Marathon Oil
Market Cap
US$8.5b
Last Updated
2020/02/19 00:14 UTC
Data Sources
Company Financials +
Executive Summary
Marathon Oil Corporation operates as an energy company in the United States, Equatorial Guinea, the United Kingdom, and Libya.
Rewards
Risk Analysis
+ 1 more risk
Snowflake Analysis
Good value second-rate dividend payer.
Similar Companies
Share Price & News
How has Marathon Oil's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MRO's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-11.3%
MRO
-1.3%
US Oil and Gas
0.06%
US Market
1 Year Return
-39.7%
MRO
-19.5%
US Oil and Gas
19.4%
US Market
Return vs Industry: MRO underperformed the US Oil and Gas industry which returned -18.7% over the past year.
Return vs Market: MRO underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| MRO | Industry | Market | |
|---|---|---|---|
| 7 Day | -11.3% | -1.3% | 0.06% |
| 30 Day | -22.0% | -10.1% | 1.1% |
| 90 Day | -13.4% | -7.0% | 8.9% |
| 1 Year | -38.7%-39.7% | -16.3%-19.5% | 21.9%19.4% |
| 3 Year | -31.9%-34.6% | -13.3%-21.4% | 48.9%39.3% |
| 5 Year | -61.4%-64.6% | -22.4%-33.8% | 71.9%53.1% |
Price Volatility Vs. Market
How volatile is Marathon Oil's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Marathon Oil (NYSE:MRO) Takes On Some Risk With Its Use Of Debt3 weeks ago | Simply Wall St
Did Changing Sentiment Drive Marathon Oil's (NYSE:MRO) Share Price Down A Worrying 55%?1 month ago | Simply Wall St
Read This Before Judging Marathon Oil Corporation's (NYSE:MRO) ROEValuation
Is Marathon Oil undervalued compared to its fair value and its price relative to the market?
33.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MRO ($10.64) is trading below our estimate of fair value ($15.59)
Significantly Below Fair Value: MRO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MRO is poor value based on its PE Ratio (18x) compared to the Oil and Gas industry average (9x).
PE vs Market: MRO is good value based on its PE Ratio (18x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: MRO is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: MRO is good value based on its PB Ratio (0.7x) compared to the US Oil and Gas industry average (0.8x).
Next Steps
Future Growth
How is Marathon Oil forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
14.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MRO's forecast earnings growth (14.4% per year) is above the savings rate (1.7%).
Earnings vs Market: MRO's earnings (14.4% per year) are forecast to grow slower than the US market (14.6% per year).
High Growth Earnings: MRO's earnings are forecast to grow, but not significantly.
Revenue vs Market: MRO's revenue (4.3% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: MRO's revenue (4.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MRO's Return on Equity is forecast to be low in 3 years time (8.3%).
Next Steps
Past Performance
How has Marathon Oil performed over the past 5 years?
31.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MRO has a large one-off loss of $101.0M impacting its December 31 2019 financial results.
Growing Profit Margin: MRO's current net profit margins (9.4%) are lower than last year (18.8%).
Past Earnings Growth Analysis
Earnings Trend: MRO has become profitable over the past 5 years, growing earnings by 31.9% per year.
Accelerating Growth: MRO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: MRO had negative earnings growth (-56.2%) over the past year, making it difficult to compare to the Oil and Gas industry average (-10.9%).
Return on Equity
High ROE: MRO's Return on Equity (3.9%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Marathon Oil's financial position?
Financial Position Analysis
Short Term Liabilities: MRO's short term assets ($2.5B) exceed its short term liabilities ($2.4B).
Long Term Liabilities: MRO's short term assets ($2.5B) do not cover its long term liabilities ($5.7B).
Debt to Equity History and Analysis
Debt Level: MRO's debt to equity ratio (44.9%) is considered high.
Reducing Debt: MRO's debt to equity ratio has increased from 30.3% to 44.9% over the past 5 years.
Balance Sheet
Inventory Level: MRO has a high level of physical assets or inventory.
Debt Coverage by Assets: MRO's debt is not covered by short term assets (assets are 0.5x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: MRO is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: MRO is profitable, therefore cash runway is not a concern.
Next Steps
Dividend
What is Marathon Oil's current dividend yield, its reliability and sustainability?
1.94%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: MRO's dividend (1.88%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: MRO's dividend (1.88%) is low compared to the top 25% of dividend payers in the US market (3.69%).
Stability and Growth of Payments
Stable Dividend: MRO's dividend payments have been volatile in the past 10 years.
Growing Dividend: MRO's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (33.8%), MRO's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MRO's dividends in 3 years are forecast to be well covered by earnings (19.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.2yrs
Average management tenure
CEO
Lee Tillman (57yo)
6.5yrs
Tenure
US$12,210,874
Compensation
Mr. Lee M. Tillman has been the Chief Executive Officer, President and Director of Marathon Oil Corporation since August 1, 2013 and has been its Chairman since February 1, 2019. Mr. Tillman served as a Vi ...
CEO Compensation Analysis
Compensation vs Market: Lee's total compensation ($USD12.21M) is above average for companies of similar size in the US market ($USD6.26M).
Compensation vs Earnings: Lee's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 6.5yrs | US$12.21m | 0.079% $6.7m | |
| Executive VP & CFO | 2.9yrs | US$3.73m | 0.030% $2.5m | |
| Executive Vice President of Operations | 3.5yrs | US$4.62m | 0.035% $3.0m | |
| EVP, General Counsel & Chief Administrative Officer | 0.5yrs | US$3.01m | 0.012% $1.0m | |
| Executive Vice President of Corporate Development & Strategy | 2.3yrs | US$3.60m | 0.020% $1.7m | |
| VP, Controller & Chief Accounting Officer | 5.3yrs | no data | 0.0089% $752.3k | |
| Senior VP of Technology & Innovation and Chief Information Officer | 3.5yrs | no data | no data | |
| Vice President of Investor Relations | 1.6yrs | no data | no data |
3.2yrs
Average Tenure
56yo
Average Age
Experienced Management: MRO's management team is considered experienced (3.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 6.5yrs | US$12.21m | 0.079% $6.7m | |
| Independent Director | 1.8yrs | US$243.75k | 0.012% $990.4k | |
| Independent Director | 6.1yrs | US$337.50k | 0.0032% $272.8k | |
| Lead Independent Director | 1yrs | US$360.00k | 0.0059% $498.2k | |
| Independent Director | 5.2yrs | US$343.75k | 0.0025% $215.2k | |
| Independent Director | 0.8yrs | no data | 0.0026% $216.0k | |
| Independent Director | 1.8yrs | US$250.00k | no data | |
| Independent Director | 0.8yrs | no data | no data |
1.4yrs
Average Tenure
61yo
Average Age
Experienced Board: MRO's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Marathon Oil Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Marathon Oil Corporation
- Ticker: MRO
- Exchange: NYSE
- Founded: 1887
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Market Cap: US$8.472b
- Shares outstanding: 796.24m
- Website: https://www.marathonoil.com
Number of Employees
Location
- Marathon Oil Corporation
- 5555 San Felipe Street
- Houston
- Texas
- 77056
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MRO | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| USS | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
| MRO * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1968 |
| 0JY9 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1968 |
| M1RO34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM | BR | BRL | Dec 2019 |
Biography
Marathon Oil Corporation operates as an energy company in the United States, Equatorial Guinea, the United Kingdom, and Libya. It operates in two segments, United States and International. The company engages in the exploration, production, and marketing of crude oil and condensate, natural gas liquids, and natural gas; and the production and marketing of products manufactured from natural gas, such as liquefied natural gas and methanol. As of December 31, 2018, it had estimated proved developed reserves totaling 752 million barrels of oil equivalent (mmboe); and estimated proved undeveloped reserves totaling 529 mmboe. The company was formerly known as USX Corporation and changed its name to Marathon Oil Corporation in July 2001. Marathon Oil Corporation was founded in 1887 and is headquartered in Houston, Texas.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/19 00:14 |
| End of Day Share Price | 2020/02/18 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.