Marathon Is A Solid Pick For The Long Run

| About: Marathon Oil (MRO)

Marathon Oil (NYSE:MRO) got pummeled during the market sell-off Wednesday like more stocks in the energy sector. I used the pullback to add to my position as this stock is cheap and picking up quite a few positive catalysts recently.

Key recent catalysts for Marathon Oil:

  • Revenue came in at $3.78B for the just reported quarter, easily beating estimates calling for $3.5B on better than expected production.
  • Its joint venture in Libya it owns as part of a consortium announced recently that it plans to double production to 600,000 barrels a day by 2017.
  • A Forbes article this week also called out the shares for flashing a "Buy" signal.
  • Funds flow from operations for the quarter was $89.9 million compared with $72.8 million for the same quarter in2011.

Marathon Oil Corporation is an energy concern that operates in three segments: Exploration and Production, Oil Sands Mining, and Integrated Gas

4 additional reasons MRO is a solid value play at under $30 a share:

  1. Unlike most energy concerns, consensus earnings estimates for both FY2012 and FY2013 have both ticked up over the past two months.
  2. The stock provides a yield of 2.2%, has a solid balance sheet and is priced at just 9 times forward earnings.
  3. S&P has a "buy" rating and a $36 price target on the shares. Credit Suisse has an "outperform" rating and recently raised its price target to $40 from $37 a share.
  4. Approximately 80% of the company's production consists of oil and liquids and the company is growing the amount of its production coming from geopolitical stable North America.

Disclosure: I am long MRO. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.