Company Update (NYSE:MRO): Marathon Oil Corporation Signs Agreement for Divestiture of Gulf of Mexico Assets
Marathon Oil Corporation (NYSE:MRO) announced today that the Company has signed an agreement for the sale of its operated producing properties in the greater Ewing Bank area and non-operated producing interests in the Petronius and Neptune fields in the Gulf of Mexico for $205 million. The buyer will assume all future abandonment obligations for the acquired assets. These assets represent a majority of the Company’s operated and non-operated producing properties in the Gulf of Mexico. The effective date of the transaction is Jan. 1, 2015. Closing is expected before year end.
Marathon Oil will retain its interests in certain other producing assets and acreage in the Gulf of Mexico, as well as its interests in the Gunflint development and Shenandoah discovery. (Original Source)
Shares of Marathon Oil Corp closed last Friday at $18.29. MRO has a 1-year high of $35.02 and a 1-year low of $14.03. The stock’s 50-day moving average is $17.77 and its 200-day moving average is $21.77.
On the ratings front, Marathon Oil has been the subject of a number of recent research reports. In a report issued on October 21, Barclays analyst Thomas Driscoll reiterated a Hold rating on MRO, with a price target of $18, which represents a slight downside potential from current levels. Separately, on September 14, Citigroup’s Robert Morris maintained a Hold rating on the stock and has a price target of $16.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Thomas Driscoll and Robert Morris have a total average return of 1.9% and 7.3% respectively. Driscoll has a success rate of 50.0% and is ranked #1405 out of 3829 analysts, while Morris has a success rate of 65.4% and is ranked #1135.
Overall, 5 research analysts have assigned a Hold rating and 2 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $20.50 which is 12.1% above where the stock closed last Friday.
Marathon Oil Corp is an energy company engaged in the exploration, production and marketing of liquid hydrocarbons and natural gas, production and marketing of products manufactured from natural gas and oil sands mining.