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1Q 2013 Earnings Call – Marathon Oil Corp

Marathon Oil Corp · May 8, 2013 · 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. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 1
    First Quarter 2013 Earnings Conference Call and Web Cast May 8, 2013
  2. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 2
    New Reportable Segments North America Exploration and Production (E&P) Explores for, produces and markets liquid hydrocarbons and natural gas in North America International E&P Explores for, produces and markets liquid hydrocarbons…
  3. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 3
    Revised Presentation of Consolidated Statements of Income Statements of income Additional details of revenues & expenses Classify certain expenses more consistently with independent E&P peer group Reclassification of previously…
  4. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 4
    Total Company Cash Flow 2013 YTD 2,500 1,601 (73) (1,375) Net cash-adjusted debt-to-capital ratio 24% 2,000 1,500 MM 312 (120) (314) 1,000 53 768 684 500 0 12/31/12 Op Cash Flow Working Cash Capital Dispositions…
  5. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 5
    Adjusted Net Income 1Q-13 vs. 4Q-12 Variance Analysis 450 400 388 (160) 81 361 350 40 (16) 300 7 21 250 MM 200 150 100 50 0 4Q 2012 N.A. E&P Int E&P OSM Corp & Other Unallocated 1Q 2013 (After-tax) (After-tax)…
  6. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 6
    North America E&P Segment Earnings 1Q-13 vs. 4Q-12 Variance Analysis 200 150 21 (14) 13 (27) 101 (240) 100 50 (59) MM 0 -50 87 -100 -150 -200 4Q 2012 Volume Price DD&A Other Exploration Income 1Q 2013 Variance…
  7. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 7
    International E&P Segment Earnings 1Q-13 vs. 4Q-12 Variance Analysis 500 162 453 450 446 (162) 400 350 0 10 300 (41) 38 MM 250 200 150 100 50 0 4Q 2012 Volume Price Variance DD&A Other Exploration Income 1Q…
  8. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 8
    International E&P Net Methanol and LNG Sales Volumes 10,000 8,000 7,065 6,787 6,291 6,327 6,000 5,467 MTD Methanol 4,000 LNG sales 2,000 1,312 1,465 1,410 1,268 116 1,146 109 99 102 0 79 65 Q1 2012 Q2 2012 58…
  9. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 9
    Oil Sands Mining Earnings 1Q-13 vs. 4Q-12 Variance Analysis 100 6 (23) 59 2 80 (17) 60 MM (5) 38 40 17 20 0 4Q 2012 Volume Price Variance DD&A Operating Other Income 1Q 2013 Variance (Pre-tax) (Pre-tax) Costs…
  10. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 10
    Q1 2013 Highlights Strong production growth and cash flow from operations Available for sale up 4% over prior quarter / 19% over Q1 2012 (excluding Libya & Alaska) Continued focus on controlling cash costs 40% increase in cash…
  11. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 11
    Q1 2013 U.S. Unconventional Resource Play Progress Eagle Ford Production up approximately 22% over prior quarter to 72,000 net BOED Drilled 76 gross wells, brought 68 gross wells to sales Spud to spud time reduced to 18 days in Q1…
  12. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 12
    Global Exploration Drilling Schedule 2013 2013 Marathon Oil CorporationQ1 Country Well Q2 Q3 Q4 Kurdistan Harir-1 45% WI Kurdistan Mangesh - 1 25% WI TD Testing Kurdistan Gara - 1 25% WI TD Testing Ethiopia Sabisa - 1 20% WI…
  13. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 13
    Worldwide Production Including Oil Sands Mining Production Available for Sale Volumes excluding Alaska and Libya 500 400 300 MBOED 200 100 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2011 2011 2011 2011 2012 2012 2012…
  14. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 14
    Lower 48 Onshore Forecast Production Available for Sale 250 P90 200 P90 P10 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 2012A 2012A 2012A…
  15. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 15
    North America E&P & International E&P Segments Volumes, including Libya & Alaska Production available for sale increased 16% and 2% over 1Q and 4Q 2012, respectively Eagle Ford additional new wells brought online Angola full quarter…
  16. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 16
    Total Company LHC Sales Volumes Excluding Libya 1Q 2012 Actual Sales Volumes 4Q 2012 Actual Sales Volumes 266 MBOD 313 MBOD Canada Canada 15% Norway 16% Norway 25% 34% U.K. 7% U.S. 34% U.S. 42% E.G. 11% U.K. 3% E.G. 13%…
  17. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 17
    Total Company LHC Sales Volumes Excluding Libya 1Q-13 Actual vs. 2Q-13 Estimate 1Q 2013 Actual Sales Volumes 2Q 2013 Estimated Sales Volumes 338 MBOD 315 - 330 MBOD Angola 3% Angola Canada 15% Canada 16% 1% U.S. 42% Norway…
  18. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 18
    MRO Production Profile Value in Liquids Focused Growth with Gas Upside 750 Libya Unrest EF, Bakken, Woodford 7% All Other 5% 500 P90 P10 MBOED 250 - 2010 2011 2012 2013 2014 2015 2016 2017 Alaska removed from all…
  19. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 19
    International E&P Cost per BOE Trend* Includes Libya 20 18 16 14 12 /BOE 10 8 6 4 2 0 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013 Production operating Other Taxes other than income DD&A Exploration…
  20. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 20
    International E&P Cost per BOE Trend* Excludes Libya 20 18 16 14 12 /BOE 10 8 6 4 2 0 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013 Production operating Other Taxes other than income DD&A Exploration…
  21. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 21
    International E&P Cost Data Annual Operating Costs per BOE 2013 Estimates International E&P * Production Operating 6.00 7.50 DD&A 8.50 9.75 Other** 2.50 3.25 * Excludes Libya ** Other includes shipping and handling, other…
  22. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 22
    North America E&P Cost per BOE Trend* 80 70 Eagle Ford Impairment 60 50 /BOE 40 30 20 10 0 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013 Production operating Other Taxes other than income DD&A…
  23. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 23
    North America E&P Cost Data Annual Operating Costs per BOE 2013 Estimates North America E&P (includes Eagle Ford) Production Operating 9.75 11.00 DD&A 26.75 28.75 Other* 5.00 6.00 Eagle Ford Production Operating 7.75 8.25…
  24. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 24
    Q&A Session
  25. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 25
    Appendix
  26. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 26
    Upstream Volumes, Exploration Expenses & Effective Tax Rate 2013 Estimates (excluding Libya) 2013 1QA 2QE 3QE 4QE Year Est* North America E&P Net Sales Volumes*: Liquid Hydrocarbons (MBD) 141 148 152 Natural Gas (MMCFD) 340 300 310…
  27. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 27
    Reconciliation Net Income to Adjusted Net Income (MM) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2012 2012 2012 2012 2013 2013 2013 2013 Net Income 417 ** ** 322 383 Income from continuing operations 417 322 383 Unrealized (gain)/loss on derivative…
  28. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 28
    Net Income (MM) 2012 2013 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q North America E&P Segment Income 104 ** ** 101 (59) International E&P Segment Income 407 446 453 Oil Sands Mining Segment Income 38 17 38 Total Segment Income 549 564 432 Not…
  29. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 29
    Select Balance Sheet / Cash Flow Data (B) 2012 2013 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q As of quarter ended: Cash and cash equivalents 0.5 0.5 0.7 0.7 0.8 Total debt 4.8 5.3 6.5 6.9 6.5 Cash-adjusted total debt 4.3 4.8 5.9 6.2 5.8…
  30. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 30
    Capital, Investment & Exploration Spending Reconciliation MM 2013 2013 Forecast YTD Capital expenditures 4,920 1,270 Investments in equity method investees 1 0 & others Exploration costs other than 262 60 well costs…
  31. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 31
    Estimated 2013 Production & Tax Rates by Jurisdiction Jurisdiction Approximate Production % Statutory Tax Rate U.S. 42 36%* Norway 21 78%** EG 30 25%** Angola 1 50% U.K. 6 62%** Total E&P 100 (exc Libya) Libya 93%**…
  32. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 32
    2012-2013 North America E&P Crude Oil Derivatives Term Bbls per day Weighted Average Benchmark Price per Bbl Swaps Oct 2012 Dec 2013 20,000 96.29 WTI Oct 2012 Dec 2013 25,000 109.19 Brent Option Collars Oct 2012 Dec 2013 15,000 90.00…
  33. 1Q 2013 Earnings Call – Marathon Oil Corp – slide 33

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