Stock Analysis on Net

Marathon Oil Corp. (NYSE:MRO)

Enterprise Value to FCFF (EV/FCFF) 

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Free Cash Flow to The Firm (FCFF)

Marathon Oil Corp., FCFF calculation

US$ in millions

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12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net income (loss) 946  (1,451) 480  1,096  (5,723)
Net noncash charges 2,268  2,867  2,405  2,115  7,737 
Changes in current assets and liabilities 25  57  (136) 23  (26)
Net cash provided by operating activities 3,239  1,473  2,749  3,234  1,988 
Interest paid, net of amounts capitalized, net of tax1 217  248  213  208  64 
Additions to property, plant and equipment (1,046) (1,343) (2,550) (2,753) (1,974)
Free cash flow to the firm (FCFF) 2,410  378  412  689  78 

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).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Marathon Oil Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Marathon Oil Corp. FCFF decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Interest Paid, Net of Tax

Marathon Oil Corp., interest paid, net of tax calculation

US$ in millions

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12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Effective Income Tax Rate (EITR)
EITR1 6.00% 1.00% 21.00% 23.00% 83.00%
Interest Paid, Net of Tax
Interest paid, net of amounts capitalized, before tax 231  251  269  270  379 
Less: Interest paid, net of amounts capitalized, tax2 14  56  62  315 
Interest paid, net of amounts capitalized, net of tax 217  248  213  208  64 

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).

1 See details »

2 2021 Calculation
Interest paid, net of amounts capitalized, tax = Interest paid, net of amounts capitalized × EITR
= 231 × 6.00% = 14


Enterprise Value to FCFF Ratio, Current

Marathon Oil Corp., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 18,099 
Free cash flow to the firm (FCFF) 2,410 
Valuation Ratio
EV/FCFF 7.51
Benchmarks
EV/FCFF, Competitors1
Chevron Corp. 13.98
ConocoPhillips 8.68
Devon Energy Corp. 11.57
Exxon Mobil Corp. 10.76
Occidental Petroleum Corp. 10.58
Pioneer Natural Resources Co. 8.89
Valero Energy Corp. 12.09
EV/FCFF, Sector
Oil, Gas & Consumable Fuels 11.05

Based on: 10-K (reporting date: 2021-12-31).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.


Enterprise Value to FCFF Ratio, Historical

Marathon Oil Corp., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 19,460  13,468  12,800  17,690  17,830 
Free cash flow to the firm (FCFF)2 2,410  378  412  689  78 
Valuation Ratio
EV/FCFF3 8.07 35.58 31.11 25.68 227.34
Benchmarks
EV/FCFF, Competitors4
Chevron Corp. 13.33 106.63 16.67 14.42 31.47
ConocoPhillips 9.45 34.86 8.32 10.98 4.33
Devon Energy Corp. 12.21 32.62 32.46 241.38 61.96
Exxon Mobil Corp. 10.06 44.38 22.20 23.79
Occidental Petroleum Corp. 8.39 25.52 45.35 19.00 37.33
Pioneer Natural Resources Co. 9.41 67.23 173.74 683.15
Valero Energy Corp. 10.62 9.96 13.51 9.62
EV/FCFF, Sector
Oil, Gas & Consumable Fuels 10.56 142.51 21.33 17.75 17.52

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).

1 See details »

2 See details »

3 2021 Calculation
EV/FCFF = EV ÷ FCFF
= 19,460 ÷ 2,410 = 8.07

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Marathon Oil Corp. EV/FCFF ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.