FOURTH QUARTER 2022 RESULTS AND 2023 OUTLOOK February 15, 2023
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 4Q22 Earnings Release Record 2022 performance, solid 4Q22 delivery, compelling outlook for 2023 and beyond Record 2022 Solid 4Q22 Delivery Compelling Outlook Performance Returned 55% of adjusted CFO to Adjusted FCF…
Comprehensive Delivery Against Our Framework Market-leading return of capital and FCF, sustainable financials and operations, ESG excellence Percentage of CFO framework provides shareholders first call on cash flow and protects investors…
Outperformed Return of Capital Framework in 2022 Built on market-leading shareholder distribution track record Market-leading Return of Capital Track Record 17%1 Shareholder Distribution Yield in 2022e Returned 55% of adjusted CFO (75%…
Outstanding 2022 Delivery vs. High-Quality E&P Peers Powerful combination of capital efficiency, free cash flow generation, and shareholder distributions 2022e Reinvestment Rate 2022e FCF Yield (Adjusted FCF / Mkt Cap) 70% 25% 60% 20%…
More S&P, Less E&P Top 10 TSR in S&P 500 Market-leading FCF yield and return of capital, at attractive valuation, drove another year of strong TSR 2022e FCF Yield vs. S&P 500 2022e Distribution Yield vs. S&P 500 40% 30% FCF Yield 22%…
Closed Ensign Acquisition During Fourth Quarter Significant accretion to key financial metrics, Return of Capital Framework, and high-quality inventory life Strategic Rationale Acquired 600 locations with inventory that immediately…
Ensign Integration Ahead of Schedule with Strong Early Results Top decile oil productivity from first two 2023 pads Ensign Integration and Early Performance Strong Productivity Track Record Ensign wells have a demonstrated track record…
2023 Capital Program Delivers Robust FCF and Return of Capital Prioritizing free cash flow generation, return of capital to shareholders, and execution excellence 2023 Capital Program Overview Expecting Top Tier FCF Yield in 2023 1.9B…
2023 Capital Program Details Disciplined, high confidence program to deliver strong financial and operational outcomes U.S. Resource Plays International 3 rig program, 70 to 80 wells to sales (WTS) Bakken Activity focused in…
E.G. Integrated Gas Business to Provide Material 2024 Financial Uplift World class operation provides differentiated and increasing exposure to global LNG market 2022 Summary Total E.G. EBITDAX (Consolidated & Equity Affiliate) Equity…
Marathon Oil 2022 ESG Report Card Another year of comprehensive ESG delivery Meeting the worlds energy needs while prioritizing all elements of ESG performance Achieved 0.30 TRIR3 in 2022 for employees and contractors Safety Safety…
Well Positioned to Outperform the S&P 500 Again in 2023 Market leading FCF yield and return of capital at attractive valuation Competing with the Best in the S&P 2023e FCF Yield vs. S&P 500 40% Top Tier FCF Yield in S&P 500 MRO 20%…
APPENDIX
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 60/bbl WTI Reduce gross debt and maintain…
Competitively Advantaged Multi-Basin Portfolio High quality U.S. assets complemented by world-class integrated gas business with global LNG exposure Bakken Oklahoma 240k net acres 260k net acres Eagle Ford Permian 290k net…
Over a Decade of High-Quality Inventory Strong visibility to continued delivery of top tier financial outcomes Total Company Sub-50/bbl WTI Breakeven Inventory Life 25 Years of Remaining Inventory 20 15 10 Average…
Track Record of E&P-Leading Capital Efficiency History of delivering more barrels with less capital, per third party data E&P Sector Leading Capital Efficiency (6 month cumulative production / total well cost) 25 20 6 mon cum mboe…
Unique Integrated Gas Position with Increasing LNG Exposure E.G. Process Flow Overview Differentiated Global LNG Equity Volumes(a) Third Party Volumes(b) Exposure Primary Condensate Upstream Global LNG price exposure to further…
2022 Cash Flow Waterfall Full year 2022 adjusted FCF of 4.0B 2022 Cash Flow Waterfall (MM) 6,000 1,480 5,000 17 48 220 4,000 5,410 3,000 2,754 1,899 4,527 2,000 3,166 1,000 580 334 0 12/31/21 Operating Capital EG…
4Q22 U.S. Resource Play Update Eagle Ford Bakken 4Q22 production of 91 MBOED (62 MBOPD) on 16 gross operated 4Q22 production of 94 MBOED (59 MBOPD) on 4 gross operated wells to sales wells to sales Expect 115 to 125 gross operated…
4Q22 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 90 40 120 40…
Delivering Comprehensive ESG Excellence Prioritizing every element of the E, S, and G Rystad Energy 2022 ESG Scorecard 300 ESG Ranking Methodology - Key Metrics Environmental: Spills, GHG intensity, Targets, Water Management,…
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…
Corporate Sustainability Report 2021 Corporate Sustainability Report (CSR) published 3Q22 Long-term Track Record of Comprehensive Reporting: Corporate Sustainability Report remains one-stop-shop for all non- financial disclosure 16…
2023 Production and Capital Budget Guidance Double-digit production growth due to Ensign acquisition Oil Production Equivalent Production Net Production (MBOPD) (MBOED) 2023 FY22 4Q22 3Q22 2Q22 1Q22 2023 FY22 4Q22 3Q22 2Q22 1Q22…
2023 Cost, Tax Rate, and Equity Method Guidance U.S. unit cash costs expected to decline 10% from 2022 2023 2022 Guidance Actual United States Cost Data ( per BOE) Production Operating 5.00 6.00 6.03 DD&A 15.50 16.50 16.16 S&H and…
U.S. Commodity Derivative Contracts as of February 13, 2023 Natural Gas 1Q23 2Q23 3Q23 4Q23 Henry Hub (HH) Three-Way Collars Volume (MMBtu/day) 50,000 50,000 50,000 50,000 Ceiling 11.14 11.14 11.14 11.14 Floor 4.00 4.00 4.00 4.00…
Definitions and Footnotes 1) Yield calculations assume 2/10/2023 MRO equity Marathon Oil-operated facilities. All percentage https://www.iea.org/data-and- value of 27.75/sh. and outstanding share count of reductions are relative to…
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