Tuesday, October 13, 2020

MRO stock: Marathon Oil Stock Doesn’t Look as If It’s Going Anywhere Anytime Soon

 Here is the article.

The Houston-based energy firm, which has a market cap of about $3.46 billion, can trace its roots to 1887 and Standard Oil, taking twists and turns over the century-plus to even be a part of United States Steel.

Few people would describe Marathon Oil as a high flier. Over the last five years, MRO stock chugged along in the upper teens and 20s, with some peaks and valleys along the way.

The company’s dividend, meanwhile, helped lure energy and income investors to buy its relatively affordable shares.

For instance, five years ago you could buy a share of MRO stock for $19.59. Two years ago, that share fetched $23.41. It hasn’t been that high since.

Over the last 12 months, MRO topped out at $14 and change. The stock’s 52-week low is $3.02. That’s probably less than you would pay for a bottle of soda and snack at the gas station’s store. Now, a gallon of gasoline would cost less – and that is part of Marathon’s woes.

Marathon trimmed costs and capital spending during the quarter, said Lee Tillman, the company’s chairman, president and CEO said in a statement:

“Amid tremendous commodity volatility, our ongoing response to the COVID-19 global pandemic, and a challenging year for our industry, we have remained focused on the factors we can control: how we allocate capital, how we manage our cost structure, and how we execute.”

Marathon Oil is scheduled to post its third-quarter earnings after the market closes on Nov. 4.

The company also is restoring its dividend. The payout of 3 cents per share will be paid quarterly beginning Dec. 10 to MRO stock holders of record as of Nov. 18.

Tillman said the company can break even if oil is priced at $35 a barrel.


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