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What to Expect from Marathon Oil’s 2Q16 Earnings Report

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Marathon Oil’s 2Q16 revenue estimates

Marathon Oil (MRO) is set to report its 2Q16 earnings on August 3, 2016, after the market closes. For 2Q16, Wall Street analysts expect Marathon Oil to report revenues of ~$1.1 billion, which is lower by ~30% than its 2Q15 revenues of ~$1.5 billion. But when compared sequentially with 1Q16, Marathon Oil’s 2Q16 revenue expectations are higher by ~47%.

Due to the steep downward trend in energy prices, many upstream companies like Diamondback Energy (FANG), WPX Energy (WPX), and Consol Energy (CNX) are expecting YoY (year-over-year) declines of ~24%, ~47% and ~12%, respectively, in their 2Q16 revenues.

Notably, the Energy Select Sector SPDR ETF (XLE) generally invests at least 95% of its total assets in oil and gas companies.

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2Q16 earnings per share and EBITDA estimates

For 2Q16, Wall Street analysts expect Marathon Oil to report an adjusted loss of $0.24 per share, which is lower by $0.01 per share than its 2Q15 loss of $0.23 per share. But when compared sequentially with 1Q16, Marathon Oil’s 2Q16 earnings expectations are higher by $0.19 per share.

For 2Q16, Wall Street analysts expect Marathon Oil to report EBITDA (earnings before interest, tax, depreciation and amortization) of ~$445 million, which is lower by ~17% than its 2Q15 adjusted EBITDA of ~$539 million. But when compared sequentially with 1Q16, MRO’s 2Q16 EBITDA expectations are higher by ~463%.

In this series

In this series, we’ll look at Marathon Oil’s earnings trends, production guidance, cash flow estimates, Wall Street analyst ratings ahead of earnings, and how MRO’s stock price has reacted to past earnings.

Let’s start with earnings trends.

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