May 22, 2017 - 8:31 AM EDT
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Post Earnings Coverage as Marathon Oil's Quarterly Revenue Jumped 47%

Upcoming AWS Coverage on Resolute Energy Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 22, 2017 / Active Wall St. announces its post-earnings coverage on Marathon Oil Corp. (NYSE: MRO). The Company reported its first quarter of fiscal 2017 financial results on May 03, 2017. The energy Company reported lower than expected loss. Register with us now for your free membership at:

One of Marathon Oil's competitors within the Independent Oil & Gas space, Resolute Energy Corp. (NYSE: REN), reported on May 03, 2017 its financial and operating results for the quarter ended March 31, 2017. AWS will be initiating a research report on Resolute Energy in the coming days.

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

Earnings Reviewed

For the period ended March 31, 2017, Marathon posted revenue of $1.07 billion compared to revenue of $570 million in Q1 2016. The Company's revenue numbers missed analysts' consensus estimates of $1.09 billion.

Marathon reported Q1 2017 net loss of $4.96 billion, or $5.84 per share, compared to loss of $407 million, or $0.56 per share, for Q1 2016. Adjusted for one-time gains and costs, the Company's loss came in at $0.07 per share. The results exceeded Wall Street's estimates for a loss of $0.08 per share.

Segment Results

During Q1 2017, Marathon's North America Exploration and Production (E&P) production available for sale averaged 208,000 net barrels of oil equivalent per day (boed), with unit production costs of $5.79 per barrel of oil equivalent (boe). On a divestiture-adjusted basis, production was down 4% on a y-o-y basis. The Company's unconventional Oklahoma production averaged 44,000 net boed during Q1 2017, up more than 60% on a y-o-y basis.

Marathon's production in the Eagle Ford averaged 99,000 net boed in Q1 2017, up 5% compared to 94,000 net boed in the prior quarter. The Company brought 47 gross Company-operated wells to sales in the reported quarter with average completed well costs of $4 million compared to 52 wells to sales in Q1 2016. The Guajillo South four-well Lower Eagle Ford pad achieved 30-day IP rates averaging 1,690 boed, and the Medina Jonas pad had 30-day IP rates that averaged 1,450 boed. During Q1 2017, Marathon drilled wells at an average rate of 2,500 feet per day and a new Company-record was set at more than 4,000 feet per day.

In Q1 2017, Marathon's Bakken production averaged 48,000 net boed compared to the prior quarter's average of 52,000 net boed. The Company brought online four gross Company-operated wells in the reported quarter from a pad in East Myrmidon, with 30-day IP rates averaging 1,875 boed. The Company ended the quarter running seven rigs, and plans to average approximately six rigs in the Bakken in 2017.

During Q1 2017, Marathon's International E&P production available for sale (excluding Libya) averaged 122,000 net boed, up more than 20% compared to the year-ago comparable quarter. The segment's reported quarter unit production costs (excluding Libya) were lower at $3.20 per boe primarily due to timing of lifting. Equatorial Guinea production available for sale averaged 105,000 net boed in Q1 2017 compared to 109,000 net boed in the previous quarter. UK production available for sale averaged 15,000 net boed in the reported quarter, down from 19,000 net boed in the previous quarter.

Cash Matters

During Q1 2017, Marathon reported net cash provided by operating activities from continuing operations of $501 million, and net cash provided by continuing operations before changes in working capital of $513 million. The Company's cash additions to property, plant, and equipment were $283 million in Q1 2017. The Company paid $180 million in deposits into escrow related to acquisitions during the reported quarter. Marathon's total liquidity as of March 31, 2017, was $5.8 billion, which consists of $2.5 billion in cash and cash equivalents and an undrawn revolving credit facility of $3.3 billion.

Marathon added new derivative positions during the reported quarter. The Company has now hedged an average 51,000 barrels a day (bpd) in 2017 through a combination of three-way collars with an average weighted floor price of $53.31 and ceiling of $59.70, indexed to NYMEX WTI.


For Q2 FY17, Marathon expects North America E&P production available for sale to average 210,000 to 220,000 net boed. The upcoming quarter's International E&P production available for sale, excluding Libya, is expected to be within a range of 120,000 to 130,000 net boed.

For full year 2017, Marathon forecasts production available for sale from the combined North America and International E&P segments, excluding Libya, to average 340,000 to 360,000 net boed, approximately 6% higher than 2016 at the midpoint on a divestiture-adjusted basis.

Stock Performance

On Friday, May 19, 2017, Marathon Oil's share price finished the trading session at $14.53, advancing 2.90%. A total volume of 12.77 million shares exchanged hands. The stock has advanced 15.18% in the past twelve months. The stock currently has a market cap of $12.34 billion and has a dividend yield of 1.38%.

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SOURCE: Active Wall Street

Source: ACCESSWIRE (May 22, 2017 - 8:31 AM EDT)

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