Global Hunter Securities Maintains a 'Neutral' on Marathon Oil (MRO); Cutting PT & Estimates After Taxes Take Bite
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Price: $35.15 -0.23%
Rating Summary:
14 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
14 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade MRO Now!
Global Hunter Securities maintains a 'Neutral' on Marathon Oil (NYSE: MRO) price target lowered from $37 to $32.
Analyst, John Malone, said, "Adjusted net income of $478MM was off 13% QoQ, with E&P sales volumes at 383 Mboe/d, 62% of which were liquids. Liquids production was up in both the Eagle Ford and the Bakken, and MRO is raising its 2012 capex guidance by $200MM to ramp up these plays further. Operationally MRO performed well – in fact QoQ EBITDAX was up 16% - but high tax rates internationally cut into the bottom line. We are dropping our earnings on the assumption of high tax rates going forward, partially offset by better than expected production. We’re also lowering our price target to $32, reflecting a target price/NAV of 81% and an EV/EBITDA multiple of 2.9x our 2012E, which we believe is justified given the high tax burden."
For an analyst ratings summary and ratings history on Marathon Oil click here. For more ratings news on Marathon Oil click here.
Shares of Marathon Oil closed at $28.88 yesterday, with a 52 week range of $19.13-$54.23.
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Analyst, John Malone, said, "Adjusted net income of $478MM was off 13% QoQ, with E&P sales volumes at 383 Mboe/d, 62% of which were liquids. Liquids production was up in both the Eagle Ford and the Bakken, and MRO is raising its 2012 capex guidance by $200MM to ramp up these plays further. Operationally MRO performed well – in fact QoQ EBITDAX was up 16% - but high tax rates internationally cut into the bottom line. We are dropping our earnings on the assumption of high tax rates going forward, partially offset by better than expected production. We’re also lowering our price target to $32, reflecting a target price/NAV of 81% and an EV/EBITDA multiple of 2.9x our 2012E, which we believe is justified given the high tax burden."
For an analyst ratings summary and ratings history on Marathon Oil click here. For more ratings news on Marathon Oil click here.
Shares of Marathon Oil closed at $28.88 yesterday, with a 52 week range of $19.13-$54.23.
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Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT ChangeRelated Entities
Bakken Formation, Earnings
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