Marathon Oil’s cash flow estimates
Wall Street analysts expect Marathon Oil (MRO) to report year-over-year higher cash flows of ~$473 million in 1Q17 from ~$74 million in 1Q16. Even on a sequential basis, MRO’s estimated 1Q17 cash flow is higher when compared with ~$455 million in 4Q16.
Wall Street analysts are expecting MRO’s 1Q17 capital expenditures to be around $398 million. This means ECA’s 1Q17 free cash flow should be positive.
How MRO’s cash flows are trending
As seen in the chart above, Marathon Oil’s cash flows 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 when compared with the preceding years. In 1Q16, Marathon Oil reported its lowest-ever cash flow of $74 million since 1999.
Other upstream players
Energy companies that are part of the S&P 500 ETF (SPY) include Occidental Petroleum (OXY) and Devon Energy (DVN), which reported 4Q16 cash flows of $1.20 per share and $1.02 per share, respectively. Occidental Petroleum and Marathon Oil constitutes ~0.25% and ~0.07% of SPY’s portfolio.
Next, we’ll see how Wall Street analysts rate Marathon Oil.