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Is Marathon Oil’s 4Q17 Revenues Growth Lagging?

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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.

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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.

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