Marathon Oil CorporationNYSE
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
Thu, Dec. 1, 10:21 AM
- The price of oil pushed through $50 per barrel today, and is currently posting a 2.9% advance on the session at $50.91.
- The S&P 500 is flat and Nasdaq is down 0.45%, but the XLE has tacked on another 1.8% to yesterday's big rise.
- Mid-cap movers: Enerplus (ERF +8.2%), Southwestern Energy (SWN +7.9%), Range Resources (RRC +5.3%), Weatherford (WFT +7.1%), Ensco (ESV +8.2%), Crescent Point (CPG +6.3%).
- Among the large players: Exxon (XOM +1.1%), Chevron (CVX +2%), Shell (RDS.A +2.2%), (RDS.B +2.3%), BP (BP +2.4%), ConocoPhillips (COP +2%), Marathon (MRO +3.1%), Halliburton (HAL +2.3%)
Wed, Nov. 30, 2:30 PM
- Oil and gas names continue to surge following the news that OPEC will cut production.
- Among the 36 energy stocks in the benchmark SPDR Energy ETF, 13 are up by at least 10%: MRO +21.6%, RIG +19.6%, MUR +15.7%, DVN +15.2%, NFX +15.2%, HES +14.8%, APC +13.6%, HAL +13.6%, CXO +11.3%, XEC +10.9%, EOG +10.5%, COP +10.4%, CHK +10%.
- Continental Resources (CLR +23.6%) soars to a 52-week high, making founder and CEO Harold Hamm, already the wealthiest U.S. energy billionaire, another $3B richer.
- Offshore drillers are broadly sporting double-digit gains: ESV +24.8%, ATW +20.6%, RIGP +18.7%, SDRL +16.5%, DO +15.7%, RDC +15%.
- "For all E&P stocks, this is a bullish call for sure, because price is directly correlated with cash flow," says Luana Siegfried, energy equity research associate at Raymond James, which sees U.S. crude reaching $60/bbl by year-end.
- MarketWatch's Philip van Doorn writes that pending earnings estimate increases from analysts ought to set a floor under the energy sector and support even higher prices for oil stocks.
Wed, Nov. 30, 9:50 AM
- Shares of energy companies surge at the open, as hopes for an OPEC deal to cut production send crude oil futures soaring.
- Reports say Saudi Arabia is prepared to accept "a big hit" to production and agree to Iran freezing output at pre-sanctions levels.
- In early trading: XOM +2.2%, CVX +2.3%, RDS.A +3.6%, BP +3.4%, TOT +1.7%, STO +5.1%, PBR +8.1%, COP +7.2%, MRO +12.1%, APC +8%, DVN +12.7%, HES +9.5%, ENB +2.1%, PSX +0.8%, SLB +4.2%, HAL +8.3%, BHI +4.3%, KMI +4.8%, EPD +2.7%, ETP +3.8%, WMB +5.4%, RIG +11.3%, SE +2.2%, CHK +9.4%.
- ETFs: XLE, VDE, ERX, OIH, XOP, FCG, ERY, GASL, DIG, DUG, BGR, XES, IYE, IEO, FENY, IEZ, PXE, GASX, PXI, FIF, PXJ, RYE, NDP, GUSH, PSCE, DRIP, DDG, FXN, CRAK
Wed, Nov. 30, 9:23 AM
- Gainers: SCON +71%. CRC +32%. ORIG +16%. DNR +16%. GST +16%. OAS +17%. LEI +16%. WTI +14%. SM +13%. AREX +13%. SN +13%. CPE +13%. SDRL +13%. CIE +13%. HHS +13%. SGY +13%. LPI +12%. SYRG +12%. WLL +11%. ATW +11%. GTE +11%. CLR +11%. WPX +11%. ESV +11%. NE +10%. CRZO +10%. DO +10%. NBR +10%. BTE +10%. MRO +10%.
- Losers: ARWR -61%. CERC -47%. CMRE -14%. AEO -10%. GLBS -9%.
Tue, Nov. 29, 10:20 AM
- Crude oil continues to slide - WTI now -3.8% at $45.27/bbl, and Brent -3.8% at $46.40/bbl - dragging oil and gas equities (XLE -2.1%) down with it.
- Iran's oil minister says he is not prepared to reduce supply, and Saudi Arabia says it would not participate in a production deal without Iran and Iraq.
- Reuters reports that Iran has written to OPEC saying Saudi Arabia needs to cut oil output to 9.5M bbl/day; Saudi has said it was prepared to reduce its production only by 500K bbl/day from current levels of 10.5M.
- In early trading: XOM -1%, CVX -1.7%, RDS.A -1.4%, BP -1%, TOT -0.3%, STO -1.8%, PBR -3.7%, COP -2.9%, MRO -4%, APC -2.8%, DVN -2.7%, HES -3.6%, ENB -2.3%, PSX -1.2%, MPC -0.8%, SLB -2.2%, HAL -2.3%, BHI -2.1%, KMI -1.4%, EPD -2%, ETP -2.2%, WMB -2.4%, SE -2.3%, CHK -2.6%.
- ETFs: XLE, VDE, ERX, OIH, XOP, FCG, ERY, GASL, DIG, DUG, BGR, XES, IYE, IEO, FENY, IEZ, PXE, GASX, FIF, PXJ, RYE, NDP, GUSH, DRIP, DDG, FXN, CRAK
Mon, Nov. 28, 1:15 PM
- Marathon Oil (MRO -1.8%) is initiated with a Buy rating and a $29 price target at R.F. Laffert, citing valuation, a solid balance sheet, and upside potential to reserves and net asset value via its position in the STACK/SCOOP play.
- The firm says MRO owns a strong set of core producing oil and gas assets that have proved to be resilient in a weak commodity environment.
- As of the H2 2016, MRO’s Oklahoma assets represented 2.2B boe of 2P resources and 3.4B boe in total resources, part of which will end up as proved reserves and likely providing upside for the shares, the firm says.
Fri, Nov. 18, 7:58 AM
- FuelCell Energy (NASDAQ:FCEL) +8.3% premarket on news it signed a contract with Alberta Innovates for an engineering study on a fuel cell carbon capture application at a heavy oil thermal facility owned by Husky Energy (OTCPK:HUSKF) in Saskatchewan.
- FCEL says it will develop and prove the application for a carbon capture configured megawatt-class fuel cell power plant to simultaneously concentrate and capture carbon while producing ultra-clean power.
- A second potential site, the Scotford bitumen upgrading facility in Alberta, will be evaluated as part of the study; the upgrader is part of the Athabasca Oil Sands Project, a joint venture between operator Shell (RDS.A, RDS.B), Chevron (NYSE:CVX) and Marathon Oil (NYSE:MRO).
Wed, Nov. 16, 2:58 PM
- North Dakota’s crude oil output in September fell to the lowest level in more than two years, staying below the 1M bbl/day level for the second month in a row.
- Production fell 1.1% for the month to 971K bbl/day in September, the most recent month for which data is available, 10K bbl/day less than August and the lowest level since February 2014, when output was 952K bbl/day.
- Natural gas production in North Dakota fell 1.7% in September to 1.61B cf/day, the state also reports.
- Companies with a presence in North Dakota's Bakken shale include CLR, WLL, EOG, ERF, HK, HES, MRO, OAS, QEP, SM, STO, TPLM.
Tue, Nov. 15, 10:49 AM
- West Texas' Permian Basin now holds nearly as many active oil rigs as the rest of the U.S. combined, including those offshore, the U.S. Energy Information Administration reports.
- The rig count has been rising since this summer, but the Permian began seeing rigs increase earlier than the U.S. as a whole, and is adding rigs more quickly; of the ~450 total U.S. rigs, the Permian now accounts for ~220.
- Permian production has reached 2M bbl/day of oil, while south Texas’ Eagle Ford and North Dakota’s Bakken have fallen to below 1M bbl/day.
- Top Permain producers include CVX, OXY, APA, PXD, CXO, DVN, EOG, MRO, FANG, XOM, ECA, RSPP, SM, EGN, PE, AREX, GPOR, XEC, LPI, CPE, ESTE, WPX, PDCE
Tue, Nov. 8, 11:13 AM
- Oklahoma’s oil and gas regulator says it plans to shut some disposal wells and reduce the volume of others in response to Sunday’s earthquake near the Cushing oil hub.
- The Oklahoma Corporation Commission says its plan covers 700 sq. miles but does not say how many wells were affected; when a quake of similar magnitude hit the state in September, the agency ordered 37 wells shut over a 500 sq. mile area.
- Pipeline operator Magellan Midstream Partners (NYSE:MMP) quickly resumed normal operations at Cushing following a controlled shutdown of its assets after the quake, while Kinder Morgan (NYSE:KMI) and Enbridge (NYSE:ENB) said their facilities were not affected.
- Oklahoma's top oil and gas producers include CLR, CHK, DVN, MRO, NFX, XEC and SD.
Thu, Nov. 3, 6:41 PM
- Marathon Petroleum (NYSE:MRO) topped the S&P 500 today with a 10.7% gain after reporting a smaller than expected Q3 loss and plans to increase activity to five rigs this quarter in the Oklahoma resource basins.
- MRO said Q3 oil and gas production from its averaged 402 boe/day, reversing three straight quarters of declining output and surpassing all nine estimates from analysts in a Bloomberg survey.
- Deutsche Bank says the quarter was a "good first step" in MRO's transition towards a more Oklahoma-focused company, with a significant beat on Oklahoma resource production (+40% Q/Q at 41K boe/day) and a strong set of well results (1,723 boe/day average 30-day rate on nine STACK wells); MRO also generated a surprising $110M of free cash flow in Q3.
- In its earnings conference call, MRO said it plans to increase activity to five rigs in the Oklahoma Resource Basins and six rigs in the Eagle Ford during Q4, and will add a rig in the Bakken before year-end to position for 2017.
Thu, Nov. 3, 2:07 PM
Thu, Nov. 3, 9:15 AM
Wed, Nov. 2, 5:58 PM
- Marathon Oil (NYSE:MRO) +1.2% AH after reporting a smaller Q3 loss than in the year-ago quarter, helped by higher than expected production and lower costs.
- Overall, MRO's Q3 loss narrowed to $192M, or $0.23/share from a $792M loss a year ago; excluding rig termination payments and other items, the adjusted loss fell to $0.11 from $0.20 a year earlier.
- MRO says it pumped 402K net boe/day, above the top end of company guidance and up 5% Q/Q; however, it is still down from 434K boe/day produced during the year-ago period.
- Q3 production costs fell 10% Q/Q in North America and nearly 20% internationally.
- MRO raises the low end of its 2016 production forecast to 335K-345K net boe/day, and narrows its synthetic crude oil production projection to 45K-50K net boe/day.
- The company plans to increase drilling by 50% across its resource plays during Q4, including increasing the number of rigs in Oklahoma to five from four, and in the Eagle Ford shale to six from four.
- MRO highlights strong well results across all three resource plays, including STACK volatile oil well 30-day rate of 2,845 boe/day; Bakken Three Forks well 30-day rate of 2,635 boe/day; Lower Eagle Ford well 30-day rate of 2,285 boe/day.
Wed, Nov. 2, 4:38 PM
Wed, Nov. 2, 3:56 PM
- Oil prices and energy equities plunged sharply as the latest inventory data showed U.S. stockpiles posted the largest weekly surge in 34 years, after the consensus outlook had pointed to only a modest rise.
- WTI crude oil -2.9% to settle at $45.34/bbl, its lowest since Sept. 27, and Brent crude -2.7% to $46.86, also its lowest since late September.
- “You could easily make the argument it’s the most bearish report of all time,” says Bob Yawger, director of the futures division of Mizuho Securities USA. “There’s nothing to support the market.”
- WTI, which already was turning lower in recent days, has now fallen 12% in just two weeks since hitting a one-year high on Oct. 19 and marks the third retreat from $50/bbl toward $40 within five months.
- Among individual stocks: XOM -0.1%, CVX -0.9%, RDS.A -2%, BP -0.2%, TOT -2.4%, COP -0.6%, MRO -3.6%, HES -1.3%, PSX -2.3%, MPC -3.4%, VLO -1.9%, SLB -1%, HAL -0.5%.
- ETFs: USO, OIL, XLE, UWTI, UCO, VDE, ERX, DWTI, OIH, SCO, XOP, BNO, DBO, ERY, DIG, DTO, USL, DUG, BGR, IYE, IEO, FENY, DNO, PXE, FIF, OLO, PXJ, RYE, SZO, NDP, GUSH, DRIP, DDG, FXN, OLEM