Prioritizing What Matters Most More S&P, less E&P Our differentiated execution culminated in just under 450 million of free cash flow, with year-to- date free cash flow largely funding 500 million of gross debt reduction. Due to the…
Framework for Success Corporate Returns Disciplined reinvestment in strongest rate-of-return opportunities Committed Free Cash Flow Sustainable free cash flow across wide range of commodity prices to our Framework Return of…
Committed to Sustainability ESG: Foundational for long-term financial outperformance Safety & Environmental1 Social Governance 2020 safety performance best in Company Making targeted social investments to Reduced compensation for…
Executing Against our Framework Prioritizing FCF, Balance Sheet strength, and ESG excellence 1B capital budget for 1.6B of FCF, assuming 60/bbl WTI1; corporate FCF…
First Quarter 2021 Highlights Differentiated execution, balance sheet enhancement, return of capital, ESG excellence Accelerated Balance Sheet Differentiated Financial & Enhancement & Return of ESG Excellence Operational Execution…
Balance Sheet & Return of Capital: Accelerating our Objectives Free cash flow to support both increased gross debt reduction and base dividend raise Expect to return 30% of CFO to 443MM of FCF generated in 1Q21 investors Accelerated…
2021 Plan Update: Delivering Significant Free Cash Flow Fully consistent with reinvestment rate capital allocation framework Strong Financial & Operational Outcomes Significant Free Cash Flow Generation Capital Discipline: No change…
2021 Plan: Top Tier Capital Efficiency & Free Cash Flow Based on peer1 disclosure from 4Q20 earnings season 2021 Reinvestment Rate 50 WTI 2021 Reinvestment Rate 60 WTI 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% Peer MRO Peer Peer…
2021 Plan: Continuously Optimizing our Cost Structure Additional action taken to continue multi-year cost reduction trend All-in 2020 unit cash cost structure 7% below 2020 Unit Cash Costs (/boe)1 peer average; top quartile among…
Sustainability: Capital Efficiency Advantage is Durable 5 Year Benchmark Maintenance Scenario 2021-2025 Benchmark Maintenance Case Cumulative FCF 5B of cumulative FCF1 with reinvestment rate 8 80% 50%, assuming flat 50/bbl WTI 5…
Sustainability: High Quality Inventory Underpins Maintenance Case Well over a decade of high return, capital efficient inventory with upside potential Third Party1 Estimate of High Return N. American Unconventional Inventory Depth…
Executing Against our Framework Prioritizing FCF, Balance Sheet strength, and ESG excellence 1B capital budget for 1.6B of FCF, assuming 60/bbl WTI; corporate FCF…
APPENDIX
Clear Priorities for Capital Allocation Reinvestment rate discipline continues to prioritize FCF Maintain Discipline to Deliver Outsized FCF Focus on FCF generation and corporate returns with production growth an outcome 50/bbl…
Competitively Advantaged Multi-Basin Portfolio High quality U.S. assets complemented by FCF generative integrated E.G. business Bakken SCOOP / STACK 255k net acres 250k net acres Eagle Ford Permian 160k net acres 145k net…
Top Tier Portfolio Drives Sustainability Positioned for continued industry leading capital efficiency Historical MRO vs. Historical Industry Capital Efficiency1 (Since 2018) Established track record of top tier capital efficiency…
Eagle Ford and Bakken Deliver Consistently Strong Results Eagle Ford Eagle Ford Production Volumes and Wells to Sales 1Q21 production of 77 net MBOED with 25 gross operated 120 50 Operated Wells to Sales wells to sales; expect 50…
Oklahoma and N. Delaware Provide Capital Allocation Flexibility Repositioned to deliver FCF and accretive financial returns Oklahoma Oklahoma Production Volumes and Wells to Sales 100 20 1Q21 production averaged 53 net MBOED on…
International E&P: Equatorial Guinea World class gas development generates significant FCF 1Q21 production of 69 net MBOED; production costs of E.G. Production and Sales Volumes 1.68 per BOE 90 3.0 Alen backfill first gas achieved…
ESG Excellence: Executive Compensation Reduced and Redesigned Continuing to enhance alignment with shareholders; growth metrics eliminated STI Scorecard Consistent with Financial and ESG Framework Executive & Board Compensation Reduced…
ESG Excellence: Safety & Environmental Performance Driving continuous improvement in GHG emissions intensity MRO GHG Intensity Significant Progress to Date GHG Emissions Intensity 0.23 TRIR in 1Q21 following record annual 30…
2021 Production Guidance & Capital Budget No change to production or capital expenditure guidance Oil Production Equivalent Production (MBOED) Net Production (MBOPD) 2021 Guidance 1Q21 4Q20 2021 1Q21 4Q20 United States 158 162 160…
2021 Cost, Tax Rate, and Equity Method Guidance Guidance unchanged 2021 Guidance United States Cost Data ( per BOE) Production Operating 4.25 4.75 DD&A 19.00 21.00 S&H and Other1 4.00 5.00 International Cost Data ( per BOE) Production…
U.S. Crude Oil Derivatives as of May 3, 2021 2Q21 3Q21 4Q21 NYMEX WTI Three-Way Collars Volume (Bbls/day) 40,000 20,000 10,000 Ceiling 61.45 68.41 71.64 Floor 39.75 47.50 50.00 Sold put 29.75 37.50 40.00 NYMEX WTI Two-Way Collars…
U.S. Natural Gas/NGL Derivatives as of May 3, 2021 2Q21 3Q21 4Q21 Natural Gas Henry Hub (HH) Two-Way Collars Volume (MMBtu/day) 200,000 200,000 200,000 Weighted Avg Price per MMBtu Ceiling 3.05 3.05 3.05 Floor 2.50 2.50 2.50…
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