2016 Barclays CEO Energy-Power Conference Lee Tillman President & Chief Executive Officer September 7, 2016
Marathon Oil Playbook Profitable growth Simplifying within and cash flows Relentless concentrating focus on portfolio Strengthened costs balance sheet 3
Financial and Portfolio Discipline Concentrating asset base to lower cost, higher margin resource plays 1.3B sales announced or closed 1.3B since Aug 2015 Non-Core Asset Sales Exceeded high-end of non-core asset sale range by…
Continuing to Reset Cost Structure Downward trend continues in both unit and absolute costs E&P Production Expenses 300 9 Total E&P production expense decreased 30% 200 6 from 1Q 2015 /BOE MM North America E&P unit…
Reducing Well Costs & Increasing Completion Intensity Capital efficiencies offsetting increased proppant loading, other enhancements Gross Completed Well Costs and Proppant 12 3,600 Reduced CWCs by (14)% 10% to 20% while 10 3,000…
Positioning for Profitable Growth Within Cash Flow Accelerating value in STACK 2017 Capital Allocation Priorities Diverse High Return Inventory STACK leasehold STACK Meramec Oil SL 60-80% IRR STACK SCOOP STACK delineation…
Expanding Depth and Quality in Oklahoma Growing 2P resource in our largest unconventional play 2.2 BBOE 2P Resource (3.4 BBOE Total Stratigraphic Column Resource) Oswego Pennsylvanian Increased 420 MMBOE in STACK; 190 MMBOE in…
Refresh on STACK Acquisition Added 2nd rig in third quarter Current Meramec Activity on Acquired Acreage Kingfisher Blaine STACK acreage* STACK Firestone 1607 1-16MH (SL) Completing Wittrock 1406 1-30MH (SL) On Flowback 142,000…
Accelerating STACK Delineation and Appraisal Broad exposure across 200,000 surface acres in liquids rich STACK Current Meramec Activity on Legacy Acreage 8 to 10 wells to sales in 3Q Lloyd (XL) & Marjorie (XL) On Flowback Kingfisher…
Preparing for SCOOP Development Phase Spacing and completion optimization coupled with drilling efficiency 2H 2016 SCOOP activity focused on Woodford & Springer leasehold; Wheeler 1-6XH Cleveland On Flowback YE16 95% HBP 2015 OBO…
Data Integration Leading to Better Performance Employing analytics in Oklahoma to optimize well production Identify key drivers of performance and apply them to vertical targeting GIP Neutron-D Porosity V-Clay V-Sand BCF/Sec RQI…
Eagle Ford Focused on Efficiency at Scale Drilling and completions optimization yielding sustainable gains Drilling Efficiency Generating sustainable drilling 3,500 3,600 New efficiencies since 2012: Pacesetter Avg Drilling…
Completion Enhancements Lead to Record Bakken Wells W. Myrmidon competes at top of resource play inventory Clarks Creek Pad 2Q 2016 Completions Unit production expense down 30% 2,550 BOED Avg 30D IP in 1H 2016 from same period in…
EG and OSM: Maximizing Cash Flow Sustainable cost reductions and stable production profile Alba B3 Compression Project Extends EG plateau production for 2 years Improves offshore E&P margins through higher revenues and lower OPEX per…
Marathon Oil Key Messages Successful portfolio management complementing continued capital discipline Achieving sustainable cost savings and enhanced productivity through technology and efficiency gains Preparing for profitable…
APPENDIX
Definitions Term Definition Most likely or 2P volumes represent most likely deterministic estimates of proved plus probable reserves as defined by the SEC, plus contingent or 2C volumes with the same technical certainty 2P Resource…
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