Marathon Oil Corporation (NYSE: MRO) today reported a first quarter 2020 net loss of $(46) million, or $(0.06) per diluted share, which includes the impact of certain items not typically represented in analysts' earnings estimates and that would otherwise affect comparability of results. The adjusted net loss was $(125) million, or $(0.16) per diluted share. Net operating cash flow was $701 million, or $550 million before changes in working capital.
Domestic drillers may continue to lower rigs in oil patches since global energy demand has declined drastically owing to the coronavirus pandemic.
Marathon Oil Corporation (NYSE: MRO) announced today that effective May 4, 2020, Mike Henderson will be promoted to senior vice president, operations, and will oversee the U.S. Resource Play businesses.
Oil drillers in the Permian basin continue to remove rigs since the coronavirus pandemic dented global energy demand.
Shares of Marathon Oil Corp. dropped Tuesday, to pull back from the previous session’s 10-week closing high, after Morgan Stanley turned bearish on the oil and natural gas company, citing concerns about high debt levels and a more challenged outlook.
Solid operating efficiency at Marathon Oil's (MRO) US resource basin division, which is responsible for above 75% of its total output, is likely to have aided Q1 earnings.
Marathon Oil (MRO) delivered earnings and revenue surprises of -23.08% and 20.42%, respectively, for the quarter ended March 2020. Do the numbers hold clues to what lies ahead for the stock?
The oil and gas producer continues to take actions to protect its balance sheet amid the oil market's current storm.
Q1 2020 Marathon Oil Corp Earnings Call
It's time to buy back into oil companies, like Marathon Oil (NYSE:MRO) stock.Source: IgorGolovniov / Shutterstock.com Just weeks plunging well under zero on supply-demand issues, oil is making a sizable comeback. In fact, Brent crude is back above $35.Along with it, oil stocks are just beginning to explode higher. Chevron (NYSE:CVX) just ran from a low of $50 to $92. Exxon Mobil (NYSE:XOM) jumped from $30 to $44. Marathon has run from $3 to $6.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Excellent Penny Stocks Ready to RoarFrom here, we could see higher highs in stocks like Marathon Oil with help from OPEC and a reopening economy. In fact, I believe the MRO stock could easily double from current prices. The Worst May Be Priced Into MRO StockAs with most oil companies, Marathon Oil didn't fare so well with the coronavirus.In its first quarter, it posted a loss of $46 million, or 6 cents a share, down from a profit of $174 million, or 21 cents a share, year over year. Adjusted, the loss was 16 cents a share. Analysts were looking for a loss of 14 cents, or 16 cents adjusted.It then withdrew its guidance for the year thanks to coronavirus uncertainty, suspended its dividend and buybacks, and cut its capital spending budget by $1.1 billion to $1.3 billion.Unfortunately, the company didn't have much of a choice with the virus making mincemeat of most stocks on the market. However, the worst may have been priced in, as oil prices begin to rebound from negative zero. Oil Production Cuts Are Helping Balance the MarketMonths after Russia and Saudi Arabia flooded the market with unwanted supply, the two have joined other OPEC countries in cutting 10 million barrels a day. On top of that, the Saudis agreed to cut oil production in June 2020 by another 1 million barrels a day.In addition, President Donald Trump promised the U.S. would pull back on oil output. In fact, "Trump said the U.S. would cut production levels by 250,000 to 300,000 in order to assist Mexico in meeting the parameters outlined by OPEC+," as noted by The Hill contributor Rebecca Beitsch.U.S. oil companies like Texland Production shut down 1,211 oil wells, and stopped production in May 2020. Even the number of rigs operating in the U.S. fell from about 800 to 600.And, the Energy Information Administration (EIA) has even said U.S. crude production could fall to 7.8 million barrels per day in June. That's a steep drop from 8 million in May. The EIA also just reported a fall of 5 million barrels in weekly supply.All is helping to cool concerns of oversupply.Better still, "the OPEC-plus alliance may extend May and June oil production cuts of almost 10 million barrels per day through the end of this year, an OPEC delegate tells Energy Intelligence. The delegate said a proposal to that effect would be discussed at the next OPEC -plus video-link meeting in June." Oil Demand Is Showing Signs of ReturningWith economies beginning to reopen, there's hope we'll see far greater demand for oil.At the moment, "While gasoline demand has staged a strong recovery as people go back to work, there are still several unknowns regarding the extent to which oil demand will ultimately recover," said UBS analyst Giovanni Staunovo.At the same time, Bloomberg reported that oil demand in China is back to pre-coronavirus levels. "According to Bloomberg's sources, China's gasoline and diesel consumption are already back to the pre-virus levels -- a bullish sign for the oil market, which is looking at China for clues about when demand in the rest of the world could return to some form of normality," says Oil Price contributor Tsvetana Paraskova.Reopening economies in the U.S, and across Europe are helping to fuel demand, as well. With improving oil fundamentals, and the worst of the worst priced into the MRO stock, now may be a great time to accumulate. I strongly believe MRO could double from current prices.Ian Cooper, an InvestorPlace.com contributor, has been analyzing stocks and options for web-based advisories since 1999. As of this writing, Ian Cooper did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Itas Now Time to Buy Back Into Marathon Oil appeared first on InvestorPlace.
MRO earnings call for the period ending March 31, 2020.
Oil prices managed to return to positive territory by Monday’s afternoon trading in New York, but could have trouble staying there after an industry regulator for Texas declared “dead” a plan to cut output in the largest oil-producing state in the U.S. Forecasts that the Energy Information Administration will report fairly largely weekly builds for crude, gasoline and distillates in its routine dataset due on Wednesday could also weigh on the more-than-60% recovery seen on the West Texas Intermediate crude benchmark over the past four sessions. U.K.-traded Brent, the global benchmark for oil, was up 10 cents, or 0.4%, at $26.54.
Weak commodity prices are likely to have hurt energy firms in Q1.
Missed the slew of shale oil earnings? Here's a quick run-through of how some of the bigwigs fared in their first-quarter earnings reports.
Even with the latest surge in stock prices, nearly all energy stocks are down by double-digit percentages for the year.
Marathon Oil's (MRO) U.S. production costs summed $4.63 per BOE, 11.1% lower year over year and the lowest since the company became a standalone E&P entity.
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Moody's Investors Service (Moody's) changed the rating outlook of Marathon Oil Corporation (Marathon Oil) to negative from stable. "Marathon Oil's credit metrics will weaken considerably due to low oil prices in 2020," commented Amol Joshi, Moody's Vice President -- Senior Credit Officer.
Marathon Oil (NYSE: MRO) is one of the many oil and gas producers feeling the impact of lower crude prices. CEO Lee Tillman stated that while "we are truly in uncharted waters," Marathon is "determined and confident that we will emerge from this correction, a healthier company with an improved cost structure and ample financial flexibility." While that lower spending level, and the associated reduction in its drilling activities, will cause its production to slide over the near term, Marathon expects volumes to begin improving by the fourth quarter.
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