Marathon Oil’s 4Q17 revenue estimates
For 4Q17, Wall Street analysts expect Marathon Oil (MRO) to report revenues of ~$1.3 billion. On a year-over-year basis, its 4Q17 revenue expectations are ~9% lower than its 4Q16 revenues of ~$1.4 billion. Sequentially, its 4Q17 revenue expectations are ~2% higher than its 3Q17 revenues of ~$1.3 billion.
Despite higher crude oil and natural gas prices, the year-over-year decrease in Marathon Oil’s 4Q17 production is expected to impact its revenues negatively. We’ll look at that in the next part of this series.
According to Reuters, for 4Q17, the components of the S&P 500 index (SPX-INDEX) are expected to report a blended revenue growth of almost 8% compared to 4Q16. With a year-over-year estimated blended revenue growth of ~19% in 4Q17, the energy sector is expected to drive the S&P 500 (SPY) revenue growth in 4Q17. Excluding the energy sector, blended revenue growth for the S&P 500 is estimated at 6%. MRO’s revenue growth is thus lagging the energy sector and the S&P 500.
Marathon Oil’s 2017 revenue estimates
For 2017, Wall Street analysts expect Marathon Oil to report revenues of ~$4.7 billion, which is almost the same as 2016. MRO’s peer Devon Energy (DVN) is expected to report revenues of ~$13.4 billion in 2017, which is ~30% higher than ~$10.3 billion in 2016.
Now let’s take a look at MRO’s 4Q17 and 2017 production guidance.