Thursday, April 16, 2020

Seeking Alpha - Marathon Oil Faces Tough Outlook As Hedges Offer Little Protection

Summary

  • Marathon Oil has drastically cut capital expenditures and reduced drilling activity considerably in all regions in response to the crash in oil prices.
  • The company has improved its hedge coverage but it still offers little downside protection, while a large chunk of production is not backed by any hedges.
  • Marathon Oil has a decent balance sheet, but its debt levels could start to climb if oil prices fail to meaningfully recover in 2021.

https://seekingalpha.com/article/4337846-marathon-oil-faces-tough-outlook-hedges-offer-little-protection

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