2Q16 cash flow estimates
For 2Q16, Marathon Oil (MRO) expects its cash flow to reach $0.32 per share, which would be lower by ~47% than in 2Q15. As the graph below shows, Marathon’s cash flow dropped steeply in 1Q15, mainly due to lower realized crude oil (USO) and natural gas (UNG) prices.
In 2015, Marathon Oil reported lower cash flows than in preceding years, and in 1Q16, the company reported cash flow of $0.10 per share—its lowest since 1999. For 2Q16, Wall Street analysts expect Marathon Oil to report negative free cash flow of about -$0.17 per share.
Other upstream players
Due to the steep downward trend in energy prices, most S&P 500 (SPY) energy companies have reported lower year-over-year cash flows. Devon Energy (DVN), ConocoPhillips (COP), and Murphy Oil (MUR) reported 1Q16 cash flows of $0.25 per share, $0.31 per share, and $0.27 per share, respectively.
Now let’s discuss the Wall Street analyst ratings.