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.

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

Microsoft Excel
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 3 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
Selected Financial Data (US$ in millions)
Enterprise value (EV) 18,012
Free cash flow to the firm (FCFF) 2,410
Valuation Ratio
EV/FCFF 7.47
Benchmarks
EV/FCFF, Competitors1
Chevron Corp. 15.03
ConocoPhillips 15.19
Exxon Mobil Corp. 16.00
Marathon Petroleum Corp. 5.62
Occidental Petroleum Corp. 10.86
Valero Energy Corp. 6.15
EV/FCFF, Sector
Oil, Gas & Consumable Fuels 13.65
EV/FCFF, Industry
Energy 13.93

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
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
ConocoPhillips 10.72 92.48 13.21
Exxon Mobil Corp. 10.06 44.38
Marathon Petroleum Corp. 7.80 13.14
Occidental Petroleum Corp. 8.39 25.58 45.65
Valero Energy Corp. 10.62 9.96
EV/FCFF, Sector
Oil, Gas & Consumable Fuels 10.61 399.27 21.17
EV/FCFF, Industry
Energy 10.93 210.37 21.44

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.