Prioritizing What Matters Most Accelerating balance sheet improvement and shifting return of capital to equity holders I am once again proud of the commitment and dedication of our employees and contractors to deliver outstanding…
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 Responsibility Governance 2020 safety performance best in Company 20% increase in female leadership and in Reduced…
Executing Against our Framework Prioritizing FCF, balance sheet strength, return of capital, and ESG excellence 1B capital budget to deliver 1.9B of FCF1, assuming 65/bbl WTI and 3.00 Henry Hub 2021 Outlook Reinvestment rate tracking…
2Q21 Financials: Significant Free Cash Flow and Debt Reduction FCF of 420MM and gross debt reduction of 500MM 2Q21 Cash Flow Waterfall (MM) 2,000 289 1,600 8 12 701 31 524 1,200 32 800 1,545 1,125 970 400 0…
2021 Plan Update: Significant Free Cash Flow Generation No change to full year capital budget while raising oil-equivalent production guidance Delivering Strong Financial Outcomes Significant Free Cash Flow Generation1 FCF of 1.9B1 at…
Top Tier Capital Efficiency, Free Cash Flow, and Balance Sheet Based on FactSet consensus estimates1 2021e Reinvestment Rate 2021e FCF Yield 70% 30% 60% 20% 50% 10% 40% 30% 0% MRO APA CLR DVN OVV EOG FANG PXD MUR HES APA OVV…
Balance Sheet and Return of Capital Framework Accelerating balance sheet targets; return of capital focus shifting to equity investors Accelerating Balance Sheet Objectives Gross Debt Redeeming full 900MM 2025 maturity in September 6…
Clear Priorities for Capital Allocation Enhancing our framework to reflect accelerated gross debt reduction and robust commodity environment Significant Price Support Return at least 40% of CFO to equity investors; 1B of capital return…
Five Year Benchmark Maintenance Scenario Integrating our capital allocation priorities with our Maintenance Scenario 2021-2025 Benchmark Maintenance Case & Capital Return Framework Cumulative FCF of 8B, reinvestment rate of 40%, at…
Executing Against our Framework Prioritizing FCF, balance sheet strength, return of capital, and ESG excellence 1B capital budget to deliver 1.9B of FCF, assuming 65/bbl WTI and 3.00 Henry Hub 2021 Outlook Reinvestment rate tracking…
APPENDIX
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…
2Q21 U.S. Resource Play Update Bakken Eagle Ford 2Q21 production of 107 net MBOED with 16 gross operated 2Q21 production of 91 net MBOED with 45 gross operated wells to sales wells to sales Expect 50 gross operated wells to sales…
2Q21 U.S. Resource Play Production and Wells to Sales Bakken Production Volumes and Wells to Sales Eagle Ford Production Volumes and Wells to Sales 120 35 120 50 Operated Wells to Sales Operated Wells to Sales 100 30 100 40…
2Q21 Equatorial Guinea Update World class gas development generates significant FCF 2Q21 production of 65 net MBOED E.G. Production and Sales Volumes 90 3.0 2Q21 production costs of 2.17 per BOE 2.0 60 1.0 Raising 2021 equity income…
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…
High Quality Inventory Underpins Strong Financial Performance Well over a decade of high return, capital efficient inventory with upside potential Third Party1 Estimate of High Return N. American Unconventional Inventory Depth 30 40-50…
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…
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 Top quartile safety performance in 2019 and GHG Emissions Intensity 30…
2021 Production Guidance & Capital Budget U.S. oil-equivalent production guidance raised; capital budget unchanged Oil Production Equivalent Production (MBOED) Net Production (MBOPD) 2021 Guidance 2Q21 1Q21 2021 2Q21 1Q21 United…
2021 Cost, Tax Rate, and Equity Method Guidance E.G. equity income guidance raised by 70% 2021 Guidance United States Cost Data ( per BOE) Production Operating 4.25 4.75 DD&A 19.00 20.50 S&H and Other1 4.75 5.75 International Cost Data…
U.S. Natural Gas Derivatives as of August 2, 2021 3Q21 4Q21 1Q22 Natural Gas Henry Hub (HH) Two-Way Collars Volume (MMBtu/day) 200,000 200,000 - Weighted Avg Price per MMBtu Ceiling 3.05 3.05 - Floor 2.50 2.50 - Henry Hub (HH)…
NGL Derivatives as of August 2, 2021 3Q21 4Q21 NGL Fixed Price Ethane Swaps1 Volume (Bbls/day) 5,000 5,000 Weighted average price per Bbl 10.92 10.92 Fixed Price Propane Swaps2 Volume (Bbls/day) 5,000 5,000 Weighted average price…
Definitions and Footnotes Slide 5 Slide 7 Slide 21 1) Methodology and definitions based on information from 1) Includes (46)MM of changes in operating working capital 1) 2020 unit cash costs based on 2020 disclosures per 10K online…
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