3 Energy Companies All Thriving on America’s Oil Boom

Anadarko Petroleum Corporation, Marathon Oil Corporation, and ConocoPhillips are all thriving on American’s energy boom.

Feb 11, 2014 at 11:08AM

Marathon Oil

Marathon Oil Corporation's Eagle Ford Shale operations. Photo credit: Marathon Oil Corporation

Marathon Oil Corporation (NYSE:MRO) increased its production out of U.S. resource plays by 86% in 2013. That fueled an 11% year-over-year gain in the company's total production. The company is thriving off the surging oil production it's seeing from places like the Eagle Ford Shale.

That same story line was found at Anadarko Petroleum Corporation (NYSE:APC) as well as at ConocoPhillips (NYSE:APA) where those companies reported similar shale-fueled growth last quarter. Anadarko Petroleum, for example, reported that its U.S. onshore operating areas achieved a 25% increase in oil volumes over the prior year. Meanwhile, ConocoPhillips enjoyed a 31% production surge out of its U.S. resource plays. If it wasn't for this shale-fueled growth, these companies would have all reported pretty lousy results last year.

Winning the race
Marathon Oil is seeing the most success in the Eagle Ford Shale. The company's production averaged 90,000 barrels of oil equivalent per day, or BOE/d in the quarter. That was up 8,000 BOE/d from just the prior quarter. The company added another 10,000 BOE/d to its production as it exited the year so that its production now tops 100,000 BOE/d. In the past year Marathon Oil's Eagle Ford Shale production alone is up 53%.

 Marathon Oil Sunset

Photo credit: Marathon Oil Corporation

On top of that the company's Bakken Shale production continues to grow. It was up 14% over last year and 5% over the prior quarter. The company is now producing more than 40,000 BOE/d from the Bakken. In addition to that, the company is also starting to pump more oil and gas out of its Oklahoma resource basins as production topped 14,000 BOE/d last quarter. Marathon is expecting even more growth in Oklahoma this year as it grew its acreage position in the play by 20% while it will be doubling its rig count this year.

Following close behind
ConocoPhillips is seeing similar results in its Eagle Ford Shale and Bakken Shale operations. The company delivered peak production rates of 141,000 BOE/d in the Eagle Ford Shale last quarter while its Bakken Shale production topped 43,000 BOE/d on the quarter. When combined with its operations in the Permian Basin, ConocoPhillips saw its production surge by 31% year over year.

ConocoPhillips is already looking for the next area to fuel future growth. The company sees promising unconventional opportunities in the Permian Basin as well as in Colorado's Niobrara. While the company is still currently just exploring those areas, both could soon emerge as a new growth area for the company over the next year. 

Different path, same results
While Anadarko Petroleum is seeing solid production growth out of the Eagle Ford Shale as well, the company's strength is in its Colorado operations. The company's Wattenberg Horizontal program grew production to more than 56,000 BOE/d last year. That's up by 34,000 BOE/d from what the company produced in 2012. Further, it ended the year with average daily production of more than 72,000 BOE/d, which is simply stunning year-over-year growth for the company.

Like ConocoPhillips, it too sees promise in the Permian Basin. It's currently evaluating the Wolfcamp portion of the Permian's Delaware Basin. So far the company has drilled 29 wells into the Wolfcamp Shale, while it has several rigs running to continue testing. Given the results of some of its peers, Anadarko is likely to begin to see some real production growth from the Permian Basin.

Investor takeaway
America's energy boom is fueling stunning production growth for America's energy companies. It's enabling companies like ConocoPhillips, Anadarko Petroleum, and Marathon Oil to thrive at a time where production growth outside the U.S. is rather weak. This is why we are seeing all three companies shed assets overseas in order to focus on growth in the U.S.

Are we about to topple OPEC?
American energy companies are working overtime to topple OPEC. And you can profit from it. Imagine a company that rents a very specific and valuable piece of machinery for $41,000 ... per hour (that's almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report reveals the company we're calling OPEC's Worst Nightmare. Just click HERE to uncover the name of this industry-leading stock ... and join Buffett in his quest for a veritable LANDSLIDE of profits!


Matt DiLallo has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers