Scotia Howard Weil Energy Conference Lee M. Tillman President & Chief Executive Officer March 23, 2015 1
Marathon Oil Focused on Long-Term Shareholder Value Well positioned for low price environment Capital budget reflects reduced activity levels, focus on returns, balance sheet flexibility and positioning for price recovery Not…
2015 Capital Program Concentrated in the U.S. Short cycle investments provide flexibility 2015 CAPEX 3.5B 70% of budget directed to highest return U.S. resource plays; reduced exploration spend by more than half Eagle Ford 41%…
Quality and Scale in Three High Value Resource Plays 2P Resource 3 BBOE and growing 5 Well positioned in three liquids- rich unconventional resource plays 4 Grew 2P resource 150% from 2011 Resource (BBOE) Eagle Ford and…
Robust Inventory Supports Forward Drilling Program Resource play single well economics durable across range of prices 100 90 70 WTI : 90% Breakeven Breakeven % Well Inventory Price At or Below Breakeven Price 80 60 WTI : 80%…
Competitive Returns in U.S. Resource Plays High grading inventory and capturing service cost reductions early in cycle 2015 Program Allocating capital to the 75% Single Well Economics highest return projects Austin Chalk Improving…
Continuous Improvement in Single Well Economics Enhanced completions and cost savings drive value 2,000 Eagle Ford Well Performance Condensate Eagle Ford returns driven by enhanced completion design, 30 Day IP BOED 1,500 14%…
40% of Capital to High Return Eagle Ford Competitive economics and best in class execution at scale High Austin Condensate Maximizing value from quality GOR Oil Chalk core position Gross IP 30-day Best in class execution over…
Austin Chalk & Upper Eagle Ford Co-Development Focused on stacked resource in highest value area for 2015 Upper Eagle Ford (UEF)/Lower Eagle Ford (LEF) Jauer Sonka Quad Stack Test 1,093-1,195 BOED Austin Chalk (AC)/LEF Carter Holm…
Continuing to Grow Resource Base in Oklahoma Drilling pace protects leasehold SCOOP SL SCOOP XL Developing and delineating Condensate Condensate Over 70% of total net Oklahoma Gross IP 30-day acres HBP at YE 2014 970 1,650 (BOED)…
Advancing Liquids Rich STACK Meramec Shale averaging over 80% liquids Meramec 30 Day IP MRO holds 100,000 net acres in Non-operated Non-operated STACK 1,050 BOED 1,282 BOED 50% with stacked Woodford Non-operated and Mississippi Lime…
SCOOP Performance Trending Upward Optimizing development plans for transition to scale SCOOP Initial Production 1,600 MRO holds 145,000 net 1,200 acres in SCOOP IP BOED 800 Sustained well performance 400 with shallower decline…
Targeting Highest Quality Bakken Myrmidon Wells Completion pilots delivering average 30% uplift Myrmidon Hector MB & TF MB Encouraging initial performance from completion pilots Gross IP 30-day (BOED) 1,180 1,210 Only included in…
Bakken Enhanced Completion Designs Moving to higher intensity stimulations 44 of 55 completion pilots 80 online 90 Day Cum, MBOE 60 23% Varied fluid/sand vols: 27 40 Myrmidon Cemented plug & perf: 12 20 3 Hybrid slickwater…
Equatorial Guinea Compression On-line in 2016 Extending asset life by 8 years to 2032 Production plateau extended 2 years Adds 72,000 hp of compression Provides long term stable cash flows Production Forecast 150 125 Net…
Marathon Oil Focused on Long-Term Shareholder Value Well positioned for price recovery 2015 capital budget reflects focus on returns 70% of budget directed to high return U.S. resource plays; reduced exploration spend by more than…
Appendix 18
2015 North America Activity Single well economics OKLAHOMA RESOURCE BAKKEN EAGLE FORD BASINS SCOOP SL SCOOP XL Myrmidon Hector Condensate High GOR Austin Condensate Condensate MB & TF MB Oil Chalk Gross IP 30-day (BOED)* 970 1,650…
2015 North America Activity U.S. resource plays Bakken Gross Gross Average Operated Operated Net Wells to CAPEX 2015 Rig Wells Wells to Sales Count Drilled Sales 760MM 3 38 48 68 78 71 83 Oklahoma Resource Basins Gross…
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