Marathon Oil Reports Earnings for Second Quarter of FY2023
August 13, 2023
🌥️Earnings Overview
On August 2 2023, MARATHON OIL ($NYSE:MRO) reported their financial results for the second quarter of FY2023, ending June 30 2023. Revenue for the period amounted to USD 1484.0 million, a 31.5% decrease from the same quarter in the prior year. Net income for the period decreased by 70.3% compared to the same quarter the year before, amounting to USD 287.0 million.
Stock Price
On Wednesday, MARATHON OIL stock opened at $25.9 and closed at $25.7, down by 1.8% from its last closing price of 26.2. Overall, market analysts have remained bearish on MARATHON OIL due to its declining revenues and profit margins in recent quarters. Investors have been wary of MARATHON OIL’s ability to deliver sustained growth with its current business model and strategy. Despite the negative market sentiment, investors remain hopeful that MARATHON OIL will be able to turn things around in the coming quarters.
The company has been actively pursuing new partnerships and investments in order to expand its presence in the energy sector and increase its profitability. It remains to be seen if MARATHON OIL will be able to meet its goals and deliver sustained growth in its second quarter earnings report. Investors will be closely watching the company’s results to see if it can deliver on its promises. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Marathon Oil. More…
| Total Revenues | Net Income | Net Margin |
| 6.66k | 2.05k | 30.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Marathon Oil. More…
| Operations | Investing | Financing |
| 4.62k | -5.06k | -515 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Marathon Oil. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 19.92k | 8.68k | 18.21 |
Key Ratios Snapshot
Some of the financial key ratios for Marathon Oil are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 18.6% | 87.2% | 44.2% |
| FCF Margin | ROE | ROA |
| 40.5% | 16.3% | 9.2% |
Analysis
At GoodWhale, we conducted an analysis of MARATHON OIL‘s wellbeing. According to our Star Chart, MARATHON OIL has a high health score of 9/10 with regard to its cashflows and debt, indicating that it is well-positioned to sustain future operations in times of crisis. We classify MARATHON OIL as a ‘rhino’, which we deem to be companies that have achieved moderate revenue or earnings growth. Given its strong showing in cashflows and debt, it is likely that MARATHON OIL may be attractive to long-term investors looking for regular dividends. Additionally, its moderate performance in asset, growth, and profitability may also be attractive to value investors who are seeking companies that can potentially offer greater returns on their investments. More…
Peers
The competition in the oil and gas industry is intense, with Marathon Oil Corp competing against some of the largest names in the business, including ConocoPhillips, Continental Resources Inc, and Devon Energy Corp. Marathon Oil Corp has a long history in the industry, dating back to its founding in 1887. The company has a strong presence in both the upstream and downstream segments of the oil and gas industry. In the upstream segment, Marathon Oil Corp is engaged in the exploration, development, and production of oil and gas. In the downstream segment, the company refines, markets, and transports crude oil and petroleum products.
– ConocoPhillips ($NYSE:COP)
ConocoPhillips is an American multinational energy corporation with operations in more than 30 countries. It is the world’s largest independent exploration and production company and the ninth largest publicly traded oil and gas company. Based in Houston, Texas, ConocoPhillips was created through the merger of Conoco Inc. and Phillips Petroleum Co. in August 2002.
The company has a market capitalization of $150.68 billion as of 2022 and a return on equity of 30.9%. ConocoPhillips is engaged in the exploration, production, marketing and trading of crude oil, natural gas, natural gas liquids and refined products. The company’s operations are organized into four business segments: upstream, midstream, chemicals and refining.
– Continental Resources Inc ($NYSE:CLR)
Continental Resources is an oil and natural gas exploration and production company with operations in the Bakken and SCOOP/STACK plays in the Anadarko Basin of Oklahoma. The company also has operations in the Permian Basin of Texas and New Mexico. Continental Resources was founded in 1967 and is headquartered in Oklahoma City, Oklahoma.
– Devon Energy Corp ($NYSE:DVN)
Devon Energy Corporation is a leading independent energy company engaged in oil and gas exploration and production. Devon has a market capitalization of $45.71 billion as of March 2021 and a return on equity of 43.53%. The company’s operations are focused in the United States and Canada. Devon Energy is one of the largest producers of oil and natural gas in the United States and is a member of the S&P 500 Index. The company’s business strategy is focused on creating shareholder value through a disciplined approach to asset management and capital investment.
Summary
MARATHON OIL reported a decrease in revenue and net income for the second quarter of FY2023 when compared to the same period in the previous year. Revenue decreased by 31.5% to USD 1484.0 million, while net income decreased by 70.3% to USD 287.0 million. Investors may consider this news carefully before deciding to invest in MARATHON OIL as these results could signify financial instability.
It is important to note that quarterly results can also be affected by various external factors such as market conditions or competition. Therefore, investors should continue to monitor the company’s performance and analyze their future prospects before making any decisions.
