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Marathon Oil Corporation (MRO)

  • Dec. 12, 2013, 3:18 PM
    • Apache (APA -0.4%) and Marathon Oil (MRO +1.5%) are downgraded to Neutral from Buy at Citigroup, citing valuation.
    • The firm maintains its $95 price target on APA, based on the stock achieving 2014-15 EV/DACF multiples of 5.7x/5.6x based on normalized prices of $90/bbl for WTI and $4.50/MMbtu, and 96% of its revised sum-of-the-parts NAV assessment, which is now $99/share under lower oil price projections.
    • The MRO downgrade is accompanied by a reduced $40 price target, down from $42, based on the stock achieving 2014-15 EV/DACF multiples of 6.2x/5.7x based on normalized prices of $90/bbl and $4.50/MMBtu, and 100% of its sum-of-parts NAV assessment based on commodity price forecasts.
    | Dec. 12, 2013, 3:18 PM | 4 Comments
  • Dec. 12, 2013, 11:49 AM
    • Marathon Oil (MRO +0.6%) shares barely moved yesterday despite positive news from the company's analyst day - in fact, they've been flat for a month - but Jim Cramer thinks bargain hunters may have a deal in MRO at ~$36/share.
    • MRO said it plans to raise its rig count in the Bakken and the Eagle Ford by 20%, and they're doubling their rig count in Oklahoma's Woodford shale, areas Cramer believes will transform the oil industry and the nation.
    • Cramer likes MRO's plan to sell off cash cow North Sea assets to raise cash and simplify its holdings and calls the increased share buyback "very meaningful," yet the stock is selling for just 11.8x next year's earnings estimates.
    | Dec. 12, 2013, 11:49 AM | 5 Comments
  • Dec. 11, 2013, 7:43 AM
    • Marathon Oil (MRO) says it will increase its remaining stock buyback authorization to 2.5B, and announces a $5.9B capital spending budget for 2014, more than 60% percent of which is directed toward its liquids-rich North America resource assets.
    • MRO plans to accelerating Eagle Ford and Bakken rig activity 20% each, including drilling 80-90 net new Bakken wells, and expects to double activity for the Oklahoma Woodford.
    • Plans to market U.K. and Norway assets to continue its portfolio optimization strategy.
    • Expects production to average 405K-430K boe/day in 2014, excluding production from Alaska and Libya.
    | Dec. 11, 2013, 7:43 AM | 1 Comment
  • Dec. 10, 2013, 2:57 PM
    • Libyan oil ports are set to reopen next week after months of closure, thanks to a new agreement on greater regional oversight of oil sales proceeds, but a key rebel leader says he would oppose the deal if broad revenue distribution isn't devolved to the country's provinces.
    • The closed ports include Brega, Es-Sider, Marsa al-Hariga and Zueitina, which together account for more than half of Libya's crude oil exports for companies such as Total (TOT), ConocoPhillips (COP), Marathon Oil (MRO), Hess (HES) and Occidental Petroleum (OXY).
    • The months of unrest have led to a drop in oil production from ~1.6M bbl/day to ~250K bbl/day, putting the government's finances in jeopardy, and disruptions to Libyan crude supply have been one of the main factors underpinning the consistently high cost of Brent crude.
    | Dec. 10, 2013, 2:57 PM | Comment!
  • Nov. 5, 2013, 3:59 PM
    • Marathon Oil (MRO +0.5%) aims to keep driving down drilling and completion times in U.S. plays such as the Eagle Ford next year as it squeezes more money out of its assets, CEO Lee Tillman in today's earnings call.
    • In the Eagle Ford, MRO’s “spud-to-spud” time - the time it takes to drill one well and start in on another - fell to an average of 12 days in Q3, Tillman said.
    • Eagle Ford drilling times fell 20% Y/Y, as did drilling and completion costs, even as production doubled over the same period.
    • The comments on ramping up wellhead efficiencies comes a day after MRO reported a 26% Y/Y rise in Q3 net earnings, driven by big production increases in the U.S. shale plays, especially the Eagle Ford, where oil production has climbed to 66K bbl/day with 100K boe/day expected by year's end.
    | Nov. 5, 2013, 3:59 PM | 2 Comments
  • Nov. 4, 2013, 5:34 PM
    • Marathon Oil (MRO) +1.4% AH as Q3 earnings jumped 26% on higher revenue from North American oil and natural gas liquids production, though overall revenue slipped 6% Y/Y.
    • Sales volumes, excluding Libya, rose slightly Q/Q, due mainly to a planned turnaround at a Norway facility and expected moderate growth in its resource plays.
    • North American oil and natural gas liquids production rose 35% Y/Y to 150K boe/day, while international liquids production fell 24% to 138K.
    • MRO's Eagle Ford production doubled to 66K bbl/day, and its combined liquids and natural gas production hit 92K bbl/day in the last seven days of October.
    • Q3 included a $787M income tax provision vs. a $1.28B provision a year ago.
    • Operating margin narrowed to 36.3% from 42.8%.
    | Nov. 4, 2013, 5:34 PM | Comment!
  • Nov. 4, 2013, 4:08 PM
    • Marathon Oil (MRO): Q3 EPS of $0.87, beats by $0.10.
    • Revenue of $3.91B (-6% Y/Y), beats by $0.11B. (PR)
    | Nov. 4, 2013, 4:08 PM | 3 Comments
  • Nov. 4, 2013, 12:10 AM
  • Nov. 3, 2013, 5:35 PM
  • Oct. 30, 2013, 2:35 PM
    • Marathon Oil Corporation (MRO) declares $0.19/share quarterly dividend, in line with previous .
    • Forward yield 2.15%
    • Payable Dec. 10; for shareholders of record Nov. 20; ex-div Nov. 18.
    | Oct. 30, 2013, 2:35 PM | Comment!
  • Oct. 30, 2013, 10:15 AM
    • Marathon Oil (MRO +0.4%) says its Mirawa-1 exploration well has discovered multiple stacked oil and natural gas producing zones on its Harir Block in Iraqi Kurdistan.
    • CEO Lee Tillman, while not disclosing a resource figure for the discovery, says the well found “significant resources" and "demonstrates the importance of this region as a potential major hydrocarbon producer."
    • MRO is operator with a 45% working interest in the Harir block, Total (TOT) owns 35%, and Kurdistan holds a 20% carried interest.
    | Oct. 30, 2013, 10:15 AM | Comment!
  • Oct. 25, 2013, 2:34 PM
    • Libya is blocking Marathon Oil (MRO -0.2%) from selling its stake in one of the country's top oil ventures, Reuters reports, highlighting the struggle investors face in cutting exposure to Libya's unrest.
    • Sources say MRO was considering the sale of its stake in Libya's Waha Oil, which has a maximum output capacity of 350K bbl/day, but decided against selling after talks with state-run NOC, which may have told MRO it would pre-empt any deal with its own bid and that the company should expect the offer at below market prices.
    | Oct. 25, 2013, 2:34 PM | 1 Comment
  • Oct. 21, 2013, 10:59 AM
    • The big North American integrated oil companies will begin releasing quarterly results later this week, and J.P. Morgan's energy research team forecasts earnings increases of 8% Q/Q and 9% Y/Y, remaining very positive on the sector even as crude oil prices drop below $100/bbl.
    • The firm considers ConocoPhillips (COP) a top name to buy and a great total return play for investors, and it likes Hess (HES), Marathon Oil (MRO), Occidental Petroleum (OXY), Suncor (SU) and Cenovus (CVE); it's much less excited about Exxon Mobil (XOM) and Chevron (CVX).
    | Oct. 21, 2013, 10:59 AM | 1 Comment
  • Oct. 10, 2013, 2:09 AM
    • A group of former rebels aligned with the Libya's interior ministry has seized Libyan Prime Minister Ali Zaidan and taken him to an unknown destination.
    • The head of the Supreme Security Committee for Tripoli says the group, called the Libya Revolutionaries Operations Room, took Zaidan based on false information that an arrest warrant had been issued for him.
    • Zaidan's kidnapping highlights the difficulty that Libya has had in restoring law and order since the fall of Muammar Gaddafi in 2011.
    • Nymex crude oil is +0.4% to $102.04, Brent is +0.7% to $109.75.
    • Major energy companies with interests in Libya, which has Africa's largest proven oil reserves, include Marathon Oil (MRO), Hess (HES), ConocoPhillips (COP), Eni (E), Shell (RDS.A, RDS.B), Exxon (XOM), Repsol (REPYY.PK), Total (TOT) and Apache (APA).
    | Oct. 10, 2013, 2:09 AM | 3 Comments
  • Oct. 7, 2013, 9:54 AM
    • Marathon Oil (MRO -0.5%) and its partners say they received approval from Kurdistan's regional government for the first phase in the oil development of the Atrush block.
    • The development project will include drilling three production wells and building a central processing facility; MRO expects to achieve first production by early 2015 with an estimated initial gross production of 30K bbl/day of oil.
    • The Atrush partners also are continuing appraisal activities and preparing to drill a fourth well on the block; a potential phase two development is expected to include another 30K bbl/day production facility.
    | Oct. 7, 2013, 9:54 AM | Comment!
  • Oct. 4, 2013, 2:12 PM
    • As Gulf coast states prepare for the advance of tropical storm Karen, BP says it is shutting in all of its oil and natural gas production in the deepwater Gulf of Mexico, and Anadarko (APC) says it has removed all workers and shut in all production at its eastern Gulf facilities.
    • Last year, BP produced 214K bbl/day from the Gulf, making it the largest producer in the region.
    • Shell (RDS.A, RDS.B), Exxon (XOM), Chevron (CVX), Marathon Oil (MRO) and Murphy Oil (MUR) are all removing non-essential workers from their offshore facilities.
    • Seven major refineries with a combined capacity of 1.8M bbl/day - ~10% of the U.S. total - are in Karen's path; Phillips 66 (PSX) and Valero (VLO) say they're continuing to monitor the storm's progress.
    • Crude oil price gains remain subdued, as WTI +0.2% to $103.50/bbl and Brent +0.1% to $109.07.
    | Oct. 4, 2013, 2:12 PM | 4 Comments
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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.