FOURTH QUARTER 2021 RESULTS AND 2022 OUTLOOK February 16, 2022
Compelling Return of Capital, Sustainable FCF, ESG Excellence Executed 1 billion of share repurchases and raised base dividend for fourth consecutive quarter 2021 was a year of comprehensive delivery against our framework for success,…
Framework for Success Committed to delivering financial and ESG excellence Corporate Returns Disciplined reinvestment in strongest rate-of-return opportunities Committed Free Cash Flow Sustainable free cash flow across wide range…
Key Takeaways from 4Q21 Earnings Release Sustainable return of capital and per share growth Differentiated Financial & Compelling Return of Capital Operational Delivery 1B of buybacks in 4.5 months drives significant per share 4Q21…
Comprehensive Delivery Against Our Framework Compelling return of capital, sustainable free cash flow, ESG excellence Percentage of CFO framework provides shareholders first call on cash flow Return of Capital 70% of 4Q21 CFO returned…
Clear Priorities for Capital Allocation Percentage of CFO framework provides shareholders first call on cash flow Significant Price Support Return at least 40% of CFO to equity investors; 1B of capital return annually 60/bbl WTI…
Track Record Matters: Return of Capital Leadership in 2021 1.4B of debt reduction, 772 million of buybacks6, 141MM of base dividend All 2021 FCF Allocated to Debt Reduction, Dividends, Buybacks Accelerated Debt Reduction, Transitioned to…
Positioned for Market Leading Returns to Shareholders in 2022 Expect to exceed minimum 40% of CFO equity return commitment Positioned for Leading Cash Returns to Shareholders 2022e Shareholder Distributions vs. Market Capitalization8…
Strong Bottom Line Free Cash Flow in 2021 Full Year 2021 FCF of 2.2B 2021 Cash Flow Waterfall (MM) 4,000 3,500 1,032 57 11 3,000 25 2,500 3,214 1,522 2,000 1,500 2,981 141 1,000 724 500 742 580 0 12/31/20 Operating…
Outperformed E&Ps and S&P 500 on Key Metrics in 2021 Top tier capital efficiency, free cash flow, and balance sheet 2021e Reinvestment Rate 2021e FCF Yield (FCF / Mkt Cap) 60% 20% MRO reinvestment rate of 32% vs. peer average 43% MRO…
2022 Capital Program Consistent with Disciplined Framework Continued prioritization of FCF over production growth; expect peer leading financial delivery Positioned for Top Tier FCF & Return of Capital in 2022 Expecting Top Tier FCF in…
Significant Leverage to Commodity Price Upside in 2022 Balanced portfolio, low FCF breakeven, commodity upside, no U.S. cash taxes Balanced Portfolio with Significant Upside Torque 2022e Hedge Sensitivity (MM)13 Prioritizing FCF and per…
Expected Top Tier Performance Again in 2022 Top tier capital efficiency, free cash flow, and balance sheet 2022e Reinvestment Rate 2022e FCF Yield (FCF / Mkt Cap) 80% MRO Reinvestment…
Marathon Oil ESG Progress Report Recap of 2021 highlights and new forward objectives Meeting the worlds energy needs while prioritizing all elements of ESG performance 0.29 TRIR2 in 2021, second strongest safety performance since…
Environmental Objectives Significantly Enhanced Expanding to include gas capture, methane intensity, and 2030 longer-term goals New goals promote transparency and accountability while enhancing alignment and innovation Near-term…
Driving Significant Growth to Per Share Metrics Share repurchases since October already generated 8% underlying growth in per share metrics Differentiated Financial & Compelling Return of Capital Operational Delivery 1B of buybacks…
APPENDIX
Competitively Advantaged Multi-Basin Portfolio High quality U.S. assets complemented by E.G. integrated gas business Bakken SCOOP / STACK 255k net acres 250k net acres Eagle Ford Permian 160k net acres 135k net acres…
High Quality Inventory Underpins Strong Financial Performance Over a decade of high return, capital efficient inventory with upside potential Third Party E&P Inventory Estimates 35 MRO Peer 40-50 Breakeven 30 40-50 WTI…
Five Year Benchmark Maintenance Scenario (Updated to 2022-2026) Peer leading financial and operational outcomes are sustainable 5 Year Benchmark Maintenance Scenario Overview 5 Year Maintenance Scenario FCF and Reinvestment Rate…
Track Record of Peer Leading Capital Efficiency History of delivering more barrels with less capital, per third party data 12 Month Capital Efficiency by Year Track Record of Capital Efficiency Leadership 12mo cum mboe / TWC (20:1…
4Q21 U.S. Resource Play Update Eagle Ford Bakken 4Q21 production 93 net MBOED; 18 gross operated wells to sales 4Q21 production 124 net MBOED; 25 gross operated wells to sales 4Q21 Completed Well Cost (CWC) of 650 per lateral foot…
4Q21 U.S. Resource Play Production and Wells to Sales Eagle Ford Production Volumes and Wells to Sales Bakken Production Volumes and Wells to Sales 120 50 140 50 Operated Wells to Sales Operated Wells to Sales 100 120 40 40 80…
4Q21 Equatorial Guinea Update World class gas development generates significant FCF 4Q21 production of 49 net MBOED with production costs of Alba Platform 4.05 per BOE Unplanned Alba gas plant outage late 3Q21; operations resumed…
Significant Emissions Intensity Reduction Objectives Reducing GHG emissions intensity by 70% and methane intensity by 80% by 2030 Driving significant GHG and methane intensity reductions, consistent with trajectory of Paris Climate…
Meeting Global Energy Demand with Top Decile GHG Intensity Driving significant improvement and delivering strong absolute and relative performance 2030 Implied GHG Emissions Intensity Reduction Goals* 2030 Implied GHG Emissions Intensity…
Producing Energy in a Socially Responsible Way Building strong networks based on integrity and trust Related UN Sustainable Goal Investment Areas Development Goals Select 2021 Highlights Build healthier and Hunger 18th year of support…
Compensation Framework is Key to Strong Governance Committed to alignment with shareholders CEO compensation20 reduced 25% and mix further aligned with broader industry norms; LTI incentive award reduced 35% Growth metrics eliminated…
Corporate Governance Aligned With Best Practices Board of Directors characterized by independence, strong refreshment, and diversity Board Independence Committees of the Board 7 of 8 Directors are independent Health, Environmental,…
Corporate Sustainability Report Producing the energy the world needs Long-term Track Record of Comprehensive Reporting: Corporate Sustainability Report remains one-stop-shop for all non-financial disclosure 15 consecutive years of…
2022 Production and Capital Budget Guidance 2022 oil and oil-equivalent volumes consistent with 2021 annual averages Oil Production Equivalent Production Net Production (MBOPD) (MBOED) 2022 FY21 4Q21 3Q21 2Q21 1Q21 2022 FY21 4Q21…
2022 Cost, Tax Rate, and Equity Method Guidance 2022 Guidance United States Cost Data ( per BOE) Production Operating 4.50 5.00 DD&A 16.50 18.50 S&H and Other23 5.00 6.00 International Cost Data ( per BOE) Production Operating 2.75…
U.S. Commodity Derivative Contracts as of February 14, 2022 1Q22 2Q22 3Q22 4Q22 Crude Oil NYMEX WTI Three-Way Collars Volume (Bbls/day) 50,000 50,000 30,000 30,000 Ceiling 96.54 98.79 97.52 97.52 Floor 55.93 58.00 56.67 56.67 Sold…
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