Marathon Oil’s Free Cash Flow Is Looking Better

For 1Q17, Marathon Oil (MRO) reported operating cash flow of $501.0 million, which is ~577.0% higher than ~$74.0 million in 1Q16.

As you can see in the above graph, Marathon Oil’s cash flow fell steeply in 1Q15, mainly due to lower realized crude oil (USO) and natural gas (UNG) prices. In 2015 and 2016, the company reported much lower cash flows compared to the preceding years. In 1Q16, it reported its lowest cash flow of $74.0 million since 1999.

In 1Q17, Marathon Oil spent $283.0 million in capital expenditures. That means its free cash flow was positive at $218.0 million, or ~$0.26 per share.

Due to higher trending energy prices, most energy companies have reported higher year-over-year cash flows. Southwestern Energy (SWN) and ConocoPhillips (COP) reported $0.63 per share and $1.43 per share, respectively, in 1Q17 cash flows.

Next, let’s see how Wall Street analysts have changed their recommendations since Marathon Oil reported its 1Q17 earnings.