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Marathon Oil Corporation (MRO)

- NYSE
  • Aug. 11, 2014, 10:59 AM
    • Noble Energy (NBL +0.3%) and Australia’s Woodside Petroleum (OTCPK:WOPEF) sign an agreement to explore a deepwater prospect off the coast of Gabon; NBL will be the operator with a 60% working interest.
    • NBL says the execution of the production sharing contract represents its initial entry into Gabon and meaningfully expands the company's exploration portfolio.
    • Marathon Oil (MRO +0.1%) also signed a production sharing deal with Gabon for a separate offshore deepwater location in which it has a 100% working interest.
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  • Aug. 5, 2014, 4:58 PM
    • An industry-funded study concludes that crude oil from the Bakken region is similar to other North American light, sweet crudes and does not pose a greater risk to transport by rail than other crudes and transportation fuels.
    • But the study also outlines several best practices intended to boost safety, including classifying the crude higher on the hazardous material shipping scale.
    • The group hopes the report allays fears that Bakken oil may be more prone to ignition after a series of accidents involving rail shipments of the oil.
    • Bakken producers include CLR, EOG, KOG, WLL, HES, XOM, OAS, NOG, EOX, MRO.
    | 6 Comments
  • Aug. 5, 2014, 10:16 AM
    • North Dakota’s crude oil production passed 1M bbl/day in April and remained above the 1M benchmark in May on the strength of production from the Bakken and Three Forks formations.
    • One reason for May's 3.6% M/M growth to 1.039M bbl/day was the addition of 227 producing wells through the state, with 10,892 producing wells in May compared to 10,665 in April.
    • Average production per well in the state also grew between the months, to 2,959 barrels per well from 2,822 in April.
    • North Dakota's oil fields now account for 12% of all U.S. oil production, and more than 1% of global production.
    • Top Bakken producers include CLR, EOG, KOG, WLL, HES, XOM, OAS, NOG, EOX, MRO.
    | 7 Comments
  • Aug. 5, 2014, 8:24 AM
    • Marathon Oil (NYSE:MRO) +1.8% premarket after reporting better than expected Q2 earnings, driven by strong production growth and higher crude oil and condensate prices in the U.S.
    • Production available for sale from continuing operations, excluding Libya, rose 6% Y/Y to 383K boe/day, attributed to continued growth in North American shale production.
    • MRO expects the region to produce 235M-248M boe/day in Q3 vs. 200M boe/day in the year-ago quarter.
    • Three high-quality Eagle Ford plays averaged net production of 170K boe/day, up 29% Y/Y and on track for greater than 30% Y/Y production growth.
    • Income from North American exploration and production rose 37% to $302M on higher sales volume that offset a 16% increase in exploration expenses.
    • Recorded 98% average operational availability for Company-operated assets.
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  • Aug. 4, 2014, 11:52 PM
    • Marathon Oil (NYSE:MRO): Q2 EPS of $0.89 beats by $0.14.
    • Revenue of $2.94B (+1.4% Y/Y) misses by $460M.
    • Press Release
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  • Aug. 3, 2014, 5:35 PM
  • Jul. 30, 2014, 6:05 PM
    • Marathon Oil (NYSE:MRO) declares $0.21/share quarterly dividend, 11.0% increase from prior dividend of $0.19.
    • Forward yield 2.12%
    • Payable Sept. 10; for shareholders of record Aug. 20; ex-div Aug. 18.
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  • Jul. 14, 2014, 2:21 PM
    • Whiting Petroleum's (WLL +7.4%) $6B buyout of Kodiak Oil & Gas (KOG +5.1%) is renewing investor attention on independent energy firms with operations in the Bakken Shale, especially those significantly owned by hedge funds; Paulson & Co. is the single biggest owner of KOG stock, with just under 10% of shares outstanding as of the last filing date.
    • While many of the largest Bakken producers are huge companies or parts of huge companies - Hess (NYSE:HES), EOG, Statoil (NYSE:STO), Marathon Oil (NYSE:MRO), XTO Energy (NYSE:XOM) - a few small and mid-cap independent players show hedge fund interest, CNBC's Brian Sullivan writes.
    • The single biggest holder of Oasis Petroleum (OAS +0.5%) also is John Paulson's hedge fund, which owns 9.9M shares (~9.8% of shares outstanding), Jana Partners owns 16M-plus shares in QEP Resources (QEP +1.4%), and WPX Energy (WPX +1.1%) has substantial hedge fund ownership.
    | 7 Comments
  • Jul. 7, 2014, 6:30 PM
    • Energy companies invested hundreds of millions of dollars when they started extracting oil from shale formations in south Texas a few years ago to make the volatile crude was safer to handle, but the failure to do so at the Bakken shale is coming back to haunt the oil industry as the U.S. government seeks to prevent fiery accidents of trains containing North Dakota oil.
    • Only one stabilizer, which can remove the most volatile gases before transport, has been built in North Dakota and it hasn't begun operation, according to a WSJ review; if the government mandates the use of stabilizers, companies would have to make big investments in equipment which could slow Bakken's development.
    • Oil producers are fighting the perception that the biggest risks come from Bakken crude, almost all of which is moved by rail, but safety officials and lawmakers say the dangers extend far beyond North Dakota.
    • Top Bakken producers include CLR, EOG, KOG, WLL, HES, XOM, OAS, NOG, EOX, MRO.
    | 13 Comments
  • Jul. 3, 2014, 3:20 PM
    • A recent surge of low-magnitude earthquakes in Oklahoma probably is the result of the underground disposal of vast quantities of wastewater generated by oil and gas extraction, according to a new study published today in the journal Science.
    • The researchers also calculated that four of the highest-volume wells in Oklahoma are capable of triggering ~20% of recent central U.S. quakes, and found that such induced quakes could potentially occur more than 30 km from the well.
    • The Cornell geophysics professor who led the study says the results suggest regulators and oil companies should avoid disposing of wastewater near major faults and do a better job monitoring the activity.
    • Among energy firms with a significant Oklahoma presence: CHK, CLR, APA, DVN, SD, EOG, MRO, OKE, OKS, GPOR, WPX, WMB, WPZ, LPI, CWEI, NFX, NGL, COG, WLL, NBL, MPO, PQ, XEC.
    | 52 Comments
  • Jul. 2, 2014, 9:58 AM
    • Rebels blocking Libyan oil production say they are reopening Es Sider and Ras Lanuf, the country’s largest and third-largest export facilities with combined capacity of 560K bbl/day, in a gesture of support for the newly elected parliament.
    • Libya is now producing ~320K bbl/day, ~20% of its output before Qaddafi was overthrown in 2011; reopening the two terminals would increase Libya’s crude export capacity almost five-fold.
    • August Brent futures (BNO) fell as much as 0.7% to $111.54, the lowest intraday level in almost three weeks; the restart at the two ports probably would send Brent down to $110/bbl, Commerzbank says.
    • Energy companies with a significant presence in Libya include Total (TOT), Statoil (STO), ConocoPhillips (COP), Marathon Oil (MRO), Hess (HES), Occidental Petroleum (OXY) and Repsol (REPYF, REPYY).
    • ETFs: USO, OIL, UCO, SCO, DTO, DBO, CRUD, USL, UWTI, DNO, DWTI, SZO, OLO, OLEM, TWTI
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  • Jul. 1, 2014, 6:45 PM
    • North Dakota regulators tell crude oil explorers to cut the flaring of natural gas or face limits on the amount of oil they can pump from the Bakken shale formation.
    • The state's crude output has surpassed 1M bbl/day, behind only Texas, but while Texas captures all but 1% of the natural gas produced, North Dakota burns 30% of its output as waste as the rate of production has outstripped companies' ability to capture gas through pipeline connections at the source.
    • The North Dakota Industrial Commission is aiming for a 26% reduction in gas flaring statewide by Q4 of this year and another 23% by Q1 2015.
    • Top Bakken producers include CLR, EOG, KOG, WLL, HES, XOM, OAS, NOG, EOX, MRO.
    | 44 Comments
  • Jun. 25, 2014, 7:17 PM
    • The decision to allow two Texas companies to export condensates looks like a win for Eagle Ford Shale crude producers at the expense of refiners and companies planning to build processing plants along the Gulf coast.
    • Today's selloff in refiners reflected concern that the groups will lose some of their competitive edge if condensate exports become common: Valero Energy (NYSE:VLO), the largest U.S. refiner, dropped 8.3%, PBF tumbled 10.7%, PSX fell 4.2%, and HFC slid 6.7%.
    • Oppenheimer notes that PXD, DVN, MRO, COP and MUR produce the most Eagle Ford condensate, and could benefit if U.S. condensate prices close some of the gap with European prices; EOG, the largest Eagle Ford producer, produces little condensate and likely benefits little from the lifting of the condensate ban.
    • Investor reaction toward Gulf Coast gathering and processing MLPs such as EPD, MMP, KMP and NGLS was more muted, since plans to build splitters in Texas may be undermined by even modest rule changes in the crude export ban that allow Eagle Ford producers to sell condensate after running it from the wellhead to their own nearby - and much cheaper - distillation towers.
    | 27 Comments
  • Jun. 18, 2014, 12:24 PM
    • North Dakota, home to the Bakken shale formation, is now the fourth state in U.S. history to produce more than 1M bbl/day of oil, as the state's Department of Mineral Resources reports output rose 2.5% in April from March to just above 1M bbl/day.
    • North Dakota now produces more than 12% of all U.S. oil and more than 1% of global production - unimaginable just a decade ago
    • Texas, California and Alaska previously have crossed the million-barrel mark; of the three, only Texas remains above it, at almost 3M bbl/day.
    • Among Bakken producers: CLR, EOG, KOG, WLL, HES, OAS, NOG, EOX, MRO.
    | 12 Comments
  • Jun. 5, 2014, 10:34 AM
    • North Dakota is cracking down on flaring via strict rules that may slow oil field development in areas far from pipelines and effectively reinforce the competitive advantage enjoyed by companies that already have taken steps to curb the wasteful burning of natural gas.
    • The no. 2 oil producing state now requires energy companies to submit a plan to capture natural gas that could be released by a new well when filing for permits; new rules for existing wells are expected to be announced July 1 with a goal of reducing the amount of gas flared to 10% by 2020 from ~30% today.
    • Continental Resources (CLR), Marathon Oil (MRO) and Hess (HES) say they are already working to cut flaring, recognizing they are burning a product that could be sold.
    • New rules could boost demand for products from Chart Industries (GTLS), which makes small liquefaction equipment, and Capstone Turbine (CPST), a maker of small power plants, Raymond James analyst Pavel Molchanov says.
    | 6 Comments
  • Jun. 2, 2014, 2:30 PM
    • There's little investor excitement today over Marathon Oil's (MRO -0.3%) $2.7B deal to sell its Norwegian North Sea assets, but some analysts react much more favorably for the long term.
    • Morningstar's Allen Good likes the move, as it frees MRO from high-decline assets in a high-tax region, resulting in a greater overall growth rate and improved after-tax margins and creating a more pure-play domestic E&P which may prove more attractive to investors.
    • Credit Suisse's Ed Westlake thinks MRO shares should trade to $45, as MRO's growth this decade is underpinned by three positions in the core of high-return shale basins which alone could support the current market cap and more.
    | 1 Comment
MRO vs. ETF Alternatives
Company Description
Marathon Oil Corp is an energy company engaged in the exploration, production and marketing of liquid hydrocarbons and natural gas, production and marketing of products manufactured from natural gas and oil sands mining.