Stock Analysis on Net
AI Tokens
Stock Analysis on Net

Marathon Oil Corp. (NYSE:MRO)

This company has been moved to the archive! The financial data has not been updated since August 4, 2022.

Common-Size Income Statement

Marathon Oil Corp., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Revenues from contracts with customers 100.00 100.00 100.00 100.00 96.30
Marketing revenues 0.00 0.00 0.00 0.00 3.70
Revenues 100.00% 100.00% 100.00% 100.00% 100.00%
Net gain (loss) on commodity derivatives -6.84 3.75 -1.42 -0.24 0.00
Income (loss) from equity method investments 4.52 -5.20 1.72 3.81 5.85
Net gain (loss) on disposal of assets -0.34 0.29 0.99 5.40 1.33
Other income 0.27 0.81 1.22 2.54 1.78
Revenues and other income 97.61% 99.64% 102.51% 111.52% 108.96%
Production -9.53 -17.92 -14.06 -14.27 -16.14
Marketing, including purchases from related parties 0.00 0.00 0.00 0.00 -3.84
Shipping, handling and other operating -12.98 -19.24 -11.95 -9.74 -9.86
Exploration -2.43 -5.84 -2.94 -4.90 -9.35
Depreciation, depletion and amortization -36.89 -74.78 -47.34 -41.36 -54.24
Impairments -1.07 -4.65 -0.47 -1.27 -5.24
Taxes other than income -6.16 -6.46 -6.14 -5.07 -4.18
General and administrative -5.20 -8.85 -7.03 -6.68 -9.15
Costs and expenses -74.25% -137.75% -89.95% -83.28% -112.01%
Income (loss) from operations 23.35% -38.10% 12.56% 28.24% -3.04%
Interest income 0.02 0.16 0.49 0.54 0.78
Interest expense -4.59 -9.01 -5.53 -4.74 -8.62
Gain on interest rate swaps 0.96 0.39 0.00 0.00 1.21
Interest -3.61% -8.46% -5.04% -4.20% -6.63%
Net foreign currency gain 0.00 0.00 0.08 0.15 0.18
Other 0.25 0.19 0.14 0.22 0.27
Other 0.25% 0.19% 0.22% 0.37% 0.46%
Net interest and other -3.36% -8.27% -4.82% -3.83% -6.17%
Other net periodic benefit (costs) credits 0.09 -0.03 0.06 -0.24 0.00
Loss on early extinguishment of debt -2.16 -0.90 -0.06 0.00 -1.17
Income (loss) before income taxes 17.93% -47.30% 7.74% 24.18% -10.38%
(Provision) benefit for income taxes -1.04 0.45 1.74 -5.61 -8.60
Income (loss) from continuing operations 16.89% -46.85% 9.48% 18.57% -18.98%
Loss from discontinued operations 0.00 0.00 0.00 0.00 -111.89
Net income (loss) 16.89% -46.85% 9.48% 18.57% -130.87%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

The financial performance of the organization between 2017 and 2021 is characterized by significant volatility in profitability, largely driven by fluctuations in non-cash charges and operational expenses. While the entity experienced severe losses in 2017 and 2020, a strong recovery is evident by the end of 2021, coinciding with a reduction in total costs as a percentage of revenue.

Operational Cost Structure
Depreciation, depletion, and amortization (DD&A) represent the most volatile and substantial component of the expense base. This item peaked at 74.78% of revenues in 2020 before dropping sharply to 36.89% in 2021. Exploration expenses show a consistent downward trend, decreasing from 9.35% in 2017 to 2.43% in 2021, suggesting a shift in capital allocation or increased operational efficiency. Production costs remained relatively stable, though they reached a low of 9.53% in 2021 compared to peaks near 18% in 2020.
Operating Income Trends
Income from operations exhibited extreme variance, fluctuating from a loss of 3.04% in 2017 to a peak of 28.24% in 2018, before plummeting to a loss of 38.10% in 2020. The recovery in 2021 to 23.35% is primarily attributable to the significant reduction in DD&A and overall cost and expense ratios, which fell from 137.75% in 2020 to 74.25% in 2021.
Financial Leverage and Interest
The burden of interest expense as a percentage of revenue has generally declined over the period. Interest expense dropped from 8.62% in 2017 to 4.59% in 2021, indicating either a reduction in total debt or an increase in revenue relative to fixed financing costs. Consequently, the net interest and other income ratio improved from a negative 6.17% in 2017 to a negative 3.36% in 2021.
Net Profitability and Non-Recurring Items
Net income was heavily distorted in 2017 due to a loss from discontinued operations amounting to 111.89% of revenues, resulting in a total net loss of 130.87%. Excluding this anomaly, the entity maintained positive net margins in 2018 and 2019, suffered a substantial net loss of 46.85% in 2020, and returned to profitability in 2021 with a net income of 16.89% of revenues.

Overall, the data indicates a business highly sensitive to asset impairments and depreciation cycles. The transition from 2020 to 2021 demonstrates a rapid operational turnaround, characterized by a leaner cost structure and improved operating margins.

AI Ask an analyst for more

My previous chats

Add tokens

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?