Best U.S. Oil Stocks To Buy #3 — Marathon Oil (MRO)
After spinning out its refining operations as Marathon Petroleum (MPC), Marathon Oil (MRO) is quickly becoming a shale superstar, turning a monster buy of acreage in the Eagle Ford back in 2011 into steadily rising production.
MRO managed to grow its Eagle Ford oil production from a paltry 8,000 barrels per day back in the fourth quarter of 2012 to more than 100,000 barrels in the fourth quarter of 2013. The key for Marathon was its ability to improve drilling times as well as lowering costs per well by using new state-of-the-art advanced rigs.
As with 2013, MRO promises to spend roughly 60% of its $5.9 billion capex budget on the Eagle Ford and other shale plays in the U.S. Marathon execs. Predict that spending will result in a 30% boost in production for the energy firm.
With some non-core international assets on the chopping block, MRO will be able to plow that cash back into the Eagle Ford and boost its production even further. In the meantime, investors are treated to a 2.1% dividend.