Marathon Oil Corp (MRO)

[benfrankledger]

$MRO Marathon Oil Corporation is on the cusp of free cash flow generation and profitability. Now the big question investors are asking is what will management do with that FCF?

It is unlikely Marathon will buy back shares or materially boost its dividend; at least there are few reasons to believe that is what management has in mind (based on past commentary), but additional debt reduction is definitely in the works. A larger capex budget for 2018 is probably on tap as well.

If management decides not to materially increase its capex budget, it is possible that decision is being made to free up cash to improve shareholder returns (dividends, stock buybacks). We'll see. Management should offer some concrete 2018 commentary fairly soon.