Marathon Oil to pay $888 million for PayRock Energy

The firm presently has a $21.00 price objective on the stock, up from their prior price objective of $18.00. (“Quaterra” or the “Company”) and its subsidiary Singatse Peak Services LLC (“SPS”) announced they have reached an agreement with Freeport-McMoRan Nevada LLC (“Freeport Nevada”) to extend the current Stage 2 of Freeport Nevada’s option to acquire an interest in the Company’s Yerington Copper Project in Nevada for up to two years by Freeport Nevada making option payments totalling $5.75 million.

Based on Marathon Oil’s latest earnings report from March 31, the company posted quarterly revenue of $712M and quarterly net profit of -$407M. The stock has a 50 day moving average of $13.05 and a 200 day moving average of $11.46.

Investors should buy Marathon Oil as a high-beta play on rising oil prices, according to Morgan Stanley, which upgraded the shares of the energy company to overweight from equal weight.

PayRock’s oil-and-gas acreage, which now produces 9,000 net barrels of oil equivalent every day, boosts Marathon’s holdings in that section of Oklahoma to more than 200,000 acres.

The Company has received rating from WSJ analysts. This represents a $0.20 annualized dividend and a yield of 1.38%. Most recently, in August 2015, Lee Tillman, a the President and CEO of MRO bought 25,600 shares for a total of $499,366.

Marathon Oil Corporation (NYSE:MRO) belongs to Basic Materials sector and Independent Oil & Gas industry.MRO stock opened its last trade at $13.85and after floating in a range of $13.83 to $14.73, settled at $14.48.

In the liquidity ratio analysis; Whiting Petroleum Corp.’s (WLL) debt to equity ratio was 1.16 while current ratio was 0.90.

Following the news, the company’s stock, that has plunged in the past year by as much as 49%, surged by 10.3%. The stock’s RSI amounts to 51.56. The company’s revenue was down -52.3 % compared to the same quarter past year. “1” rated it as Hold, “0” told it as Underperform and “0” advocated it as Sell.

“The share price move today seems stronger than the initial risked value created from the deal, but reflects the fact that MRO shares were undervalued to start with, and perhaps reflects fears that MRO would overpay”, Credit Suisse analysts explained in a note released this morning.

Mitchell Collin is brilliant content Writer/editor of StreetUpdates. He is junior content writer and editor of StreetUpdates.