ARGUS Reiterates 'Buy' on Marathon Oil (MRO), a Focus List Selection

August 14, 2008 1:03 PM EDT

ARGUS reiterates 'Buy' rating and $64 target price on Focus List selection Marathon Oil Corp. (NYSE: MRO).

ARGUS analyst says, "Despite its 32% increase in 2007, the stock was a relative laggard last year; year-to-date it is down nearly 25%, making it the worst-performing integrated oil company in our coverage universe. We believe that the combination of its discounted valuation and strong slate of upstream and downstream projects make it one of the most attractive stocks in its peer group. Following a strong rise
in the first half of 2007, the shares continue to be hurt by the weak refining environment. Delays in the startup of its Alvheim/Vilje project also raised the specter of execution risk. That project is now online and performing well. Of the integrated oil firms, Marathon is now the most heavily weighted toward
refining, and by a wide margin. While this is unlikely to vary over the short term, the picture should alter as the company brings production projects onstream over the next few years. In fact, we think Marathon is poised to deliver strong production growth beginning in 2Q08, when its Alvheim/Vilje development in Norway commenced production."

Marathon Oil Corporation is engaged in the business of exploration, development and production activities in 11 countries.[SM]

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