources (NYSE:EOG), and Exxon Mobil (NYSE:XOM) are considered competitors for Marathon Oil Corporation and the table below provides the key metrics for these companies and the industry.

Marathon Oil Corporation key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one-year period.

MRO Chart

MRO data by YCharts

Competitors' Latest Development

  • On July 25, 2012, Chevron Corp announced that it declared a quarterly dividend of $0.90 per share, payable September 10, 2012, to holders of common stock as shown on the transfer records of the Corporation at the close of business on August 17, 2012.
  • On July 25, 2012, Exxon Mobil Corp announced that it has declared a cash dividend of $0.57 per share on the Common Stock, payable on September 10, 2012 to shareholders of record of Common Stock at the close of business on August 13, 2012.
  • On July 24, 2012, Reuters reported that Iraq has decided to blacklist Chevron Corp and bar it from signing any oil deals with the oil ministry after the U.S. major purchased stakes in two blocks in Iraq's Kurdistan, the oil ministry said in a statement on July 24, 2012.
  • On July 19, 2012, Chevron Corp announced that its subsidiaries have completed a transaction to acquire interests in two blocks in the Kurdistan Region of Iraq. Chevron will acquire Reliance Exploration & Production DMCC's 80% interest and operatorship of the production sharing contracts (PSCs) covering the Rovi and Sarta blocks.
  • On July 19, 2012, Dow Jones reported that Chevron Corp has signed a preliminary deal with Reliance Industries Ltd that would see the U.S. company take stakes in two oil exploration blocks in the Kurdish region of Iraq.
  • On July 17, 2012, CNBC TV18 reported that Reliance Industries Ltd is in talks with Chevron Corp, to sell its assets in Iraq at a valuation of close to USD200 million.
  • On July 9, 2012, Reuters reported that Danish oil and shipping group AP Moeller Maersk A/S (Maersk) announced that a Danish state-run fund, Nordsofonden, had taken a 20% interest in the Danish Underground Consortium (DUC) owned by Maersk, Chevron Corp and Royal Dutch Shell Plc (Shell).
  • On July 6, 2012, The Wall Street Journal reported that Statoil ASA and other companies represented by Norway's Oil Industry Association have threatened to lock out workers and shut down production on the Norwegian continental shelf starting Tuesday in hopes of forcing an end to a 12-day strike that has put upward pressure on oil prices and crimped revenue.
  • On July 5, 2012, Reuters reported that Exxon Mobil Corp reported a snag in the number 2 amine treater at its 560,640 barrel-per-day (bpd) refinery in Baytown, Texas, according to a filing with the U.S. National Response Center.
  • On July 4, 2012, Dow Jones reported that a group of Chinese fishermen have sued ConocoPhillips in a U.S. court, seeking over $130 million in compensation for an oil spill off China's coast last year.
  • On July 4, 2012, The Economic Times reported that Oil & Natural Gas Corporation Limited (ONGC) is in final-stage talks to purchase a stake in some of the Canadian oil sands assets owned by ConocoPhillips.
  • On June 29, 2012, Dow Jones reported that a USD20 billion Australian gas-export joint venture involving ConocoPhillips and Origin Energy Limited had finalized a gas sales deal with Kansai Electric Power Co. The Australian Pacific LNG venture, which also includes China Petrochemical Corp., said it's on track to make a final investment decision on a second liquefied natural gas, or LNG, processing unit by mid-2012.
  • On June 26, 2012, Reuters reported that Exxon Mobil Corp reported a leak in a supply line on the T1 tower at its 502,000 barrel per day (bpd) refinery in Baton Rouge, Louisiana, that led to a release of benzene, according to a filing with the National Response Center.
  • On June 22, 2012, Reuters reported that NK Rosneft' OAO has been in talks with Exxon Mobil Corp over the possibility of teaming up with the American company to tap Iraq's huge West Qurna-1 oilfield, Kommersant daily reported.
  • On June 21, 2012, Reuters reported that Exxon Mobil Corp will reconfigure its Fawley refinery, permanently decommissioning one crude distillation unit. The reconfiguration includes the decommissioning of one of Fawley's three 'pipestills' -installations more commonly known as distillation towers, in which crude oil is boiled to separate it into its component parts.
  • On June 20, 2012, Chevron Corp announced that its wholly owned subsidiary Chevron Global Energy Inc. (Chevron) will be assigned a 50% working interest in Blocks 42 and 45 offshore Suriname through an agreement with Kosmos Energy.
  • On June 18, 2012, Reuters reported that Chevron Corp has signed a deal to supply additional liquefied natural gas (LNG) to Tokyo Electric Power Co.(TEPCO), as well as an equity stake in the Wheatstone project in Australia.
  • On June 5, 2012, Reuters reported that Oil & Natural Gas Corporation Limited, is considering bidding for part of ConocoPhillips, Canadian oil sands holdings worth around $5 billion, a source with direct knowledge of the situation told Reuters on Tuesday.
  • On June 1, 2012, Reuters reported that Exxon Mobil Corp, plans to build a multi-billion dollar chemical plant in Texas to take advantage of cheap North American shale gas, according to a U.S. environmental filing seen by Reuters.
  • On May 22, 2012, Reuters reported that Nigeria expects to renew onshore oil licenses with Chevron Corp and Royal Dutch Shell Plc by June.
  • On May 16, 2012, Dow Jones reported that the European Commission approved the proposed acquisition of the Angolan company Angola LNG by BP Plc, Chevron Corp, Eni SpA, Sociedade Nacional de Combustiveis de Angola (Sonangol) of Angola and Total SA. The joint venture will produce liquefied natural gas in Angola, to be sold on to customers around the world for re-gasification.
  • On May 14, 2012, Chevron Corp announced that its Australian subsidiaries have signed a non-binding Heads of Agreement with Tohoku Electric Power Company Incorporated for the delivery of liquefied natural gas from the Chevron-operated Wheatstone natural gas project in Australia.
  • On May 10, 2012, Dow Jones reported that Chevron Corp and Royal Dutch Shell Plc are set to be named by Ukraine to explore two vast fields for shale gas exploration, The Financial Times reported.
  • On May 3, 2012, EOG Resources, Inc. announced that it has declared a dividend of $0.17 per share on EOG's Common Stock, payable July 31, 2012, to stockholders of record as of July 17, 2012.
  • On May 1, 2012, ConocoPhillips reported in its Form 8-K that in connection with the Distribution, Mr. Harold W. McGraw III and Ms. Victoria J. Tschinkel resigned as Directors of ConocoPhillips.

Technical Overview


The stock has a market capitalization of $19.06B and is currently trading at $27.03 with a 52-week range of $19.13- $35.49. The stock's year-to-date performance has been -6.57%. It is currently trading above 20 and 50 SMA, but below 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Marathon Oil Corporation