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BUSINESS UPDATE – Marathon Oil Corp

Marathon Oil Corp · Nov 11, 2014 · 33 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. BUSINESS UPDATE – Marathon Oil Corp – slide 1
    Business Update November 11, 2013 Marathon Oil Corporation
  2. BUSINESS UPDATE – Marathon Oil Corp – slide 2
    Delivering Profitable Growth Creating long term shareholder value Resource plays provide liquids focused growth with gas upside Growing 2013 production 8 to 10%* Targeting 5 to 7% CAGR 2012 through 2017 Proved reserves 2 billion…
  3. BUSINESS UPDATE – Marathon Oil Corp – slide 3
    2013 Year to Date Highlights Focus on fundamentals to deliver on commitments Continued solid execution and operational excellence U.S. onshore resource plays drive near term growth Eagle Ford production doubled from third quarter…
  4. BUSINESS UPDATE – Marathon Oil Corp – slide 4
    U.S. Lower 48 Onshore Forecast Liquids bias underpinning value accretive growth 250 200 P90 +6% 0% Production (MBOED) +9% P10 +17% 150 +25% +7% +12% 100 +20% 50 0 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2011A 2011A 2012A…
  5. BUSINESS UPDATE – Marathon Oil Corp – slide 5
    U.S. Liquids Rich Resource Plays Large resource, significant upside Bakken 375,000 net acres 3Q 2013 averaged 38,000 net BOED 220,000 net acres 3Q 2013 averaged 15,000 net BOED Oklahoma Resource Basins 200,000 net acres…
  6. BUSINESS UPDATE – Marathon Oil Corp – slide 6
    Eagle Ford Driving growth, capturing efficiencies 200,000 Net acres 3Q 2013 Production 81,000 net BOED 3Q to 4Q 2013 Production growth 10% Expect to exit 2013 at 100,000 net BOED 15 Active drilling rigs 97% of 3Q 2013 wells on…
  7. BUSINESS UPDATE – Marathon Oil Corp – slide 7
    Eagle Ford Production growth 120 Q1 Average Q2 Average Q3 Average Q4 Average Q1 Average Q2 Average Q3 Average 14.4 MBOED 20.9 MBOED 40.3 MBOED 59.5 MBOED 72.1 MBOED 80.1 MBOED 81.3 MBOED 100 Gas NGL Oil 80 MBOED 60…
  8. BUSINESS UPDATE – Marathon Oil Corp – slide 8
    Eagle Ford Well Costs Learning curve delivering capital efficiency and improving profitability Reduced average spud to TD time by 50% over the past 24 months Eagle Ford Drilling Efficiency 30 Reduced frac cycle time by 25…
  9. BUSINESS UPDATE – Marathon Oil Corp – slide 9
    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…
  10. BUSINESS UPDATE – Marathon Oil Corp – slide 10
    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…
  11. BUSINESS UPDATE – Marathon Oil Corp – slide 11
    Bakken Delivering growth and efficiency 375,000 Net Acres 3Q 2013 Production 38,000 net BOED Average WI MRO operated WI 85% OBO WI 10% Diomedes 5 Active Drilling Rigs Cazador Focus on multi-well pad drilling going forward 1…
  12. BUSINESS UPDATE – Marathon Oil Corp – slide 12
    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…
  13. BUSINESS UPDATE – Marathon Oil Corp – slide 13
    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…
  14. BUSINESS UPDATE – Marathon Oil Corp – slide 14
    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…
  15. BUSINESS UPDATE – Marathon Oil Corp – slide 15
    Oklahoma Resource Basin Opportunities Continued growth and new play development Woodford Shale in Cana & Knox areas 2 rigs active Mississippi Lime Currently producing 15,000 net BOED 157,000 net acres 612 MMBOE net 2P resource…
  16. BUSINESS UPDATE – Marathon Oil Corp – slide 16
    Renewed Global Exploration Portfolio Focused on high impact oil potential Strategy Engaged in 6 proven or emerging hydrocarbon basins Diversified portfolio targeting 8 to 10 impact wells per year Option to develop or monetize…
  17. BUSINESS UPDATE – Marathon Oil Corp – slide 17
    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 TD Testing…
  18. BUSINESS UPDATE – Marathon Oil Corp – slide 18
    Global Exploration Impact Exploration Discovery, significant resource potential Diaba block (MRO 21.25% WI, TOTAL Op.) 2.2 MM gross acres Pre-salt play - proven onshore and shallow waters Rabi Kounga Field 3D seismic across block…
  19. BUSINESS UPDATE – Marathon Oil Corp – slide 19
    Kurdistan Region of Iraq Emerging impact play 3 discoveries to date Atrush block (MRO 15% WI, TAQA operator) 66,000 gross acres 1 discovery and 2 appraisal wells to date (Atrush) Development Period started October 1, 2013 Sarsang…
  20. BUSINESS UPDATE – Marathon Oil Corp – slide 20
    Ethiopia & Kenya Exploration Impact oil opportunity with running room Tertiary and Cretaceous rift system objectives Muglad Basin Ethiopia 1,950 mmbo disc Melut Basin 1,780 mmbo disc South Omo (MRO 20% WI, Tullow operator)…
  21. BUSINESS UPDATE – Marathon Oil Corp – slide 21
    Gulf of Mexico Exploration and Appraisal in 3 Plays with world class potential Petronius 8 Paleogene prospects Majority MRO operated Average 70% WI 1 Appraisal well at Shenandoah in 2014 Appomattox FPS Lobster Gunflint…
  22. BUSINESS UPDATE – Marathon Oil Corp – slide 22
    Madagascar Prospect Gulf of Mexico: De Soto Canyon 757 De Soto Canyon 757 Petronius MRO 40%WI (Operator) Appomattox Water depth: 8,400 feet Gunflint Madagascar exploration well Lobster Appraisal Objective: Jurassic…
  23. BUSINESS UPDATE – Marathon Oil Corp – slide 23
    Gunflint Discovery Gulf of Mexico: Mississippi Canyon Discovery well drilled in 2008 MRO 18.23% WI, Noble (operator) 31.14% WI, Ecopetrol 31.50% WI, Samson 19.13% WI Water Depth: 6,100 ft Encountered over 600 ft of net pay in 7…
  24. BUSINESS UPDATE – Marathon Oil Corp – slide 24
    Shenandoah Discovery Gulf of Mexico: Walker Ridge Discovery well drilled in 2008 Coronado Appraisal well (Block 51) Solomon MRO 10% WI Water Depth: 5,800 ft Total Depth: 31,405 ft (TD 1Q 2013) Key Largo Results Net Pay 1,000…
  25. BUSINESS UPDATE – Marathon Oil Corp – slide 25
    Relentless Focus on Long-term Shareholder Value Sustainable growth through execution excellence and financial discipline Maintain financial and capital discipline Reduce operating costs and enhance margins High grade portfolio 7…
  26. BUSINESS UPDATE – Marathon Oil Corp – slide 26
    Appendix Marathon Oil Corporation
  27. BUSINESS UPDATE – Marathon Oil Corp – slide 27
    Definitions Term Definition 2P Volumes represent most likely deterministic estimates of proved plus probable reserves as defined by the SEC plus volumes with the same technical certainty as 2P proved and probable reserves that are…
  28. BUSINESS UPDATE – Marathon Oil Corp – slide 28
    Definitions Term Definition BOPD Barrels of oil per day CAGR Compounded average growth rate CAPEX Capital investment and cash exploration expenditures CHK Chesapeake Energy Corporation DVN Devon Energy Corporation ECA Encana…
  29. BUSINESS UPDATE – Marathon Oil Corp – slide 29
    Definitions Term Definition Proved Reserves Proved oil, natural gas and bitumen reserves determined under SEC requirements PSA Production Sharing Agreement Reserves Proved, Probable and Possible oil and gas volumes as defined by…
  30. BUSINESS UPDATE – Marathon Oil Corp – slide 30
    Definitions Term Definition TLM Talisman Energy Inc. TOC Total organic content Calculated as follows: (Change in share price between the beginning and ending Total Shareholder months in the calculation, based upon the monthly…
  31. BUSINESS UPDATE – Marathon Oil Corp – slide 31
    Volumes, Exploration Expenses & Effective Tax Rate 2013 (excluding Libya) 1Q 2Q 3Q 4Q Year North America E&P Net Sales Volumes: - Liquid Hydrocarbons (MBD) 141 148 150 - Natural Gas (MMCFD) 340 316 297 - North America E&P Total…
  32. BUSINESS UPDATE – Marathon Oil Corp – slide 32
    Volumes & Tax Rates by Jurisdiction 2013 Estimates (excluding Libya) Available for Sale Available for Sale Estimated LHC Approximate Statutory Tax 4QE Sales Volumes Annual Rate Year Estimate 4QE Production % North America E&P Total…
  33. BUSINESS UPDATE – Marathon Oil Corp – slide 33
    Estimated 2013 Exploration Expenses & Production & Annual Operating Costs per BOE 4QE Year Estimate Exploration Expenses (Pre-tax): North America E&P ( millions) 50 150 International E&P ( millions) 75 200 Effective Consolidated Tax…

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