Marathon Oil CorporationNYSE
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  • Fri, Oct. 21, 10:22 PM
    • Raymond James analyst Pavel Molchanov has long been bearish on ExxonMobil (NYSE:XOM), and now he recommends the same advice for current InterOil (NYSE:IOC) shareholders following XOM's buyout: Sell.
    • Molchanov says XOM is poorly positioned to take full advantage of a sustained oil price recovery, as the company's structural overweight to refining, chemicals, and (within upstream) non-LNG gas does not directly benefit from rising oil prices; he also says XOM shares already are pricing in long-term oil prices at an above-consensus WTI at $70/bbl.
    • For current IOC shareholders, Molchanov says sell the post-buyout shares and use the proceeds to reinvest into any of a wide range of oil-levered stocks such as Halliburton (NYSE:HAL), Hess (NYSE:HES), Marathon Oil (NYSE:MRO) and Whiting Petroleum (NYSE:WLL).
    • Molchanov believes the IOC founder's last-ditch attempt to delay XOM’s purchase will not succeed; the next hearing is scheduled for Oct. 31.
    | Fri, Oct. 21, 10:22 PM | 11 Comments
  • Thu, Oct. 13, 6:41 PM
    • North Dakota oil production dropped below 1M bbl/day in August for the first time in more than two years, as the state's higher-cost production continues to struggle relative to other parts of the U.S.
    • Production from North Dakota’s portion of the Williston Basin fell to 981K bbl/day in August, down 4.7% from July and the lowest since March 2014; the state's peak production, in December 2014, was more than 1.23M bbl/day.
    • Lynn Helms, director of the state’s Department of Mineral Resources, expects oil production to decline to a low of ~900K bbl/day by mid-2017 before recovering.
    • Companies with a presence in North Dakota's Bakken Shale include CLR, WLL, EOG, ERF, HK, HES, MRO, OAS, QEP, SM, STO, TPLM.
    | Thu, Oct. 13, 6:41 PM | 42 Comments
  • Thu, Oct. 13, 4:47 PM
    • RSP Permian (NYSE:RSPP) -5.8% AH after agreeing to acquire Silver Hill Energy Partners and Silver Hill E&P II for $1.25B in cash and 31M common shares of its common stock, implying a total purchase price of ~$2.4B.
    • RSPP says the deal is a unique acquisition of a highly contiguous acreage position in the core of the Delaware Basin with 41K net surface acres, which creates substantial scale with combined current production of ~50K boe/day, 100K-plus net surface acres, 500K-plus net effective horizontal acres, and 3,600 net drilling locations with substantial additional upside.
    • To help fund the deal, RSPP launches a 20M-share public offering, with an underwriters option to purchase up to an additional 3M common shares.
    • Silver Hill reportedly had attracted interest from the likes of Diamondback Energy (NASDAQ:FANG), Noble Energy (NYSE:NBL), Marathon Oil (NYSE:MRO) and Occidental Petroleum (NYSE:OXY).
    | Thu, Oct. 13, 4:47 PM | 7 Comments
  • Mon, Oct. 3, 7:31 AM
    • Marathon Oil (NYSE:MRO) agrees to sell certain non-operated CO2 and waterflood assets in west Texas and New Mexico for $235M.
    • MRO says the properties averaged ~4K boe/day in H1 2016.
    • MRO says it has announced or closed non-core asset sales totaling more than $1.5B since August 2015.
    | Mon, Oct. 3, 7:31 AM | 2 Comments
  • Fri, Sep. 30, 6:22 PM
    • Diamondback Energy (NASDAQ:FANG) is close to a deal to buy privately held Silver Hill Energy Partners in a deal that could fetch ~$2.5B, WSJ reports.
    • FANG would be the winner of an auction that reportedly attracted interest from Noble Energy (NYSE:NBL), Marathon Oil (NYSE:MRO) and Occidental Petroleum (NYSE:OXY), in the latest rush to grab drilling land in west Texas' Permian Basin.
    • A deal could be announced as soon as next week, according to the WSJ report.
    | Fri, Sep. 30, 6:22 PM | 4 Comments
  • Fri, Sep. 30, 1:25 PM
    • Marathon Oil (MRO +1%) is initiated with a Hold rating and $16 price target at Canaccord, which praises its improved balance sheet helped by non-core divestitures above the targeted range, which the company can use to exploit an asset base enhanced by the recent PayRock STACK acquisition.
    • However, Canaccord says MRO is basically unhedged in 2017 and beyond, and at the strip the multiple is 9.4x; given the company's operational leverage to oil and gas prices, the firm says being unhedged merits only a Hold rating.
    | Fri, Sep. 30, 1:25 PM | 3 Comments
  • Thu, Sep. 29, 7:15 PM
    • S&P Global Market Intelligence’s Stewart Glickman highlights four stocks - EOG Resources (NYSE:EOG), Marathon Oil (NYSE:MRO), Noble Energy (NYSE:NBL) and Cabot Oil & Gas (NYSE:COG) - that can thrive even at $45/bbl oil.
    • The firm estimates nearly 6% production growth for EOG in 2017, a current net debt to capital ratio of ~33%, and projected cash from operations at 114% of anticipated 2017 capex - fundamental metrics that give EOG "a measure of safety even if the macro picture refuses to budge."
    • Glickman sees MRO with 2% production growth in 2017, which might seem mediocre but not in the context of its net debt to capital ratio (18%) and its free cash flow percentage for 2017 (128%).
    • The firm notes NBL's sizable domestic and international operations, with the company's strong acreage position in natural gas offshore Israel as a key catalyst.
    • Glickman sees COG with production growth of 8% in 2017, led by its prolific Northeast acreage, and with a net debt to capital ratio of just 23% and a free cash flow percentage of 146%.
    | Thu, Sep. 29, 7:15 PM | 21 Comments
  • Wed, Sep. 28, 3:19 PM
    • The energy sector (XLE +4%) bursts to the top of the leaderboard after OPEC announces a planned production cut to 32.5M bbl/day at the informal OPEC meeting in Algiers.
    • Among individual energy stocks: XOM +3.8%, CVX +2.7%, RDS.A +2.8%, BP +3.4%, TOT +2.4%, PBR +4.5%, COP +6.4%, MRO +8%, MPC +1.4%, PSX +1.9%, VLO -0.1%, EOG +6.2%, PXD +6.4%, OXY +4.5%, DVN +7.9%, CLR +8.3%, APA +6.2%, NOV +8.1%, SLB +3.3%, BHI +3.6%, HAL +4.3%, KMI +3.4%, ENB +2.6%, EPD +1.9%, ETP +2.9%.
    | Wed, Sep. 28, 3:19 PM | 74 Comments
  • Thu, Sep. 15, 5:40 PM
    • Noble Energy (NYSE:NBL), Marathon Oil (NYSE:MRO) and Occidental Petroleum (NYSE:OXY) are considering making offers for Permian Basin explorer Silver Hill Energy Partners, in a sale that could fetch more than $2B, Bloomberg reports.
    • Silver Hill, which was started in 2011, controls drilling rights on more than 42K net acres in the Delaware Basin on the western shelf of the Permian.
    | Thu, Sep. 15, 5:40 PM | 1 Comment
  • Tue, Sep. 13, 10:48 AM
    • U.S. and Oklahoma state officials are lowering by 22 the number of injection wells ordered to be shut in at an area where a 5.8-magnitude earthquake occurred on Sept. 3.
    • State officials say the 27 wastewater wells ordered to be shut compared with the shutdown of 37 wastewater injection wells announced within hours of the quake earlier this month, while the EPA ordered the shut-in of five wells in its area of jurisdiction, down from 17 shut-ins it announced earlier this month.
    • The mandatory shut-ins are expected to last at least six months and may become permanent, depending on new data that is collected.
    • PetroQuest Energy (NYSE:PQ) reportedly has been the only publicly traded U.S. company among the operators affected by regulators' orders.
    • Oklahoma's top oil and gas producers include CLR, CHK, DVN, MRO, NFX, XEC and SD.
    | Tue, Sep. 13, 10:48 AM | 4 Comments
  • Mon, Sep. 12, 3:32 PM
    • Marathon Oil (MRO -0.7%) is downgraded to Neutral from Outperform with a $19 price target at Credit Suisse, which says MRO has done an excellent job increasing its resource base and lowering well costs, but the firm continues to see more momentum in the purer play Permian names.
    • The STACK play in Oklahoma "continues to get better - indeed, MRO increased the type curve for the STACK by more than 35% last week,” the firm says.
    • Credit Suisse adds that MRO has a good upside to higher oil prices given its "oily production mix."
    | Mon, Sep. 12, 3:32 PM | 5 Comments
  • Tue, Sep. 6, 12:39 PM
    • A backlash against fracking in Oklahoma could grow following this weekend's 5.6-magnitude, earthquake as the U.S. Geological Survey examines whether the record-breaking tremor was triggered by the underground disposal of wastewater from oil and gas production.
    • The USGS says it "cannot currently conclude whether or not this particular earthquake was caused by industrial-related, human activities. However, we do know that many earthquakes in Oklahoma have been triggered by wastewater fluid injection.”
    • “They are going to push the industry to come up with some permanent solutions,” says Michael Lynch of Strategic Energy & Economic Research. “It’s hard to believe Oklahoma would move to ban fracking, but I can see where they would say to people that they have to do something else with the wastewater."
    • PetroQuest Energy (PQ -3%) was ordered to shut four of its disposal wells in Oklahoma, and was the only publicly traded U.S. company among the operators affected by state regulators' orders to suspend a total of 37 wastewater disposal wells.
    • Oklahoma's leading oil and gas producers include CLR, CHK, DVN, MRO, NFX, XEC and SD.
    | Tue, Sep. 6, 12:39 PM | 51 Comments
  • Wed, Aug. 24, 5:45 PM
    • Deutsche Bank analysts offer a hopeful view for top oil E&P companies as capital efficiencies continue to improve, and raise their price targets on Pioneer Natural Resources (NYSE:PXD), Devon Energy (NYSE:DVN), Marathon Oil (NYSE:MRO) and EOG Resources (NYSE:EOG).
    • Capital efficiency should improve through 2017, driven by cost concessions and continued well performance efficiency gains, and while acknowledging some near-term headwinds as rigs continue to be added in the Permian and STACK in H2, the firm says it remains constructive on a tightening market into 2017.
    • The firm lifts its price target for PXD to $210 from $180, for DVN to $55 from $45, for MRO to $21 from $20, and for EOG to $105 from $96.
    | Wed, Aug. 24, 5:45 PM | 7 Comments
  • Mon, Aug. 22, 7:43 AM
    • Marathon Oil (NYSE:MRO) says CFO J.R. Sult will leave the company for personal reasons "following an appropriate transition period."
    • Pat Wagner, VP of Corporate Development and Strategy, is appointed interim CFO while the company conducts a search for a new CFO; Wagner joined MRO in 2014 but has extensive financial and operational experience, including senior roles at QR Energy and Devon Energy.
    • Suit has served as MRO's CFO since 2013 after serving on El Paso Corp.'s executive management team from 2005, including as CFO from 2009, until the company was acquired by Kinder Morgan in 2012.
    | Mon, Aug. 22, 7:43 AM | 4 Comments
  • Tue, Aug. 16, 12:44 PM
    • Marathon Oil (MRO +2.1%) is higher after BofA/Merrill Lynch upgrades shares to Buy from Neutral with a $21 price target, saying it believes management can resume growth in oil and gas production in 2017 as the addition of the STACK play likely dominating incremental drilling activity starting in H2.
    • The firm says MRO is one of the most oil levered large-cap U.S. oil names, which positions the stock for upside to peers based on a binary outcome of higher oil prices; during recent months, MRO also has improved the balance sheet, increased capital flexibility and scooped up PayRock Energy Holdings.
    • The MRO move is part of BofA/Merrill's more upbeat outlook for the broader energy sector, noting that when oil has rallied more than 25%, energy has outperformed the market nearly 90% of the time; the firm also upgrades Noble Corp. (NE -2.9%) and Patterson-UTI Energy (PTEN +1.9%) to Neutral from Underperform, and adds Devon Energy (DVN +1.8%) to its US 1 List.
    | Tue, Aug. 16, 12:44 PM | 7 Comments
  • Fri, Aug. 12, 2:31 PM
    • North Dakota's crude oil production fell 2% in June to 1.03M bbl/day, hitting its lowest level in more than two years.
    • The state's Department of Minerals Resources says production may already have dropped below 1M bbl/day and could take at least a year to recover if the level is breached.
    • But in a positive sign for the industry, the state says the breakeven price for oil production at its existing wells has slipped to $26/bbl, showing that existing production remains profitable for companies that have aggressively cut costs.
    • Companies with a presence in North Dakota's Bakken Shale include CLR, WLL, EOG, ERF, HK, HES, MRO, OAS, QEP, SM, STO, TPLM.
    | Fri, Aug. 12, 2:31 PM | 33 Comments