Oil and natural gas exploration and production (E&P) firm
Marathon Oil Corp.
) reported impressive third-quarter 2013 earnings. Robust
performance by the North America E&P segment along with
higher price realization of liquid hydrocarbon boosted the
Houston, TX-based Marathon Oil, which spun off its refining/sales
business into a separate, independent and publicly traded company
Marathon Petroleum Corp.
) in 2011 - announced earnings (excluding special items) of 87
cents per share, surpassing the Zacks Consensus Estimate of 78
cents. Moreover, the company's per share adjusted profits were
35.9% higher than the third-quarter 2012 level of 64 cents.
However, revenues at $3,914.0 million were down 5.9% year over
year and were also below the Zacks Consensus Estimate of $4,019.0
million. Lower production in Libya and Norway affected the
North America E&P:
Income from Marathon Oil's North American upstream segment
totaled $242.0 million during the quarter, up by a significant
126.2% from $107.0 million in the previous-year period. Increased
price realization from liquid hydrocarbon along with reduced
exploration costs aided the results.
The segment's income was down 20.7% year over year from $405.0
million to $321.0 million. Decrease in output at Libya and
Norway, owing to planned turnaround activities, along with
increased exploration costs affected the results.
Oil Sands Mining:
Price realization from Synthetic Crude Oil came in at $102.64 per
barrel, up 26.5% from $81.13 per barrel in the year-ago
period. As a result, Marathon Oil's Oil Sands Mining
segment recorded a profit of $106.0 million, up 60.6% from an
income of $66.0 million in the corresponding quarter of last
However, Synthetic crude oil sales volumes in the oil sands
business fell 7.5% year over year from 53,000 barrels per day to
49,000 barrels per day.
During the quarter, Marathon Oil spent $1,162.0 million on
capital programs (93.4% on E&P).
Marathon Oil maintained its previous guidance for 2013 output
from North America E&P and International E&P business
units (excluding Libya), at 410,000-425,000 oil-equivalent
barrels per day. The company also retained its previous
projection for oil sands volumes in the range of 40,000-44,000
barrels per day.
Marathon Oil currently retains a Zacks Rank #3 (Hold), implying
that it is expected to perform in line with the broader U.S.
equity market over the next one to three months.
Meanwhile, one can look at energy firms like
SM Energy Company
Matador Resources Company
) that offer better prospects. Both the stocks sport a Zacks Rank
#1 (Strong Buy).
MARATHON PETROL (MPC): Free Stock Analysis
MARATHON OIL CP (MRO): Free Stock Analysis
MATADOR RESOURC (MTDR): Free Stock Analysis
SM ENERGY CO (SM): Free Stock Analysis Report
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