marathon oil

8/14/2019 Marathon Oil

1/23

FINANCIAL

HEALTH OF

AN


2/23

PETROBRAS / MARATHON OILCORP.

Current market status

Mkt Cap: US $ 254 BILLION US $ 37.57 BILLION

Current price: US $ 57.73 US $ 53.07

52Wk High: US $ 77.61 US $ 67.04

52Wk Low: US $ 24.38 US $ 43.24

Shares: 4,387.04M 707.94M

Beta: 1.39 1.45


3/23

Business Description

Exploration and Production (E&P),Oil Sands Mining (OSM) segment mines, extracts and

transports bitumen from oil sands deposits produce and

market synthetic crude oil and by-products;

Refining, Marketing and Transportation (RM&T) of

crude oil and petroleum products,

Integrated Gas (IG) markets and transports products

manufactured from natural gas, such as liquefied naturalgas (LNG) and methanol.


4/23

Performance of Marathon OilCorp.

1. Revenue (Million US $)

FY2006 FY2007 % CHANGE

64,896 64,552 .5%

2. EBITDA (Million US $)


9,932 7,598 24%

3. Net Profit (Million US $)


5,234 3,956 25%


5/23

Continued

4. Average Shares Outstanding (in Millions)

FY2006 FY2007 CHANGE

722 695 27

5. Long Term Debt (Million US $)


3,060 6,084 100%

6. Stockholders Equity (Million US $)


14,607 19,223 30%


6/23

Continued

7. Debt Equity

FY2005 FY2006 FY2007

30% 20% 30%

FY2005 FY2006 FY20072.25 2.1 1.5

8. Total Assets (Million US $)


30,831 42,846 40%

9. Total Asset Turnover Ratio


7/23

10. Capital Expenditure (Million US $)


3,478 4,466 30%

Continued


8/23

Business Mix (CY07)

Revenue % on total sales

E&P 8,426 13.1%

OSM 181 0.3%

RM&T 55,727 86.3%

IG 218 0.3%

TOTAL 64,552 100.0%

DETAILS OF BUSINESS


9/23

DETAILS OF BUSINESSSEGMENTS

UPSTREAM(EXPLORATION & PRODUCTION)

Annual Net Sales (By Volume)

1. Liquid Hydrocarbon

FY In million barrels % Change

2004 56

2005 60 7%

2006 82 35%

2007 72 12%


10/23

Natural Gas

FY In billion cubic feet % Change

2004 366

2005 340 7%

2006 309 8%

2007 338 10%


11/23

Barrels of Oil Equivalent

FY In million of BOE % Change

2004 117

2005 117 0%

2006 134 15%

2007 128 4%


12/23

1. Liquid Hydrocarbon

FY In million barrels % Change

2004 560

2005 704 25%

2006 677 2%

2007 650 4%


13/23

2. Natural Gas

FY In billion cubic feet % Change

2004 3472

2005 3547 2%

2006 3510 1%

2007 3450 1%


14/23

3. Barrels of Oil Equivalent

FY In million of BOE % Change

2004 1139

2005 1295 15%

2006 1262 2%

2007 1225 3%

F t th t ld ff t l l


15/23

Factors that could affect levelsof sales

Pricing, supply & demand for petroleum products.

Amount of capital available for exploration &development

Regulatory constraints Timing of commencing production from new wells

Drilling rigs availability

Inability to obtain or delay in obtaining necessarygovernment & third party approvals & permits.


16/23


17/23

BALANCE SHEET DEC ENDING

US$ MILLION 2004 2005 2006 2007LIABILITIES

Net worth

Equity Capital 4,374 5,470 3,882 5,060

Reserve & Surplus 3,810 6,406 11,093 14,412

Accumulated other comprehensive loss (73) (171) (368) (249)TOTAL 8,111 11,705 14,607 19,223

BORROWINGS

Long Term Debt 4,057 3,698 3,061 6,084

Deffered Income Tax 1,553 2,030 1,897 3,389

Payable to US Steels 5 6 7 5

Deffered credit & Liabilities 288 438 391 562

obligations 1,466 2,032 2,289 2,223

TOTAL 7,369 8,204 7,645 12,263TOTAL LIABILITIES 15,480 19,909 22,252 31,486

ASSETS

Gross Fixed Assets 13,027 16,314 18,171 26,288

less: Depreciation 1,217 1,303 1,518 1,613

Net Fixed Assets 11,810 15,011 16,653 24,675

Investments 1,546 1,864 1,539 2,630

Recivable From US Steel 587 532 498 485

Goodwill 252 1,307 1,398 2,899

Other Non current Asset 116 201 467 1,182

Intengible Assets 118 200 180 288

TOTAL 28,673 36,732 40,424 60,060

TOTAL CURRENT ASSETS 8,866 9,387 10,096 10,587

LESS:TOTAL CURRENT LIABILITIES 5,253 8,154 8,061 11,260

NET CURRENT ASSETS 3,613 1,233 2,035 (673)

TOTAL ASSETS 32,286 37,965 42,459 59,387


18/23

Ratio Analysis -

1. Liquidity Ratios

Current Ratio = Current Assets / Current Liabilities

Acid test ratio = Quick Assets / Current Liabilities

2. Efficiency Ratios

Asset Turnover ratio = Sales / Total Assets

Inventory Turnover Ratio = COGS / Av. Inventory


19/23

Continued

3. Profitability Ratios

Gross Profit Margin = G.P. / Sales * 100

PAT Margin = PAT / Sales * 100

Return on Investment = PAT / Capital employed.

4. Market Ratios EPS = Profit after tax/Total no. of equity shares issued.


20/23

Continued

Price earning ratio = price of the share / Earning per

share

5. Financial Leverage

Debt equity ratio = Total Liabilites / ShareholdersEquity.

Interest coverage ratio = EBIT / Interest expense.

Additional factors to be


21/23

Additional factors to beconsidered

Mergers and acquisitions

News flash

Conference call

Presentations

SEC filling 10K


22/23

Reference

finance.google.com

hoovers.com

yahoofinance.com

bloomberg.com

reuters.com

marketwatch.com

money control.com

Companies own site


23/23

marathon oil

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