November 11, 2016 - 8:15 AM EST
Print Email Article Font Down Font Up Charts


Post Earnings Coverage as Marathon Oil Earnings Performance Improve; FY16 Production Outlook Raised

Upcoming AWS Coverage on Occidental Petroleum Post-Earnings Results

LONDON, UK / ACCESSWIRE / November 11, 2016 / Active Wall St. announces its post-earnings coverage on Marathon Oil Corp. (NYSE: MRO). The company released its financial results for the third quarter fiscal 2016 on November 02nd, 2016. The Houston exploration-and-production company's loss narrowed, supported by higher-than-projected production and lower costs. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Marathon's competitors within the Independent Oil & Gas space, Occidental Petroleum Corp. (NYSE: OXY), announced its third quarter 2016 financial results ON November 01, 2016. AWS will be initiating a research report on Occidental Petroleum in the coming days.

Today, AWS is promoting its earnings coverage on MRO; touching on OXY. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=MRO

http://www.activewallst.com/registration-3/?symbol=OXY

Earnings Reviewed

For the three months ended on September 30th, 2016, Marathon reported net loss of $192 million, or $0.23 per diluted share, compared to net loss of $749 million, or 1.11 per share, in the year earlier period. Excluding rig-termination payments and other items, the adjusted loss declined to $0.11 per share from loss of $0.20 per share in the year earlier quarter. The energy company posted revenue of $1.23 billion in Q3 2016 down from the prior year's quarter revenue of $1.32 billion, thus outperforming Street's forecasts of $1.09 billion.

Results in Details

North America E&P

During Q3 2016, Marathon's North America Exploration and Production (E&P) production available for sale averaged 216,000 net barrels of oil equivalent per day (boed), lower compared to 224,000 net boed in Q2 2016. On a divestiture-adjusted basis, production was down 7% from the year-ago period. For the reported quarter, production cost in the company's North American region declined 37% lower than the year-ago period. Unit production costs were $5.70 per barrel of oil equivalent (boe), down 23% from the year earlier quarter.

In the North America region, the Oklahoma Resource Basins production averaged 41,000 net boed during Q3 2016, surging by 78% compared to 23,000 net boed in the year-ago quarter. During Q3 2016, Marathon brought online 10 gross Company-operated STACK Meramec wells and two SCOOP Woodford wells. For Q3 2016, Marathon's production in the Eagle Ford averaged 97,000 net boed compared to 128,000 net boed in Q3 2015.

For the Bakken region, Marathon averaged 54,000 net boed of production in Q3 2016 compared to the average production of 61,000 net boed in the prior year's period. Three gross wells in East Myrmidon were brought to sales in the reported quarter, all performing at or above expectations with completions ranging from 600 to 1,500 pounds per lateral foot of proppant and 45 to 50 stages per well. The Company plans to return to drilling in the Bakken with one rig expected to be added in Q4 2016.

International E&P

Production for Marathon's International E&P available for sale (excluding Libya) averaged 128,000 net boed for Q3 2016, up 12% versus the year earlier quarter. The production for the region benefited from the Alba B3 compression project in Equatorial Guinea, which came online in early July. Equatorial Guinea's production available for sale averaged 110,000 net boed in the reported quarter compared to 99,000 net boed in comparable year ago quarter. Production available for sale from U.K. production averaged 18,000 net boed in the latest quarter, up compared to 15,000 net boed in Q3 2015. During Q3 2016, International E&P's production costs (excluding Libya) were 43% below the year-ago quarter. The company recorded Unit production costs (excluding Libya) of $3.31 per boe, down 46% from Q3 2015.

Oil Sands Mining

For the reported period, Oil Sands Mining (OSM) production available for sale averaged 58,000 net barrels per day (bbld) compared to 57,000 net bbld in Q3 2015. The increase in production was driven by strong reliability at the mines and upgrader and less downtime compared to Q2 2016 when wildfires caused disruptions. Operating expense per synthetic barrel (before royalties) was $20.69, 20% lower than the year-ago quarter due primarily to cost reduction efforts, the lowest per unit cost performance recorded by OSM to date.

Financials

During Q3 2016, Marathon reported that net cash provided by operating activities was $366 million, and net cash provided by operations before changes in working capital was $288 million. Cash additions to property, plant and equipment were $230 million in the reported quarter. As of September 30th, 2016, the company had total liquidity worth $5.3 billion, which consists of $2 billion in cash and cash equivalents and an undrawn revolving credit facility of $3.3 billion.

Outlook

For Q4 FY16, Marathon Oil expects North America E&P's production available for sale to average 205,000 to 215,000 net boed. Q4 FY16 International E&P's production available for sale (excluding Libya) is expected to be within a range of 120,000 to 130,000 net boed. OSM synthetic crude oil production is expected to range from 40,000 to 45,000 net bbld. Marathon also raised the low end of its full-year 2016 E&P production guidance range, resulting in a new range of 335,000 to 345,000 net boed.

Stock Performance

Marathon's share price finished yesterday's trading session at $15.14, climbing 1.75%. A total volume of 19.25 million shares exchanged hands, which was higher than the 3 months average volume of 17.08 million shares. The stock has advanced 3.20% and 24.01% in the last three months and past six months, respectively. Furthermore, since the start of the year, shares of the company have gained 22.02%. The stock has a dividend yield of 1.32% and currently has a market cap of $11.59 billion.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email [email protected]. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: [email protected]
Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street


Source: ACCESSWIRE Investor Awareness (November 11, 2016 - 8:15 AM EST)

News by QuoteMedia
www.quotemedia.com

Legal Notice