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- 1 The CMP stock is at 27.31% and this week’s price showed negative performance as it was down by 3.74%.
- 2 The financial performance of Marathon Oil is considerably good and the company has shared increased estimates for the upcoming quarter.
Marathon Oil Corporation (NYSE: MRO) is an independent oil exploration and production company that operates in four of the most profitable and productive oil and gas regions in the U.S.
How Does Marathon Oil Operate?
Broadly, Marathon’s operations are classified in terms of regions – US-based; and international. The U.S. segment produces, develops, and explores gas and oil in four regions, Eagle Ford, Bakken, STACK/SCOOP, and Permian. The international segment develops and produces oil and gas mainly in Equatorial Guinea and the UK.
Financial Aspects of Marathon Oil
The Marathon Oil Corporation (MRO stock) earlier released its balance sheet for the quarter ending June 2023. The company reported total assets of $19.92 Billion and total liabilities of $8.68 Billion. The company’s debt-to-assets ratio is at 43.55%, which is below moderate which shows it is capable of meeting its debt obligations.
The previous earnings report i.e. for the period ending June 2023, was published earlier. As per that report, revenue was $1.48 Billion, net income was $287 Million and a 19.34% gain in profit margin from the preceding quarter. The reported revenue almost matched analysts’ estimates with a minute surprise of 0.08%. Moreover, it reported an EPS of $0.48, beating the analysts’ estimate of $0.454 by 5.72%.
The next quarter’s revenue is estimated to be $1.756 Billion with an estimated EPS of $0.716. The report will be released on November 1st, 2023, market closes. Also, the company proposed to conduct a conference call as well, which will be via the live webcast on November 2nd at 9 a.m. E.T. The company also said on its website that the call will also include forward-looking information.
On further analysis, the stock’s dividend yield for the TTM is 1.44% and its last dividend payment was 0.10 per share. The last ex-dividend date was August 15th, 2023 and its payout ratio is 11.67%. A low dividend payout ratio indicates that the company has enough cash flow to reinvest in its business.
Moreover, the next dividend for the stock is $0.11 per share. The ex-dividend date is November 15th, 2023, and the payment date is December 11th, 2023. This Ex-dividend is a record date for the stockholders to keep the stock in their portfolio to receive benefits. The company’s buyback program and its sustainable base dividend growth are expected to fuel the 10% hike.
Let’s See What Charts Reveal
The chart shows a surge in buyers’ accumulation around March 2020. The price inclined upwards and formed a higher high and low structure and rose to $33 by November 2022. In the past, certain fib levels acted as good supports, and prices rose from these levels.
However, the uptrend was violated and started forming lower lows and highs and formed a major support at 38.20%. At 38.20%, the MRO stock price attempted to rise but as the hurdle was strong around the supply region, it could not do so.
Now, on the chart, it seems like the stock is respecting a negative trendline, which is posing as a hard resistance level. Price action from the last couple of days shows that the MRO stock price is facing resistance from the trendline and heading downwards.
Therefore, the stock might fall more if it jumps beneath the 23.60% level. The probable supports would be $26 and $24.
Conversely, if the price manages to go upward, while sustaining on the current levels and potentially jumps above the trendline. The probable targets would be $28 and $30.
At press time, the major EMAs showed that the price was above all of them earlier, but after it accepted resistance from trendline on the chart. The EMAs started slipping one another, on the charts the price is below 20 EMA. Therefore, in case of more selling, the price might break all EMAs and mark new lows in the flow.
Summary
Marathon Oil Corporation’s (NYSE: MRO) debt-to-assets ratio is below moderate, which implies the company is capable of meeting its debt obligations. The financial performance of Marathon Oil is improving and they have upped the estimates for the upcoming quarter. The price action and moving averages suggest more sell-off, which will be initiated by investors post earnings release, as per the past prices.
Technical Levels
Support Levels: $26 and 24
Resistance Levels: $28 and $30
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
