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2019 Capital Program and FY 2018 Results – Marathon Oil Corp

Marathon Oil Corp · Feb 13, 2019 · 27 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. 2019 Capital Program and FY 2018 Results – Marathon Oil Corp – slide 1
    2019 CAPITAL PROGRAM & 2018 RESULTS February 13, 2019
  2. 2019 Capital Program and FY 2018 Results – Marathon Oil Corp – slide 2
    Framework for Success Our working definition of capital discipline Committed to our Framework Portfolio transformation and focused capital allocation drive multi-year Corporate Returns corporate returns improvement through capital…
  3. 2019 Capital Program and FY 2018 Results – Marathon Oil Corp – slide 3
    Forward Outlook Prioritizes Returns, FCF, Return of Capital 1 Organic FCF positive in both 2019 and 2020 above 45/bbl WTI, post-dividend Continues multi-year rate of change improvement in key enterprise performance metrics Corporate…
  4. 2019 Capital Program and FY 2018 Results – Marathon Oil Corp – slide 4
    Sustainable FCF in 2019 & 2020 at Conservative Pricing Differentiated annual FCF yield vs. E&P peers 2.2B+ Cumulative 2,500 Organic FCF 10% Organic FCF Yield (Annual Avg.) Cumulative Organic FCF (MM) 2,000 750MM+ 1,500…
  5. 2019 Capital Program and FY 2018 Results – Marathon Oil Corp – slide 5
    Differentiated Execution Led the Way in 2018 Underpins confidence in 2019 delivery Initial Guidance Actual Delivery 2018 Objectives 50/bbl WTI 65/bbl WTI Capital Discipline 2.3B development capital 2.3B development capital 30%…
  6. 2019 Capital Program and FY 2018 Results – Marathon Oil Corp – slide 6
    2019 Capital Program Overview Focused program balances corporate returns with strategic objectives Total capital program of 2.6B, down from 2018 Focused Investment Comprised of 2.4B development capital and 200MM of resource play…
  7. 2019 Capital Program and FY 2018 Results – Marathon Oil Corp – slide 7
    2019 Basin Level Highlights and Objectives Competitively advantaged multi-basin model Appraise / Delineate Early Development Full Field Development Bakken Oklahoma 85 - 95 gross operated wells to sales 90% Myrmidon and Core…
  8. 2019 Capital Program and FY 2018 Results – Marathon Oil Corp – slide 8
    2018 Highlights Full-year 2018 Highlights Delivered capital discipline, corporate returns improvement, free cash flow generation, and enhanced return of capital to shareholders Drove capital efficiency improvement leading to high…
  9. 2019 Capital Program and FY 2018 Results – Marathon Oil Corp – slide 9
    Total Company Cash Flow for 2018 Generated 865MM of organic free cash flow at avg. WTI of 65/bbl 2.3B annual development capital budget unchanged throughout year 700MM of stock buy-backs and 170MM of annual dividend; over 25% of…
  10. 2019 Capital Program and FY 2018 Results – Marathon Oil Corp – slide 10
    Standout Year for Eagle Ford on All Fronts Year-over-year growth on fewer wells to sales Production Volumes and Wells to Sales Full-year 2018 Highlights 120 60 2018 oil production growth of 7% on 5% fewer Operated Wells to Sales…
  11. 2019 Capital Program and FY 2018 Results – Marathon Oil Corp – slide 11
    Strong Well Productivity from the Eagle Ford Core 4Q 2018 wells driving robust corporate returns Jordan / Fransen / GM Challenger B / Medina H. CRH / Fire Opal 5 well pad 3 well pad 3 well pad 1,550 BOED (69% oil) 1,470 BOED (79% oil)…
  12. 2019 Capital Program and FY 2018 Results – Marathon Oil Corp – slide 12
    Bakken Performance Consistently Enhancing Value Successful core extension tests in Ajax, Southern Hector, and Elk Creek Production Volumes and Wells to Sales Full-year 2018 Highlights 100 30 Capital efficient oil production growth of…
  13. 2019 Capital Program and FY 2018 Results – Marathon Oil Corp – slide 13
    Leading Williston Basin Well Productivity Delivered 45 of the top 50 all-time Middle Bakken & Three Forks oil wells Irish Pad Historic Middle Bakken Well Performance Julia Jones Pad 3 wells 4,000 5 wells 3,140 BOED 4,250 BOED (74%…
  14. 2019 Capital Program and FY 2018 Results – Marathon Oil Corp – slide 14
    Enhanced Returns & Predictability Continue in Oklahoma SCOOP infills outperforming type curve Production Volumes and Wells to Sales Full-year 2018 Highlights 100 20 Successful transition to infill development in Operated Wells to…
  15. 2019 Capital Program and FY 2018 Results – Marathon Oil Corp – slide 15
    Focused on Overpressured STACK and SCOOP Multi-well development continues Olive June Blaine Kingfisher Lloyd Ruthie Canadian Ellis Calvin Caddo Burton Grady 3R 7 Woodford infill wells (8 wps) 2,600 BOED (69%…
  16. 2019 Capital Program and FY 2018 Results – Marathon Oil Corp – slide 16
    Strategically Pacing Northern Delaware Focus on multi-well pads while progressing delineation Production Volumes and Wells to Sales Full-year 2018 Highlights 30 25 Risked gross company operated locations up Operated Wells to…
  17. 2019 Capital Program and FY 2018 Results – Marathon Oil Corp – slide 17
    International Highlights World Class Gas Infrastructure Full-year 2018 Highlights EGLNG EGLNG Plant Plant Production of 113 net MBOED E.G. EBITDAX of over 650MM Reduced estimated U.K. asset retirement obligation by 143MM Alba…
  18. 2019 Capital Program and FY 2018 Results – Marathon Oil Corp – slide 18
    Framework for Success Prioritizing Corporate Returns, FCF, Return of Capital to Shareholders While many in our industry talked about capital discipline, we delivered Through improving capital efficiency and unwavering discipline, we…
  19. 2019 Capital Program and FY 2018 Results – Marathon Oil Corp – slide 19
    Appendix 20
  20. 2019 Capital Program and FY 2018 Results – Marathon Oil Corp – slide 20
    2019 Production Guidance FY19 Net Production Oil Production (MBOPD) Equivalent Production (MBOED) 2019 2018* 2019 2018* United States 185 - 195 169 320 - 330 295 International 20 - 30 27 90 - 100 110 Total Net Production 205 - 225…
  21. 2019 Capital Program and FY 2018 Results – Marathon Oil Corp – slide 21
    2019 Cost and Tax Rate Guidance Full-Year Estimate United States Cost Data Production Operating 4.50 5.50 DD&A 19.25 21.75 S&H and Other* 4.00 4.50 International Cost Data Production Operating 4.75 5.75 DD&A 3.75 5.25…
  22. 2019 Capital Program and FY 2018 Results – Marathon Oil Corp – slide 22
    United States Crude Oil Derivatives As of February 12, 2019 Crude Oil (Benchmark to NYMEX WTI) 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2020 Three-Way Collars Volume (BBLs/day) 70,000 70,000 50,000 50,000 - Weighted Avg Price per BBL:…
  23. 2019 Capital Program and FY 2018 Results – Marathon Oil Corp – slide 23
    United States Natural Gas Derivatives As of February 12, 2019 Natural Gas (Benchmark to NYMEX HH) 1Q19 Three-Way Collars Volume (MMBtu/day) 200,000 Weighted Avg Price per MMBtu: Ceiling 5.25 Floor 3.43 Sold put 2.88 24
  24. 2019 Capital Program and FY 2018 Results – Marathon Oil Corp – slide 24
    2018 Volumes, Exploration Expense & Effective Tax Rate Excluding Libya 1Q 2Q 3Q 4Q Full-Year United States Net Sales Volumes: - Crude Oil and Condensate (MBD) 164 168 173 180 171 - Natural Gas Liquids (MBD) 50 57 58 55 55 -…
  25. 2019 Capital Program and FY 2018 Results – Marathon Oil Corp – slide 25
    4Q 2018 Net Sales Volumes and Realizations U.S. Divestiture-Adj. Sales Volumes* International Divestiture-Adj. Volumes** 125 300 100 200 75 MBOED MBOED 301 305 117 117 112 108 257 50 102 106 100 25 0 0 4Q17…
  26. 2019 Capital Program and FY 2018 Results – Marathon Oil Corp – slide 26
    4Q 2018 Production Mix Eagle Ford Oklahoma 20% 24% Total U.S. Resource Plays 48% 22% 58% 28% 23% Crude Oil/Condensate NGLs 18% 59% Bakken Northern Delaware Natural Gas 6%6% 27% 54% 88% 19% 27
  27. 2019 Capital Program and FY 2018 Results – Marathon Oil Corp – slide 27
    2018 Capital, Investment & Exploration Budget reconciliation MM 2018 2018 Budget Actual Cash additions to Property, Plant and Equipment 2,753 Working Capital associated with PPE (68) Property, Plant and Equipment additions 2,685…

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