Marathon Oil
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Transcript of Marathon Oil
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FINANCIAL
HEALTH OF
AN
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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
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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.
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Performance of Marathon OilCorp.
1. Revenue (Million US $)
FY2006 FY2007 % CHANGE
64,896 64,552 .5%
2. EBITDA (Million US $)
FY2006 FY2007 % CHANGE
9,932 7,598 24%
3. Net Profit (Million US $)
FY2006 FY2007 % CHANGE
5,234 3,956 25%
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Continued
4. Average Shares Outstanding (in Millions)
FY2006 FY2007 CHANGE
722 695 27
5. Long Term Debt (Million US $)
FY2006 FY2007 % CHANGE
3,060 6,084 100%
6. Stockholders Equity (Million US $)
FY2006 FY2007 % CHANGE
14,607 19,223 30%
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Continued
7. Debt Equity
FY2005 FY2006 FY2007
30% 20% 30%
FY2005 FY2006 FY20072.25 2.1 1.5
8. Total Assets (Million US $)
FY2006 FY2007 % CHANGE
30,831 42,846 40%
9. Total Asset Turnover Ratio
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10. Capital Expenditure (Million US $)
FY2006 FY2007 % CHANGE
3,478 4,466 30%
Continued
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Business Mix (CY07)
Revenue % on total sales
E&P 8,426 13.1%
OSM 181 0.3%
RM&T 55,727 86.3%
IG 218 0.3%
TOTAL 64,552 100.0%
DETAILS OF BUSINESS
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DETAILS OF BUSINESSSEGMENTS
UPSTREAM(EXPLORATION & PRODUCTION)
Annual Net Sales (By Volume)
1. Liquid Hydrocarbon
FY In million barrels % Change
2004 56
2005 60 7%
2006 82 35%
2007 72 12%
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Natural Gas
FY In billion cubic feet % Change
2004 366
2005 340 7%
2006 309 8%
2007 338 10%
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Barrels of Oil Equivalent
FY In million of BOE % Change
2004 117
2005 117 0%
2006 134 15%
2007 128 4%
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1. Liquid Hydrocarbon
FY In million barrels % Change
2004 560
2005 704 25%
2006 677 2%
2007 650 4%
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2. Natural Gas
FY In billion cubic feet % Change
2004 3472
2005 3547 2%
2006 3510 1%
2007 3450 1%
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3. Barrels of Oil Equivalent
FY In million of BOE % Change
2004 1139
2005 1295 15%
2006 1262 2%
2007 1225 3%
F t th t ld ff t l l
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Factors that could affect levelsof sales
Pricing, supply & demand for petroleum products.
Amount of capital available for exploration &development
Regulatory constraints Timing of commencing production from new wells
Drilling rigs availability
Inability to obtain or delay in obtaining necessarygovernment & third party approvals & permits.
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BALANCE SHEET DEC ENDING
US$ 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
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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
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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.
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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
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Additional factors to beconsidered
Mergers and acquisitions
News flash
Conference call
Presentations
SEC filling 10K
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Reference
finance.google.com
hoovers.com
yahoofinance.com
bloomberg.com
reuters.com
marketwatch.com
money control.com
Companies own site
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