UBS Houston Energy Symposium September 18, 2013 Lee M. Tillman President and CEO Marathon Oil Corporation
Delivering Profitable Growth Creating long term shareholder value Resource plays provide liquids focused growth with gas upside 10+ year drilling inventory 2013 production 8 to 10% higher than 2012* Target 5 to 7% CAGR 2012 through…
First Half 2013 Highlights Focus on fundamentals to deliver on commitments Continued solid execution and operational excellence NA + Intl E&P production available for sale excl. Libya at upper end of guidance U.S. Lower 48 onshore…
Production Profile and Growth Outlook Profitable base with growth driven by North America assets 750 7% 5% 500 P90 P10 MBOED 250 Range US and Canada EG Norway/UK Libya - 2012 2013 2014 2015 2016 2017 Alaska and…
U.S. Lower 48 Onshore Forecast Liquids bias underpinning value accretive growth 250 Production Available for Sale 200 P90 +6% P10 +9% +17% 150 (MBOED) +25% +7% +12% 100 +20% 50 0 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q…
U.S. Liquids Rich Resource Plays Large resource, significant upside Potential resource 2.8 Billion BOE 10+ Year drilling inventory Bakken 379,000 net acres 2Q 2013 averaged 39,000 net BOED Downspacing progressing well Refrac…
Eagle Ford Operations Driving growth, capturing efficiencies 100 Q1 Average Q2 Average Q3 Average Q4 Average Q1 Average Q2 Average 14.4 MBOED 20.9 MBOED 40.3 MBOED 59.5 MBOED 72.1 MBOED 80.1 MBOED 80 Gas NGL Oil 60 MBOED…
Eagle Ford Shale Growing resource and well inventory through downspacing Initial acquisition assumption: 160 and 2P Resource 80 acre spacing (MMBOE) Net Wells 1,500 3,500 3,197 2013 YTD drilling 80% of wells on 60 acre well…
Eagle Ford Well Costs Learning curve delivering capital efficiency and improving profitability Reduced average spud to TD time by approximately 50% over the past 18 months 30 Reduced frac cycle time by 25 approximately 40%…
Eagle Ford Top Tier Drilling Performance Setting the benchmark and continuously improving Ft/Day TD 1,455 1,289 1,400 350 1,179 Comparator Average: 873 16,800 1,161 1,120 1,119 1,115 Marathon: 1,455 17,300 2013 July…
Eagle Ford Well Performance Consistent high performance in 180 day cumulative production Gas Condensate Area 100% Quartile Ranking by 180 day Cum BOE MRO Performance biased to top two quartiles 90% 80% For first and second…
Bakken Production Profile Proven track record Big fields get bigger 80 2013 Plan 2012 Plan 60 2011 Plan 2010 Plan MBOED 2009 Plan 40 20 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 Marathon Oil Corporation…
Bakken Downspacing and deeper benches growing resource inventory 2P Resource Net Wells Defining optimum spacing and (MMBOE) maximizing EUR by area 600 1,668 2,000 Leveraging Three Forks productivity and testing deeper benches…
Bakken Drilling Performance Best in basin 2012 Drilling Benchmark Data Avg Total Measured Depth (TMD) (thousands ft) 1,200 21.2 21.0 1,000 20.8 20.6 800 Avg ft / day 20.4 600 20.2 20.0 400 19.8 19.6 200…
Bakken Well Performance Continuous performance improvement in EUR and IP Completions new hydraulic fracturing technology Higher IPs, cumulative production and EURs Optimal fluid volume / Hydraulic fracturing design Innovative…
Oklahoma Resource Basin Opportunities Continued growth and new play development Woodford Shale in Cana & Knox areas 2 rigs active Mississippi Lime Currently producing 14,000 net BOED 157,000 net acres 615 MMBOE net 2P resource…
Oklahoma Resource Basins Growth Near term oil opportunities with significant upside to NGL and Nat Gas Currently focused on liquids rich 2P Resource Net Wells Knox area of the play (MMBOE) 1,000 1,600 Opportunity to expand drilling…
Renewed Global Exploration Portfolio Focused on high impact oil potential Engaged in 6 proven or emerging hydrocarbon basins Diversified portfolio targeting 8 to 10 impact wells per year Option to develop or monetize success…
Global Exploration Drilling Schedule Executing as per 2013 Plan J F M A M J 2013 J A S O N D Country Well Q1 Q2 Q3 Q4 Kurdistan **Harir-1 45% WI Kurdistan Mangesh - 1 25% WI TD Testing Kurdistan Gara - 1 25% WI Ethiopia Sabisa…
Gabon Exploration Impact Exploration Discovery, significant resource potential Diaba Block (MRO 21.25% WI, TOTAL Operator 42.4% WI Cobalt 21.25% WI) 2.2 MM gross acres Pre-salt play - proven onshore and shallow waters 3D seismic…
Kurdistan Region of Iraq Emerging impact play 2 discoveries to date Atrush block (MRO 15% WI, TAQA operator) 66,000 gross acres 1 discovery and 2 appraisal wells to date (Atrush) Field Development Plan submitted in May 2013 Sarsang…
Ethiopia & Kenya Exploration Impact oil opportunity with running room Tertiary and Cretaceous rift system objectives Muglad Basin 1,950 mmbo disc Melut Basin Ethiopia 1,780 mmbo disc South Omo (MRO 20% WI, Tullow operator)…
Gulf of Mexico Exploration and Appraisal in 3 Plays with world class potential Petronius 8 Paleogene prospects Majority MRO operated Average 70% WI 2 Appraisal wells at Shenandoah Appomattox FPS in 2014 Lobster Gunflint Shiner…
Madagascar Prospect Gulf of Mexico: De Soto Canyon 757 De Soto Canyon 757 Petronius MRO 40% WI Water depth: 8,400 ft Appomattox Gunflint Lobster Appraisal Madagascar exploration well Droshky Madagascar Objective: Jurassic…
Relentless Focus on Long-term Shareholder Value Sustainable growth through execution excellence and financial discipline Live within cash flows Reduce operating costs and enhance margins High grade portfolio 7 Billion of transaction…
Loading...
