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3Q 2015 Financial and Operational Review – Marathon Oil Corp

Marathon Oil Corp · Nov 4, 2015 · 29 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. 3Q 2015 Financial and Operational Review – Marathon Oil Corp – slide 1
    THIRD QUARTER 2015 Financial and Operational Review November 4, 2015
  2. 3Q 2015 Financial and Operational Review – Marathon Oil Corp – slide 2
    Quarter Highlights Total company 2015 production growth at high end of guidance on 200MM lower budget 3Q capital, investment and exploration program at 623MM, down 7% from prior quarter; full-year 2015 revised budget 3.1B On track to…
  3. 3Q 2015 Financial and Operational Review – Marathon Oil Corp – slide 3
    Revised 2015 Budget Down 200MM to 3.1B 3Q Program 623MM 2015 Capital, Investment and Exploration 1,400 1,200 1,000 MM 800 600 400 200 0 1Q 2015 2Q 2015 3Q 2015 4Q 2015E Capital, Investment and Exploration…
  4. 3Q 2015 Financial and Operational Review – Marathon Oil Corp – slide 4
    Capturing Sustainable Savings Downward trend continues 1,600 1,600 (21%) reduction 1,400 1,400 1,200 1,200 1,000 1,000 MM MM 800 800 (28%) reduction 600 600 400 400 200 200 0 0 YTD 2014 YTD 2015 3Q 2014 3Q…
  5. 3Q 2015 Financial and Operational Review – Marathon Oil Corp – slide 5
    Total MRO Production at High End of Guidance FY15 growth of 7% year-over-year MRO Available for Sale Volumes 500 Guidance 500 Guidance OSM: 40 - 45 OSM: 40 - 45 E&P: 380 - 390 E&P: 365 - 385 400 400 57 41 47 MBOED/ MSCOD…
  6. 3Q 2015 Financial and Operational Review – Marathon Oil Corp – slide 6
    U.S. Resource Play Growth of 20% in 2015 4Q Eagle Ford flat, Bakken impacted by reduced completion activity Eagle Ford, Bakken & Oklahoma Resource Basins Available for Sale Volumes 250 250 200 200 150 150 MBOED MBOED…
  7. 3Q 2015 Financial and Operational Review – Marathon Oil Corp – slide 7
    Adjusted and Reported Net Loss Lower 3Q realizations offset by higher sales volumes and lower expenses Adjusted Net Income (Loss) per Diluted Share Reported Net Income (Loss) per Diluted Share 1.00 0.90 0.76 0.64 0.80 0.60 0.19…
  8. 3Q 2015 Financial and Operational Review – Marathon Oil Corp – slide 8
    Total Company Cash Flow 3Q15 2.4B of cash & short-term investments at Sept 30; 1B used to retire debt in Nov 2,500 29 2,000 467 (595) 54 (142) 225 1,500 103 (33) MM 1,000 1,680 1,572 500 0 6/30/15 Operating…
  9. 3Q 2015 Financial and Operational Review – Marathon Oil Corp – slide 9
    Lower 3Q N.A. E&P Realizations and Volumes vs 2Q Offset by lower DD&A and exploration expenses N.A. E&P Segment Income (Loss) N.A. E&P Sales Volumes 350 400 300 250 300 200 MBOED MM 150 292 200 100 50 274 261 250…
  10. 3Q 2015 Financial and Operational Review – Marathon Oil Corp – slide 10
    N.A. E&P Costs Trending Down At low-end of FY guidance 18 18 (23%) reduction 16 16 14.00 14 14 2015 5.45 5.13 Guidance 12 12 4.96 12.00 10 10 4.60 / BOE / BOE 4.32 4.39 3.97 8 8 6 6 10.25 10.16 9.54 4 7.52 4…
  11. 3Q 2015 Financial and Operational Review – Marathon Oil Corp – slide 11
    Eagle Ford Improves Capital Efficiency Completed well costs down 10% from 2Q Production Volumes and Wells to Sales Production averaged 128 net MBOED; 160 9% increase 3Q14:3Q15 120 9% above 3Q 2014 Gross Co-Op Wells to Sales 120…
  12. 3Q 2015 Financial and Operational Review – Marathon Oil Corp – slide 12
    Eagle Ford Co-Development Results Upper Eagle Ford performance supports recent 2P resource add Stack Potential 30 day IPs AC/LEF Co-Development UEF/LEF Co-Development 40-Acre LEF Development Direct Assets Salge Egbert Miller 4…
  13. 3Q 2015 Financial and Operational Review – Marathon Oil Corp – slide 13
    Oklahoma SCOOP Infill Pilot Online Smith infill wells demonstrates development and resource potential Production Volumes and Wells to Sales Production averaged 23 net MBOED; 21% increase 3Q14:3Q15 40 12 21% above 3Q 2014 Gross…
  14. 3Q 2015 Financial and Operational Review – Marathon Oil Corp – slide 14
    Delineating the SCOOP & STACK Smith pilot online and first operated Springer well drilled MRO Operated Kingfisher OBO Well Well STACK Meramec sales in 3Q STACK OBO Blaine 30 day IP 504 1,776 BOED 2 operated Meramec leasehold…
  15. 3Q 2015 Financial and Operational Review – Marathon Oil Corp – slide 15
    Bakken Base Performance Delivering Results Reducing costs and maintaining drilling efficiency Production Volumes and Wells to Sales Production averaged 61 net MBOED; 9% increase 3Q14:3Q15 80 40 9% above 3Q 2014 Gross Co-Op Wells…
  16. 3Q 2015 Financial and Operational Review – Marathon Oil Corp – slide 16
    Bakken Myrmidon Outperforming West Myrmidon Doll pad supporting flat production 5 gross operated wells to sales in East Brodahl Myrmidon, ranging from 582 1,478 Spacing Pilot 30 day IP First operated 10MMLB completion; Doll Pad…
  17. 3Q 2015 Financial and Operational Review – Marathon Oil Corp – slide 17
    Record Quarter for OSM Production Achieved lowest OPEX per BBL OSM Segment Income (Loss) OSM Synthetic Crude Oil Sales Volumes 120 70 100 60 80 60 50 40 93 MSCOD 40 MM 20 0 65 (11) 30 -20 55 -40 (77) 20 -60 29…
  18. 3Q 2015 Financial and Operational Review – Marathon Oil Corp – slide 18
    Improved Intl E&P Volumes Enhanced EG production performance, offset by lower realizations Intl E&P Segment Income Intl E&P Production & Sales Volumes 120 150 100 125 8 6 80 100 MBOED MM 60 75 106 112 106 108 108 114…
  19. 3Q 2015 Financial and Operational Review – Marathon Oil Corp – slide 19
    Intl E&P and Exploration Highlights EG compression project passes milestone, appraisal success in GOM Equatorial Guinea Production potential up 4,000 net BOED Alba C-21 development well online with higher than expected liquids yield…
  20. 3Q 2015 Financial and Operational Review – Marathon Oil Corp – slide 20
    Key Takeaways Capital Discipline Production Full-year 2015 Budget Reduced 2015 Growth Rates 7% Total Company 200MM to 3.1B 20% U.S. Resource plays Balance Sheet Strength Top Priority Oil Sands Mining Record Quarter 425MM annual…
  21. 3Q 2015 Financial and Operational Review – Marathon Oil Corp – slide 21
    APPENDIX 22
  22. 3Q 2015 Financial and Operational Review – Marathon Oil Corp – slide 22
    Volumes, Exploration Expenses & Effective Tax Rate 2015 (excluding Libya) 1Q 2Q 3Q 4Q Year North America E&P Net Sales Volumes: - Liquid Hydrocarbons (MBD) 223 213 205 - Natural Gas (MMCFD) 359 361 338 - North America E&P Total…
  23. 3Q 2015 Financial and Operational Review – Marathon Oil Corp – slide 23
    2015 Estimates Volumes Available for Sale 4QE Available for Sale Year Estimate North America E&P Total (MBOED) 244 257 - Liquid Hydrocarbons (MBD) 190 200 - Natural Gas (MMCFD) 325 340 International E&P Total (MBOED)* 121 128 -…
  24. 3Q 2015 Financial and Operational Review – Marathon Oil Corp – slide 24
    2015 Estimates Exploration expenses & annual production operating costs per BOE 4QE Year Estimate Exploration Expenses (Pre-tax): North America E&P ( millions) 25 275 International E&P ( millions) 10 25 Effective Consolidated Tax…
  25. 3Q 2015 Financial and Operational Review – Marathon Oil Corp – slide 25
    2015 3Q Production Mix U.S. resource plays 80% liquids Eagle Ford Oklahoma Resource Basins Bakken 5% 18% 8% 21% 59% 54% 20% 28% 87% Total U.S. Resource Plays 20% 63% 17% Crude Oil/Condensate NGLs Natural Gas…
  26. 3Q 2015 Financial and Operational Review – Marathon Oil Corp – slide 26
    2015 North America Activity U.S. Resource Plays Bakken Gross Gross Average Net Operated Operated Net Wells CAPEX 2015 Rig Wells Wells Wells to to Sales Count Drilled Drilled Sales 606MM 2 26-36 53-63 31-42 58-70 YTD 9/30/15…
  27. 3Q 2015 Financial and Operational Review – Marathon Oil Corp – slide 27
    North America E&P Crude Oil Derivatives As of September 30, 2015 Term Bbls per day Weighted Average Price per Benchmark Bbl Three-Way Collars Oct 2015 Dec 2015 35,000 55.57 Floor WTI 70.34 Ceiling 41.29 Sold Put Oct 2015 Mar…
  28. 3Q 2015 Financial and Operational Review – Marathon Oil Corp – slide 28
    Stable, Long-Lived Cash Flow Equatorial Guinea World-class integrated gas business Stable production profile and cash flow Primary Condensate Sales Concluded successful Alba C-21 development well and 63% WI wireline intervention…
  29. 3Q 2015 Financial and Operational Review – Marathon Oil Corp – slide 29
    Capital, Investment & Exploration Budget reconciliation MM 2015 Revised 2015 YTD Budget Actual Capital expenditures, including acquisitions 2,995 2,376 M&S Inventory 20 (10) Investments in equity method investees & others 0 0…

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