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Q4 2016 Financial and Operational Review – Marathon Oil Corp

Marathon Oil Corp · Feb 15, 2017 · 22 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. Q4 2016 Financial and Operational Review – Marathon Oil Corp – slide 1
    FOURTH QUARTER 2016 Financial and Operational Review February 15, 2017
  2. Q4 2016 Financial and Operational Review – Marathon Oil Corp – slide 2
    2016 Highlights Within cash flows inclusive of non-core asset sales, acquisition and dividend 2016 Guidance 2016 Actuals Full-Year Capital Program1 1.3B 1.1B E&P Production (MBOED)2 335 - 345 342 North America E&P Production…
  3. Q4 2016 Financial and Operational Review – Marathon Oil Corp – slide 3
    112% Reserve Replacement, Excluding Dispositions Estimated net proved reserves 2.1 BBOE Reserve Replacement F&D Costs per Ratio BOE Excluding dispositions 112% 13.12 Excluding acquisitions, dispositions & revisions 214% 3.56 74%…
  4. Q4 2016 Financial and Operational Review – Marathon Oil Corp – slide 4
    Total Company Cash Flow for FY16 Balanced operating cash flow with capex 3,000 2,500 50 2,000 (1,069) 1,236 1,081 (902) MM 1,500 1,219 2,490 (162) 1,000 (184) 1,221 500 0 12/31/15 Operating Capital Dividends…
  5. Q4 2016 Financial and Operational Review – Marathon Oil Corp – slide 5
    Fourth Quarter Highlights Cash flow positive with resource play ramp-up in preparation for 2017 Operations Activity E&P production (excl. Libya) Increased resource play rig avg. 341,000 net BOED count from 8 to 12 Oklahoma…
  6. Q4 2016 Financial and Operational Review – Marathon Oil Corp – slide 6
    Continued Cost Reductions in N.A. E&P Absolute and unit production expenses decrease N.A. E&P Production Expenses (33%) reduction 200 (32%) reduction 8 800 600 150 6 / BOE MM MM 400 100 4 724 164 134 128 486 113…
  7. Q4 2016 Financial and Operational Review – Marathon Oil Corp – slide 7
    Oklahoma Focused on Delineation and Leasehold Progressing strategic objectives through ramp in activity Production Volumes and Wells to Sales Production averaged 45 net MBOED; 50 15 up 10% from 3Q 2016 Co-Op Wells to Sales 40 12…
  8. Q4 2016 Financial and Operational Review – Marathon Oil Corp – slide 8
    Record Low Eagle Ford Well Costs Maintaining 6 rig activity level in 2017 Oil Production Volumes Production averaged 94 net MBOED; 80 down 3% from 3Q 2016 60 Oil production up 2% sequentially MBOD 40 52 gross operated wells…
  9. Q4 2016 Financial and Operational Review – Marathon Oil Corp – slide 9
    Bakken Base Production Resilient Preparing for increased activity in 2017 Production Volumes and Wells to Sales Production averaged 52 net MBOED 80 20 with no new wells to sales; down 4% from 3Q 2016 Co-Op Wells to Sales 60 15…
  10. Q4 2016 Financial and Operational Review – Marathon Oil Corp – slide 10
    International E&P Highlights EG delivering substantial free cash flow Intl E&P Production Volumes International E&P production up from 150 3Q 2016 125 8 100MM of EBITDA from Equatorial 18 20 Guinea equity share of onshore plants…
  11. Q4 2016 Financial and Operational Review – Marathon Oil Corp – slide 11
    OSM Overview 4Q production lower due to planned maintenance OSM Synthetic Crude Oil Production Volumes Production averaged 47 net MSCOD; 70 down from 3Q 2016 60 Planned pit-stop during the quarter 50 2016 unit OPEX of 27.89/bbl,…
  12. Q4 2016 Financial and Operational Review – Marathon Oil Corp – slide 12
    2016 Key Takeaways Full-Year E&P Production Full-Year CAPEX of 1.1B 342 MBOED 200MM exceeds midpoint of guidance from revised guidance Oklahoma Resource Basins Production Ongoing Portfolio Management 40% increase 1.3B over…
  13. Q4 2016 Financial and Operational Review – Marathon Oil Corp – slide 13
    APPENDIX
  14. Q4 2016 Financial and Operational Review – Marathon Oil Corp – slide 14
    Volumes, Exploration Expenses & Effective Tax Rate 2016 (excluding Libya) 1Q 2Q 3Q 4Q Year North America E&P Net Sales Volumes: - Liquid Hydrocarbons (MBD) 186 173 164 160 171 - Natural Gas (MMCFD) 315 310 315 315 314 - North America…
  15. Q4 2016 Financial and Operational Review – Marathon Oil Corp – slide 15
    2017 Estimates Volumes Available for Sale 1QE Available for Sale Year Estimate North America E&P Total (MBOED) 195 205 - Liquid Hydrocarbons (MBD) 148 156 - Natural Gas (MMCFD) 281 295 International E&P Total (MBOED)* 120 125 -…
  16. Q4 2016 Financial and Operational Review – Marathon Oil Corp – slide 16
    2017 Estimates Exploration expenses & annual production operating costs per BOE 1QE Year Estimate Exploration Expenses (Pre-tax): North America E&P ( millions) 25 35 International E&P ( millions) 24 North America E&P Cost Data…
  17. Q4 2016 Financial and Operational Review – Marathon Oil Corp – slide 17
    112% Reserve Replacement in 2016 Estimated net proved reserves 2.1 BBOE North America International F&D OSM TOTAL E&P E&P Costs Category (MMBOE) (MMBOE) SCO (MMBBL) (MMBOE) (/BOE) As of Dec 31, 2015 944 521 698 2,163 Additions…
  18. Q4 2016 Financial and Operational Review – Marathon Oil Corp – slide 18
    E&P Production Performance Combined 4Q volumes up sequentially N.A. E&P Divestiture-Adj. Sales Volumes Intl E&P Production & Sales Volumes 300 175 150 10 8 125 200 MBOED 100 MBOED 75 226 123 121 128 126 129 135 100…
  19. Q4 2016 Financial and Operational Review – Marathon Oil Corp – slide 19
    2016 4Q Production Mix Increased oil mix in Oklahoma Resource Basins Eagle Ford Oklahoma Resource Basins Bakken 8% 21% 12% 29% 46% 58% 21% 80% 25% Total U.S. Resource Plays 24% 57% 19% Crude Oil/Condensate NGLs…
  20. Q4 2016 Financial and Operational Review – Marathon Oil Corp – slide 20
    North America E&P Crude Oil Derivatives As of December 31, 2016 Crude Oil (Benchmark to WTI)(a) 1Q 2017 2Q 2017 3Q 2017 4Q 2017 Three-Way Collars(b) Volume (Bbls/day) 50,000 50,000 30,000 30,000 Price per Bbl: Ceiling 58.42…
  21. Q4 2016 Financial and Operational Review – Marathon Oil Corp – slide 21
    North America E&P Natural Gas Derivatives As of December 31, 2016 Natural Gas (Benchmark to HH) 1Q 2017 2Q 2017 3Q 2017 4Q 2017 2018 Three-Way Collars(a) Volume (MMBtu/day) 60,000 90,000 90,000 90,000 20,000 Price per MMBtu:…
  22. Q4 2016 Financial and Operational Review – Marathon Oil Corp – slide 22
    Capital, Investment & Exploration 2016 budget reconciliation MM 2016 Original 2016 Budget Actual Capital expenditures 1,401 1,069 M&S Inventory 0 (72) Investments in equity method investees & others 0 0 Exploration costs other…

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