Marathon Oil Earnings: No Real Surprises in Results; We Maintain Fair Value Estimate

We see no reason to change our $24 fair value estimate for no-moat-rated Marathon Oil. We reduced our assumed lease operating expenses but raised our assumed depreciation, depletion, and amortization expense. These impacts were minor and offset one another. Total hydrocarbon production of 371 thousand barrels of oil equivalent, or mboe/d, came in slightly below our expectations, but Marathon's unit costs also dipped lower, leading to EBITDA roughly in line with what we hoped to see.