BAML 2016 Global Energy Conference Lee Tillman President & Chief Executive Officer November 17, 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…
Strong Financial Profile 5.3B liquidity at end of 3Q 2B of cash; 3.3B undrawn revolving credit facility, committed through 2020 Revolver sole financial covenant: total debt to…
Continuing to Reset Cost Structure Downward trend continues in both unit and absolute costs E&P Production Expenses Total E&P production 300 9 expense decreased 40% from 1Q 2015 200 6 North America E&P unit /BOE production…
Portfolio Discipline Concentrating asset base to lower cost, higher margin resource plays 1.5B 1.5B sales announced or closed Non-Core since Aug 2015 Asset Sales Exceeded high-end of non-core asset sale range by 500MM Wyoming…
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…
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…
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 and OSM Highlights Positioned to deliver substantial free cash flow Intl E&P Production Volumes International E&P production up 7% 140 from 2Q 2016 120 18 19 100 15 Equatorial Guinea 80 Highest quarterly…
Marathon Oil Key Messages Financial flexibility underpinned by strengthened balance sheet Successful portfolio management continues to simplify and concentrate to core assets Achieving sustainable cost savings through technology…
Loading...
