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Second Quarter 2014 – Marathon Oil Corp

Marathon Oil Corp · Aug 4, 2014 · 32 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Second Quarter 2014 – Marathon Oil Corp – slide 1
    Second Quarter 2014 Earnings Review August 4, 2014
  2. Second Quarter 2014 – Marathon Oil Corp – slide 2
    Executing on 2014 Priorities 2Q 2014 Highlights Adjusted net income per diluted share of 0.89, up 33% from the year-ago quarter Adjusted income from continuing operations per diluted share of 0.62, an increase of 51% from the…
  3. Second Quarter 2014 – Marathon Oil Corp – slide 3
    Total Company Cash Flow 2014 YTD 3,000 2,473 (355) Cash-adjusted debt-to-capital ratio 25% 2,500 (2,230) 2,232 (260) (1,000) 2,000 440 (233) MM 1,500 (162) 1,169 1,000 500 264 0 12/31/13 Cont Op Cash Cont Op…
  4. Second Quarter 2014 – Marathon Oil Corp – slide 4
    Adjusted Income From Continuing Operations 2Q-14 vs. 2Q-13 500 450 40 (19) 3 423 400 (10) 35 81 350 300 293 MM 250 200 150 100 50 0 2Q 2013 N.A. E&P Int'l E&P OSM Corp & Other Unallocated 2Q 2014 (After-tax)…
  5. Second Quarter 2014 – Marathon Oil Corp – slide 5
    Adjusted Income From Continuing Operations 2Q-14 vs. 1Q-14 600 60 (61) 500 438 (9) 6 (32) 21 423 400 MM 300 200 100 0 1Q 2014 N.A. E&P Int'l E&P OSM Corp & Other Unallocated 2Q 2014 (After-tax) (After-tax)…
  6. Second Quarter 2014 – Marathon Oil Corp – slide 6
    North America E&P Segment Earnings 2Q-14 vs. 1Q-14 450 20 (35) 400 131 (25) 350 (9) (22) 302 300 250 242 MM 200 150 100 50 0 1Q 2014 Volume Price Variance DD&A Exploration Other Income Taxes 2Q 2014…
  7. Second Quarter 2014 – Marathon Oil Corp – slide 7
    N.A. E&P & OSM Crude Oil & Condensate Realizations Price USD/BBL Asset 1Q 2014 2Q 2014 Difference Bakken 89.46 93.08 3.62 Eagle Ford 96.10 99.08 2.98 Oklahoma Resource Basins 94.38 101.12 6.74 All other North America 89.25 93.45…
  8. Second Quarter 2014 – Marathon Oil Corp – slide 8
    International E&P Segment Earnings 2Q-14 vs. 1Q-14 250 221 (24) (11) 200 (4) (47) 35 160 150 (10) MM 100 50 0 1Q 2014 Volume Price Variance DD&A Exploration Other Income Taxes 2Q 2014 Variance (Pre-tax) (Pre-tax)…
  9. Second Quarter 2014 – Marathon Oil Corp – slide 9
    Oil Sands Mining Segment Earnings 2Q-14 vs. 1Q-14 80 23 (15) 70 64 (17) 60 (2) 2 55 50 MM 40 30 20 10 0 1Q 2014 Volume Variance Price Variance Operating Costs Other Income Taxes 2Q 2014 (Pre-tax) (Pre-tax)…
  10. Second Quarter 2014 – Marathon Oil Corp – slide 10
    U.S. Resource Plays Drive Toward 30% Growth 2Q 2014 Activities Eagle Ford outperforming modeled type curves and on track for double digit growth quarter-over-quarter through year end Production averaged 102,000 net BOED; increased 26%…
  11. Second Quarter 2014 – Marathon Oil Corp – slide 11
    U.S. Resource Plays Drive Toward 30% Growth 2Q 2014 Activities (Continued) Bakken driving to higher density pilots and shifting to more aggressive completion designs Production averaged 50,000 net BOED; increased 28% over 2Q 2013 and…
  12. Second Quarter 2014 – Marathon Oil Corp – slide 12
    Unconventional Resource Plays Accelerated Resource Development to Grow Profitable Volumes 200 Oklahoma Resource Basins Bakken +10% Eagle Ford +7% Available for Sale Net MBOED 150 +7% +8% +2% +16% +29% 100 +52% +20%…
  13. Second Quarter 2014 – Marathon Oil Corp – slide 13
    Lower 48 Onshore Forecast Net Production Available for Sale 250 +7% 200 +4% Available for Sale Net MBOED 0% +4% +6% +9% +17% 150 +25% +7% 100 50 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2012 2012 2012 2012 2013 2013…
  14. Second Quarter 2014 – Marathon Oil Corp – slide 14
    North America & International E&P Segments Volumes, including Libya and excluding Alaska & Discontinued Operations Net production available for sale increased 3% from 1Q 2014 Growth in the North America resource plays Sales volumes…
  15. Second Quarter 2014 – Marathon Oil Corp – slide 15
    Total Company LHC Sales Volumes Excluding Libya & Norway 2Q-14 Actual vs. 3Q-14 Estimate 2Q 2014 Actual Sales Volumes 3Q 2014 Estimated Sales Volumes 266 Net MBOD 275 295 Net MBOD Canada 17% Canada 19% U.K. 2% U.K. 5% E.G. 10%…
  16. Second Quarter 2014 – Marathon Oil Corp – slide 16
    2014 Drilling Schedule GOM Program Moves Front and Center 2014 J F M A M J J A S O N D Location Well Q1 Q2 Q3 Q4 Kurdistan Mangesh-1 20%WI Testing Kurdistan East Swara Tika-1 20%WI TD Testing Kurdistan Jisik-11 45% WI TD…
  17. Second Quarter 2014 – Marathon Oil Corp – slide 17
    Executing on 2014 Priorities Accelerated activity in Eagle Ford, Bakken and Oklahoma Resource Basins Eagle Ford - well results continue to outperform modeled type curves; double digit production growth quarter-over-quarter for…
  18. Second Quarter 2014 – Marathon Oil Corp – slide 18
    We Will be Recognized as the Premier Independent E&P Company by: Living our values Investing in our people Continuous improvement in operating and capital efficiency Driving profitable and sustainable growth Rigorous portfolio…
  19. Second Quarter 2014 – Marathon Oil Corp – slide 19
    Appendix
  20. Second Quarter 2014 – Marathon Oil Corp – slide 20
    Volumes, Exploration Expenses & Effective Tax Rate 2014 (excluding Libya & Discontinued Operations) 1Q 2Q 3Q 4Q Year North America E&P Net Sales Volumes: - Liquid Hydrocarbons (MBD) 163 178 - Natural Gas (MMCFD) 300 294 - North…
  21. Second Quarter 2014 – Marathon Oil Corp – slide 21
    2014 Estimates (excluding Libya & Disc Ops) Volumes & Tax Rates by Jurisdiction Available for Sale Available for Sale Estimated LHC Approximate Statutory Tax 3QE Sales Volumes Annual Rate Year Estimate 3QE Production % North America…
  22. Second Quarter 2014 – Marathon Oil Corp – slide 22
    2014 Estimates Exploration Expenses & Annual Production Operating Costs per BOE 3QE Year Estimate Exploration Expenses (Pre-tax): North America E&P ( millions) 50 125 International E&P ( millions) 25 100 Effective Consolidated Tax…
  23. Second Quarter 2014 – Marathon Oil Corp – slide 23
    Reconciliation (MM) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Net Income to Adjusted Net Income 2013 2013 2013 2013 2014 2014 2014 2014 Net Income 383 426 569 375 1,149 540 Adjustments for special items (net of taxes): Unrealized (gain)/loss…
  24. Second Quarter 2014 – Marathon Oil Corp – slide 24
    Reconciliation (MM) Income from Continuing Operations to Adjusted Income from Continuing 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Operations 2013 2013 2013 2013 2014 2014 2014 2014 Income from continuing operations 158 241 396 136 398 360 Adjustments…
  25. Second Quarter 2014 – Marathon Oil Corp – slide 25
    North America E&P Cost per BOE Trend Continuing to control costs 80 70 60 50 /BOE 40 30 20 10 0 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 Production operating DD&A Taxes other than income Other…
  26. Second Quarter 2014 – Marathon Oil Corp – slide 26
    International E&P Cost per BOE Trend Includes Libya 30 25 20 /BOE 15 10 5 0 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 Production operating DD&A Taxes other than income Other Exploration We sold…
  27. Second Quarter 2014 – Marathon Oil Corp – slide 27
    International E&P Cost per BOE Trend Excludes Libya 30 25 20 /BOE 15 10 5 0 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 Production operating DD&A Taxes other than income Other Exploration We sold…
  28. Second Quarter 2014 – Marathon Oil Corp – slide 28
    International E&P Net Methanol and LNG Sales Volumes 8,000 7,302 6,787 6,624 6,579 6,282 6,000 5,820 Methanol MTD 4,000 LNG 2,000 1,410 1,364 1,250 1,153 973 980 0 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q…
  29. Second Quarter 2014 – Marathon Oil Corp – slide 29
    Net Income (MM) 2013 2014 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q North America E&P Segment Income (59) 221 242 125 242 302 International E&P Segment Income 273 170 192 123 221 160 Oil Sands Mining Segment Income 38 20 106 42 64 55 Total…
  30. Second Quarter 2014 – Marathon Oil Corp – slide 30
    Select Balance Sheet / Cash Flow Data (B) 2013 2014 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q As of quarter ended: Cash and cash equivalents 0.8 0.2 0.4 0.3 2.0 1.2 Total debt 6.5 6.5 6.7 6.6 6.5 6.4 Cash-adjusted total debt 5.8 6.3 6.3 6.3 4.5…
  31. Second Quarter 2014 – Marathon Oil Corp – slide 31
    Reconciliation (MM) Net Cash Provided by Continuing 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Operations 2013 2013 2013 2013 2014 2014 2014 2014 Net cash provided by continuous operations 1,078 1,922 3,300 4,388 1,069 2,118 Changes in: Current…
  32. Second Quarter 2014 – Marathon Oil Corp – slide 32
    Capital, Investment & Exploration Spending Reconciliation MM 2014 2014 Budget YTD Capital expenditures, 5,669 2,576 including acquisitions M&S Inventory 0 16 Investments in equity method 0 0 investees & others…

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