Marathon Oil is
an oil and natural gas production company, having recently spun off its
refining operations. As a recently
separated entity, it has limited historical data. However, future profit and
dividend increases are expected in the 8-13% range and ROE is estimated in the
10-12% area. Looking ahead both earnings
and dividends will be driven by:
(1) expanding
activity in Texas ’ Eagle Ford
shale,
(2) divesting of
underperforming assets,
(3) strong
inventory of development projects [Indonesia ,
Iraq , Poland ].
Negatives:
(1) potential
fluctuations in oil and gas prices,
(2) political
risks associated with doing business in foreign countries,
(3) operational
problems in Libya .
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate
Ratio Since 2011
Debt/ EPS Down Net Value Line
Equity ROE Since 2011 Margin Rating
Chart
Note:
MRO made good progress off its March 2009
low, surpassing the downtrend off its June 2007 high (red line) and the
November 2008 trading high (green line).
All trends (long, medium and short term) are up (straight blue, purple
and brown lines respectively). The
wiggly blue line is on balance volume.
The Dividend Growth Portfolio owns a 50% position in MRO
by virtue of having Sold the spun off shares of Marathon Refining. The upper boundary of its Buy
Value Range
is $25; lower boundary of its Sell Half
Range is $43.
9/13
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