|Bid||3.6900 x 3100|
|Ask||3.7000 x 21500|
|Day's range||3.6600 - 3.8800|
|52-week range||3.0200 - 18.9300|
|Beta (5Y monthly)||2.86|
|PE ratio (TTM)||6.31|
|Earnings date||04 May 2020|
|Forward dividend & yield||0.20 (5.43%)|
|Ex-dividend date||17 Feb 2020|
|1y target est||8.31|
(Bloomberg) -- Oil rose as the world’s top producers continued to discuss potential output cuts in a bid to offset the demand destruction wrought by the coronavirus.Futures in New York climbed as much as 7% to briefly trade over $25 a barrel. Saudi Arabia and Russia are hammering out an agreement that an OPEC+ delegate said would reduce global production by about 10 million barrels a day. Still, Russia cast doubt on any real U.S. contribution to the deal, with President Donald Trump only offering an output cut driven by market forces.“Many oil producers around the world are now increasingly forced to reduce or close production basically because pipelines and local storage facilities are full,” said Bjarne Schieldrop, chief commodities strategist at SEB AB. “Natural declines or forced production cuts will thus likely be counted as deliberate cuts” when OPEC and other producers thrash out a deal in talks on Thursday.The U.S. slashed its 2020 oil-production forecast by more than 1 million barrels a day on Tuesday, a move that could be enough to satisfy Riyadh and Moscow.Despite gains in the futures market, physical prices continue to fall as refineries cut processing rates and purchases. North American landlocked crudes are fetching ever lower prices, with grades in the U.S. Bakken region back beneath $10 and oil in Canada at a record low. Alberta Premier Jason Kenney warned on Tuesday that there’s a “very real possibility” of negative prices.OPEC++ TalksDelegates involved in the talks on a production cut have said some form of cooperation from the U.S., the world’s biggest producer, will be required to ensure others sign on to a deal.In the short-term, the U.S. market is looking weak. WTI time spreads have been hit hard on expectations of record builds at the key U.S. storage hub at Cushing, Oklahoma. American inventories rose by almost 12 million barrels last week, the American Petroleum Institute reported, while those in Europe grew by a similar amount, according to data provider Kayrros.Adding to the pressure is a bumper roll of the $2.7 billion U.S. Oil Fund ETF. The fund holds about 20% of the May WTI contract and is set to move that position to the June contract over the coming days. The value of the fund’s assets has fallen from a high of $3.5 billion last week.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Marathon Oil Corp. is reducing its capital spending this year to about half of 2019 levels, joining a parade of shale drillers doing the same with oil prices trading at depressed levels as demand suffers due to coronavirus.Capital expenditures in 2020 are now seen at $1.3 billion, a cumulative budget reduction of $1.1 billion from initial capital spending guidance for the year, according to a statement by the Houston-based company on Wednesday. Marathon joins drillers including EOG Resources Inc. and Murphy Oil Corp. and oil majors Exxon Mobil Corp. and Chevron Corp. in slashing budgets in response to U.S. crude oil trading in the $20-a-barrel range, down more than 50% since the start of the year.Marathon plans to take “frac holidays in both the Bakken and Eagle Ford” during the second quarter, Marathon Oil CEO Lee Tillman said in the statement.Marathon Oil previously said it would suspend its activities in Oklahoma. It also plans to suspend further drilling in the northern Delaware section of the Permian basin, with only a limited number of wells to sales expected through the rest of the year.Marathon will continue to optimize development plans in the Bakken and Eagle Ford, before moving to a lower and more continuous drilling and completion program over the second half of the year in both basins.“Against a highly volatile and uncertain environment, these decisive actions are designed first and foremost to protect our balance sheet and our hard-earned financial strength,” Tillman said.Marathon shares rose 4.1% to $3.83 at 9:37 a.m in New York trading on Wednesday.(Updates with share price move in seventh paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Domestic drillers may continue to lower rigs in oil patches since global energy demand has declined drastically owing to the coronavirus pandemic.
Unfortunately for some shareholders, the Marathon Oil (NYSE:MRO) share price has dived 63% in the last thirty days...
Investors who take an interest in Marathon Oil Corporation (NYSE:MRO) should definitely note that the Chairman, Lee...
In order to cope with the downward spiral in oil prices, the likes of Occidental Petroleum (OXY) and Apache (APA) slashed their dividend payouts.
Given the oil price freefall, Whiting Petroleum (WLL) instantly lowers its development activity and plans to keep a low profile until a sharp recovery is achieved in commodity price.
(Bloomberg) -- The latest crash in oil prices is threatening to push $140 billion of investment-grade energy debt over the edge into junk.Despite the modest recovery after 2016, oil prices have been capped by plentiful global supplies, and at the same time the U.S. shale sector has exhausted the patience of many equity investors with consistently poor returns. Now, the industry has been blindsided by the double whammy of a supply shock from the coronavirus and an oil price war, and President Donald Trump’s efforts to prop up prices is unlikely to offset more expected supply from major producers.That’s left exploration and production companies in a weaker position coming into the latest crisis, with WTI crude dropping below $30 a barrel. Those including Occidental Petroleum Corp., as well as Apache Corp. and Marathon Oil Corp. are cutting spending wherever possible, but bond traders seem to have already made up their minds -- some of these companies’ debt, and that of others, is trading around 70 cents on the dollar, a far cry from near par where most traded just a few weeks ago.“When you have these investment-grade companies trading in the 60s, 70s, and 80s, that tells you that the market certainly doesn’t look at them as investment grade,” said James Spicer, a high-yield analyst at TD Securities focused on energy. “It looks at them as distressed names that have real default risk.”It may be too late for oil producers to refinance their way out of this one. Capital markets have been mostly shut for weeks as corporate debt traders price in a greater chance of recession, only opening up in small windows for the highest-quality borrowers in safe-haven sectors like utilities. If companies can’t service their debt, the possibility of downgrades pales in comparison to the threat of default.Read more: We’re About to Find Out If Anyone Will Lend to Distressed EnergyFor investment-grade borrowers, they’re still trying to avoid downgrades to high yield, which would make them so-called fallen angels, but strategists are betting against it. UBS Group AG boosted its fallen angel forecast by $50 billion to a high of $140 billion, largely due to the stress in energy. That number could represent just North American energy companies alone crossing to high yield, while a prolonged downturn could affect an additional $320 billion of BBB rated midstream debt, Bloomberg Intelligence analyst Spencer Cutter said in a report Wednesday.Much of that could come from Occidental, which slashed its dividend last week for the first time in 30 years to conserve cash, and would be the largest issuer in the Bloomberg Barclays high-yield index if cut. Apache, which also reduced its payout, is another, as well as Marathon Oil, Continental Resources Inc., Cimarex Energy Co., Noble Energy Inc. and Hess Corp., according to Morgan Stanley. Unlike 2016, the risks in energy today are not limited to high-yield companies alone, analysts led by Srikanth Sankaran said in a report.Hess has 80% of its 2020 production hedged, no meaningful debt maturities until 2027 and more than $5 billion of liquidity to protect its ratings, spokeswoman Lorrie Hecker said in an email. Apache also pointed to its $4 billion of liquidity and “considerable flexibility” to manage upcoming debt maturities. It doesn’t have any debt due this year.A spokeswoman for Occidental declined to comment, while representatives for Marathon Oil, Continental Resources, Cimarex Energy and Noble Energy didn’t respond to requests for comment.Buying TimeThe exploration and production sector makes up the biggest chunk of riskiest high-grade companies and would be the first on the chopping block when credit raters start downgrading, according to CreditSights. Cost-cutting measures like those announced last week by Occidental and Apache may help companies buy more time, but the big question is whether that will be enough to keep bond graders at bay, according to Erin Lyons, U.S. credit strategist at CreditSights.“Given the underlying price environment especially in energy, there just might not be much else they can do apart from cutting shareholders’ returns,” she said.Read more: U.S. Shale Drillers Cut Spending and Curb Drilling on Oil’s DropMoody’s Investors Service is expecting more oil and gas companies to reduce capital spending, and potentially cut or even suspend payouts to shareholders as cash flows dwindle and access to capital markets becomes limited. S&P Global Ratings said it will review all investment-grade and high-yield E&P companies as it now expects WTI crude to end the year at $35 instead of $55.S&P on Monday downgraded Exxon Mobil Corp.’s credit rating for the first time since the 2016 oil-price crash. Its 3.095% bonds maturing 2049 were the biggest decliners in the high-grade bond market, according to Trace data. Meanwhile, Energy Transfer’s 5% bonds due 2050 dropped about 1.8 cents on the dollar to about 79.7 cents.Higher-quality names like Diamondback Energy Inc., Parsley Energy Inc. and WPX Energy Inc. are likely to trade back up once the dust settles, said TD’s Spicer. But for the riskier ones like Occidental, Cimarex and Continental Resources, it may be too late to stave off downgrades to junk, especially if oil prices don’t rebound anytime soon, Spicer said.“If this situation persists for any period of time, and it seems like it will, I think all of these names will come into high yield,” he said.(Updates oil prices in third paragraph, adds Exxon Mobil and Energy Transfer bond price details in 13th)\--With assistance from Rachel Adams-Heard and Kevin Crowley.To contact the reporters on this story: Caleb Mutua in New York at email@example.com;Allison McNeely in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Nikolaj Gammeltoft at email@example.com, Molly Smith, Simon CaseyFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Marathon Oil (MRO) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
Wall Street roared back to life on Tuesday, rebounding from the brink of bear market confirmation as bargain-hunting and hopes of government stimulus calmed investors' fears surrounding the coronavirus and growing signs of imminent recession. Sinking beyond the 20% mark would confirm a bear market. U.S. President Donald Trump said he will take "major steps" to allay market fears by asking Congress for a fiscal stimulus package to include a payroll tax cut, among other measures.
Stocks erased earlier gains mid-morning Tuesday, with the Dow erasing gains of as many as 945.7 points to dip into the red.
The launch of a price war between Saudi Arabia and Russia drove oil prices down by about a third on Monday, sending another shockwave through an industry that has been cutting costs since the 2014-2016 price collapse. Chevron Corp , the second largest U.S. producer, joined Marathon Oil Corp , EOG Resources Inc Canada's Cenovus Energy Inc and several smaller oil producers revisiting their spending and production plans in light of OPEC's decision to pump full bore beginning next month.