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Fourth Quarter 2012 – Marathon Oil Corp

Marathon Oil Corp · Feb 6, 2013 · 37 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. Fourth Quarter 2012 – Marathon Oil Corp – slide 1
    Fourth Quarter 2012 Earnings Conference Call and Web Cast February 6, 2013 Marathon Oil Corporation
  2. Fourth Quarter 2012 – Marathon Oil Corp – slide 2
    E&P Segment E&P Production Available for Sale Volumes without Libya 500 420 392 400 374 370 375 371 359 362 340 343 317 328 300 MBOED 200 100 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2010 2010 2010 2010 2011 2011…
  3. Fourth Quarter 2012 – Marathon Oil Corp – slide 3
    Lower 48 Onshore Production Forecast Available for Sale 250 P90 200 P10 P90 +17% P10 150 +25% +12% +7% +20% 100 50 0 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2011A 2011A 2012A 2012A 2012A 2012A 2013E 2013E 2013E 2013E % Oil…
  4. Fourth Quarter 2012 – Marathon Oil Corp – slide 4
    Upstream LHC Sales Volumes Excluding Libya 4Q-12 actual vs. 3Q-12 actual 3Q Actual Sales Volumes 4Q Actual Sales Volumes 297 MBOD 313 MBOD Canada 15% Norway Canada 18% Norway 27% 25% U.K. 5% U.K. 7% U.S. 37% E.G. 11% E.G.…
  5. Fourth Quarter 2012 – Marathon Oil Corp – slide 5
    Upstream LHC Sales Volumes Excluding Libya 4Q-12 actual vs. 1Q-13 estimate 4Q Actual Sales Volumes 1Q Estimated Sales Volumes 313 MBOD 310 - 330 MBOD Angola Canada 1% Canada 14% Norway 15% 25% U.S. 43% Norway U.K. 24% 7%…
  6. Fourth Quarter 2012 – Marathon Oil Corp – slide 6
    International E&P Cost per BOE Trend Includes Libya 25 20 15 /BOE 10 5 0 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 Field level controllable costs DD&A Other Production & ad valorem…
  7. Fourth Quarter 2012 – Marathon Oil Corp – slide 7
    International E&P Cost Data Annual Operating Costs per BOE 2012 Actual 2013 Estimates International E&P *** Field level controllable costs 3.97 4.75 - 6.25 DD&A* 9.27 9.75 - 10.75 Other** 3.71 3.00 - 4.00 Total Costs** 16.95…
  8. Fourth Quarter 2012 – Marathon Oil Corp – slide 8
    U.S. E&P Cost per BOE Trend 70 60 50 40 /BOE 30 20 10 0 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 Field level controllable costs DD&A Other Production & ad valorem taxes…
  9. Fourth Quarter 2012 – Marathon Oil Corp – slide 9
    U.S. E&P Cost Data Annual Operating Costs per BOE 2012 Actual 2013 Estimates U.S. E&P*** Field level controllable costs 8.31 7.50 8.25 DD&A* 23.61 27.00 28.25 Other** 10.16 7.00 - 8.50 Total Costs** 42.08 41.50 45.00 Eagle…
  10. Fourth Quarter 2012 – Marathon Oil Corp – slide 10
    U.S. Resource Plays Game Changers Eagle Ford - 230,000 core net acres Exit 2012 65,000 net BOED Raised 2013 target from 70,000 net BOED to 85,000 net BOED Bakken - 410,000 net acres Currently producing 33,000 net BOED Raising 2013…
  11. Fourth Quarter 2012 – Marathon Oil Corp – slide 11
    Total Company Cash Flow 2012 5,500 5,000 4,454 (437) (4,970) 4,500 4,000 3,500 3,000 2,500 MM 2,000 1,500 1,000 129 2,031 684 493 500 0 (1,033) -500 497 (480) -1,000 -1,500 -2,000 12/31/11 Op Cash Flow Working…
  12. Fourth Quarter 2012 – Marathon Oil Corp – slide 12
    Adjusted Net Income 4Q-12 vs. 3Q-12 Variance Analysis 600 119 (58) (1) (57) 454 (13) (56) 400 388 MM 200 0 3Q 2012 U.S. E&P Int E&P OSM IG Other Income 4Q 2012 (Pre-tax) (Pre-tax) (Pre-tax) (Pre-tax) (Pre-tax)…
  13. Fourth Quarter 2012 – Marathon Oil Corp – slide 13
    E&P Earnings 4Q-12 vs. 3Q-12 Variance Analysis 58 (77) 800 284 (97) (62) (91) 600 486 501 MM 400 200 0 3Q 2012 Volume Price DD&A Other Exploration Income 4Q 2012 Variance Variance (Pre-tax) (Pre-tax) Expenses Taxes…
  14. Fourth Quarter 2012 – Marathon Oil Corp – slide 14
    U.S. E&P Earnings 4Q-12 vs. 3Q-12 Variance Analysis 400 350 22 (105) 300 179 250 (46) MM 200 (63) 150 110 7 104 100 50 0 3Q 2012 Volume Price DD&A Other Exploration Income 4Q 2012 Variance Variance (Pre-tax)…
  15. Fourth Quarter 2012 – Marathon Oil Corp – slide 15
    International E&P Earnings 4Q-12 vs. 3Q-12 Variance Analysis 600 28 (51) 52 (98) 90 397 400 376 MM 200 0 3Q 2012 Volume Variance Price Variance DD&A Other Income 4Q 2012 (Pre-tax) (Pre-tax) (Pre-tax) (Pre-tax)…
  16. Fourth Quarter 2012 – Marathon Oil Corp – slide 16
    E&P Segment 4Q-12 E&P Volumes, including Libya Production available for sale was essentially flat compared to 3Q-12 Continued ramp-up in U.S. resource plays, Eagle Ford and Bakken; offset by Libyan gas sales agreement signed in…
  17. Fourth Quarter 2012 – Marathon Oil Corp – slide 17
    Oil Sands Mining Earnings 4Q-12 vs. 3Q-12 Variance Analysis 80 65 (50) 60 40 MM 20 11 19 (15) 18 2 (12) 0 -20 3Q 2012 Volume Price Variance DD&A Operating Other Income 4Q 2012 Variance (Pre-tax) (Pre-tax) Costs…
  18. Fourth Quarter 2012 – Marathon Oil Corp – slide 18
    4Q-12 Integrated Gas Results Segment income: 4Q-12 35 MM, 3Q-12 39 MM Net LNG sales volumes MTD : 4Q-12 6,327 vs. 3Q-12 7,065 14 Cargoes in 4Q-12, 16 Cargoes in 3Q-12 56 Cargoes in 2012 Net methanol sales volumes MTD : 4Q-12 1,465…
  19. Fourth Quarter 2012 – Marathon Oil Corp – slide 19
    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…
  20. Fourth Quarter 2012 – Marathon Oil Corp – slide 20
    Reserve Replacement Estimated Net Proved Reserves E&P OSM TOTAL Natural Synthetic % Proved LHC Total Category Gas Crude Oil (MMBOE) Developed (MMBBL) (MMBOE) (BCF) (MMBBL) of Total As of Dec 31, 2011 733 2,666 1,177 623 1,800…
  21. Fourth Quarter 2012 – Marathon Oil Corp – slide 21
    2013 Priorities Deliver 6 - 8% growth in Upstream (E&P and OSM) net production available for sale over 2012, excluding Libya and Alaska Spend within the announced capital, investment and exploration expenditures budget of 5.2…
  22. Fourth Quarter 2012 – Marathon Oil Corp – slide 22
    Q&A Session Marathon Oil Corporation
  23. Fourth Quarter 2012 – Marathon Oil Corp – slide 23
    Appendix Marathon Oil Corporation
  24. Fourth Quarter 2012 – Marathon Oil Corp – slide 24
    Upstream Volumes, Exploration Expenses & Effective Tax Rate 2012 (excluding Libya) 2012 1Q 2Q 3Q 4Q 2012 U.S. E&P Net Sales Volumes: Liquid Hydrocarbons (MBD) 90 93 111 133 107 Natural Gas (MMCFD) 344 319 366 404 358 U.S. Total (MBOED)…
  25. Fourth Quarter 2012 – Marathon Oil Corp – slide 25
    Upstream Volumes, Exploration Expenses & Effective Tax Rate 2013 Estimates (excluding Libya) 2013 1QE 2QE 3QE 4QE Year Est* U.S. E&P Net Sales Volumes*: Liquid Hydrocarbons (MBD) 137 141 Natural Gas (MMCFD) 320 330 U.S. Total (MBOED)…
  26. Fourth Quarter 2012 – Marathon Oil Corp – slide 26
    Reconciliation Net Income to Adjusted Net Income (MM) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2011 2011 2011 2011 2012 2012 2012 2012 Net Income 996 996 405 549 417 393 450 322 Exclude discontinued operations (541) (698) 0 0 0 0 0 0 Income from…
  27. Fourth Quarter 2012 – Marathon Oil Corp – slide 27
    4Q-12 Earnings (15)% 4Q 2012 3Q 2012 4Q 2011 Net Income 322MM 450 MM 549 MM Adjusted Net Income 388MM 454 MM 552 MM Net Income per Diluted Share 0.45 0.63 0.78 Adj. Net Income per Diluted Share 0.55 0.64 0.78 Adjusted Net…
  28. Fourth Quarter 2012 – Marathon Oil Corp – slide 28
    Net Income (MM unless otherwise noted) 2011 2012 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q E&P Segment Income 668 601 330 558 477 417 486 501 Oil Sands Mining Segment Income 32 69 92 63 41 51 65 19 Integrated Gas Segment Income 60 43 55 20 4 13 39…
  29. Fourth Quarter 2012 – Marathon Oil Corp – slide 29
    Select Balance Sheet / Cash Flow Data (B unless otherwise noted) 2011 2012 2Q 3Q 4Q 1Q 2Q 3Q 4Q As of quarter ended: Cash and cash equivalents 4.7 4.6 0.5 0.5 0.5 0.7 0.7 Total debt 5.0 5.0 4.8 4.8 5.3 6.5 6.9 Cash-adjusted…
  30. Fourth Quarter 2012 – Marathon Oil Corp – slide 30
    Capital, Investment & Exploration* Spending Reconciliation MM 2012 2012 Forecast Actual Capital expenditures 4,602 5,161 Investments in equity method investees 1 8 & others Exploration costs other than 419 272 well…
  31. Fourth Quarter 2012 – Marathon Oil Corp – slide 31
    E&P Cost per BOE Trend 40.00 35.00 30.00 25.00 /BOE 20.00 15.00 10.00 5.00 0.00 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 Field level controllable costs DD&A Other Production & ad valorem…
  32. Fourth Quarter 2012 – Marathon Oil Corp – slide 32
    4Q-12 E&P Expenses and Profitability 4Q-12 Income per BOE decreased 4% from 3Q-12, 11.18/BOE vs 11.70/BOE Decrease primarily due to higher DD&A, exploration and operating expenses Total expenses increased to 4Q-12, 33.02/BOE vs…
  33. Fourth Quarter 2012 – Marathon Oil Corp – slide 33
    E&P Realizations Average Realized Prices (excluding 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 4Q VS 3Q hedging) U.S. Crude Oil & Condensate (/BBL) 88.20 101.96 90.67 98.13 97.28 88.68 90.16 89.92 (0.24) U.S.…
  34. Fourth Quarter 2012 – Marathon Oil Corp – slide 34
    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%**…
  35. Fourth Quarter 2012 – Marathon Oil Corp – slide 35
    4Q-12 Select Financial Data 4Q-12 Corporate effective tax rate of 80% 66% excluding Libya Net Debt-to-Cap Ratio Cash + Cash Equivalents 30% 6 4.7 25% 25% 4.6 21% Cash + Cash Equivalents 20% 20% Net Debt-to-Cap %…
  36. Fourth Quarter 2012 – Marathon Oil Corp – slide 36
    2012-2013 U.S. 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 Floor…
  37. Fourth Quarter 2012 – Marathon Oil Corp – slide 37
    Marathon Oil Corporation

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