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Marathon Oil Corp MRO

Morningstar Rating
$24.24 +0.10 (0.41%)
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Company Report

Marathon Oil Earnings: Shareholder-Friendly Cash Returns Continue, but Dividend Mix Remains Low

No-moat-rated Marathon Oil underperformed our expectations for revenue, earnings, and cash in its latest fourth-quarter results. Total production of 400,000 barrels of oil equivalent per day, or 400 mboe/d, similarly fell below our expectations and dipped 5% sequentially, though production costs fell a bit below our model. Further, lower hydrocarbon volumes were primarily due to lower production than we expected from the Eagle Ford basin.

Price vs Fair Value

MRO is trading at a 0% premium.
Price
$24.12
Fair Value
$22.00
Uncertainty
High
1-Star Price
$33.20
5-Star Price
$28.40
Economic Moat
Bvtb
Capital Allocation
Yxgtgyhss

Bulls Say, Bears Say

Bulls

Marathon's acreage in the Bakken and Eagle Ford plays overlaps the juiciest "sweet spots" and enables the firm to deliver initial production rates far above the respective averages.

Bears

Not all of Marathon's acreage is ideally located and well productivity could decline when the firm runs out of drilling opportunities in sweet spots.

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News

Trading Information

Previous Close Price
$24.14
Day Range
$24.1424.30
52-Week Range
$20.5729.56
Bid/Ask
$24.23 / $24.25
Market Cap
$13.68 Bil
Volume/Avg
16,697 / 10.1 Mil

Key Statistics

Price/Earnings (Normalized)
8.61
Price/Sales
2.29
Dividend Yield (Trailing)
1.74%
Dividend Yield (Forward)
1.82%
Total Yield
22.21%

Company Profile

Marathon is an independent exploration and production company primarily focusing on unconventional resources in the United States. At the end of 2022, the company reported net proved reserves of 1.3 billion barrels of oil equivalent. Net production averaged 343 thousand barrels of oil equivalent per day in 2022 at a ratio of 70% oil and NGLs and 30% natural gas.
Sector
Energy
Industry
Oil & Gas E&P
Stock Style Box
Mid Value
Total Number of Employees
1,681

Competitors

Valuation

Metric
MRO
PXD
OXY
Price/Earnings (Normalized)
8.6110.9216.31
Price/Book Value
1.242.372.41
Price/Sales
2.292.932.05
Price/Cash Flow
3.506.594.97
Price/Earnings
MRO
PXD
OXY

Financial Strength

Metric
MRO
PXD
OXY
Quick Ratio
0.330.660.51
Current Ratio
0.400.880.92
Interest Coverage
6.5544.957.66
Quick Ratio
MRO
PXD
OXY

Profitability

Metric
MRO
PXD
OXY
Return on Assets (Normalized)
7.88%13.94%4.95%
Return on Equity (Normalized)
13.87%22.40%17.14%
Return on Invested Capital (Normalized)
10.78%18.32%8.25%
Return on Assets
MRO
PXD
OXY
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Economic Moat
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OXY
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HES
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DVN
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