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Stock to Watch: Marathon Oil Corporation (NYSE: MRO)

Michael Hunt

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On Tuesday, Shares of Marathon Oil Corporation (NYSE: MRO) declined -0.14% to $20.68. The stock recorded $20.31 as its minimum price and hit the max level of $20.83, during its most recent trading session. It traded total volume of 9,382,212 shares lower than the average volume of 13.08M shares.

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Marathon Oil Corporation (MRO) recently stated first quarter 2018 net income of $356.0M, or $0.42 per diluted share, which includes the impact of certain items not typically represented in analysts’ earnings estimates and that would otherwise affect comparability of results. Adjusted net income was $154.0M, or $0.18 per diluted share. Net operating cash flow was $649.0M, or $707.0M before changes in working capital.

Highlights:

  • Total production averaged 398.0K net boed, excluding Libya; U.S. production averaged 284.0K net boed and U.S. oil production averaged 164.0K bopd, both up 9% sequentially on a divestiture-adjusted basis
  • Eagle Ford maintained flat production of 104.0K net boed; 11 wells in Atascosa County had average 30-day IP rates of 1,615 boed (76% oil)
  • Bakken production increased to 74.0K net boed, up 7% sequentially; Arkin well in Hector set new basin Three Forks record with 3,040 bopd 30-day IP; June and Chauncey wells in West Myrmidon set new basin Middle Bakken records with 3,470 bopd average 30-day IP rates
  • Oklahoma production up 17% sequentially to 75.0K net boed; oil production up 25% sequentially; STACK leasehold drilling mostly accomplished in first quarter
  • Northern Delaware production increased to 16.0K net boed; seven wells across Eddy and Lea Counties had average 30-day IP rates of 1,460 boed (69% oil)
  • Captured more than 250.0K net acres in multiple new plays in the last year, counting a mostly contiguous position in the emerging Louisiana Austin Chalk play at a cost of less than $900 per acre
  • Received $1.20B in proceeds from the Libya sale and the final Canadian oil sands payment
  • Raised 2018 annual resource play oil and boe production guidance to 25 – 30%, up from 20 – 25% formerly, while maintaining the $2.30B 2018 development capital budget

 

Capital:

First quarter development capital expenditures, before working capital, were $618.0M, and are not ratable for the balance of 2018 because of higher working interest and non-operated pace relative to the remainder of the year. Net cash offered by continuing operations was $649.0M during first quarter 2018, or $707.0M before changes in working capital. The Company’s 2018 development capital budget is still anticipated to be $2.30B.

Outside of the development capital budget, resource play leasing and exploration (REx) capital expenditures were $94.0M in the first quarter, more than fully funded through divestiture proceeds. Though episodic in nature, the Company anticipates second quarter REx capital expenditures to be about $150.0M.

Production Guidance:

Marathon Oil anticipates second quarter 2018 U.S. production to average 280.0K to 290.0K net barrels of oil equivalent per day (boed). Within this guidance, the Company anticipates second quarter 2018 U.S. resource play production to average 270.0K to 280.0K net boed. Second quarter 2018 International production is expected to average 115.0K to 125.0K net boed.

For full-year 2018, the Company now anticipates annual resource play oil and barrel of oil equivalent (boe) growth of 25 – 30 percent, up from 20 – 25 percent formerly, and is trending toward the high end of its 2018 guidance ranges for total Company oil and boe.

U.S. E&P:

U.S. E&P production averaged 284.0K net boed for first quarter 2018, up 9 percent contrast to the prior quarter and up 39 percent from the year-ago quarter on a divestiture-adjusted basis. First quarter production from the U.S. resource plays was 269.0K net boed, up from 249.0K net boed in the prior quarter. First quarter U.S. E&P unit production costs were $5.89 per boe and are expected to moderate through 2018 as the Company implements its plans to access additional infrastructure.

EAGLE FORD: Marathon Oil’s Eagle Ford production averaged 104.0K net boed in the first quarter, contrast to 105.0K net boed in the prior quarter. The Company brought 34 gross Company-operated wells to sales with average 30-day initial production (IP) rates of 1,750 boed (64% oil). Improved completion designs continued to deliver solid results outside of core Karnes County, where the four-well Carpenter Kellner pad and the four-well Guajillo West pad achieved average 30-day IP rates of 1,690 boed (78% oil) and 1,635 boed (73% oil), respectively. The Eagle Ford asset generated noteworthy free cash flow in the quarter through a combination of well performance and oil realizations that averaged $1.50 above WTI because of strong LLS-based pricing.

BAKKEN: In first quarter 2018, Marathon Oil’s Bakken production averaged 74.0K net boed, up 7 percent contrast to 69.0K net boed in the prior quarter. The Company brought 11 gross Company-operated wells to sales, six of which were in core Hector with average 30-day IP rates of 2,600 boed (81% oil). The Arkin well in Hector set a new Williston Basin Three Forks record delivering a 30-day IP oil rate of 3,040 barrels of oil per day (bopd). The Company set two new basin Middle Bakken records in West Myrmidon with average 30-day IP rates of 3,470 bopd from the June and Chauncey wells. Two additional West Myrmidon wells that came online late in the quarter, the Mark Middle Bakken well and Wilbur Three Forks well, achieved 24-hour IP rates of 10,875 boed and 7,570 boed, respectively, and are not yet at 30 days of production. The Company continues to optimize completion designs to improve well productivity, increase capital efficiency and reduce costs while generating substantial free cash flow.

OKLAHOMA: Marathon Oil’s Oklahoma production averaged 75.0K net boed during first quarter 2018, up 17 percent from 64.0K net boed in the prior quarter. Oil production was up 25 percent sequentially, mainly as a result of strong carry-in performance from the nine-well Tan infill that came online late in the fourth quarter. The Company brought 17 gross operated wells to sales mainly focused on Meramec leasehold activity in the STACK. This mostly completes the STACK leasehold program for the year, and allows for the transition to pad drilling for the remainder of 2018. In the normally pressured STACK, improved drilling efficiencies and optimized completion designs resulted in accomplished well costs for first quarter standard-lateral Meramec wells averaging $4.0M.

NORTHERN DELAWARE: Marathon Oil’s Northern Delaware production averaged 16.0K net boed in first quarter 2018, up from 11.0K net boed in the prior quarter. The Company brought nine gross Company-operated wells to sales across the Malaga, Red Hills and Ranger areas in Eddy and Lea Counties, seven of which had average 30-day IP rates of 1,460 boed (69% oil). Two wells from the Cypress infill pilot came to sales ahead of plan in the last week of the quarter. A two-well 3rd Bone Spring / Upper Wolfcamp pad in Red Hills achieved average 30-day IP rates of 1,830 boed (68% oil), and an Upper Wolfcamp well in Malaga had an average 30-day IP rate of 2,095 boed (69% oil). In the last six months, Marathon Oil has added 165 risked gross Company-operated locations with an average working interest of 65 percent through trades and a small bolt-on acquisition. The Company is presently benefiting from its Midland-Cushing basis swaps. Open positions include 10.0K bopd hedged at a discount of less than $1 to WTI for the second half of 2018 and all of 2019.

International E&P:

International E&P production, excluding Libya, averaged 114.0K net boed for first quarter 2018, contrast to 121.0K net boed in the prior quarter. The decrease reflects planned turnaround activity in EG that was accomplished in the quarter. First quarter 2018 International E&P unit production costs (excluding Libya) averaged $5.37 per boe, up sequentially because of the timing of liftings in the U.K. and international production mix.

Corporate:

Total liquidity as of March 31 was about $5.0B, which consisted of $1.60B in cash and cash equivalents and an undrawn revolving credit facility of $3.40B. On March 1, the Company closed on the sale of its Libya partner for $450.0M and proceeds were received on the same day. In Addition To, the final Canadian oil sands payment of $750.0M was received.

For the remainder of 2018, the Company’s open hedge positions include an average of 98.0K bopd at a weighted average floor price of $52.18 and a weighted average ceiling price of $57.11, hedged through a combination of three-way collars and fixed price swaps, as of April 27.

The adjustments to net income from continuing operations for first quarter 2018 totaled $202.0M before tax, mainly because of a $257.0M gain from sale of the Libya partner, partially offset by an unrealized loss of $43.0M on commodity derivatives.

MRO has the market capitalization of $18.29B and its EPS growth ratio for the past five years was -23.30%. The return on assets ratio of the Company was -1.80% while its return on investment ratio stands at -3.50%. Price to sales ratio was 3.58 while 81.20% of the stock was owned by institutional investors.

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Business

Facebook Cryptocurrency: What is it and How could use to Mastercard and Visa?

Komal Tahir

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MasterCard and Visa

Facebook’s digital money plans sound promising and are believed to profit the site in four different ways.

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The Wall Street Journal detailed that Facebook is intending to fabricate a digital money installment stage codenamed ‘Venture Libra’. This will empower clients to utilize advanced coins when buying on the informal organization and outsider destinations. The online life mammoth is depending on the unification of the three greatest informing stages – Instagram, Messenger, and WhatsApp to empower crypto installments over these stages.

Facebook cryptocurrency

Four things to think about Facebook’s Cryptocurrency plans

1. It would lessen value unpredictability

As per reports, Facebook will utilize “stable coins” or cryptographic forms of money pegged to a steady advantage for lessening the instability normal to different digital forms of money. At the point when the value unpredictability is appealing to merchants then it acquires burden ordinary installments.

2. It could upset the market for online installments.

The ‘Facebook coin’ could hypothetically turn into the world’s most generally utilized money with more than 2 billion month to month dynamic clients. It is, in this way, can possibly challenge installment stages, for example, PayPal, Apple, Google Play, Amazon Pay, and Square.

3. It could help push other Facebook’s online business aspirations.

Facebook’s crypto plan could supplement its online business and installment endeavors, including the Craigslist-like Facebook Marketplace, intuitive live recordings empowering traders to sell their items, in-application checkouts for buys on Instagram, and Messenger’s shared installments. These administrations are as of now being offered in chosen markets which could be additionally extended to all clients worldwide when the single cash is propelled.

The informal community mammoth can in like manner help its installment administration by charging extra expenses on coin buys and different exchanges. It could along these lines decrease reliance on promotions accordingly.

4. It will empower Facebook to compensate clients and vendors.

Media reports said that Facebook clients will be compensated with either crypto coins or dependability focuses for review promotions, making buys over its stages and collaborating with substance.

Dealers, then again, would be remunerated for tolerating Facebook’s digital currency. They can, for example, use Facebook coins created from finished exchanges from clients to buy promotions at a markdown.

Facebook’s digital money arrangement with Mastercard and Visa

While Facebook’s digital money desire could challenge business as usual of Visa firms, for example, Mastercard and Visa, there are reports that Facebook is entirely conversing with them two for a potential joint effort. It really bodes well thinking about that the informal organization will require a physical charge card accomplice to develop into physical stores.

MasterCard and Visa Card

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Business

Amazon Summer Prime Day Sale: Top deals & offers that you can grab

Komal Tahir

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Amazon Prime Day Sale

Amazon has been such an across the board name, that nearly everybody has heard it and utilized their administrations, regardless of whether its Amazon conveyance, Amazon music or Prime recordings. Amazon has been such a fruitful brand, that it made Jeff Bezos the world’s most extravagant man with total assets of $145.3 billion.

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The explanation behind Amazon’s notoriety is the alluring offers and standard deals. Amazon had record-breaking bargains amid its Black Friday deal, and it looks the following Amazon Prime Sale will be much greater. Reports are recommending that Amazon Prime Day 2019 will be held in July one month from now, everywhere throughout the world.

Amazon Prime Day: What do we know so Far?Amazon Prime Day 2019 date, arrangements and offers

Amazon began Primed day Sale in 2015 as an approach to pull in more clients to buy into its Prime Services, which was astounding that the quantities of arrangements and offers that turned out amid that. After that Amazon began doing yearly deals, including Cyber Monday and Black Friday in the middle.

A year ago, a record 89 million clients signed into Amazon amid Prime Day Sale and purchased in excess of 100 million items. The Sale endured 36 hours and even included neighborhood basic supply items. Amazon Prime individuals get exceptional arrangements, and additional time looked at too customary clients.

Amazon Prime Day: Dates and Offers

Amazon hasn’t declared any date during the current year’s Prime Day, however dependent on earlier years and current reports, it is relied upon to happen at some point in the following month of July 2019. It could happen somewhere close to 8 July and 16 July and for a more extended span contrasted with a year ago dependent on theories, however, Amazon will report the dates just before a week or something like that.

The top arrangements will be on Electric things which are sold most amid the Sale dates, alongside Security Systems, Home Assistants and electric cooking Appliances. Amazon’s own items, for example, Fire Stick and Alexa Assistant are the ones having the most measure of markdown.

Amazon Prime Day Sale: How to get the best Deals?

The principal thing to plan for the Sale is to buy into Amazon Prime day a couple of days before the Sale begins. Amazon offers one month free preliminary for first-time clients, which can be selected from their official Website. Prime individuals have the best arrangements and prior access to Sale things.

Set up a rundown of the things that you need to purchase ahead of time so it spares your time and you can pick decisively. In the event that you are having another companion or relative along who needs to purchase something, add those things to your truck, as higher bills have higher limits.

Amazon Prime Day 2019 date, arrangements and offers

While the Prime day is a damnation parcel of tricky for Amazon representatives, with expanded deals, work over-burden and vast irritated conditions, for us clients it will be completely advantageous.

Amazon Prime Day Sale

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Basic Materials

Financial Reports are Key to Consider: The Southern Company (NYSE: SO)

Michael Hunt

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On Friday, Shares of The Southern Company (NYSE: SO) rose 0.23% to $43.28. The stock recorded $42.97 as its minimum price and hit the max level of $43.39, during its most recent trading session. It traded total volume of 3,981,093 shares lower than the average volume of 5.19M shares.

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Southern Company recently stated first-quarter 2018 earnings of $938.0M, or 93 cents per share, contrast with earnings of $658.0M, or 66 cents per share, in the first quarter of 2017.

Southern Company earned $893.0M, or 88 cents per share, during the first quarter of 2018, contrast with $652.0M, or 66 cents per share, during the first quarter of 2017.

First quarter 2018 operating revenues were $6.37B, contrast with $5.77B for the first quarter of 2017, a boost of 10.4 percent.

SO has the market capitalization of $43.76B and its EPS growth ratio for the past five years was -26.50%. The return on assets ratio of the Company was 1.00% while its return on investment ratio stands at 2.90%. Price to sales ratio was 1.85 while 60.10% of the stock was owned by institutional investors.

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