According to the Futubull app, JPMorgan downgraded Marathon Oil's (MRO.US) rating from "shareholding" to "neutral" with a target price of $33.00.

The bank analyst forecasted that Marathon Oil's EPS and cash flow per share (CFPS) for the second quarter of 2024 are expected to be $0.69 and $1.84, respectively, below market expectations. These figures are slightly lower than the general expectations of $0.71 EPS and $1.89 CFPS per share.

The analyst's prediction includes an increase in cash flow for the second quarter due to the distribution of dividends in Equatorial Guinea, as Marathon Oil did not receive any cash distribution in the first quarter of 2024. The estimated cash flow for the second quarter is about $39 million. In addition, the company's expected capital expenditure is estimated to be $0.654 billion, about 7% higher than the market estimate of $0.612 billion.

Marathon Oil's production in the second quarter is expected to be 0.19 million barrels per day, consistent with market expectations. This production level is supported by the company's investment plan. The production in the Eagle Ford is expected to increase significantly.

In contrast, despite the production of 20 wells in the Delaware Basin in the second quarter, production is expected to decline compared to only 4 wells in the previous quarter. The expected decline is due to a larger proportion of activity in areas with low work interest for Marathon Oil, and some production benefits from the first quarter will continue from the completion of wells at the end of 2023.

JPMorgan predicts that Marathon Oil's CFO in the second quarter will be around $1.057 billion. The estimated total cash return is $0.138 billion, accounting for about 13% of the CFO, consisting of $63 million in basic dividends and $75 million in buybacks.