Marathon Oil: What To Expect In 2016
Richard Zeits • 20 Comments
Richard Zeits • 20 Comments
Marathon Oil: Moving Towards A U.S.-Centric Resource Play Portfolio
Richard Zeits • 18 Comments
Richard Zeits • 18 Comments
The SCOOP On Marathon's Massive Oklahoma Resource Upgrade
Michael Fitzsimmons • 18 Comments
Michael Fitzsimmons • 18 Comments
Wed, Jul. 27, 5:54 PM
Thu, Jul. 14, 10:48 AM
- Marathon Oil (MRO +0.4%) says it has achieved first gas production through its new Alba B3 offshore compression platform off Equatorial Guinea.
- MRO expects to convert ~130M boe of proved undeveloped reserves, more than double its remaining proved developed reserve base attributed to the country.
- MRO is operator of the Alba field and holds a 65% working interest, while partner Noble Energy (NBL +0.6%) owns the remaining 35%.
Fri, Jul. 8, 2:57 PM
- Marathon Oil (MRO +1.7%) is maintained with a Sector Perform rating at RBC Capital but with a $16 price target, raised from $14, saying after a meeting with the CFO that it likes the company's apparent commitment to capital discipline.
- RBC sees the investment case improving with a solid balance sheet and a “strong set” of liquid focused assets, including the STACK-SCOOP play, where MRO plans to operate at least four rigs; at $55-$60/bbl, the firm sees MRO adding rigs to Oklahoma and maintaining at least five rigs in the Eagle Ford.
- The firm also highlights MRO's spending plans for next year, the recent PayRock acquisition and ongoing portfolio optimization.
Thu, Jun. 30, 6:38 PM
- The number of earthquakes in Oklahoma has fallen 25% YTD from a year ago, a decline attributed in part to actions by state regulators to restrict the oil and gas industry’s practice of pumping wastewater from its operations deep underground.
- More than 2,700 temblors of magnitude 2.5 or higher occurred in Oklahoma last year, according to the U.S. Geological Survey; the state experienced 1,097 quakes of similar magnitude in the first six months of this year, down from ~1,400 over the same period in 2015.
- Oklahoma's leading oil and gas producers include CLR, CHK, DVN, MRO, NFX and XEC.
Tue, Jun. 21, 12:18 PM
- Marathon Oil (MRO +1.4%) is upgraded to Overweight from Equal Weight with a $21 price target, raised from $18, at Morgan Stanley, which cites higher oil price leverage and portfolio improvements, highlighted by yesterday's PayRock Energy acquisition.
- MRO's STACK acquisitions add meaningful leverage to the “the fastest improving unconventional plays in the U.S., allowing for capital efficient growth into the next up-cycle,” Stanley’s Evan Calio writes.
- The firm believes the recent disruptions in crude supply have accelerated market re-balancing, and while the return of outage barrels could present oil price risks in H2, "the bridge to a materially high crude price on fundamentals” to be shorter now.
Mon, Jun. 20, 2:25 PM
- Marathon Oil (MRO +10.4%) powers higher after snapping up P-E-backed PayRock Energy for $888M, increasing its footprint in Oklahoma's prolific STACK oil play.
- MRO expects internal rates of return for the new addition of 60%-80% before taxes at a WTI price of $50/bbl.
- CEO Lee Tillman says MRO would ratchet up drilling activity if crude prices held above $50/bbl for a while, and that the Oklahoma oil region is profitable enough that it can compete for capital against the company’s other oil plays.
- SunTrust analysts consider ~60% of Payrock’s position to be in the core STACK, and estimates the core acreage value at ~$15K/acre, which appears in line with recent transactions.
- The firm also thinks MRO's move is good news for core STACK players Newfield Exploration (NFX +0.5%), Cimarex Energy (XEC +1.3%), Continental Resources (CLR +1.2%), Devon Energy (DVN +4.6%) and Chesapeake Energy (CHK +3.3%).
Mon, Jun. 20, 2:02 PM
Mon, Jun. 20, 7:17 AM
- Marathon Oil (NYSE:MRO) agrees to acquire PayRock Energy Holdings from venture capital firm EnCap Investments for $888M.
- PayRock has ~61K net surface acres and current production of 9K net boeday of oil in Oklahoma's Anadarko Basin STACK play.
- MRO says capital spending on the acquired assets would fit within its already announced $1.4B capex budget.
- The acquisition "will meaningfully expand the quality and scale of Marathon Oil's existing portfolio in one of the best unconventional oil plays in the U.S.," CEO Lee Tillman says.
Thu, Jun. 16, 12:19 PM
- North Dakota’s crude oil production fell by the largest amount ever for a single month, sinking 6.3% to 1.04M bbl/day in April from a revised 1.11M bbl/day in March.
- The North Dakota Department of Mineral Resources cites low crude oil prices but also windy weather throughout much of the month, which delays the fracking of wells, adding that it expects the slide to accelerate through May and into the summer.
- There are 28 drilling rigs currently active in the state, up from 27 in May which was the fewest since July 2005; at its peak, North Dakota had 218 rigs drilling in May 2012.
- Companies with a Bakken presence include: CLR, ERF, EOG, HK, HES, MRO, OAS, QEP, SM, STO, TPLM, WLL.
Tue, Jun. 7, 12:25 PM
- Marathon Oil (MRO +3.7%) is initiated with a Buy rating and $21 price target at KLR Group, which cites strong growth drivers include developments in Eagle Ford, Anadarko Basin and Williston Basin.
- KLR calculates that Eagle Ford comprises ~31% of MRO's production and 40%-45% of the company's capex, and MRO plans to drill 140-150 wells within 2016 with all wells utilizing tighter frack stage spacing.
- The Anadarko Basin SCOOP/STACK comprises 7% of production and 15% of capex for MRO, which plans to bring 80-90 basin wells online in 2016.
- The Williston Basin comprises 15% of production and 10%-15% of capex, and MRO plans to bring 75–85 Bakken/TFS wells online.
Tue, May 31, 9:53 AM
- Marathon Oil (MRO +4.6%) is upgraded to Overweight from Neutral with a $16 price target, raised from $14, at Piper Jaffray, which says the company's story has improved with the equity offering and non-core asset sales.
- Jaffray cites MRO's improved financial resilience, meaningful operational leverage to ongoing oil price appreciation, a well rounded U.S. unconventional portfolio with exposure to the emerging SCOOP and STACK plays, and reasonable relative valuation.
- The firm says Suncor Energy remains its top pick among major oil companies, with 40% upside potential to its $40 price target.
Fri, May 27, 11:14 AM
- Midwest and Rocky Mountain pipeline operators have lowered the cost of transporting oil after Alberta’s wildfires decreased demand for pipeline capacity and left transporters competing over a dwindling supply, Bloomberg reports.
- This week, several companies reportedly moved to lower tariffs for selected routes in those regions, including Tallgrass Energy Partners (TEP -3.5%), Legacy Reserves (LGCY -2.6%), Suncor Energy (SU -0.2%) and Marathon Oil-owned (MRO -2.5%) Red Butte Pipe Line, starting July 1; TEP reduced rates by ~2% on its Pony Express line heading into Ponca City, Okla., while SU cut the same amount on its system in Wyoming.
- Pipeline rates also have fallen due to a decline in last year’s producer price index, which the FERC takes into account when reviewing transportation costs.
Wed, May 18, 12:45 PM
- The Oklahoma Senate has passed a bill suspending a tax incentive for the oil industry that OilPrice.com thinks will force many smaller producers out of business.
- Oklahoma lawmakers voted to eliminate a rebate for the worst-performing wells in order to help plug a $1.3B budget gap; while barely utilized during the boom years, the cost of that tax credit grew to more than $130M last year as sinking prices made more wells unprofitable.
- Oklahoma's leading oil and gas producers include CLR, CHK, DVN, MRO and NFX.
Tue, May 17, 8:18 AM
- Alberta's massive wildfire is growing again and moving rapidly, prompting the evacuation last night of 4,000 oil sands workers north of Fort McMurray.
- Suncor Energy (NYSE:SU) and Syncrude Canada evacuated workers from the affected area, and their major facilities are under a precautionary notice with the fire still 15-20 km (10-12 miles) away.
- Other sites impacted reportedly include oil sands projects operated by Marathon Oil (NYSE:MRO) and PetroChina (NYSE:PTR) unit Brion Energy.
- The renewed fire threat threatens to further delay a restart of at least 1M bbl/day in oil sands production; Canadian oil sands production averaged 2.5M bbl/day last year, much of which was imported by the U.S. for refining into petroleum products.
- Now read Alberta fire only 1 km from Enbridge oil sands terminal
Wed, May 11, 6:48 PM
- The EPA tomorrow will issue the first U.S. standards aimed at curbing methane emissions from the oil and natural gas industry, WSJ reports.
- The rules, which will affect only new oil and natural gas wells, will require companies to install technologies to monitor and limit inadvertent emitting of methane during the production and transmission process of natural gas, and require new practices such as regular inspections for leaks.
- Meanwhile, a new study says the Bakken oil-producing region of North Dakota and Montana leaks 275K tons/year of methane, a sizeable amount but less than previously believed.
- Companies with a Bakken presence include: CLR, ERF, EOG, HK, HES, MRO, OAS, QEP, SM, STO, TPLM, WLL
Wed, May 4, 4:37 PM
Marathon Oil Corp. engages in the exploration, production, and market of liquid hydrocarbons and natural gas. It operates through the following segments: North America E&P, International E&P, and Oil Sands Mining. The North America E&P segment engages in the oil and gas exploration, development... More
Sector: Basic Materials
Industry: Oil & Gas Drilling & Exploration
Country: United States
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