Name: Marathon Oil Corp. (NYSE:MRO) | Enterprise Value (EV)
Creator: Stock Analysis on Net

Current EV
Historical EV

Marathon Oil Corp., current enterprise value calculation

Current share price (P)	$21.47
No. shares of common stock outstanding	677,583,502
US$ in millions
Common equity (market value)¹	14,548)
Add: Preferred stock, no par value; no shares issued or outstanding (per books)	—)
Total equity	14,548)
Add: Current portion of long-term finance lease liability (per books)	6)
Add: Long-term debt due within one year (per books)	36)
Add: Long-term debt, excluding due within one year (per books)	3,978)
Add: Long-term finance lease liability, excluding current portion (per books)	24)
Total equity and debt	18,592)
Less: Cash and cash equivalents	580)
Enterprise value (EV)	18,012)

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

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 21.47 × 677,583,502

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Marathon Oil Corp., EV calculation

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Share price^1, 2	$21.89	$11.16	$10.25	$16.68	$15.18
No. shares of common stock outstanding¹	730,765,163	789,075,988	795,849,999	818,504,459	849,755,866
US$ in millions
Common equity (market value)³	15,996)	8,806)	8,157)	13,653)	12,899)
Add: Preferred stock, no par value; no shares issued or outstanding (book value)	—)	—)	—)	—)	—)
Total equity	15,996)	8,806)	8,157)	13,653)	12,899)
Add: Current portion of long-term finance lease liability (book value)	6)	—)	—)	—)	—)
Add: Long-term debt due within one year (book value)	36)	—)	—)	—)	—)
Add: Long-term debt, excluding due within one year (book value)	3,978)	5,404)	5,501)	5,499)	5,494)
Add: Long-term finance lease liability, excluding current portion (book value)	24)	—)	—)	—)	—)
Total equity and debt	20,040)	14,210)	13,658)	19,152)	18,393)
Less: Cash and cash equivalents	580)	742)	858)	1,462)	563)
Enterprise value (EV)	19,460)	13,468)	12,800)	17,690)	17,830)

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 Data adjusted for splits and stock dividends.

² Closing price as at the filing date of Marathon Oil Corp. Annual Report.

³ 2021 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 21.89 × 730,765,163

The financial trajectory from 2017 to 2021 is characterized by a cyclical pattern of valuation, marked by a significant contraction in 2019 followed by a robust recovery. The Enterprise Value (EV) and market capitalization exhibited high volatility, reflecting substantial fluctuations in the overall valuation of the entity.

Enterprise Value Trajectory: Enterprise Value experienced a downward trend from 17,830 million US$ in 2017 to a period low of 12,800 million US$ in 2019. This decline was followed by a consistent recovery phase, with the value rising to 13,468 million US$ in 2020 and reaching a peak of 19,460 million US$ by December 31, 2021. This represents a comprehensive recovery and a net increase in value relative to the start of the observed period.
Equity Market Value Dynamics: The market value of common equity followed a pattern closely aligned with the Enterprise Value. A sharp contraction is noted between 2018 and 2019, where equity value fell from 13,653 million US$ to 8,157 million US$. This valuation remained depressed through 2020 at 8,806 million US$ before experiencing a significant surge to 15,996 million US$ in 2021, indicating a strong restoration of market confidence or an increase in underlying asset value.
Capitalization and Debt Correlation: Total equity and debt mirrored the broader valuation trends, decreasing from 19,152 million US$ in 2018 to 13,658 million US$ in 2019, and subsequently increasing to 20,040 million US$ in 2021. The proximity between the total equity and debt figures and the Enterprise Value suggests that the components of the capital structure remained the primary drivers of the company's overall valuation throughout the five-year period.

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Marathon Oil Corp. (NYSE:MRO)

Enterprise Value (EV)

Current Enterprise Value (EV)

Historical Enterprise Value (EV)