How Did Marathon Oil’s Revenue and Earnings Fare in 2Q15?



Marathon Oil’s 2Q15 revenue

Marathon Oil (MRO) released its 2Q15 financial results on August 5. We’ll discuss its latest quarterly results in this series. First, we’ll provide an overview of Marathon Oil’s revenue and earnings in 2Q15. The company recorded $1.53 billion in total revenue and other income in 2Q15. It fell 48% from $2.94 billion recorded in 2Q14.

Marathon Oil’s revenue for the latest quarter fell due to much lower crude oil price realizations across all of its geographies and lower international energy production. This was partially offset by higher North American production.

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Marathon Oil’s earnings in 2Q15 versus 2Q14

Marathon Oil recorded a net loss of $386 million in 2Q15—compared to a net loss of $540 million in 2Q14. The net income margin fell to -25% in 2Q15 from 18% the year before. The net income margin is the net income attributable to Marathon Oil’s shareholders divided by the total revenue for the quarter. In regards to geography, the operating income fell mostly in its North America operations. For more detailed discussion on Marathon Oil, read Key Highlights before Marathon Oil’s 2Q15 Earnings.

One-time charges

In 2Q15, Marathon Oil recorded $38 million in dry well costs. It also recorded $10 million in impairment charges related to an unproved property at Birchwood in Canada. No impairment charges were recorded the year before. Also, during 2Q15, Marathon Oil recorded $135 million in deferred tax expense related to a rise in the provincial corporate tax rate in Alberta, Canada.

Concho Resources (CXO) recorded a 4.30% fall in its 2Q15 adjusted revenue over 2Q14. Whiting Petroleum (WLL) recorded a 21% fall in its adjusted revenue in 2Q15 over 2Q14. Suncor Energy’s (SU) 2Q15 revenue fell 23% during the same period. Marathon Oil accounts for 0.07% of the SPDR S&P 500 ETF (SPY) and 1.06% of the Energy Select Sector SPDR (XLE).

Next, we’ll discuss Marathon Oil’s earnings versus its estimates.


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