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Credit Suisse Energy Summit – Marathon Oil Corp

Marathon Oil Corp · Feb 12, 2014 · 29 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. Credit Suisse Energy Summit – Marathon Oil Corp – slide 1
    Credit Suisse Energy Summit February 12, 2014
  2. Credit Suisse Energy Summit – Marathon Oil Corp – slide 2
    2013 Key Highlights 11% Profitable volume growth over 2012, excluding Alaska & Libya U.S. resource play net production increased 86% over 2012 Eagle Ford production averaged over 100,000 BOED for final two weeks of 2013 97%…
  3. Credit Suisse Energy Summit – Marathon Oil Corp – slide 3
    2013 Key Highlights Continued Rigorous portfolio management, exceeded 3-year 1.5 - 3B divestiture target Angola Block 31 closed February, 2014 Angola Block 32 sale expected to close in Q1 Marketing U.K. & Norway businesses…
  4. Credit Suisse Energy Summit – Marathon Oil Corp – slide 4
    2014 Priorities Accelerating Eagle Ford and Bakken rig activity 20% each; 100% rig activity increase planned for Oklahoma Woodford 28-Rig program underpinned by 2.4 BBOE of 2P unconventional resource, doubled since 2011, and over…
  5. Credit Suisse Energy Summit – Marathon Oil Corp – slide 5
    Strategic Imperatives Uncompromising focus on core values to protect our license to operate and drive business performance Invest in our people to grow and maintain our capabilities and competencies to ensure shareholders access to…
  6. Credit Suisse Energy Summit – Marathon Oil Corp – slide 6
    Accelerate Resource Development to Grow Profitable Volumes Robust growth through 2017 Delivering on our 5 7% CAGR target with acceleration of higher margin resource plays offsetting pending Angola exit 750 7% Available for sale…
  7. Credit Suisse Energy Summit – Marathon Oil Corp – slide 7
    Accelerate Resource Development to Grow Profitable Volumes Accelerating investment in three high quality resource plays 2014 Rig activity increases 20% Eagle Ford, 20% Bakken and 100% Woodford 200 Woodford Bakken Available for…
  8. Credit Suisse Energy Summit – Marathon Oil Corp – slide 8
    Rigorous Portfolio Management Marketing of North Sea assets in 2014 Production Increases growth rate and 750 accelerates cash flows 500 Simplifies and concentrates MBOED portfolio 250 Timing reflective of asset 0 maturity…
  9. Credit Suisse Energy Summit – Marathon Oil Corp – slide 9
    Robust Capital Allocation Funding highest margin opportunities Greater than 60% 2014 CAPEX directed towards high growth resource plays North America E&P Resource Plays 3.6B Woodford 2014 CAPEX 5.9B 7% Eagle Ford 64%…
  10. Credit Suisse Energy Summit – Marathon Oil Corp – slide 10
    Quality and Material Resource Capture Focused exploration tailored to well-defined risk criteria Emphasis in four oil-prone areas generating success Proven / Emerging Basins Kurdistan Carbonates Mirawa-1 discovery Oil Prone…
  11. Credit Suisse Energy Summit – Marathon Oil Corp – slide 11
    Strong US Onshore Business Delivering Growth and Value Positioned in three high-value, liquids- rich unconventional resource plays Driving well performance Improving cost efficiency Liquids-rich Growing resource base resource…
  12. Credit Suisse Energy Summit – Marathon Oil Corp – slide 12
    Delivering Compelling Liquids Growth Eagle Ford production available for sale Gas 120 NGL Oil 100 80 MBOED 60 40 20 0 2012 2012 2012 2012 2013 2013 2013 2013 2014E 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Annual Marathon Oil…
  13. Credit Suisse Energy Summit – Marathon Oil Corp – slide 13
    Doubled 2P Resource Base Since Acquisition Eagle Ford Initial 2P Resource Grew 2P well inventory from 900 net to 469 net MMBOE 2,300 net (3,300 gross) 204,000 net acres Future growth opportunities to capture 1.5 160 acre BBOE total…
  14. Credit Suisse Energy Summit – Marathon Oil Corp – slide 14
    Accelerating Value Through Increased Pace Eagle Ford Available for Sale Increasing activity by 20% relative to 160 2013 Increasing from 290 to 340 - 355 gross company operated wells spud in 2014 120 Moved to 18 rig program…
  15. Credit Suisse Energy Summit – Marathon Oil Corp – slide 15
    Strong Growth in Low Risk Basin Bakken production available for sale Gas 50 NGL Oil 40 30 MBOED 20 10 0 2012 2012 2012 2012 2013 2013 2013 2013 2014E 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Annual Marathon Oil Corporation…
  16. Credit Suisse Energy Summit – Marathon Oil Corp – slide 16
    2P Resource Base 80% Increase Since 2011 Bakken YE 2011 2P Resource 345 net MMBOE Grew well inventory from 450 net to 1,300 net over last 2 years (2,300 gross) 370,000 net acres Bakken Three Forks Future growth opportunities to…
  17. Credit Suisse Energy Summit – Marathon Oil Corp – slide 17
    Accelerating Value Through Increased Activity Bakken Increasing rig activity 20% relative to 2013 Available for Sale 75 Increasing from 73 in 2013 to 75-85 gross company operated wells spuds in 2014 with recompletions of 22 26…
  18. Credit Suisse Energy Summit – Marathon Oil Corp – slide 18
    Expanding Liquids-rich Oklahoma Resource Basins Added acreage and horizons Currently hold 180,000 net acres in resource plays across the basin 40% with stacked reservoirs Southern Miss Trend and growing Almost 1.2 BBOE of total…
  19. Credit Suisse Energy Summit – Marathon Oil Corp – slide 19
    More Than Doubled 2P Resource Base Since 2011 Oklahoma unconventional resource plays 2011 YE 2P Resource Grew well inventory from 530 to 960 300 net MMBOE net over last 2 years (3,500 gross) 180,000 net acres Woodford Future growth…
  20. Credit Suisse Energy Summit – Marathon Oil Corp – slide 20
    Accelerating Value Through Increased Activity Woodford Increasing activity by 100% 50 Available for Sale relative to 2013 Drilling 20 - 25 gross company operated wells in 40 2014 Moved to 4 rig program 30 Increasing growth to…
  21. Credit Suisse Energy Summit – Marathon Oil Corp – slide 21
    Additional Liquid Growth Opportunities Beyond Woodford Southern Miss Trend Multiple play types 2 wells drilled early results Southern Miss Trend encouraging Vertically stacked with Cana Cana Woodford Woodford Anadarko Basin…
  22. Credit Suisse Energy Summit – Marathon Oil Corp – slide 22
    Accelerating Activity in Resource Plays to Drive Value Onshore US Accelerating rig activity 20% in 400 Available for Sale Bakken & Eagle Ford; 100% in Oklahoma 100% increase in 2P resource in 300 the 3 growth assets since 2011…
  23. Credit Suisse Energy Summit – Marathon Oil Corp – slide 23
    Volumes, Exploration Expenses & Effective Tax Rate 2013 (excluding Libya & Angola) 1Q 2Q 3Q 4Q Year North America E&P Net Sales Volumes: - Liquid Hydrocarbons (MBD) 141 148 150 156 149 - Natural Gas (MMCFD) 340 316 297 297 312 -…
  24. Credit Suisse Energy Summit – Marathon Oil Corp – slide 24
    2014 Program Tests Significant Oil Potential Target 8 to 10 impact wells 2014 J F M A M J J A S O N D Country Well Q1 Q2 Q3 Q4 Kurdistan Jisik-1* 45% WI TD Testing Kenya Sala-1 50% WI Ethiopia Shimela-1 20% WI Ethiopia…
  25. Credit Suisse Energy Summit – Marathon Oil Corp – slide 25
    Financial Discipline Commodity price sensitivities 2014 2014 Estimated Estimated Income Cash Flow Commodity Price Sensitivities (MMs) Impact* Impact* WTI Price Volatility - 1 Change +/- 41 +/- 61 Brent Price Volatility - 1…
  26. Credit Suisse Energy Summit – Marathon Oil Corp – slide 26
    Volumes & Tax Rates by Jurisdiction 2014 Estimates (excluding Libya & Angola) Available for Sale Available for Sale Estimated LHC Approximate Statutory Tax 1QE Sales Volumes Annual Rate Year Estimate 1QE Production % North America…
  27. Credit Suisse Energy Summit – Marathon Oil Corp – slide 27
    Estimated 2014 Exploration Expenses & Annual Production Operating Costs per BOE 1QE Year Estimate Exploration Expenses (Pre-tax): North America E&P ( millions) 50 100 International E&P ( millions) 50 100 Effective Consolidated Tax…
  28. Credit Suisse Energy Summit – Marathon Oil Corp – slide 28
    N.A. E&P & OSM Crude Oil & Condensate Realizations Price USD/BBL Asset 3Q 2013 4Q 2013 Difference Bakken 97.76 83.70 (14.06) Eagle Ford 104.08 92.84 (11.24) Oklahoma Resource Basins 101.82 94.97 (6.85) All other North America 99.93…
  29. Credit Suisse Energy Summit – Marathon Oil Corp – slide 29
    Reserve Replacement Estimated Net Proved Reserves Disc. N.A. & Intl. E&P OSM TOTAL Ops Natural Synthetic LHC % Proved LHC Total Category Gas Crude Oil (MMBBL) (MMBOE) Developed (MMBBL) (MMBOE) (BCF) (MMBBL) of Total As of Dec…

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