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4Q14 Earnings – Marathon Oil Corp

Marathon Oil Corp · Feb 18, 2015 · 30 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. 4Q14 Earnings – Marathon Oil Corp – slide 1
    Fourth Quarter 2014 Earnings Review February 18, 2015
  2. 4Q14 Earnings – Marathon Oil Corp – slide 2
    Full Year Highlights Proved reserves replacement 183%; US resource plays deliver 35% growth Resource plays averaged 181,000 BOED net during the year Total MRO production from continuing operations (excluding Libya) up 8% year-over-…
  3. 4Q14 Earnings – Marathon Oil Corp – slide 3
    4Q Highlights High margin, high return US resource plays deliver 7% q-o-q growth U.S. resource plays delivering strong returns and production growth 7% quarter-over-quarter; 43% increase over year-ago quarter Eagle Ford executing at…
  4. 4Q14 Earnings – Marathon Oil Corp – slide 4
    U.S. Resource Plays 50% E&P Production Consistent execution delivering value with growth Eagle Ford, Bakken & Oklahoma Unconventional Available for Sale Volumes 250,000 4Q 2013 to 4Q 2014 43% 206,000 200,000 192,000 7% 144,000…
  5. 4Q14 Earnings – Marathon Oil Corp – slide 5
    U.S. Production Drives Full-Year Results Full year earnings per share Adjusted Net Income* per Diluted Share Reported Net Income per Diluted Share 3.00 5.00 4.46 2.64 2.53 4.50 2.50 4.00 1.16 0.83 3.50 2.00 per share…
  6. 4Q14 Earnings – Marathon Oil Corp – slide 6
    Higher 4Q Production Offset by Lower Realizations, Higher Expl. Expense Quarterly Earnings (loss) per share Adjusted Net Income* per Diluted Share Reported Net Income per Diluted Share 0.90 1.60 0.80 0.76 1.37 1.40 0.70 0.60…
  7. 4Q14 Earnings – Marathon Oil Corp – slide 7
    N.A. E&P Lower on Realizations & Exploration Expense Segment earnings (loss) North America E&P International E&P Oil Sands Mining 350 300 300 292 275 250 250 200 200 200 MM MM MM 125 125 150 150 50 123 106 100…
  8. 4Q14 Earnings – Marathon Oil Corp – slide 8
    Capital Program Underpinned by Strong Operating Cash Flows Cash flow and cash capital expenditures Net Cash Provided by Operations Cash Capital Expenditures 7,000 7,000 6,000 5,487 6,000 5,536 5,270 4,993 376 5,000 751 5,000…
  9. 4Q14 Earnings – Marathon Oil Corp – slide 9
    Eagle Ford Executing at Scale 98 wells to sales in quarter Eagle Ford Production Volumes Production averaged 131,000 net BOED; increased 4Q 2013 to 4Q 2014 46% 46% over 4Q 2013 and 12% over prior quarter 140 120 Enhanced completion…
  10. 4Q14 Earnings – Marathon Oil Corp – slide 10
    Bakken Pilots Progressing 80% of enhanced completion pilots online Bakken Production Volumes Production averaged 55,000 net BOED; 60 4Q 2013 to 4Q 2014 38% increased 38% over 4Q 2013 50 Pace of Bakken wells to sales consistent with…
  11. 4Q14 Earnings – Marathon Oil Corp – slide 11
    Continuing to Build Acreage Position in Oklahoma Protecting leasehold while developing & delineating ORB Production Volumes Production averaged 20,000 net BOED; 4Q 2013 to 4Q 2014 43% 20 increased 43% over 4Q 2013 and 5% over 15…
  12. 4Q14 Earnings – Marathon Oil Corp – slide 12
    High Return Resource Plays Yield 35% Y-o-Y Growth Deep opportunity set with compelling economics 250 35% increase 2013 to 2014 +7% 200 +13% Available for Sale Net MBOED +10% +7% 150 +7% +2% +8% +16% +29% 100 +52%…
  13. 4Q14 Earnings – Marathon Oil Corp – slide 13
    Lower 48 Onshore Volumes More Than Doubled Since 1Q12 High margin barrels with strong liquids bias 300 140% increase +6% 250 +11% Available for Sale Net MBOED +7% +4% 200 +4% +6% 0% +9% +17% 150 +25% +7% 100 50…
  14. 4Q14 Earnings – Marathon Oil Corp – slide 14
    International Production Delivering Value and Cash Flow Current quarter reflects higher reliability and new Brae infill wells International Production & Sales Volumes From Equatorial Guinea Continuing Operations excluding Libya 150…
  15. 4Q14 Earnings – Marathon Oil Corp – slide 15
    Reserve Replacement 183% Estimated net proved reserves 2.2 BBOE up 6% over prior year (continuing ops) 67% Proved Developed YE 2014 80% Liquids YE 2014 Synthetic Undeveloped 29% 33% LHC Developed 51% 67% Gas 20% % of…
  16. 4Q14 Earnings – Marathon Oil Corp – slide 16
    Marathon Oil Focused on Long-Term Shareholder Value Well positioned for low price environment Full Year 2014 . . . delivered on commitments High return investments in U.S. resource plays yielded 35% production growth year over year…
  17. 4Q14 Earnings – Marathon Oil Corp – slide 17
    Appendix
  18. 4Q14 Earnings – Marathon Oil Corp – slide 18
    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) 163 178 197 207 186 - Natural Gas (MMCFD) 300 294…
  19. 4Q14 Earnings – Marathon Oil Corp – slide 19
    2015 Estimates Volumes Available for Sale 1QE Available for Sale Year Estimate North America E&P Total (MBOED) 268 279 - Liquid Hydrocarbons (MBD) 210 219 - Natural Gas (MMCFD) 345 360 International E&P Total (MBOED)* 107…
  20. 4Q14 Earnings – Marathon Oil Corp – slide 20
    2015 Estimates Exploration expenses & annual production operating costs per BOE 1QE Year Estimate Exploration Expenses (Pre-tax): North America E&P ( millions) 50 75 International E&P ( millions) 75 150 Effective Consolidated Tax…
  21. 4Q14 Earnings – Marathon Oil Corp – slide 21
    Reserve Replacement 183% Estimated net proved reserves 2.2 BBOE up 6% over prior year North America International Cont. Disc. OSM TOTAL E&P E&P Ops Ops SCO Category (MMBOE) (MMBOE) (MMBOE) (MMBOE) (MMBOE) (MMBBL) As of Dec 31,…
  22. 4Q14 Earnings – Marathon Oil Corp – slide 22
    N.A. E&P & OSM Crude Oil & Condensate Realizations Price USD/BBL Asset 3Q 2014 4Q 2014 Difference Bakken 85.28 61.74 (23.54) Eagle Ford 93.51 68.63 (24.88) Oklahoma Resource Basins 93.78 68.82 (24.96) All other North America 87.50…
  23. 4Q14 Earnings – Marathon Oil Corp – slide 23
    North America E&P Cost per BOE Trend 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 Other Taxes other than income DD&A Exploration 1Q 2013…
  24. 4Q14 Earnings – Marathon Oil Corp – slide 24
    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 Other Taxes other than income DD&A Exploration We…
  25. 4Q14 Earnings – Marathon Oil Corp – slide 25
    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 Other Taxes other than income DD&A Exploration We…
  26. 4Q14 Earnings – Marathon Oil Corp – slide 26
    North America & International E&P Segments Volumes, including Libya and excluding Alaska & discontinued operations Net production available for sale increased 11% from 3Q 2014 Growth in the North America resource plays Sales volumes…
  27. 4Q14 Earnings – Marathon Oil Corp – slide 27
    Adjusted Net Income (Loss) Reconciliation (MM) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Net Income to Adjusted Net Income (Loss) 2013 2013 2013 2013 2014 2014 2014 2014 Net Income 383 426 569 375 1,149 540 431 926 Adjustments for special items (net…
  28. 4Q14 Earnings – Marathon Oil Corp – slide 28
    Continuing Ops Adjusted Income (Loss) Reconciliation (MM) Income (Loss) from Continuing Operations to Adjusted Income (Loss) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q from Continuing Operations 2013 2013 2013 2013 2014 2014 2014 2014 Income (loss) from…
  29. 4Q14 Earnings – Marathon Oil Corp – slide 29
    Cash Flow Reconciliation (MM) Net Cash Provided by Continuing Operations to Net Cash Provided by Continuing Operations before changes in 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Working Capital 2013 2013 2013 2013 2014 2014 2014 2014 Net cash…
  30. 4Q14 Earnings – Marathon Oil Corp – slide 30
    Capital, Investment & Exploration Spending Reconciliation MM 2014 2014 Budget Actual Capital expenditures, 5,669 5,906* including acquisitions M&S Inventory 0 12 Investments in equity method 0 0 investees & others…

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