Shares Marathon Oil The (MRO), have seen a significant increase in earnings this year. The company outpaced Wall Street’s earnings estimates in its last reported quarter, which has attracted investors’ attention. However, considering its high volatility, is MRO a good energy stock to add to one’s portfolio now? Find out more. Marathon Oil Corporation (NYSE 🙂 is a Houston-based independent exploration company and producer that focuses primarily on the production, marketing, and exploration of natural gas. The company also operates treatment and gathering facilities. Stock has increased 297.9% and 155.9% respectively over the past 12 months to trade at $17.07. MRO’s shares trade well above its 50-day, 200-day moving mean, which indicates an uptrend. The stock’s beta is 3.08, which suggests that it is volatile relative to the wider market.

MRO’s third quarter earnings reports were stronger than the consensus estimate. The company’s fiscal third quarter ended September 30, saw an increase in total revenue and income of 92.7% over the previous year to $1.45 Billion. Comparable to the year-ago loss, its adjusted net income reached $310 million. The company’s adjusted EPS increased 239.3% year-over-year to $0.39, beating the $0.31 consensus EPS estimate by 25.8%.

Favorable industry trends, with rallying oil and natural gas prices and a sharp rise in demand, have helped the company register significant gains and recover from last year’s losses. National gas prices are at an all-time high of $3.40/gallon, and Bank of America (NYSE) anticipates that they will reach $120/barrel by June 2022. This is a 45 percent increase from current levels. Oil-producing firms should be encouraged by rising oil prices.

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