Marathon Oil Corp., FCFE calculation

US$ in millions

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)
Additions to property, plant and equipment	(1,046)	(1,343)	(2,550)	(2,753)	(1,974)
Borrowings	—)	400)	600)	—)	988)
Debt repayments	(1,400)	(500)	(600)	—)	(2,764)
Debt extinguishment costs	(117)	(27)	(2)	—)	(46)
Free cash flow to equity (FCFE)	676)	3)	197)	481)	(1,808)

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).

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Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Marathon Oil Corp. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Marathon Oil Corp. FCFE decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Marathon Oil Corp., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	677,583,502
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	676)
FCFE per share	1.00
Current share price (P)	21.47
Valuation Ratio
P/FCFE	21.52
Benchmarks
P/FCFE, Competitors¹
Chevron Corp.	18.02
ConocoPhillips	11.76
Exxon Mobil Corp.	16.01
Marathon Petroleum Corp.	3.92
Occidental Petroleum Corp.	7.80
Valero Energy Corp.	5.45
P/FCFE, Sector
Oil, Gas & Consumable Fuels	27.32
P/FCFE, Industry
Energy	28.27

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

¹ Click competitor name to see calculations.

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

Marathon Oil Corp., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
No. shares of common stock outstanding¹	730,765,163	789,075,988	795,849,999	818,504,459	849,755,866
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	676)	3)	197)	481)	(1,808)
FCFE per share³	0.93	0.00	0.25	0.59	-2.13
Share price^1, 4	21.89	11.16	10.25	16.68	15.18
Valuation Ratio
P/FCFE⁵	23.66	2,935.36	41.41	28.38	—
Benchmarks
P/FCFE, Competitors⁶
Chevron Corp.	32.05	21.61	38.28	—	—
ConocoPhillips	10.61	497.58	14.36	—	—
Exxon Mobil Corp.	19.82	13.70	16.01	—	—
Marathon Petroleum Corp.	65.05	51.11	5.87	—	—
Occidental Petroleum Corp.	66.22	—	1.84	—	—
Valero Energy Corp.	12.51	9.57	7.61	—	—
P/FCFE, Sector
Oil, Gas & Consumable Fuels	20.61	19.80	11.93	—	—
P/FCFE, Industry
Energy	21.56	19.35	12.49	—	—

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 See details »

³ 2021 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 676,000,000 ÷ 730,765,163 = 0.93

⁴ Closing price as at the filing date of Marathon Oil Corp. Annual Report.

⁵ 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= 21.89 ÷ 0.93 = 23.66

⁶ Click competitor name to see calculations.

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Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Marathon Oil Corp. P/FCFE ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Marathon Oil Corp. (NYSE:MRO)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical