We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Marathon Oil (MRO) Posts Narrower-Than-Expected Loss for Q2
Read MoreHide Full Article
Marathon Oil Corporation (MRO - Free Report) reported second-quarter 2020 adjusted net loss per share of 60 cents, narrower than the Zacks Consensus Estimate of a loss of 62 cents, attributable to lower year-over-year U.S. production costs. Though a year ago, the company earned 23 cents per share. This time, its bottom line was unfavorably impacted by the commodity price crash triggered by the coronavirus-induced demand slump amid a supply glut.
Meanwhile, Marathon Oil reported revenues of $272 million that missed the Zacks Consensus Estimate of $531 million and also fell from the year-ago figure of $1.43 billion.
Segmental Performance
This Texas-based energy explorer’s total net production (from U.S. and International units) in the quarter under review came in at 390,000 barrels of oil equivalent per day (BOE/d) compared with 435,000 BOE/d in the year-ago period.
U.S. E&P: This upstream unit suffered a loss of $365 million against a profit of $215 million in the year-ago period due to weak commodity price realizations and lower output.
Marathon Oil’s average realized liquids prices (crude oil and condensate) of $21.65 per barrel were below the year-earlier level of $59.18. Moreover, natural gas liquids’ average price realizations tumbled 51.4% to $7.09 a barrel. Additionally, average realized natural gas prices dropped 23.8% year over year to $1.44 per thousand cubic feet.
On a brighter note, production costs summed $4.09 per BOE, representing a16.35% year-over-year decline, marking the lowest since Marathon Oil became a standalone E&P entity.
However, net production of 307,000 BOE/d decreased from 332,000 BOE/d in second-quarter 2019. The total U.S. output comprised 59.3% oil or 182,000 barrels per day (bpd), down 5.2% year over year.
The declined year-over-year production, especially from Eagle Ford, Bakken and Oklahoma hampered the company’s quarterly performance. Notably, Eagle Ford and Bakken output came in at 108,000 BOE/d and 103,000 BOE/d, respectively, reflecting a marginal fall from the year-ago level while the output from Oklahoma was 60,000 BOE/d compared with 82,000 BOE/d in the year-ago quarter.
International E&P: The segment, which explores and produces oil and gas in Equatorial Guinea, plunged in the red with a loss of $6 million against earnings of $96 million in the comparable quarter last year due to ramped-down production activity and weak commodity price realizations.
Marathon Oil reported production available for sale of 83,000 BOE/d, down from 103,000 Boe/d in second-quarter 2019. Moderate output from Equatorial Guinea along with the company’s exit from U.K. business caused this downside.
Marathon Oil’s average realized liquids prices (crude oil and condensate) of $13.79 per barrel reflect a 76.3% decline from the year-earlier quarter. Natural gas and natural gas liquids’ average price realizations came in at 24 cents per thousand cubic feet and $1 a barrel, respectively, accounting for a 31.4% and 40.1% year-over-year fall each.
Marathon Oil Corporation Price, Consensus and EPS Surprise
Total costs in the quarter were $975 million, lower than $1.18 billion in the prior-year period.
The company reported an operating cash flow of $9 million in the second quarter, down from $797 million a year ago.
As of Jun 30, it had cash and cash equivalents worth $522 million and a long-term debt of 5.5 billion. Debt-to-capitalization of the company was 33%.
Guidance
Marathon Oil raises its current-year oil output guidance to 190,000 net barrels per day while curbing its full-year capex view to $1.2 billion from the prior projection of $1.3 billion, resulting from strong execution and an improved capital efficiency.
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
Marathon Oil (MRO) Posts Narrower-Than-Expected Loss for Q2
Marathon Oil Corporation (MRO - Free Report) reported second-quarter 2020 adjusted net loss per share of 60 cents, narrower than the Zacks Consensus Estimate of a loss of 62 cents, attributable to lower year-over-year U.S. production costs. Though a year ago, the company earned 23 cents per share. This time, its bottom line was unfavorably impacted by the commodity price crash triggered by the coronavirus-induced demand slump amid a supply glut.
Meanwhile, Marathon Oil reported revenues of $272 million that missed the Zacks Consensus Estimate of $531 million and also fell from the year-ago figure of $1.43 billion.
Segmental Performance
This Texas-based energy explorer’s total net production (from U.S. and International units) in the quarter under review came in at 390,000 barrels of oil equivalent per day (BOE/d) compared with 435,000 BOE/d in the year-ago period.
U.S. E&P: This upstream unit suffered a loss of $365 million against a profit of $215 million in the year-ago period due to weak commodity price realizations and lower output.
Marathon Oil’s average realized liquids prices (crude oil and condensate) of $21.65 per barrel were below the year-earlier level of $59.18. Moreover, natural gas liquids’ average price realizations tumbled 51.4% to $7.09 a barrel. Additionally, average realized natural gas prices dropped 23.8% year over year to $1.44 per thousand cubic feet.
On a brighter note, production costs summed $4.09 per BOE, representing a16.35% year-over-year decline, marking the lowest since Marathon Oil became a standalone E&P entity.
However, net production of 307,000 BOE/d decreased from 332,000 BOE/d in second-quarter 2019. The total U.S. output comprised 59.3% oil or 182,000 barrels per day (bpd), down 5.2% year over year.
The declined year-over-year production, especially from Eagle Ford, Bakken and Oklahoma hampered the company’s quarterly performance. Notably, Eagle Ford and Bakken output came in at 108,000 BOE/d and 103,000 BOE/d, respectively, reflecting a marginal fall from the year-ago level while the output from Oklahoma was 60,000 BOE/d compared with 82,000 BOE/d in the year-ago quarter.
International E&P: The segment, which explores and produces oil and gas in Equatorial Guinea, plunged in the red with a loss of $6 million against earnings of $96 million in the comparable quarter last year due to ramped-down production activity and weak commodity price realizations.
Marathon Oil reported production available for sale of 83,000 BOE/d, down from 103,000 Boe/d in second-quarter 2019. Moderate output from Equatorial Guinea along with the company’s exit from U.K. business caused this downside.
Marathon Oil’s average realized liquids prices (crude oil and condensate) of $13.79 per barrel reflect a 76.3% decline from the year-earlier quarter. Natural gas and natural gas liquids’ average price realizations came in at 24 cents per thousand cubic feet and $1 a barrel, respectively, accounting for a 31.4% and 40.1% year-over-year fall each.
Marathon Oil Corporation Price, Consensus and EPS Surprise
Marathon Oil Corporation price-consensus-eps-surprise-chart | Marathon Oil Corporation Quote
Financials
Total costs in the quarter were $975 million, lower than $1.18 billion in the prior-year period.
The company reported an operating cash flow of $9 million in the second quarter, down from $797 million a year ago.
As of Jun 30, it had cash and cash equivalents worth $522 million and a long-term debt of 5.5 billion. Debt-to-capitalization of the company was 33%.
Guidance
Marathon Oil raises its current-year oil output guidance to 190,000 net barrels per day while curbing its full-year capex view to $1.2 billion from the prior projection of $1.3 billion, resulting from strong execution and an improved capital efficiency.
Zacks Rank & Key Picks
Marathon Oil has a Zacks Rank #3 (Hold), currently. Some better-ranked players in the energy space are Halliburton Company (HAL - Free Report) , Core Laboratories NV (CLB - Free Report) and Pembina Pipeline Corp (PBA - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>