THIRD QUARTER 2016 Financial and Operational Review November 2, 2016
Marathon Oil Investment Case 15 20% resource play CAGR at flat 55 WTI* Profitable growth Simplifying within and cash flows Relentless concentrating focus on portfolio Strengthened costs balance sheet *Preliminary 2017-2021…
Third Quarter Highlights Free cash flow neutral in third quarter inclusive of dividend Operations Well Results Total Company production STACK Meramec oil wells up 5%, above top end of exceeding type curves guidance Best industry…
Strong 3Q Divestiture-Adjusted Production Increased mid-point of full-year guidance Available for Sale Volumes 500 Updated Guidance OSM: 45 - 50 404* 402 E&P: 335 - 345 373* 370* 400 57 58 49 40 MBOED/ MSCOD 300 135*…
Capital Program Focused on U.S. Resource Plays Full year budget of 1.3B inclusive of increasing activity Total MRO 2016 Capital, Investment and Exploration 500 1,500 1.3B Budget 366 1,250 400 4Q with increased 1,000 resource…
Total Company Cash Flow 5.3B of liquidity; including 2B of cash 3,500 3,000 (249) 401 (42) 97 (113) 2,500 (725) 2,000 MM 1,500 2,584 1,000 1,953 500 0 6/30/16 Cash Operating Capital Dividends Total Working…
Continued Cost Reductions in N.A. E&P Significant absolute and unit decreases Production & Other Operating Expenses Unit Production & Other Operating Expenses (31%) reduction (15%) reduction 300 14 12 250 106 10 4.39 200…
Accelerating Value in Oklahoma Resource Basins Focusing on strategic objectives leasehold, delineation, completion design Production Volumes and Wells to Sales Production averaged 41 net MBOED; 50 15 up 50% from 2Q 2016 Co-Op…
Meramec Oil Well Performance Exceeding Expectations Integrating infill spacing with high intensity completions STACK Meramec Oil SL Cumulative Production 50 Average STACK 3Q Meramec Oil wells 40 exceeding type curve by 30% 30 Avg SL…
Protecting Leasehold While Delineating Leveraging operated and non-operated infill pilots MRO Marjorie & Lloyd 1-25XH 69% & 73% Oil Yost 6-well Infill 2,845 & 2,010 BOED 4Q TD XEC Peterson 1H-2821X 44% Oil NFX Harrison 1H-29X 2,229…
Eagle Ford Driving Efficiencies at Scale 4Q activity holds production flat sequentially Proppant Increases Production averaged 97 net MBOED; 2,000 30 down 10% from 2Q 2016 27 1,500 25 25 36 gross operated wells to sales (24…
Eagle Ford Well Performance Tighter stage-spacing in oil window enhancing value Jauer Sonka/Hausmann 5 well oil pad Trial UEF/LEF Co-Dev 4 well oil pad Avg: 1,424 BOED (81% oil) UEF/LEF Co-Dev Best Well: 2,285 BOED Wilson Avg:…
Bakken Well Productivity Continues to Improve Successfully mitigating declines Production Volumes and Wells to Sales Production averaged 54 net MBOED; 80 40 up slightly from 2Q 2016 Co-Op Wells to Sales 60 30 Only 3 gross…
East Myrmidon Outperforming Sustained strong performance in West Myrmidon Maggie Pad (E. Myrmidon) Cum Production W. Myrmidon: 120 Maggie (MB) Clarks Creek Pad Rufus (TF) 100 Hanna (TF) 12 - 18 MMLBS proppant 80 Type Curve 230 /…
Recent Bakken Wells Setting New Benchmark Strong economics competing for capital allocation 2013 2016 Middle Bakken Well Performance 3,000 Top 15 of +3,100 wells Top two Middle Bakken wells in the past three years with a 30-day IP…
International E&P Highlights Positioned to deliver substantial free cash flow Intl E&P Production Volumes International E&P production up 7% 140 7% increase from 2Q 2016 120 Equatorial Guinea 18 19 100 15 Highest quarterly…
Record Quarterly Production From OSM Lowest unit costs in assets history OSM Synthetic Crude Oil Production Volumes Production averaged 58 net MSCOD; 70 up 45% from 2Q 2016 60 Reliability initiatives reducing unplanned 50 downtime…
Key Takeaways 15 - 20% Resource play CAGR at flat 55 WTI* 50% Increase in rig count by YE16 within 1.3B budget 3Q 2016 Total Company Production Ongoing Portfolio Management 402 MBOED 1.5B non-core asset above top end of…
APPENDIX
Volumes, Exploration Expenses & Effective Tax Rate 2016 (excluding Libya) 1Q 2Q 3Q 4Q Year North America E&P Net Sales Volumes: - Liquid Hydrocarbons (MBD) 186 173 164 - Natural Gas (MMCFD) 315 310 315 - North America E&P Total…
2016 Estimates Volumes Available for Sale 4QE Available for Sale Year Estimate North America E&P Total (MBOED) 205 215 - Liquid Hydrocarbons (MBD) 156 164 - Natural Gas (MMCFD) 295 305 International E&P Total (MBOED)* 120 130 -…
2016 Estimates Exploration expenses & annual production operating costs per BOE 4QE Year Estimate Exploration Expenses (Pre-tax): North America E&P ( millions) 30 40 International E&P ( millions) 5 10 Effective Consolidated Tax…
E&P Production Performance Combined total 3Q volumes up sequentially N.A. E&P Divestiture-Adj. Sales Volumes Intl E&P Production & Sales Volumes 400 150 125 300 100 MBOED MBOED 200 75 120 120 128 126 114 119 50…
2016 3Q Production Mix Increased oil mix in Oklahoma Resource Basins Eagle Ford Oklahoma Resource Basins Bakken 8% 22% 27% 11% 46% 55% 23% 81% 27% Total U.S. Resource Plays 23% 56% 21% Crude Oil/Condensate NGLs…
2016 North America Activity U.S. resource plays Bakken Gross Gross Average Total Operated Operated Net Wells Net Wells 2016 Rig CAPEX Wells Wells to Drilled to Sales Count Drilled Sales 140MM 0.2 24 13 15 57 13 20 YTD…
North America E&P Crude Oil Derivatives As of September 30, 2016 Crude Oil (Benchmark to WTI) 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 Three-Way Collars(a) Volume (Bbls/day) 47,000 30,000 30,000 - - Price per Bbl: Ceiling 55.37…
North America E&P Natural Gas Derivatives As of September 30, 2016 Natural Gas (Benchmark to HH) 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 Three-Way Collars(a) Volume (MMBtu/day) 20,000 60,000 60,000 60,000 60,000 Weighted Average…
Capital, Investment & Exploration Budget reconciliation MM 2016 Revised 2016 YTD* Budget Actual Capital expenditures 1,171 785 M&S Inventory 0 (73) Investments in equity method investees & others 0 0 Exploration costs other…
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