2017 BARCLAYS CEO ENERGY-POWER CONFERENCE Lee Tillman President & Chief Executive Officer September 6, 2017
Marathon Oil Playbook Profitable growth Simplifying within and cash flows Relentless concentrating focus on portfolio Strengthened costs balance sheet 3
Strengthened Financial Flexibility Recent transactions improve maturity profile and enhance liquidity Successful senior notes offering: Extend next debt maturity to 2020* Reduce gross debt by 750MM Reduce annual interest expense by…
Continued Cost Savings Year Over Year Improving trend despite inflation pressures E&P Production Expenses 1,500 12 Total E&P production expense 1,200 10 expected decrease of 40% 8 from 2014 MM 900 /BOE Guidance 6 600 4…
Concentrating Capital Allocation to U.S. Resource Plays Resource plays production contribution doubles from 2013 to 2017 Capital Allocation Significant portfolio management 100% 80% 2013/2014: Exited Angola and Norway 60% New…
Differentiated Position in 4 of the Lowest Cost Oil Basins Complimentary assets well placed across the development cycle Appraise / Delineate Early Development Full Field Development Bakken 270,000 net surface acres STACK…
Competitive Multi-Year Growth Within Cash Flows Benchmark CAGRs supported at low 50s WTI Total MRO Growth Maintained 2017- 2021 CAGRs (oil & boe) but now at low 50s WTI BOED & BOPD 10 - 12% total MRO production 18 - 22% resource…
Oklahoma Up 11% Sequentially in 2Q Continued strategic focus on delineation, leasehold and infill spacing pilots STACK Volatile Oil Wells Cum Production Calf Rope 1-1-12MXH Production averaged 49 net MBOED; up 250 Strack 1-2-11XH…
Strong Oklahoma Well Results Across Phase Windows Transitioning from delineation to development drilling in 2018 Blaine Hansens 6-well Infill Pilot Strack 1-2-11XH Kingfisher IP30 Avg: 915 BOED (55% oil) IP30: 1,270 BOED (68% oil)…
Eagle Ford Delivering Outstanding Capital Efficiency 2Q sequential production increase with fewer wells to sales 90 Day Cumulative Production Production averaged 100 net MBOED; up 90 from 1Q 2017 80 Top 10 2Q wells averaged IP 30 of…
Eagle Ford Activity Overview Encouraging new results from Atascosa County with high intensity completions Atascosa County Well Performance Karnes City NW Karnes City SW 5 well pad 2 well pad 200 Gen 3 Avg: 2,230 BOED (74% oil) Avg:…
Bakken Wells Outperforming Expectations Encouraging early results from Hector pad High Intensity Myrmidon Well Performance 2Q production averaged 49 net MBOED, up 400 E & W Myrmidon Wells E. Myrmidon Type Curve 2% from 1Q 2017 W…
Strong Recent Bakken Well Performance High intensity completions delivering results across the entire play Mountrail 3Q Myrmidon Pads 6 Wells* Myrmidon Range: 2,122 - 3,504 BOED Avg: 2,835 BOED McKenzie 6 - 18 MMLBS proppant,…
Positive Initial Results in Northern Delaware Increased activity to 3 rigs mid-year as planned Black River Production 2Q production averaged 4 net MBOED; 2000 partial quarter due to BC & BM close dates BOED (2-stream) 1600 2…
Play Extension of Northern Delaware Continues 2Q wells and notable upcoming well activity CHAVES COUNTY Cypress Spacing Pilot 2H spud 4 Wolfcamp, 3 Bone Spring Cypress 1H Wolfcamp X-Y Battle 34 Federal 4H IP30: 1,500 BOED (72%…
International E&P 2Q Highlights EG continues to deliver substantial free cash flow Intl E&P Production Volumes (Excl. Libya) International E&P production 127 net 150 Intl E&P MBOED, near top of guidance Guidance: 115 - 125 125…
Increased 2017 Production Guidance With Reduced Capex Exceeding expectations on efficiency, base performance & new well productivity Total E&P Available for Sale Volumes Guidance Raised original 2017 production 400 329* E&P: 345 - 360…
Key Takeaways Enhanced financial flexibility with improved capital structure Intense cost focus lowering both production expense and G&A costs Successful portfolio management concentrating capital allocation on higher margin…
G&A Reconciliation (MM) Total Company G&A to Adjusted G&A 2014 2015 2016 2017 YTD Total Company G&A expenses 654 590 481 202 Adjustments to G&A expenses: Pension settlement (99) (119) (103) (17) Reduction in workforce - (55)…
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