MRO- Marathon Oil Corp.

[cmattporter]

Marathon Oil is on my watch list mainly because of the P/E Ratio. They are trading around, as of now, high $32 which happens to be their book value. MRO took a big hit during 2009 and got back their book numbers back up to par in 2010.

 

Annual Earnings Per Share:

 

  06    07    08    09    10          (2010)Q1    Q2    Q3    Q4    (2011)Q1

6.87  5.42  4.75  1.67  3.61                0.38    1.07  0.97  1.03          1.64

 

The past earning record doesn't look expanding except for 2011 Q1, which is significantly higher than the 2010 Q1. If this earnings stays stagnant the company will end with a 6.56 annual EPS.

 

Transition from 09 to 10 had a 36% sales growth and 116% income growth.

 

P/E ratio is at 7.48.

 

0.99 dividend

 

This is a rough summary. I don't think this is a Buffett pick, but defiantly a bargain. So let me know what you think and if you'd buy a piece.

 

MP

[ericd1]

While I like MRO and own it...they recently spun-off Marathom petroleum company MPC. MRO is now an exploration and production company while MPC handles the refining and distribution. The historic earnings are the combined cos going forward the picture is going to be different unless you buy both cos

 

I plan to continue holding both because I see promise with the exploration side - substantial assets to be developed including an oil sands jv. The refining and distribution busines is also attractive. I expect to see continued solid growth from both cos.

 

Long MRO & MPC

[cmattporter]

Yeah I had no idea about that. I just stumbled upon them this morning and the quick look didn't look all that bad.

 

Thanks

 

MP

[ragnarisapirate]

So, is the spun off entity (the refining company) going to be in competition with ASH?

[ericd1]

ASH is more of a specialty chemical company - MPC is a petroleum refiner and distributor / like Valero Energy (refiner) plus they have ~9,600 miles of pipelines to deliver crude oil to its refineries and other locations. They operate 5,100 Marathon branded gasoline stores in 18 states throughout the Midwest and Southeast United States; and 1,350 Speedway branded gasoline and convenience stores in seven Midwestern states.

[ragnarisapirate]

ASH is more of a specialty chemical company - MPC is a petroleum refiner and distributor / like Valero Energy (refiner) plus they have ~9,600 miles of pipelines to deliver crude oil to its refineries and other locations. They operate 5,100 Marathon branded gasoline stores in 18 states throughout the Midwest and Southeast United States; and 1,350 Speedway branded gasoline and convenience stores in seven Midwestern states.

 

Huh, interesting. Yeah, the reason I asked, is because they had a weird stock swap merger thing with ASH about, gosh, I wanna say 15 years ago? In fact, I think that is where they got all the Speedways from? They used to be Super America or Ashland Oil locations.