Marathon Oil(US:MRO)2021-08-06 18:55Financial Performance & Capital Allocation - Marathon Oil generated over $850 million of free cash flow in the first half of 2021[4] - The company is increasing its return of capital target to at least 40% of cash flow from operations, assuming an oil price of $60/bbl WTI or higher[5] - The company expects to return >$1 billion per annum to equity investors in a $60/bbl WTI or higher price environment[13] - The 2021 capital budget is $1 billion, expected to deliver $1.9 billion of free cash flow assuming $65/bbl WTI and $3.00 Henry Hub[13] - The company is accelerating its gross debt reduction objective through full redemption of $900 million of 2025 maturity notes, increasing total 2021 gross debt reduction to $1.4 billion[13, 22] Sustainability & ESG - The company is working toward a 2021 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[12, 13] - CEO and Board compensation has been reduced by 25%, and the compensation framework has been optimized and redesigned[13] - The company achieved a 2Q21 company-wide gas capture rate of 98.5%[12] Production & Operations - 2021 U S oil-equivalent production guidance was raised by 5 MBOED[16] - The company is raising 2021 equity income guidance by >70% to $180 million to $200 million[52] - The company's corporate free cash flow breakeven is below $35/bbl WTI[13, 16]