Framework for Success Unchanged 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…
2020 and 2021 Outlook Committed to our framework with focus on financial outcomes Underlying corporate returns improvement continues to outpace production growth rates Corporate Returns Total 2020 capital down 11% with development…
Differentiated Track Record of Delivery Comprehensively executing on all key objectives Comprehensive Delivery Objectives 2018 2019 (65/bbl WTI, 3.15 HH, 26.50 NGL ) (57/bbl WTI, 2.55 HH, 18.00 NGL) 2.3B development capital 2.4B…
Sustainable FCF over a Wide Range of Prices Eight consecutive quarters of organic FCF Conservative planning basis coupled with capital discipline delivers sustainable FCF Capital efficiency improving with 2020-2021 free cash flow…
Prioritizing Return of Capital to Shareholders Return of capital funded entirely by organic FCF generation Returned 1.4B of capital since 2018, representing 23% of operating cash flow Over 7% of outstanding shares repurchased since…
2020 Capital Program Overview Balancing corporate returns, FCF, and strategic objectives Total capital program of 2.4B, down 11% Focused Investment from 2019; Development capital of 2.2B, down 9% from 2019 Resource Play Development…
Competitively Advantaged Multi-Basin Model 2020 basin level detail Explore Appraise / Delineate Early Development Full Field Development Bakken Oklahoma 85 - 105 gross operated wells to sales 30 - 40 gross operated wells to sales…
2019 Highlights Continued delivery on our brand of capital discipline Corporate Returns: 25% underlying annual CROIC improvement on price normalized* basis from 2018 Free Cash Flow: 410MM of organic FCF during 2019; 110MM of organic…
Eagle Ford Delivering Record Results Record oil productivity, improving well costs, significant FCF generation Production Volumes and Wells to Sales 4Q19 production averaged 105 net MBOED 120 60 with oil mix up to 63% Operated…
Eagle Ford Highlights Strong results from Northeast Core; redevelopment and EOR show promise Promising Early Redevelopment Results Adams Tipton - 4 LEF wells IP90: 1,470 BOED (78% oil) 6,250 LL Gonzales Strong 2019 Results 2 pads 5…
Bakken Delivering Industry Leading Returns Relentless focus on capital efficiency improvement Production Volumes and Wells to Sales 4Q19 production averaged 108 net MBOED 120 35 Operated Wells to Sales 100 30 2019 program…
Bakken Highlights 11 month payout for 2019 total development program Industry Leading Capital Efficiency Bingo Pad Myrmidon 2019 Myrmidon Program: 4 Myrmidon wells 9 Month Payout* IP30: 3,160 BOED (79% oil) 4.3MM CWC…
Oklahoma Delivering Operational Excellence Successful transition to positive free cash flow generation Production Volumes and Wells to Sales 4Q19 Production averaged 82 net MBOED 100 20 with oil mix at 29% Operated Wells to Sales…
Oklahoma Highlights Basin leading SCOOP Springer performance Industry Leading Well Costs in 2019 Kingfisher Marjorie & Lloyd Infills 2 pads, 4 wps Blaine 5.1MM avg. CWC1 1,740 BOED (66% oil) Canadian Basin Leading…
Achieving Core Objectives in Northern Delaware Capital efficiency improvement to continue with transition to longer laterals Production Volumes and Wells to Sales 4Q19 production averaged 28 net MBOED 30 25 2019 oil production up 40%…
Northern Delaware Highlights Balancing early stage Malaga development with Red Hills delineation Arrowhead Ranger Lea China Draw Integrating Learnings from Compelling Productivity Red Hills Delineation from Malaga 9 Upper WC…
International E&P: Equatorial Guinea 2020 financial delivery off trend due to pricing and scheduled maintenance Alba Platform 4Q19 E.G. EBITDAX1 of 96MM with 408MM for full year 2019 Expect 2020 financials to be impacted by price and…
Resource Play Exploration (REx) Operational Update Progressing exploration and appraisal in two oil plays of scale Actively Appraising Texas Delaware Position Texas Delaware MRO Leases* 60,000 oily, contiguous net acres prospective for…
Committed to Sustainability The foundation for long-term financial outperformance Marathon Oil is proud to play a role in maintaining U.S. energy security and fueling the world in which we live. Being a safe, responsible and ethical…
Continued Commitment to Capital Discipline Building on eight consecutive quarters of organic FCF Underlying corporate returns improvement to continue outpacing production growth rates 2020 total capital down 11% with development capital…
Appendix
Total Company Cash Flow for 4Q19 Generated 111MM of 4Q19 organic FCF 4Q19 development capital spend of 556MM; Full year 2.4B consistent with guidance Full year organic FCF over 400MM; annual stock repurchases of 350MM 1.4B of share…
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…
Production Guidance Full year 2020 and 1Q20 FY20 Net Production Oil Production (MBOPD) Equivalent Production (MBOED) 2020 2019* 2020 2019* United States 198 208 191 330 340 323 International 12 16 15 70 80 85 Total Net Production…
2020 Cost and Tax Rate Guidance 2020 Guidance United States Cost Data ( per BOE) Production Operating 4.25 5.25 DD&A 18.50 20.50 S&H and Other1 4.00 4.25 International Cost Data ( per BOE) Production Operating 2.25 2.75…
United States Crude Oil Derivatives About 40% of 2020 U.S. oil production guidance hedged as of February 10, 2020 Crude Oil 1Q20 2Q20 3Q20 4Q20 FY 2021 NYMEX WTI Three-Way Collars Volume (BBLs/day) 80,000 80,000 80,000 80,000 -…
United States Natural Gas Derivatives As of February 10, 2020 Natural Gas (Benchmark to NYMEX HH) 1Q20 Three-Way Collars Volume (MMBtu/day) 100,000 Weighted Avg Price per MMBtu: Ceiling 3.32 Floor 2.75 Sold put 2.25 29
Capital, Investment & Exploration Budget reconciliation (MM) Development Capital 2019 4Q19 2019 2020 Budget Actual Actual Budget Cash additions to Property, Plant and Equipment 616 2,550 Working Capital associated with PPE (15) 41…
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