Marathon Oil Corporation (NYSE:MRO) Q1 2021 Earnings Conference Call May 6, 2021 9:00 AM ET Company Participants Guy Baber – Vice President of Investor Relations Lee Tillman – Chairman, President and Chief Executive Officer Dane Whitehead – Executive Vice President and Chief Financial Officer Pat Wagner – Executive Vice President-Corporate Development and Strategy Mike Henderson – Senior Vice President-Operations Conference Call Participants Jeanine Wai – Barclays Arun Jayaram – JPMorgan Chase Doug Leggate ...

Marathon Oil Corporation (NYSE:MRO) Q4 2020 Results Conference Call February 23, 2021 10:00 AM ET Company Participants Guy Baber - Vice President, Investor Relations Lee Tillman - Chairman, President and CEO Dane Whitehead - Executive VP and CFO Pat Wagner - Executive VP of Corporate Development and Strategy Mike Henderson - Senior VP of Operations. Conference Call Participants Jeanine Wai - Barclays Arun Jayaram - JPMorgan Neal Dingmann - Truist Securities Scott Hanold - RBC Capital Markets Phillips Johns ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission file number 1-1513 Marathon Oil Corporation (Exact name of registrant as specified in its charter) Delaware 25-0996816 (State or other jurisdiction of ...

[Part I - Financial Information](index=3&type=section&id=Part%20I%20-%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Marathon Oil reported a **$1.113 billion net loss** for the nine months ended September 30, 2020, driven by **41% lower revenues** and reduced cash flow Consolidated Statement of Income Highlights (Unaudited) | Indicator (In millions, except per share) | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :--- | :--- | :--- | | **Total revenues and other income** | $2,256 | $3,975 | | **Income (loss) from operations** | $(930) | $563 | | **Net income (loss)** | $(1,113) | $500 | | **Diluted net income (loss) per share** | $(1.41) | $0.62 | Consolidated Balance Sheet Highlights (Unaudited) | Indicator (In millions) | September 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Total current assets** | $1,922 | $2,135 | | **Total assets** | $18,663 | $20,245 | | **Total current liabilities** | $1,566 | $1,745 | | **Long-term debt** | $5,405 | $5,501 | | **Total liabilities** | $7,771 | $8,092 | | **Total stockholders' equity** | $10,892 | $12,153 | Consolidated Statement of Cash Flows Highlights (Unaudited) | Indicator (In millions) | Nine Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2019 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $1,055 | $2,049 | | **Net cash used in investing activities** | $(1,060) | $(1,924) | | **Net cash provided by (used in) financing activities** | $266 | $(422) | | **Net increase (decrease) in cash** | $261 | $(297) | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail significant financial events, including the 2019 U.K. business sale, 2020 impairments of **$95 million** goodwill and **$170 million** equity investment, and debt management actions like remarketing **$400 million** bonds and tendering **$500 million** notes - In July 2019, the company closed the sale of its U.K. business for proceeds of **$95 million**, recognizing a pre-tax gain of **$14 million** in Q3 2019[21](index=21&type=chunk) Revenues from Contracts with Customers (Nine Months Ended Sep 30, In millions) | Segment | 2020 | 2019 | | :--- | :--- | :--- | | **United States** | $2,154 | $3,434 | | **International** | $121 | $396 | | **Total** | $2,275 | $3,830 | - For the nine months ended September 30, 2020, the company recorded impairments of **$95 million** for goodwill in the International reporting unit and **$170 million** for an equity method investment, primarily due to the deterioration in hydrocarbon prices[52](index=52&type=chunk)[60](index=60&type=chunk) - On September 16, 2020, the company commenced a cash tender offer for **$500 million** of its 2.8% Senior Notes due 2022, which was fully subscribed and settled on October 1, 2020[85](index=85&type=chunk) - During the first nine months of 2020, the company repurchased approximately **9 million** common shares for **$85 million**, with **$1.3 billion** remaining share repurchase authorization at September 30, 2020[86](index=86&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 2020 net loss to declining commodity prices and demand, responding by reducing the capital budget by **50%** to **$1.2 billion**, maintaining **$4.1 billion** liquidity, and reinstating the quarterly dividend [Executive Overview and Outlook](index=33&type=section&id=Executive%20Overview%20and%20Outlook) The company focuses on U.S. resource plays, prioritizing balance sheet protection and liquidity, with a **$1.2 billion** capital budget and **$4.1 billion** liquidity at Q3 2020 - The company's primary focus is on protecting its balance sheet and maintaining a strong liquidity position of approximately **$4.1 billion** at the end of Q3 2020, including a **$3.0 billion** undrawn credit facility and **$1.1 billion** in cash[109](index=109&type=chunk) - The full-year 2020 capital spending budget was reduced to **$1.2 billion**, a **50%** reduction from the original budget, in response to declining commodity prices[113](index=113&type=chunk) - Full-year 2020 production guidance is between **375 mboed** and **390 mboed**[114](index=114&type=chunk) [Operations and Market Conditions](index=34&type=section&id=Operations%20and%20Market%20Conditions) Q3 2020 total net sales volumes decreased **14%** year-over-year to **368 mboed** due to reduced drilling, while average U.S. crude oil realizations fell **31%** to **$37.78/bbl** Net Sales Volumes (mboed) | Segment | Q3 2020 | Q3 2019 | % Change | | :--- | :--- | :--- | :--- | | **United States** | 297 | 339 | (12)% | | **International** | 71 | 88 | (19)% | | **Total** | 368 | 427 | (14)% | - Drilling and completion operations were suspended in Oklahoma and Northern Delaware during Q2, with no new wells brought to sales in Oklahoma in Q3[122](index=122&type=chunk) Average Price Realizations (Q3 2020 vs Q3 2019) | Product (U.S. Segment) | Q3 2020 | Q3 2019 | % Change | | :--- | :--- | :--- | :--- | | **Crude oil and condensate (per bbl)** | $37.78 | $55.09 | (31)% | | **Natural gas liquids (per bbl)** | $11.80 | $11.37 | 4% | | **Natural gas (per mcf)** | $1.78 | $1.92 | (7)% | [Results of Operations](index=38&type=section&id=Results%20of%20Operations) Q3 2020 revenues fell from **$1.25 billion** to **$761 million**, resulting in a **$127 million** segment loss, driven by lower prices, volumes, and impairments, partially offset by reduced expenses Price/Volume Analysis - Revenue Change (Q3 2019 to Q3 2020, In millions) | Segment | 2019 Revenue | Price Impact | Volume Impact | 2020 Revenue | | :--- | :--- | :--- | :--- | :--- | | **United States** | $1,172 | $(256) | $(194) | $722 | | **International** | $77 | $(16) | $(22) | $39 | - Production expenses decreased by **$34 million** in Q3 2020 versus Q3 2019, primarily due to lower operational costs and cost management in the U.S. segment[138](index=138&type=chunk) - General and administrative expenses decreased by **$29 million** in Q3 2020 compared to Q3 2019, mainly from cost savings realized from workforce reductions[142](index=142&type=chunk) - For the first nine months of 2020, impairments increased by **$74 million** year-over-year, primarily due to a **$95 million** goodwill impairment in the International reporting unit[151](index=151&type=chunk) [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) As of September 30, 2020, Marathon Oil maintained **$4.1 billion** liquidity, actively managed debt by tendering **$500 million** notes, kept a **35%** debt-to-capital ratio, and reinstated a **$0.03 per share** quarterly dividend - Total liquidity at September 30, 2020 was approximately **$4.1 billion**, consisting of **$1.1 billion** in cash and **$3.0 billion** available under the revolving Credit Facility[166](index=166&type=chunk) - On October 1, 2020, the company completed a cash tender for **$500 million** of its 2.8% 2022 Notes, funded by cash on hand, with the next significant debt maturity of **$500 million** in November 2022[168](index=168&type=chunk) - The debt-to-capital ratio was **35%** at September 30, 2020, in compliance with the **65%** covenant limit[171](index=171&type=chunk) - The share repurchase program was suspended to preserve liquidity, while the Board of Directors approved the reinstatement of a quarterly dividend of **$0.03 per share** on October 1, 2020[167](index=167&type=chunk)[172](index=172&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces commodity price and interest rate risks, with a **10%** price decrease potentially increasing net derivative assets from **$43 million** to **$70 million**, while its **$5.9 billion** debt portfolio is fixed-rate Commodity Derivative Fair Value Sensitivity (as of Sep 30, 2020, In millions) | Scenario | Crude Oil Asset | Natural Gas Asset (Liability) | Total Net Asset | | :--- | :--- | :--- | :--- | | **Current Fair Value** | $42 | $1 | $43 | | **10% Price Increase** | $42 | $(30) | $12 | | **10% Price Decrease** | $68 | $2 | $70 | - At September 30, 2020, the company's debt portfolio of **$5.9 billion** consisted of fixed-rate instruments[179](index=179&type=chunk) [Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of September 30, 2020, with no material changes to internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of September 30, 2020[182](index=182&type=chunk) [Part II - Other Information](index=50&type=section&id=Part%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings) No significant changes to legal proceedings have occurred since the 2019 Annual Report on Form 10-K - No significant changes to legal proceedings have occurred since the 2019 Annual Report on Form 10-K[183](index=183&type=chunk) [Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from the COVID-19 pandemic's impact on demand and prices, increased environmental regulatory costs, and potential transportation constraints like the Dakota Access Pipeline challenges - The COVID-19 pandemic has had an adverse impact on business, financial condition, and operations due to a substantial decline in demand and prices for hydrocarbons[185](index=185&type=chunk) - The company faces risks from numerous environmental laws and regulations, including potential new rules on methane emissions and climate change, which could increase capital expenditures and operating costs[187](index=187&type=chunk)[190](index=190&type=chunk) - Pipeline and transportation capacity constraints pose a risk, where a potential shutdown of the Dakota Access Pipeline could require finding alternative, potentially more costly, transport for approximately **10,000 net bpd** of Bakken oil[191](index=191&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2020, Marathon Oil suspended open market share repurchases, acquiring **27,584 shares** from employees for tax purposes, with **$1.32 billion** remaining authorization Share Repurchase Activity (Q3 2020) | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Publicly Announced Program | Remaining Authorization ($) | | :--- | :--- | :--- | :--- | :--- | | **July 2020** | 27,584 | $5.89 | 0 | $1,320,335,751 | | **Aug 2020** | 0 | N/A | 0 | $1,320,335,751 | | **Sep 2020** | 0 | N/A | 0 | $1,320,335,751 | | **Total** | 27,584 | $5.89 | 0 | | - The company temporarily suspended its share repurchase program during the second quarter of 2020 in connection with the economic downturn[193](index=193&type=chunk) [Exhibits](index=51&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents, CEO and CFO certifications, and XBRL data files - The Exhibit Index lists all documents filed with the report, including the CEO and CFO certifications pursuant to Sarbanes-Oxley Act rules (Exhibits 31.1, 31.2, 32.1, 32.2)[194](index=194&type=chunk)[196](index=196&type=chunk)

Marathon Oil Corporation (NYSE:MRO) Q3 2020 Earnings Conference Call November 5, 2020 9:00 AM ET Company Participants Guy Baber - Vice President, Investor Relations Lee Tillman - Chairman, President & Chief Executive Officer Dane Whitehead - Executive Vice President & Chief Financial Officer Mitch Little - Executive Vice President & Adviser, Chief Executive Officer Mike Henderson - Senior Vice President, Operations Conference Call Participants Arun Jayaram - JPMorgan Jeanine Wai - Barclays Neal Dingmann - T ...

Financial Performance & Strategy - The company is committed to a framework that prioritizes corporate returns, sustainable free cash flow (FCF), and return of capital to shareholders[5] - At a WTI price of $45/bbl or higher, the company targets a reinvestment rate of 70% or less, allocating over 30% of CFO to investor-friendly purposes[7] - At a WTI price between $40/bbl and $45/bbl, the reinvestment rate is projected to be 70% to 80%, with over 20% of CFO allocated to investor-friendly purposes[7] - The company generated $180 million of FCF in 3Q20 and reduced gross debt by $100 million[27, 29] - The company is targeting a net debt to EBITDAX ratio of 10x to 15x[9] Operational Efficiency & Production - The company's capital efficiency in the Bakken and Eagle Ford basins exceeds top quartile industry results[10] - Completed well costs (CWC) per lateral foot in Eagle Ford were down by more than 18% in 3Q20 compared to the 2019 average, averaging ~$675 per lateral foot[36] - In the Bakken, 3Q20 average CWC was ~$445 per lateral foot, down more than 12% from the 2019 average[38] - The company expects approximately 15 wells to sales in 4Q20 in Eagle Ford and approximately 20 wells to sales in 4Q20 in Bakken[36, 38] Guidance - The company's 2020 capital expenditure guidance remains unchanged at $12 billion[24, 58] - Full-year 2020 oil-equivalent production guidance for the United States is raised by 5 MBOED at the midpoint[27, 53]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission file number 1-1513 Marathon Oil Corporation (Exact name of registrant as specified in its charter) Delaware 25-0996816 (State or othe ...

Financial Data and Key Metrics Changes - The company limited its capital expenditures (CapEx) to $137 million in Q2 2020, a significant reduction in response to the downturn in commodity prices [11] - Total oil production was reported at 197,000 barrels per day, despite voluntary curtailments of 11,000 barrels per day [11][12] - U.S. unit production costs decreased to $4.09 per barrel, marking a nearly 20% reduction compared to the 2019 average [12][18] - The full-year 2020 capital spending guidance was reduced from $1.3 billion to $1.2 billion, while the oil production outlook was raised to 190,000 barrels per day [13][14] Business Line Data and Key Metrics Changes - The company focused on capital allocation to the Eagle Ford and Bakken regions, expecting well costs per lateral foot to decrease by more than 20% in the second half of 2020 compared to 2019 [13][14] - The company successfully transitioned back to work in July, running three rigs and two frac crews across the Eagle Ford and Bakken [15] Market Data and Key Metrics Changes - Global oil demand has improved from the lows experienced during the COVID-19 pandemic, although macroeconomic uncertainty remains high [10] - The corporate free cash flow breakeven is projected to be in the low $30 per barrel range for the second half of 2020, indicating strong free cash flow generation potential at current pricing [21] Company Strategy and Development Direction - The company aims to prioritize financial strength, protecting its balance sheet, liquidity, and cash flow generation [20] - A focus on capital efficiency and cost reduction is emphasized, with a target reinvestment rate below 80% of cash flow generation [24] - The company is not pursuing large-scale mergers and acquisitions but remains open to opportunities that meet strict financial criteria [42][45] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the COVID-19 pandemic but highlighted the company's resilience and commitment to operational excellence [7][8] - The company expects to generate significant free cash flow in 2021, with a benchmark maintenance case breakeven of approximately $35 per barrel [21][22] - Management expressed confidence in the long-term value of its assets, particularly in the context of improving commodity prices [36] Other Important Information - The company has implemented cash cost reduction efforts, expecting to realize $260 million in total cash cost savings for the year [18] - Total liquidity remained substantial at over $3.5 billion at the end of the quarter, maintaining investment-grade ratings from credit agencies [20] Q&A Session Summary Question: Thoughts on free cash flow under a maintenance scenario for 2021 - Management confirmed that estimates for free cash flow are in the right range, with a focus on prioritizing debt reduction and returning capital to shareholders [28][31] Question: Outlook for Equatorial Guinea (EG) in 2021 - Management highlighted the long-life, low decline nature of EG assets and the potential for cash flow stabilization despite commodity price fluctuations [35][36] Question: Clarification on updated 2021 maintenance commentary - The updated breakeven of $35 reflects improved capital efficiency and greater certainty around maintenance scenarios [40] Question: Portfolio approach and potential for adding scale - Management reiterated a focus on balance sheet strength and shareholder returns rather than large-scale acquisitions [41][42] Question: Impact of recent legal decisions on Bakken strategy - Management viewed the recent ruling as a net positive, with resilient economics in the Bakken and limited direct exposure to the pipeline [48][49] Question: Hedging philosophy for 2021 - Management indicated a cautious approach to hedging, preferring to protect upside leverage while being opportunistic in the market [61][64] Question: Clarification on the REx program and reinvestment rates - The REx program is included in the broader capital allocation discussion and will compete within the reinvestment percentage [66][67] Question: CapEx and cash flow expectations for 2021 - Management confirmed that the focus is on generating positive free cash flow while maintaining capital efficiency [76]