Financial Performance & Capital Allocation - Marathon Oil expects greater than $2 billion of free cash flow (FCF) in 2021 based on strip pricing[6, 21] - The company is targeting approximately $500 million of share repurchases during the fourth quarter of 2021, with $200 million already executed[5, 17] - Marathon Oil anticipates returning around 50% of its fourth-quarter cash flow from operations to equity holders through increased base dividend and share repurchases[5, 7, 29] - The board increased the share repurchase authorization to $2.5 billion[5, 7, 17] - The company reduced total 2021 gross debt by $1.4 billion, contributing to approximately $50 million of annualized interest savings[17, 23, 24] Sustainability & Operational Efficiency - Marathon Oil is working toward a 2021 greenhouse gas (GHG) emissions intensity target of at least a 30% reduction and a 2025 goal of at least a 50% reduction, both versus a 2019 baseline[15, 17] - The company achieved a 3Q21 company-wide gas capture rate of greater than 99%[15] - The company's 2021 reinvestment rate is tracking below 35%[17, 21] Production & Exploration - 4Q21 total oil production is expected to increase to 176-180 MBOPD compared to 3Q21 production of 168 MBOPD[21, 69] - Initial productivity from the Texas Delaware Oil Play multi-well pad is exceeding expectations[6, 38] - 3Q21 equity earnings from Equatorial Guinea were $86 million, compared to cash dividends of $47 million[39] 2022 Outlook - Marathon Oil is positioned for continued top-tier FCF generation and a leading return of capital profile in 2022[7, 44] - The company targets to return at least 40% of CFO to equity investors at $60/bbl or higher WTI, providing a peer-leading return of capital profile, with a minimum return to equity holders of ~$1.6B at recent strip and ~$1.1B at $60/bbl WTI[16, 44]
Marathon Oil(MRO) - 2021 Q3 - Earnings Call Presentation