With the US energy sector in turmoil and oil prices plummeting to the lowest level in years, investors have turned their attention to the stock market. 

And there’s some good news for Marathon Oil. 

A new report released by Bloomberg Intelligence shows that the energy company is trading at an average price of just over $53 per share.

That’s a slight improvement from the $56 price that it was trading at last week, but it’s still way below the $70 average of $75 that it had traded at at the end of January. 

The report also shows that Marathon Oil’s market cap is $10.6 billion, well below the current $15.6 trillion market cap of Chevron, Exxon Mobil, and Chevron’s parent company, Texaco. 

Bloomberg Intelligence says that Marathon’s stock has been moving higher since the beginning of 2017, as investors have come to expect a rebound in the oil industry as it has continued to recover from the 2015 oil crisis. 

In the past, analysts have predicted that the oil and gas industry would begin to recover and that oil prices would stabilize. 

However, according to Bloomberg Intelligence, the rebound has been largely limited to the energy sector. 

“The oil sector has yet to recover as much as we hoped, which has created a downward spiral for oil companies,” the report reads. 

As a result, it’s becoming increasingly clear that oil companies have become more reliant on oil prices to finance their operations, which could be putting them at a disadvantage in the market as the rest of the industry recovers. 

That said, there are some reasons to be optimistic about Marathon Oil as the stock continues to grow. 

It has been able to withstand the oil crisis by expanding production and refining oil. 

Since 2017, the company has been one of the most efficient oil producers in the world, according the Bloomberg report. 

Even though the stock is down, the stock’s market value is rising due to its strong fundamentals, according Bloomberg Intelligence. 

To get a better look at the company, I reached out to Matt Gourley, a stock analyst at Bloomberg Intelligence and one of its senior writers. 

I asked him how much the company would be worth if it continues to generate record revenues and profits. 

He told me that his firm expects the stock to hit a new all-time high of about $60 a share by the end, which is about 20% higher than the current average price. 

Gourley also told me about the company’s plans to grow the number of employees it has in North America, which are expected to be double the current total of 8,000. 

One of the key components of this growth strategy will be increasing its focus on renewable energy. 

According to Gourlyn, the energy giant has recently announced plans to begin installing a massive wind farm on a remote portion of the US in Wyoming. 

On top of that, the new facility will be able to generate 50% of the company the electricity it uses, making it one of only three companies in the US that can generate all of its power from renewable sources. 

This new renewable energy facility is expected to provide nearly one-third of the electricity needed to power more than 1.5 million homes in the region. 

While there are no immediate plans to bring the new wind farm to the US, Bloomberg Intelligence expects it to start generating electricity at some point in the next few months. 

Another key component of the growth strategy is the company is working to build a pipeline that will allow it to ship oil from its Bakken oil fields to other regions of the country. 

By doing so, the oil giant will be exporting more of its oil to the United States, which will create a much needed boost to the economy. 

Currently, Marathon Oil is not exporting its oil directly to the rest (such as the European markets) because of its tight supply chains. 

But according to Gorley, that is changing as more countries become interested in producing oil from the Bakken. 

If the pipeline is built, it will allow Marathon to be more selective about the types of oil it will be producing. 

Also, the pipeline will allow the company to bring in new energy to the U.S. that would otherwise be sitting in storage, such as coal, oil, and natural gas. 

At the end it sounds like it would make for an exciting stock to own if you can stomach the high prices that the industry is experiencing right now. 

So, what’s your take on the recent stock price surge for Marathon?

Do you think it will help or hurt the oil market?

Let us know in the comments below.

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