Marathon Oil Corporation (MRO) is an independent exploration and production company focused on U.S. resource plays in the Eagle Ford in Texas, the Bakken in North Dakota, the STACK and SCOOP in Oklahoma, and the Permian in New Mexico.
The company generated 58% of its revenue from crude oil and condensate, 23% from natural gas and the remaining percentage from natural gas liquids in 2020. In terms of geography, the company generated about 94% of its revenue from the United States and the remainder from international sales from its assets in Equatorial Guinea and the United Kingdom.
Oil Rebounds from Historic Lows
Many large oil companies experienced their worst year ever in 2020 as COVID-19 lockdowns eliminated demand for virtually all forms of transportation. In fact, Exxon Mobil reported its first annual loss in modern history of about $22 billion last year. The reopening of major economies has boosted prices and many companies returned to profitability in Q1 2021.
Marathon Oil provided a preliminary first quarter update in light of the uncertainty from Winter Storm Uri, which had a significant impact on energy companies in Texas. The company reported $610 to $630 million in cash flow from operations, including $10 to $20 million of negative charges in working capital along with 172,000 net barrels per day in oil production.
The company raised its quarterly dividend by 33.3% to $0.04 per share, which represents a 1.36% forward yield. The dividend is payable on June 10, 2021, to shareholders on record as of May 19, 2021.
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