Marathon Oil Corp. (MRO, Financial) filed Quarterly Report for the period ended 2010-09-30.
Marathon Oil Corp. has a market cap of $24.07 billion; its shares were traded at around $33.92 with a P/E ratio of 11.82 and P/S ratio of 0.44. The dividend yield of Marathon Oil Corp. stocks is 2.95%. Marathon Oil Corp. had an annual average earning growth of 11.3% over the past 10 years. GuruFocus rated Marathon Oil Corp. the business predictability rank of 3-star.MRO is in the portfolios of Richard Snow of Snow Capital Management, L.P., John Buckingham of Al Frank Asset Management, Inc., James Barrow of Barrow, Hanley, Mewhinney & Strauss, Pioneer Investments, Paul Tudor Jones of The Tudor Group, Steven Cohen of SAC Capital Advisors, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Louis Moore Bacon of Moore Capital Management, LP, Mario Gabelli of GAMCO Investors, Jeremy Grantham of GMO LLC, Charles Brandes of Brandes Investment, Eric Mindich of Eton Park Capital Management, L.P., Bruce Kovner of Caxton Associates, Murray Stahl of Horizon Asset Management, David Dreman of Dreman Value Management, George Soros of Soros Fund Management LLC.
In October 2010, we announced the acquisition of a position in four exploration blocks in the Kurdistan Region of Iraq. We have signed production sharing agreements for operatorship and an 80 percent ownership in two open blocks northeast of Erbil, Harir and Safen. The Kurdistan Regional Government will hold a 20 percent interest but bear no costs. We were assigned working interests in two additional blocks located north-northwest of Erbil, Atrush in which we have a 20 percent working interest and Sarsang in which we have a 25 percent working interest. The total entry cost, subject to final adjustments, is $156 million plus a pro rata share of historic exploration costs estimated to be $20 million. This transaction provides us with access to approximately 295,000 net acres. We have committed to a seismic program and to drilling one well on each of the two open blocks during the initial three-year exploration period. The Atrush and Sarsang blocks each have a well currently drilling.
In October 2010, we entered into definitive agreements to sell our St. Paul Park, Minnesota, refinery (including associated terminal, tankage and pipeline investments) and 166 Speedway SuperAmerica retail outlets, plus related inventories. The fair value of the consideration is estimated to be approximately $900 million, which includes the estimated value of inventory and the fair values of (1) a retained preferred stock interest in the buyer with a stated value of $80 million, (2) a maximum $125 million earnout provision payable to us over eight years, and (3) a maximum $60 million of margin support payable to the buyer over two years. Cash proceeds at closing are estimated to be $700 million. The earnout and margin support provisions in the agreements are subject to certain conditions and any margin support paid may be recovered by an increase in the total earnout amount. We expect the sale transaction to close by yearend 2010, contingent upon the buyer meeting the conditions of their financing arrangements and other customary closing conditions.
Prevailing prices for the various qualities of crude oil and natural gas that we produce significantly impact our revenues and cash flows. Prices have been volatile in recent years, but both West Texas Intermediate crude oil and Dated Brent crude oil monthly average prices have been in the $75 to $85 per barrel range during 2010. The following table lists benchmark crude oil and natural gas price averages in the third quarter and first nine months of 2010, when compared to the same periods in 2009.
Read the The complete Report
Marathon Oil Corp. has a market cap of $24.07 billion; its shares were traded at around $33.92 with a P/E ratio of 11.82 and P/S ratio of 0.44. The dividend yield of Marathon Oil Corp. stocks is 2.95%. Marathon Oil Corp. had an annual average earning growth of 11.3% over the past 10 years. GuruFocus rated Marathon Oil Corp. the business predictability rank of 3-star.MRO is in the portfolios of Richard Snow of Snow Capital Management, L.P., John Buckingham of Al Frank Asset Management, Inc., James Barrow of Barrow, Hanley, Mewhinney & Strauss, Pioneer Investments, Paul Tudor Jones of The Tudor Group, Steven Cohen of SAC Capital Advisors, HOTCHKIS & WILEY of HOTCHKIS & WILEY Capital Management LLC, Louis Moore Bacon of Moore Capital Management, LP, Mario Gabelli of GAMCO Investors, Jeremy Grantham of GMO LLC, Charles Brandes of Brandes Investment, Eric Mindich of Eton Park Capital Management, L.P., Bruce Kovner of Caxton Associates, Murray Stahl of Horizon Asset Management, David Dreman of Dreman Value Management, George Soros of Soros Fund Management LLC.
Highlight of Business Operations:
Our 2010 exploration program is expected to exceed $1 billion and is focused on North America resource plays, the deepwater Gulf of Mexico, Indonesia, Norway and Libya. As stated above, in the Gulf of Mexico we suspended drilling on the Innsbruck prospect during the second quarter due to the drilling moratorium. The Noble Jim Day drilling rig has been contracted and is scheduled to become available in the fourth quarter of 2010, subject to regulatory uncertainties described above. Commissioning and testing of the rig has begun. It is our intent to reestablish our Gulf of Mexico exploration and development programs unless new laws, regulations or court orders prohibit these activities or make them not viable financially. The revised cost of the Innsbruck well is now estimated at $145 million. We are the operator and hold an 85 percent working interest in the prospect.In October 2010, we announced the acquisition of a position in four exploration blocks in the Kurdistan Region of Iraq. We have signed production sharing agreements for operatorship and an 80 percent ownership in two open blocks northeast of Erbil, Harir and Safen. The Kurdistan Regional Government will hold a 20 percent interest but bear no costs. We were assigned working interests in two additional blocks located north-northwest of Erbil, Atrush in which we have a 20 percent working interest and Sarsang in which we have a 25 percent working interest. The total entry cost, subject to final adjustments, is $156 million plus a pro rata share of historic exploration costs estimated to be $20 million. This transaction provides us with access to approximately 295,000 net acres. We have committed to a seismic program and to drilling one well on each of the two open blocks during the initial three-year exploration period. The Atrush and Sarsang blocks each have a well currently drilling.
In October 2010, we entered into definitive agreements to sell our St. Paul Park, Minnesota, refinery (including associated terminal, tankage and pipeline investments) and 166 Speedway SuperAmerica retail outlets, plus related inventories. The fair value of the consideration is estimated to be approximately $900 million, which includes the estimated value of inventory and the fair values of (1) a retained preferred stock interest in the buyer with a stated value of $80 million, (2) a maximum $125 million earnout provision payable to us over eight years, and (3) a maximum $60 million of margin support payable to the buyer over two years. Cash proceeds at closing are estimated to be $700 million. The earnout and margin support provisions in the agreements are subject to certain conditions and any margin support paid may be recovered by an increase in the total earnout amount. We expect the sale transaction to close by yearend 2010, contingent upon the buyer meeting the conditions of their financing arrangements and other customary closing conditions.
Prevailing prices for the various qualities of crude oil and natural gas that we produce significantly impact our revenues and cash flows. Prices have been volatile in recent years, but both West Texas Intermediate crude oil and Dated Brent crude oil monthly average prices have been in the $75 to $85 per barrel range during 2010. The following table lists benchmark crude oil and natural gas price averages in the third quarter and first nine months of 2010, when compared to the same periods in 2009.
Read the The complete Report
