Third Quarter 2019 Financial and Operational Review November 6, 2019
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…
Consistently Delivering on our Framework Strong financial outcomes support return of cash to shareholders YTD annualized CROIC1 of 20%, comparable to 2018 average despite 12% lower WTI Corporate Returns price; driving significant price…
Success Across All Elements of Resource Enhancement Framework Over 1,000 locations added, equivalent to 3 years of drilling inventory Adding Inventory & Upgrading Quality: Eagle Ford and Bakken have added over 500 locations since…
Organic Enhancement in Bakken & Eagle Ford Adding economic inventory and upgrading inventory quality Pre-2018 Bakken Current Bakken Bakken Hector Area: Transformative Productivity Uplift and Cost Reductions 100 8 Myrmidon Myrmidon…
New Texas Delaware Oil Play Potential for over 400 extended lateral locations Play Stratigraphy Contiguous, oily, 60,000+ net acreage Texas Delaware Oklahoma SCOOP Winkler Co. MRO Acreage GR RESD GR Grady Co. RESD position in Texas…
Louisiana Austin Chalk Exploration drilling ongoing and acquiring 3D seismic Progressing exploration in capital disciplined manner with EQNR as new 25% non- operating, working interest partner MRO acreage focused in Western Fairway…
Adding Quality and Scale to Northeast Eagle Ford Enhancing resource base through synergistic, targeted bolt-on Synergistic Bolt-on to MRO Shiner Development Area 18,000 contiguous, largely undeveloped MRO Acreage Acquisition Acreage…
Competitively Advantaged Multi-Basin Model Multi-basin portfolio provides flexibility; assets span the development cycle Explore Appraise / Delineate Early Development Full Field Development Bakken 3Q19 avg. 109 MBOED (84% oil)…
Strong Results Continue Across Eagle Ford Footprint Record IP30 oil productivity for the quarter Production Volumes and Wells to Sales Production averaged 107 net MBOED 120 60 Record IP30 oil productivity during 3Q, up Operated…
Extending the Eagle Ford Core and Enhancing Inventory Successful redevelopment test in Core Karnes Impressive Austin Chalk Performance 2 pads, 5 AC wells 2,550 BOED (78% oil) Gonzales 6,880 LL De Witt Atascosa Karnes Long…
Efficiency Gains Continue in Bakken Record low completed well costs of less than 5MM Production Volumes and Wells to Sales Production averaged 109 net MBOED 120 35 Operated Wells to Sales 100 30 Impressive capital efficiency,…
Extending the Bakken Core Best in basin productivity and superior economics Improving Capital Efficiency and Returns Through Pre-3Q19 to Sales 3Q19 to Sales Well Cost Reductions 8.0 Myrmidon 7.0 Herbert Pad CWC CWC () 6.0 of…
Oklahoma Delivering Strong Results from Concentrated Oil Program Rig count reduced from 7 to 4 Production Volumes and Wells to Sales Production averaged 84 net MBOED 100 20 Reducing and concentrating activity in Operated Wells to…
Improving Oklahoma Capital Efficiency Early Springer results exceeding expectations Peer Leading Well Costs Kingfisher Marjorie & Lloyd Infills 2 pads, 4 wps Blaine 6 MRMC wells 6.3MM avg. CWC* 1,740 BOED (66% oil) Canadian…
Driving Capital Efficiency Improvement in N. Delaware Production Volumes and Wells to Sales Production averaged 30 net MBOED 30 25 Operated Wells to Sales 25 20 Continued strong Malaga Upper Wolfcamp 20 productivity and…
Strong 3Q19 Upper Wolfcamp Performance in Malaga 4Q19 activity targeting Red Hills delineation Arrowhead Ranger Lea China Draw Strong Upper WC Productivity & Capital Efficiency 5 Upper W C 1,850 BOED (62% oil) 4Q19 Red…
International E&P: Equatorial Guinea Alba Platform International portfolio simplified to free cash flow generating integrated business in E.G. with close of U.K. asset sale during 3Q Total E.G. production of 87 net MBOED E.G.…
Well Established Track Record of FCF & Return of Capital Seven consecutive quarters of organic FCF generation Returned 1.3B of capital to shareholders since 2018, representing 25% of operating cash flow, funded entirely by organic FCF…
2020 Business Plan Preview Framework for Success Unchanged - Less E&P, More S&P Corporate returns first, sustainable FCF at Corporate Returns conservative pricing, prioritize return of capital to shareholders, differentiated execution…
Appendix
Total Company Cash Flow for 3Q19 Generated 81MM of 3Q organic FCF 3Q19 development capital spend of 646MM; Full year 2.4B guidance unchanged YTD organic FCF of 300MM; YTD stock repurchases of 300MM 1.45B of share repurchase…
Portfolio Transformation Since 2013 10 Country Exits Optimized portfolio positioned to sustainably deliver improving corporate returns, free cash flow, and return of capital Simplification to core assets concentrates capital allocation…
2019 Production Guidance 4Q19 Net Production Oil Production (MBOPD) Equivalent Production (MBOED) 4Q19 3Q19* 4Q18* 4Q19 3Q19* 4Q18* United States 190 200 201 179 320 330 338 304 International 12 16 15 16 80 90 87 93 Total Net…
2019 Cost and Tax Rate Guidance Prior Current 2019 Guidance 2019 Guidance United States Cost Data ( per BOE) Production Operating 4.50 5.50 4.50 5.25 DD&A 18.25 20.75 18.25 20.25 S&H and Other1 4.00 4.50 4.00 4.50…
United States Crude Oil Derivatives As of November 5, 2019 Crude Oil 4Q19 FY 2020 FY 2021 NYMEX WTI Three-Way Collars Volume (BBLs/day) 80,000 42,945 - Weighted Avg Price per BBL: Ceiling 74.19 65.58 - Floor 56.75 55.00 -…
United States Natural Gas Derivatives As of November 5, 2019 Natural Gas (Benchmark to NYMEX HH) FY 2020 Three-Way Collars (a) Volume (MMBtu/day) 24,863 Weighted Avg Price per MMBtu: Ceiling 3.32 Floor 2.75 Sold put…
2019 Capital, Investment & Exploration Budget reconciliation (MM) Development Capital 2019 2019 YTD Budget 1Q19 2Q19 3Q19 Actual Cash additions to Property, Plant and Equipment 615 647 672 1,934 Working Capital associated with PPE…
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