Staying Disciplined: Focused on FCF, Return of Capital, ESG Excellence Expecting 4.5B of 2022 adjusted FCF at 20% reinvestment rate; 1.5B FCF uplift vs. original outlook Amid tremendous macro volatility, Marathon Oil remains resolutely…
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 1Q22 Earnings Release Market-Leading Consistent 1Q22 Execution Compelling Outlook Return of Capital 60% of CFO returned to shareholders Strong Financial Delivery No Change in Priorities over trailing two quarters…
Comprehensive Delivery Against Our Framework Compelling return of capital, sustainable free cash flow, ESG excellence Percentage of CFO framework provides shareholders the first call on cash flow Return of Capital 60% of CFO returned to…
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…
Return of Capital Track Record Share repurchases have driven significant underlying growth to all per share metrics Peer-Leading Return of Capital Track Record Peer-Leading Return of Capital Track Record Significant gross debt…
Positioned for Market-Leading Return of Capital in 2022 Consistently exceeding minimum 40% of CFO equity return commitment Positioned for Leading Cash Returns to Shareholders 2022e Shareholder Distributions vs. Market Capitalization6…
1Q22 Cash Flow Waterfall Returned 640MM to shareholders and built cash by 100MM, despite negative working capital impact 1Q22 Cash Flow Waterfall (MM) 2,000 1,750 348 8 2 1,500 197 1,250 1,280 52 1,000 592 750 1,520 500…
2022 Program to Deliver Outstanding Financial Outcomes Expect 1.5B adjusted FCF uplift vs. original 2022 financial outlook Positioned for Top Tier FCF & Return of Capital in 2022 Significant Leverage to Stronger Commodity Prices Staying…
Expected Top Tier Performance Again in 2022 Powerful combination of capital efficiency, free cash flow generation, and balance sheet strength 2022e Reinvestment Rate 2022e FCF Yield (Adjusted FCF / Mkt Cap) 60% 30% 50% 25% 20% E&P…
Marathon Oil ESG Progress Report Recap of 2021 highlights and forward objectives Meeting the worlds energy needs while prioritizing all elements of ESG performance 0.29 TRIR5 in 2021, second strongest safety performance since becoming…
Environmental Objectives Significantly Enhanced Include gas capture, methane intensity, and 2030 longer-term goals Goals promote transparency and accountability while enhancing alignment and innovation Near-term (2022) Medium-term…
Peer-leading Financial and Operational Outcomes are Sustainable 5 Year Benchmark Maintenance Scenario (2022 to 2026) 5 Year Benchmark Maintenance Scenario Overview 5 Year Maintenance Scenario FCF and Reinvestment Rate Multi-year track…
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…
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…
1Q22 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 50 160 50 Operated Wells to Sales Operated Wells to Sales 40 120 40 90…
1Q22 U.S. Resource Play Update 2022 wells to sales guidance remains unchanged Eagle Ford Bakken 1Q22 production 80 net MBOED; 28 gross operated wells to sales 1Q22 production 118 net MBOED; 20 gross operated wells to sales Expect 100…
1Q22 Equatorial Guinea Update World class gas development generates significant FCF 1Q22 production of 64 net MBOED (sales volume of 61 net Alba Platform MBOED) with production costs of 1.92 per BOE 1Q22 equity earnings of 127MM vs.…
Significant Leverage to Commodity Price Upside in 2022 Balanced portfolio, low FCF breakeven, hedge book preserves upside, no U.S. cash taxes Balanced Portfolio with Significant Upside Torque 2022e Hedge Sensitivity (MM)15 Prioritizing…
Track Record Matters: 2021 Return of Capital Leadership 1.4B of debt reduction, 720 million of buybacks16, 140MM of base dividend All 2021 FCF Allocated to Debt Reduction, Dividends, Buybacks Led Peer Group in 2021 CFO to…
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 compensation19 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 1Q22 4Q21 2022 1Q22 4Q21 United States 159…
2022 Cost, Tax Rate, and Equity Method Guidance E.G. equity income raised by 200MM 2022 Guidance United States Cost Data ( per BOE): Production Operating 5.00 5.50 DD&A 16.00 17.00 S&H and Other22 5.00 6.00 International Cost Data (…
U.S. Commodity Derivative Contracts as of May 2, 2022 2Q22 3Q22 4Q22 1Q23 Crude Oil NYMEX WTI Three-Way Collars Volume (Bbls/day) 50,000 30,000 30,000 - Ceiling 98.79 97.52 97.52 - Floor 58.00 56.67 56.67 - Sold put 48.00 46.67…
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