Marathon Oil(US:MRO)2020-11-04 22:34Financial 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]