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Can Marathon Oil Report Higher Profits in Q2 2018?

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Dec. 4 2020, Updated 10:42 a.m. ET

Marathon Oil’s Q2 2018 net income estimates

Marathon Oil (MRO) is expected to report its Q2 2018 earnings on August 1 after the market closes. Excluding any one-time items, the current consensus net income estimate is ~$161 million. On a year-over-year basis, MRO is expected to turn its year-ago loss into profit. In Q2 2017, it reported an adjusted loss of ~$128 million. Even on a sequential basis and excluding any one-time items, its second-quarter consensus net income estimate is ~5% higher than its ~$154 million profit in the first quarter.

Thus, based on the current consensus net income estimate, MRO is expected to report a third consecutive quarterly profit in Q2 2018. Next, we’ll look at its EPS estimate for the quarter.

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Marathon Oil’s Q2 2018 EPS estimate

For Q2 2018, excluding any one-time items, Wall Street analysts’ current consensus EPS estimate for MRO is $0.20. On a year-over-year basis, that’s $0.35 higher than its adjusted EPS of -$0.15 in Q2 2017. Sequentially, MRO’s second-quarter current consensus EPS estimate is higher compared to $0.18.

For context, MRO’s peers that also have operations in US resource plays and international locations are also expecting stronger year-over-year growth in their net incomes in the second quarter.

  • ConocoPhillips (COP) is expected to report ~560% higher profits in Q2 2018.
  • Occidental Petroleum (OXY) is expected to report ~679% higher profits in Q2 2018.
  • Murphy Oil (MUR) is expected to turn its year-ago loss into a profit of ~$62 million.
  • Diamondback Energy (FANG), MRO’s peer in the Permian Basin, is expected to report a ~26% year-over-year increase in profits in Q2 2018.

In this series

We’ve already analyzed MRO’s Q2 2018 earnings expectations. In the rest of this series, we’ll look at its revenues expectations, production guidance, and cash flow estimates. We’ll also see what the odds are that Marathon Oil could beat its EPS expectations.

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