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Marathon Oil

NYSE:MRO
Snowflake Description

Mediocre balance sheet unattractive dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MRO
NYSE
$14B
Market Cap
  1. Home
  2. US
  3. Energy
Company description

Marathon Oil Corporation operates as an energy company in the United States, Equatorial Guinea, the United Kingdom, and Libya. The last earnings update was 59 days ago. More info.


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MRO Share Price and Events
7 Day Returns
-0.8%
NYSE:MRO
-0.8%
US Oil and Gas
-0.3%
US Market
1 Year Returns
-2.2%
NYSE:MRO
-7.1%
US Oil and Gas
7%
US Market
MRO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Marathon Oil (MRO) -0.8% 5.6% 9.4% -2.2% 22.9% -51.2%
US Oil and Gas -0.8% 0.6% 4.9% -7.1% 2.9% -27.2%
US Market -0.3% 2% 8.5% 7% 37.7% 46.8%
1 Year Return vs Industry and Market
  • MRO outperformed the Oil and Gas industry which returned -7.1% over the past year.
  • MRO underperformed the Market in United States of America which returned 7% over the past year.
Price Volatility
MRO
Industry
5yr Volatility vs Market

Value

 Is Marathon Oil undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Marathon Oil to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Marathon Oil.

NYSE:MRO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 18 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:MRO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.93
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.933 (1 + (1- 21%) (38.07%))
1.143
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.14
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.143 * 5.96%)
9.54%

Discounted Cash Flow Calculation for NYSE:MRO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Marathon Oil is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:MRO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.54%)
2019 672.94 Analyst x7 614.32
2020 956.61 Analyst x9 797.21
2021 729.06 Analyst x5 554.65
2022 149.75 Analyst x2 104.00
2023 475.30 Analyst x1 301.34
2024 362.59 Est @ -23.71% 209.86
2025 305.37 Est @ -15.78% 161.34
2026 274.14 Est @ -10.23% 132.22
2027 256.76 Est @ -6.34% 113.05
2028 247.46 Est @ -3.62% 99.47
Present value of next 10 years cash flows $3,087.46
NYSE:MRO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $247.46 × (1 + 2.73%) ÷ (9.54% – 2.73%)
$3,731.73
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,731.73 ÷ (1 + 9.54%)10
$1,499.99
NYSE:MRO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,087.46 + $1,499.99
$4,587.45
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $4,587.45 / 819.79
$5.6
NYSE:MRO Discount to Share Price
Calculation Result
Value per share (USD) From above. $5.60
Current discount Discount to share price of $17.62
= -1 x ($17.62 - $5.60) / $5.60
-214.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Marathon Oil is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Marathon Oil's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Marathon Oil's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:MRO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $1.30
NYSE:MRO Share Price ** NYSE (2019-04-18) in USD $17.62
United States of America Oil and Gas Industry PE Ratio Median Figure of 107 Publicly-Listed Oil and Gas Companies 13.18x
United States of America Market PE Ratio Median Figure of 3,081 Publicly-Listed Companies 18.18x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Marathon Oil.

NYSE:MRO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:MRO Share Price ÷ EPS (both in USD)

= 17.62 ÷ 1.30

13.6x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Marathon Oil is overvalued based on earnings compared to the US Oil and Gas industry average.
  • Marathon Oil is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Marathon Oil's expected growth come at a high price?
Raw Data
NYSE:MRO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.6x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts
0.9%per year
United States of America Oil and Gas Industry PEG Ratio Median Figure of 77 Publicly-Listed Oil and Gas Companies 0.59x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NYSE:MRO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.6x ÷ 0.9%

15.69x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Marathon Oil is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Marathon Oil's assets?
Raw Data
NYSE:MRO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $14.81
NYSE:MRO Share Price * NYSE (2019-04-18) in USD $17.62
United States of America Oil and Gas Industry PB Ratio Median Figure of 191 Publicly-Listed Oil and Gas Companies 1.14x
United States of America Market PB Ratio Median Figure of 5,184 Publicly-Listed Companies 1.91x
NYSE:MRO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:MRO Share Price ÷ Book Value per Share (both in USD)

= 17.62 ÷ 14.81

1.19x

* Primary Listing of Marathon Oil.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Marathon Oil is overvalued based on assets compared to the US Oil and Gas industry average.
X
Value checks
We assess Marathon Oil's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Marathon Oil has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Marathon Oil expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
0.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Marathon Oil expected to grow at an attractive rate?
  • Marathon Oil's earnings growth is positive but not above the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Marathon Oil's earnings growth is positive but not above the United States of America market average.
  • Marathon Oil's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:MRO Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:MRO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts 0.9%
NYSE:MRO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 18 Analysts 4.1%
United States of America Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 10.4%
United States of America Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 5.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:MRO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:MRO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 7,517 4,074 1,635 1
2022-12-31 6,832 3,858 1,304 1
2021-12-31 6,358 3,826 918 5
2020-12-31 6,206 3,594 654 12
2019-12-31 5,649 3,206 494 12
NYSE:MRO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 5,844 3,234 1,096
2018-09-30 5,928 2,880 678
2018-06-30 5,463 2,481 -175
2018-03-31 4,950 2,270 -424
2017-12-31 4,366 2,131 -830
2017-09-30 3,919 2,248 -2,185
2017-06-30 3,611 1,952 -1,792
2017-03-31 3,437 1,606 -1,777
2016-12-31 3,198 1,139 -2,087
2016-09-30 3,472 912 -1,497
2016-06-30 3,984 1,140 -2,040
2016-03-31 4,717 1,338 -2,288

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Marathon Oil's earnings are expected to grow by 0.9% yearly, however this is not considered high growth (20% yearly).
  • Marathon Oil's revenue is expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:MRO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below

All data from Marathon Oil Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MRO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1.32 1.97 0.67 2.00
2022-12-31 1.07 1.57 0.56 2.00
2021-12-31 1.12 1.60 0.72 4.00
2020-12-31 0.85 2.11 0.18 12.00
2019-12-31 0.62 1.23 0.08 12.00
NYSE:MRO Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 1.30
2018-09-30 0.80
2018-06-30 -0.21
2018-03-31 -0.50
2017-12-31 -0.98
2017-09-30 -2.57
2017-06-30 -2.11
2017-03-31 -2.09
2016-12-31 -2.55
2016-09-30 -1.93
2016-06-30 -2.78
2016-03-31 -3.31

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Marathon Oil is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Marathon Oil's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Marathon Oil has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Marathon Oil performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Marathon Oil's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Marathon Oil's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Marathon Oil has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Marathon Oil has become profitable in the last year making it difficult to compare the US Oil and Gas industry average.
Earnings and Revenue History
Marathon Oil's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Marathon Oil Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MRO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 5,844.00 1,096.00 489.00
2018-09-30 5,928.00 678.00 495.00
2018-06-30 5,463.00 -175.00 596.00
2018-03-31 4,950.00 -424.00 563.00
2017-12-31 4,366.00 -830.00 553.00
2017-09-30 3,919.00 -2,185.00 525.00
2017-06-30 3,611.00 -1,792.00 547.00
2017-03-31 3,437.00 -1,777.00 552.00
2016-12-31 3,198.00 -2,087.00 601.00
2016-09-30 3,472.00 -1,497.00 801.00
2016-06-30 3,984.00 -2,040.00 706.00
2016-03-31 4,717.00 -2,288.00 844.00
2015-12-31 4,557.00 -1,701.00 849.00
2015-09-30 6,817.00 -1,504.00 1,072.00
2015-06-30 8,306.00 -451.00 1,146.00
2015-03-31 9,709.00 295.00 1,131.00
2014-12-31 10,924.00 969.00 1,141.00
2014-09-30 10,964.00 1,198.00 966.00
2014-06-30 11,098.00 1,290.00 940.00
2014-03-31 11,210.00 1,171.00 960.00
2013-12-31 11,389.00 931.00 978.00
2013-09-30 13,053.00 1,148.00 1,022.00
2013-06-30 14,085.00 1,202.00 1,109.00
2013-03-31 14,817.00 1,354.00 1,156.00
2012-12-31 11,989.00 856.00 1,134.00
2012-09-30 15,266.00 1,809.00 1,121.00
2012-06-30 14,878.00 1,764.00 1,017.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Marathon Oil has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Marathon Oil used its assets less efficiently than the US Oil and Gas industry average last year based on Return on Assets.
  • Marathon Oil has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Marathon Oil's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Marathon Oil has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Marathon Oil's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Marathon Oil's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Marathon Oil is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Marathon Oil's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Marathon Oil's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Marathon Oil Company Filings, last reported 3 months ago.

NYSE:MRO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 12,128.00 5,499.00 1,462.00
2018-09-30 12,044.00 5,498.00 1,564.00
2018-06-30 12,132.00 5,497.00 1,667.00
2018-03-31 12,034.00 5,495.00 1,613.00
2017-12-31 11,708.00 5,494.00 563.00
2017-09-30 11,775.00 6,488.00 1,795.00
2017-06-30 12,405.00 7,263.00 2,668.00
2017-03-31 12,584.00 7,264.00 2,567.00
2016-12-31 17,541.00 7,267.00 2,491.00
2016-09-30 18,922.00 7,278.00 1,953.00
2016-06-30 19,153.00 7,281.00 2,584.00
2016-03-31 19,351.00 7,281.00 2,072.00
2015-12-31 18,553.00 7,277.00 1,221.00
2015-09-30 19,335.00 8,358.00 2,380.00
2015-06-30 20,218.00 8,356.00 2,497.00
2015-03-31 20,660.00 6,394.00 1,126.00
2014-12-31 21,020.00 6,363.00 2,398.00
2014-09-30 20,226.00 6,423.00 761.00
2014-06-30 19,868.00 6,430.00 1,169.00
2014-03-31 19,805.00 6,460.00 1,964.00
2013-12-31 19,344.00 6,597.00 264.00
2013-09-30 18,994.00 6,701.00 354.00
2013-06-30 19,021.00 6,496.00 246.00
2013-03-31 18,588.00 6,544.00 768.00
2012-12-31 18,283.00 6,896.00 684.00
2012-09-30 18,064.00 6,540.00 806.00
2012-06-30 17,785.00 5,250.00 583.00
  • Marathon Oil's level of debt (45.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (34.1% vs 45.3% today).
  • Debt is well covered by operating cash flow (58.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.5x coverage).
X
Financial health checks
We assess Marathon Oil's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Marathon Oil has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Marathon Oil's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.14%
Current annual income from Marathon Oil dividends. Estimated to be 1.14% next year.
If you bought $2,000 of Marathon Oil shares you are expected to receive $23 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Marathon Oil's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.39%).
  • Marathon Oil's dividend is below the markets top 25% of dividend payers in United States of America (3.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:MRO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
United States of America Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 65 Stocks 3.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:MRO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.20 3.00
2020-12-31 0.20 8.00
2019-12-31 0.20 9.00
NYSE:MRO Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-01-30 0.200 1.190
2018-10-30 0.200 1.256
2018-07-25 0.200 0.958
2018-05-03 0.200 0.956
2018-01-30 0.200 1.224
2017-10-25 0.200 1.246
2017-08-03 0.200 1.621
2017-08-02 0.200 1.630
2017-04-26 0.200 1.566
2017-01-25 0.200 1.255
2016-10-26 0.200 1.208
2016-07-27 0.200 1.348
2016-04-27 0.200 1.458
2016-01-27 0.200 2.034
2015-10-29 0.200 1.516
2015-07-29 0.840 4.888
2015-04-29 0.840 3.202
2015-01-28 0.840 3.014
2014-10-29 0.840 2.887
2014-07-30 0.840 2.222
2014-05-08 0.760 1.984
2014-04-30 0.760 2.104
2014-01-29 0.760 2.220
2013-10-30 0.760 2.147
2013-07-31 0.760 2.166
2013-04-24 0.680 1.944
2013-02-22 0.680 2.062
2013-02-06 0.680 1.961
2012-10-31 0.680 2.161
2012-07-25 0.680 2.376
2012-04-25 0.680 2.678
2012-02-29 0.720 2.271
2012-02-01 0.720 2.155
2011-10-26 0.600 2.108
2011-07-27 0.600 2.395
2011-05-06 1.000 2.315
2011-01-31 1.000 1.990
2010-10-27 1.000 2.741
2010-07-28 1.000 3.016
2010-04-28 1.000 3.128
2010-02-02 0.960 3.110
2009-10-28 0.960 2.983
2009-07-29 0.960 2.992
2009-04-29 0.960 3.144
2009-04-22 0.960 3.221

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Marathon Oil's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (6.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5x coverage).
X
Income/ dividend checks
We assess Marathon Oil's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Marathon Oil afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Marathon Oil has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Marathon Oil's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Lee Tillman
COMPENSATION $10,115,664
AGE 56
TENURE AS CEO 5.7 years
CEO Bio

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 Vice President of Engineering at ExxonMobil Development Company, where he was responsible for all global engineering staff engaged in major project concept selection, front end design and engineering. He began his career in the oil and gas industry at Exxon in 1989 as a Research Engineer. He has extensive operations management and leadership experience that has included assignments in Jakarta, Indonesia; Aberdeen, Scotland; Stavanger, Norway; Malabo, Equatorial Guinea; Dallas and New Orleans. Mr. Tillman assumed the position of Operations Superintendant of New Orleans Production Organization in 1998 and was named Operations Manager of Mobil Equatorial Guinea relocating to Malabo, Equatorial Guinea in 2001. Relocating to Houston in 2005, he was appointed Offshore Division Manager of ExxonMobil Upstream Research Company. From 2006 to 2007, he served as Acting Vice President of ExxonMobil Upstream Research Company. From 2007 to 2010, he served as a North Sea Production Manager and Lead Country Manager at ExxonMobil Upstream Research in Stavanger, Norway. He is a Board Member of American Petroleum Institute, American Exploration & Production Council, and Greater Houston Partnership. He is a Member of University of Houston Energy Advisory Board, Member of Engineering Advisory Council and Chemical Engineering Advisory Council of Texas A&M University, Member, National Petroleum Council, Member of Business Roundtable within the Barbara Bush Houston Literacy Foundation. He is an Advisory Board Member and President of Spindletop Charities. He is a Member of the Society of Petroleum Engineers. Mr. Tillman holds a Bachelor of Science degree in Chemical Engineering with honors from Texas A&M University and a Ph.D. in Chemical Engineering from Auburn University.

CEO Compensation
  • Lee's compensation has increased in line with Marathon Oil recently becoming profitable.
  • Lee's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Marathon Oil management team in years:

2.7
Average Tenure
54
Average Age
  • The tenure for the Marathon Oil management team is about average.
Management Team

Lee Tillman

TITLE
Chairman
COMPENSATION
$10M
AGE
56
TENURE
5.7 yrs

Dane Whitehead

TITLE
Executive VP & CFO
COMPENSATION
$7M
AGE
57
TENURE
2.1 yrs

Mitch Little

TITLE
Executive Vice President of Operations
COMPENSATION
$4M
AGE
54
TENURE
2.7 yrs

Reggie Hedgebeth

TITLE
Senior VP
COMPENSATION
$2M
AGE
50
TENURE
2 yrs

Pat Wagner

TITLE
Executive Vice President of Corporate Development & Strategy
COMPENSATION
$2M
AGE
53
TENURE
1.4 yrs

Gary Wilson

TITLE
VP, Controller & Chief Accounting Officer
AGE
56
TENURE
4.5 yrs

Bruce McCullough

TITLE
Senior VP of Technology & Innovation and Chief Information Officer
TENURE
2.7 yrs

Deanna Jones

TITLE
Senior Vice President of HR
AGE
49
TENURE
5.3 yrs

Guy Baber

TITLE
Vice President of Investor Relations
TENURE
0.8 yrs
Board of Directors Tenure

Average tenure and age of the Marathon Oil board of directors in years:

1
Average Tenure
60
Average Age
  • The average tenure for the Marathon Oil board of directors is less than 3 years, this suggests a new board.
Board of Directors

Lee Tillman

TITLE
Chairman
COMPENSATION
$10M
AGE
56
TENURE
0.2 yrs

Chad Deaton

TITLE
Director
COMPENSATION
$348K
AGE
66
TENURE
5.3 yrs

Marcela Donadio

TITLE
Director
COMPENSATION
$336K
AGE
63
TENURE
4.3 yrs

Lisa Hyland

TITLE
Director
AGE
58
TENURE
1 yrs

Doug Foshee

TITLE
Director
AGE
59
TENURE
1 yrs

Greg Boyce

TITLE
Lead Independent Director
COMPENSATION
$360K
AGE
64
TENURE
0.2 yrs

Jason Few

TITLE
Director
AGE
51

J. Wells

TITLE
Director
AGE
61
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
09. May 18 Sell T. Little Individual 07. May 18 07. May 18 -21,286 $19.89 $-423,357
X
Management checks
We assess Marathon Oil's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Marathon Oil has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Does Marathon Oil Corporation's (NYSE:MRO) CEO Salary Reflect Performance?

At the time of writing our data says that Marathon Oil Corporation has a market cap of US$14b, and is paying total annual CEO compensation of US$10m. … While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.1m. … We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be US$11m

Simply Wall St -

Read This Before Judging Marathon Oil Corporation's (NYSE:MRO) ROE

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows Marathon Oil has a return on equity of 9.0% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Those Who Purchased Marathon Oil (NYSE:MRO) Shares Five Years Ago Have A 50% Loss To Show For It

By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Most would consider that to be a good thing, so it's counter-intuitive to see the share price declining. … We don't think that the 1.2% is big factor in the share price, since it's quite small, as dividends go.

Simply Wall St -

Why We’re Not Impressed By Marathon Oil Corporation’s (NYSE:MRO) 5.7% ROCE

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Does Marathon Oil Corporation (NYSE:MRO) Have A Place In Your Dividend Stock Portfolio?

Dividends play an important role in compounding returns in the long run and end up forming a sizeable part of investment returns. … Historically, Marathon Oil Corporation (NYSE:MRO) has paid a dividend to shareholders. … Let's dig deeper into whether Marathon Oil should have a place in your portfolio.

Simply Wall St -

Want To Invest In Marathon Oil Corporation (NYSE:MRO) Today? Read This First

Marathon Oil Corporation (NYSE:MRO) closed yesterday at $15.9, which left some investors asking whether the high earnings potential can still be justified at this price. … Below I will be talking through a basic metric which will help answer this question. … If you are bullish about Marathon Oil's growth potential then you are certainly not alone

Simply Wall St -

Should You Be Pleased About The CEO Pay At Marathon Oil Corporation's (NYSE:MRO)

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … How Does Lee Tillman's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Marathon Oil Corporation has a market cap of US$13b, and is paying total annual CEO compensation of US$10m.

Simply Wall St -

What Should We Expect From Marathon Oil Corporation's (NYSE:MRO) Earnings Over The Next Year?

Based on Marathon Oil Corporation's (NYSE:MRO) earnings update in September 2018,. … the consensus outlook from analysts appear fairly confident, … the past 5-year average growth rate of -37%

Simply Wall St -

What Kind Of Investor Owns Most Of Marathon Oil Corporation (NYSE:MRO)?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Companies that used to be publicly owned tend to have lower insider ownership. … Our analysis of the ownership of the company, below, shows that.

Simply Wall St -

Is Marathon Oil Corporation (NYSE:MRO) A Smart Pick For Income Investors?

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Does Marathon Oil tick all the boxes of a great dividend stock? … 5 checks you should do on a dividend stock

Simply Wall St -

Company Info

Description

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.

Details
Name: Marathon Oil Corporation
MRO
Exchange: NYSE
Founded: 1887
$14,444,640,984
819,786,662
Website: http://www.marathonoil.com
Address: Marathon Oil Corporation
5555 San Felipe Street,
Houston,
Texas, 77056,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE MRO Common Stock New York Stock Exchange US USD 02. Jan 1968
DB USS Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
LSE 0JY9 Common Stock London Stock Exchange GB USD 02. Jan 1968
BMV MRO * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1968
Number of employees
Current staff
Staff numbers
2,400
Marathon Oil employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/21 23:38
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/02/21
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.