MRO - Earnings call 3 2023 | Marathon Oil Corp

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Operator

Good day, and welcome to the Marathon Oil Third Quarter 2023 Earnings Conference Call. [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to Guy Baber, Vice President of Investor Relations. Please go ahead.

Guy Baber

also morning. for thanks the us and this call Danielle, to joining everyone on Thanks, the we our after and results. Yesterday, close, investor slide release, packet presentation, a that address third XXXX issued quarter a press documents Those at be our found website can marathonoil.com. on .

call Corporate today's Tillman, Lee and VP Henderson, Development Dane and on and Pat Wagner, of our and Executive Executive Strategy; VP me CFO; President Operations. Executive CEO; are Joining Chairman, Whitehead, VP of Mike

press been factors risks terms in certain implied the to uncertainties will as non-GAAP materials. materially to contain statements. I'll and forward-looking cause included our As results reconciled that well refer language our today's a earnings also reminder, as actual subject the described which discussion could today's and call reference in in risk from defined statements those by have everyone and presentation SEC to release materials in differ cautionary expressed the or filings. We'll such

I'll over those remarks, provide to turn After of prepared completion So will with question-and-answer session. the a the remarks who and that to the we'll of team, call intro, today. the rest Lee? Lee move

Lee Tillman

and Guy, call to everyone good listening today. to our morning you, Thank

my the . There want execution another start true morning. call core needs. to as the I values another gas thanks this you want quarter for on contractors stay great and we takeaways our our with our to to deliver continuing a world leave First, success. and to few framework I quarter while oil are key by again responsibly employees against expressing our comprehensive to for of Well done

operational continue record results. financial is we execution that results, to build translating quarter peer-leading consistent track third to on of the our First,

adjusted improve level. And this $XXX expect a our flow cash Our million fourth flow delivery. just further of free quarter during free strong already at execution generation I strong XX%, truly the exceptional from culminated cash in rate to reinvestment of

we a spending while to of our quarter program nature same prior cash range, of guidance, XXXX remain third unit quarter. top half-weighted our At than from the our of significant our which time, to managing The lower production the capital increase declined above declined. focused end annual capital XX% contributed year first guidance end full year down the in the our on more costs,

well are underlying deflation driving efficiencies of take positioned but ensuring expense to of both We that aspects our advantage all opportunities are capital. any business, in and are we market-based

S&P to morning. framework flow-driven continuing Powered transparent return the as cash consistent to through our our Second balance capital foundation by XXX and we're sheet. continue we peer execution, that this enhance on key the shareholders shareholder delivering our our while and cash takeaway lead prioritizes of our And importantly, returning first broader this to group investment-grade our shareholders on call flow. objectives

leading shareholders, million annualized third than we to from XX% more $XXX share to offering During the quarters quarter, of of return double-digit framework. a We're bringing pure $X.X representing flow growth. with top shareholders yield line per total capital our X our fully distribution consistent operations, and cash through returned first billion.

prepayment including our driven reduction any of Our on and consistent company. share XX% the loan. repurchases year, also to and pure this over term $XXX share We've outstanding a far excess million X committed $XXX our has now count approach quarters, debt trailing to a reduced by million our gross October

less metrics our $X at on objective will way debt well lower our a of conservative than financial price billion to leverage enhance gross to our our medium-term oil EBITDA Xx flexibility and that assumption. We further are about

increase is our gross our not capital that composition. in of authorization approved to Board to and XX% share debt It remain our both we billion. to ahead, program outstanding focus, a reduction. recently an Consistent steadfastly $X.X increase committed further Looking [indiscernible] return an repurchase our and base with dividend

this of key marks we lowest $XXX end our is sales the program. ensures That end, dividend this synergy of legacy a to group. My also Hub our breakeven the of increase our the by our unique is to Link this XXXX, now contract third that To assuming price, in repurchase on the a substantial Gas per takeaway increase by for to a fully which is uplift approximately $XX morning post-dividend Integrated line Gas. the this funded expires LNG In exposure. financial This price signed set equity pricing the at to free year. agreement significant XXXX, which hold with raise EG business a driven year-on-year is million peer LNG Importantly, global TTF contribute cash flow in Henry $XX in recently contract, MMBtu. contract new TTF the Alba this million, is EBITDA to $XXX our expected we new of conclusion realize

cash our free portion With longer-term generation additional in the of this operations, realize to the By gas enhancing the focus the all EG the a turns contractual integrated fee further methanol of higher-margin phases EG. optimizing Hub to progressing necessary version our formalized, and of agreements uplift capacity Gas concept. flow now Mega gas to including LNG

free XXXX on and business takeaway cash that flow benchmark outcomes E&P high-quality flow matter reinvestment the that is the our that track group metrics top productivity peer differentiated capital key most, final that durable underpinned running. and breakeven, plus year-over-year generation, deliver we Our a cash high-quality offers a free demonstrating are and plan remain efficiency, is of of to production growth per high-return These on at inventory decade by rate, share. a

as same. more the XXXX, And of expect to I look I ahead

priorities change. for and won't core our framework Our success

day. free deliver and again is generation, objective best program cash we flow by per maintenance again objective be oil of XXX,XXX of We'll believe, strive to per oil return share an our Our will to maximize peer-leading sustainable accomplished capital barrels a growth. of

growing the global LNG multi-basin our will a year turn exposure expect Dane, to from brief across portfolio. another productivity financial update. the and associated we our fully the provide high-quality and And I'll that, I execution benefit strong well to who of market over financial will uplift. With tailwind of very it operational added

Dane Whitehead

Lee, and you, the call all to on today. Thank morning good

As $XXX by just an quarter $XXX highlighted Lee free flow, was rate of million adjusted and cash XX% the third of capital million of exceptional shareholders. financial mentioned, reinvestment back for quarter a us returned to

to without capital Importantly, flow proposition the stronger we quarter is during that our generation we in expect free by but even moderate. as significant It shareholders continues cash capital to now, should saying our the back continue to returning value fourth marketplace. our believe spending to foundational go

through years, are not just record can We're be results in long-term a that building shareholder our the now successfully and measured that We're the track of cycle compelling years differentiated. program and into delivered both orders. line X of is bottom returns consistent journey

our The growth along sustainable remain to and off, X repurchased market the our per of Over is $X.X our we've share billion share repurchases approach of levels, combination now and dividend. consistency capitalization. this material the metrics. XX% on contributing trailing the at our That's standing driving returned billion $X.X share commitment count peer-leading current back of quarters, powerful our with we committed competitive reduction a our We've paid to base attractive XX% to of over stock shareholders. to and

count quarters. free quarter. base buyback dividend funded our flow increase our raised This the by that was share from is ninth breakeven, end, program, the reduction fully this peer by last we increase in protecting which lowest XX% To group. our our XX in cash That's the

outstanding continue our which increased buying $X.X gives we've to of runway Additionally, authorization stock. share to repurchase billion, us plenty

our our few can million is last and As through plan leadership of paid debt I've investment-grade We of already now We've capital down gross on term return quarters, are reduction. further including October. $XXX that's over improving down the do also debt exactly $XXX loan said maintain sheet this balance demonstrating. that both million year-to-date in we to what gross paid we while

continue the current October. Looking in to be million down inclusive term we paying At to quarter fourth already $XXX fourth expect of to pay loan. able the and million to quarter, $XXX million down in that's $XXX aim reduction we the executed to prices, specifically,

term expense. rate minimum we principle to opportunity. return free in shareholder continue aggressively that of balance XX% variable our reducing hit carries to With the flow cash loan And a interest meaningful CFO expect our interest the cash will make of outstanding annual

sheet investment-grade we'd balance in yet like is stronger. very territory, strong, firmly even it Our to be

prices Xx to around at is EBITDA. debt current Our prevailing commodity leverage

over a Over I'll debt level to to the down acquisition. With $XX the price reduce term, assuming our medium $XX Mike. around to that $X current where our would summary, translate back to billion to it would return turn is Ensign of was before it WTI objective financial It debt gross environment. gross EBITDA, to to $X.X That a onetime billion. debt

Mike Henderson

self-help on sheet durable ultimately balance The improve advantage shareholder commercial also our with wealth we and our basis strength inventory. of while sustainability XX this to continuing successful control. completion quantity further our More are those that and leverage highlights by enhanced peers. In earlier per the Ensign take were fully consistently of productivity initiatives our recognize strong Ford, delivering XXXX. specifically, our potential to ourselves the multi-basin foot Slide U.S. execute. is than and we our and and quality within year has Though of XXX-day our high-quality the ability quality Dane. cumulative the return the At acquisition trending Eagle of integration average efficiencies. both our positioning we deflation, of drilling are portfolio to is a and better underpinned levels, on flat XX% year Thanks, this high oil are productivity

the and set underlying operational gets components of is most drilling been while improvement are year the this focused More matters we're XXXX, to quartile. If execution XXXX XX%. is months, equivalent top than basin. both online oil wrapping productivity wells we've area. very program improved Permian, transition longer lateral in X to delivering the integrated program our reliably in to up best efficiency industry specifically, but well our delivering on is pace appear completion I the our with numerator has equally our less drilling the We're to strong to oil in drilling and Wells a consistently now efficiencies efficiency X-mile versus the our driver Field the efficiency just productivity a there completion capital also oil productivity with X denominator. fully first average. execution another we're of oil am And our or is year-to-date the better. the for the efficiency laterals for and early the XX% and tension, improve than primary level average costs. improve. report the productivity and external year Our through on X-mile productivity consistent flat significantly while to equation In the to with better bringing in capital continuing strong basin Ajax XX% pleased well market,

market it's We've taken changes improved made our we've time of preplanning and efforts, placed sense, have nonproductive and our service implement a closely advantage of continue business an to on where drive certain high-grading we improvements. location, to with execution incremental reduced work which can quantifiable emphasis areas that longer-term providers greater

and job to teams targeted great business by commercial this all Turning year. EG, achieving our Integrated our milestones our Gas in

significant of longer Glencore, to a no will year. With X, at EBITDA MMBtu. $XXX natural million, the beginning our Alba linkage. range January LNG Hub signing company $XX with expected XXXX, curve our European uplift of contract $XX at current pricing is Henry LNG pricing for Hub next $XXX TTF Henry TTF-linked be to arbitrage of between increase forward assuming and sold price current to drive new per The million Alba year-over-year A financial gas sourced

the framework now fully place in to uplift. With financial this commercial realize

stronger Our for longevity focus to extending performance. further financial the turns now

Alba of LNG from value Next year, have alignment diverting gas to our the working higher interest our the the integrated operations methanol facility highlighting where entire higher will across begin flexibility portion EG the margin, of a we chain. facility,

assess to to in that molecules on flow our targeting risk, continuing program the the could fuel plant. shorter beginning and LNG equity we're execution infill low XXXX cycle X-well the high drilling partially Alba up Additionally, Alba through of maximize opportunities decline block, confidence, mitigate

to expected generated is with Our from our risk-based U.S. returns Alba program resource plays. the complete infill

Chevron our in unique areas year. Hub is infill make EG impact earlier Mega capital infrastructure described world-class ourselves, continue heads capital to the agreement spending in overall our fully to government Africa. most concept we EG between this of unlikely and significant Although the Gas more gas on advance leveraging one XXXX program. And as truly any finally, Alba and partner a of the our prone West By signed longer-term

likely capacity. Lee, We our The well multiyear opportunities. With LNG cap include expect the will to development the next that, flow monetization it of well further turn wrap the who next potential extend will I decade of over life same to into will as cash phases enhance free . call and as cross-border our gas up

Lee Tillman

you, Thank Mike.

and investor I now, that performance with our have financial for years sponsorship, other to For competitive in our must we alternatives company investment sector reiterated for deliver attract the increased market.

flow to measured returns, top the secure group. anything seen XXXX, counting and less S&P, E&P. in space sector. exactly of cash at free recently. performance but address generation, not would consolidation corporate years As obviously our close, be to And significant the looking that if for peer competitive, the just I don't I return and We've by capital. ahead X I last remiss We've of over change. To type very expect competitive delivered More landscape didn't our and

clear: facts gas traditional circumstances, have demand global critical a own is for its set low-cost, helping While will common a play assets come. meet every high-quality in energy unique with transaction role and decades to takeaway of oil is and to

within opportunities in valued M&A. Recently, on risk-adjusted you and gas U.S. our And critical potential long-term have to be the returns involvement speculating that and space, to the articles meeting may and we'll with short-cycle continue highly Marathon's oil seen further shale demand. innovation, advantaged for

our I call, or explore are always address enhance changed. on has any whether shareholders, won't long-term or to today's to opportunities organic been objective avenues the responsibility market specific our our further those rumors always nothing our That's and it's our will that and reiterate While speculation inorganic. for value duty shareholders, to I

return approach our better, just large, be company will our the our the inventory for and or the by principles all and well-established Ensign sheet. logic It basins, not must meet enhancing as balance and delivery industrial accretion, bigger, transaction, within is boxes tried to been small existing of Oil, of which framework life For financial has our cash exemplified M&A, and and against to consistent ticked true investment-grade success. no our harm our not about criteria. Marathon making compromised Any of our extension transaction

of gas Marathon all our billions high-return that protecting Oil for deliver an group that to we've of are U.S. energy Our positioned company to for the companies. significant poverty energy of few one E&P our defending continue financial living role and paradigm while from expansion. standard to inventory I'm also an drive with results playing necessary global energy delivering those LNG of over a believe that shift is I elite an well how in come of our EG proud decade to transition shareholders to with of companies energy needs to shareholders. one U.S. be unique security, strong And high-quality and out collectively integrated to of lifting expansion and is enjoy. business growing a exposure. of U.S. incremental differentiated energy

corporate by base our our that cash open to operational ongoing have strategic flow can of shareholders and leadership all prioritizing while generation, significant enhancement of confidence line guide decisions financial all the strong our balance our can return And and will for Our capital speaks that, sustainable resource returns, and Q&A. you we protecting investment-grade framework continue sheet. With to itself. free for

Operator

Instructions]. [Operator

comes The Jayaram Arun first question JPMorgan. from of

Arun Jayaram

wanted Marathon. an potentially MOE X-K what X-K And an got filing numerous filed this was you wanted as you week. to Looks how on and you MRO But could an you touch follow get disposition M&A Reg the M&A and if with amendment would I I asset could an could just that your more earlier last well. deal transactions for wanted Lee, address, as like upon view of your viewed pings on thoughts see week be we if filing that maybe from comments up was buy-side under just to under that FD. had or to

Lee Tillman

we high-quality tick our criteria. need add It's have already any lens. going to confidence. to in high scale criteria to of life back and to transaction the our worries. you logic, whatever through where take is to basins still life. Well, first to resource of to and we is talk different stated we It want don't inventory whether needs need all one meaning bolt-on It fully needs have of is MOE like No really industrial Yes. going I of Ensign for return And going all, large any or did to at you I'll that's the about, clear M&A us. very be to which the have to accretive. in boxes It around It's in just remarks, I prepared execution what M&A play. transaction in flavor financially cash mean of the exists look to those in be a accretive.

And financial can't balance any do then flexibility. and our it investment-grade finally, sheet harm to

So going really that the corporate since prompted the me noise some a opportunity. lens, got of our than on more it's updated to it we're that going cleanup created X-K. not XXXX. This he's bylaws. to of criteria rest just how any the in be classified, to put the room. let amendment little any We those that's mistake scale of the on irrespective had on There back was was evaluate bylaws a the there's the maybe but which bit Yes, nothing just

Arun Jayaram

had is development release your a some the be. thoughts EG. kind on in could for as you partner in And which implications could perhaps well, right to the later the what volumes follow-up outline at you were back earlier talk Alba to some maybe in XXXX. Lee, why could mentioned your new they program of LNG, of sales talk that And ability is shift to wrinkle, about on you? from methanol Can the long-term by about Glencore. you My October Great. press maybe agreement you you

Lee Tillman

you into question. packed a just that lot Okay. Well,

Glencore. with maybe start me Let

I say to an when tension put base did First, job marketplace. we competitive out team, we of load a had of lot in exceptional team for the the upfront want interest creating the those RFP marketing that cargos. And the

So offer have linkage EG. a fixed the is X-year with a positive, transportation in as TTF with competitive working in came operating well. of a very term and and experience Glencore also element course, They

familiar cetera, we scheduling business operate et So with very lifting a the there. they're from standpoint, how

experience have foremost, Glencore the I and added an driving course, fact country. it offer lot a in was of first think and the did about best bonus, of So was competitive that already

we question, finally, get last there. some infill And ahead competes we're The between obviously TTF Alba of the a there's talked little the a of plays. redirecting value of as that have from the across we this those methanol our with this, but and that, a really flow the optimizing chain, in short general, and On And economic program. be And as around opportunities and reason can resource the the that where it TTF that cycle strongly as arbitrage pricing full return at in divert we can value the of space. pricing on the incremental importantly, U.S. head-to-hand of those under mentioned way Henry his question element we volumes standpoint you in And where our we've the available element as contract that then that just obviously, feel attained. optimization lot think to look is us I we look we well send But to offshore diversion market gas that the where as is up described an to the well. of infill the as the Hub alignment and up in look facility. just Mike like some at we another end as just about we around we've highest all, X-well thus a been very new where bit LNG, feed and to has arbitrage because far first adding program methanol value we really about your molecules believe was some pursuing 'XX. And can can that EG will terms comments,

drilling with required. facilities no investment We dry have trees. will This is high geologic very There be certainty. all jack-up

And the work so patient infill say just through we're I lot program about just February's and with process. And just have be a program. more Alba that budget release to of would us. working as part say, We'll

me I I think I tell if didn't. everything, call but

Operator

Citi. The next Scott question comes from Gruber of

Scott Gruber

course targeted year. bit ticked the TIL the at how back looking over the the well the full the has of over Just It year. course and looks schedule year evolved that's a your of count like for just higher

the So all this the your at bit count out the you you XXX can would so you next include next the do year, a oil count well in to XXX take JV production at year, or or well wells? you year? a higher think as question needing maintenance is, if achieve look program so flat from you Or the anticipate

Lee Tillman

efficiency a Yes. want that say the in Well, to and want efficiency. about of side we're And that. both I of we positive there, which story all, momentum. that brakes achieving just that to we TIL talked When completion pump drilling the that first obviously, the would kind there's execution in continue Mike around count, don't is on

to higher. So bit that, that again, a being you sales saw count wells

of you, flattish long to expect still capital, a year-over-year. It's XXXX lead the about with some capital to kit bit be in say, will program. tell specifically I talk a from little essentially the even EG, But we probably program premature

gross so think net basis And wells well a be generally that kind a have year. that move on from of net with we to been you expect in maybe where alignment would this would be the would wells, I we of -- if subtext we -- to on

in was move of we seen into started shows XXXX, deck lot early to quite underlying was as we as that that's going we're And we productivity you frankly, for And really productivity is a a our planning even trend that year. productivity. from moving there next support believe XXXX, in XXXX be able by no driven we downshift have really that to to which the that the that that,

very going to a able good be that and had XXXX. going We've the this momentum year, into that So XXXX. but that about to can continue that in efficiency deliver bar pretty we believe capital we we're feel high trend we

Scott Gruber

Again, those contractors. completion and leverage obviously giving efficiencies your look it. some service Got on it's drilling robust you

latest of overall into on the what's potential thinking kind So 'XX? deflation

Mike Henderson

Scott, here. take that it's Mike I'll one.

little on definitive like. of So cost. early XXXX 'XX. I industry we're to single-digit towards call bit going think any And to again, service kind that make what activity mean, said, year-on-year dependent it more I But of a prices ultimately, in low think, levels be do. feels that look trending I it's still kind deflation likely on what commodity importantly,

us, to I going largest 'XX, is hydraulic contribution think for looking at and deflation around be horsepower. steel any to likely

labor, the categories significant counter sticky. pretty any cost have to Maybe still labor that that

don't that's part services, when labor. of much big So think B&C a is And movement you there. about that see

various don't So areas. certainly any on in kind little more the see much bit maybe detail just the as where an a providing of we area absent deflation move commodities. Maybe material

XXXX, capacity kind as costs, our said, that's down, decreased are consistent, thinking they opened there. those raw a from have highs. pretty We're about we're bit space, hydraulic kind demand looking first trending just at softened. mill And story of Similar up the rates in of come half materials, steel as from down. has For Spot of I've frack of kind horsepower and well. lower XX% XX%

Now I were we would never contracted is levels. at what note those

of here. to that worth costs a is a peaks. your And hauling, feel coil, still that And pretty last total probably weren't wire down of kind line, area all market little be fundamentals spec components component an we Again, anything mentioned, of recognizing high that rig So has just perspective. has of are real diesel, bit there. I industry as There, again, kind not pricing at XX% guess has is that's a in insignificant those contracted improved. availability the a those more definitely of is then trended levels. bit labor wildcard. maybe an got Certainly, going And I tight cement, cost. and with stack drilling, Supply-demand about of well

Operator

next The from comes Choudhary of Goldman question Umang Sachs.

Umang Choudhary

I volumes? response to can guess I saying EG, progress On the all you third-party capturing on appreciate provide Any more. update questions. on your us Arun's the one

Lee Tillman

also I guide that parties. commercial to that's as that saying as the look will of turn part agreement opportunity that here, again, mean say I maybe heads they're earlier producing we around third is year. the discussion. in gas the reservoir And cap And would those maybe of Yes. signed active just looking really bring and has now place gas the a lay a blow an obviously, reminder, out the we the just now bit we was been this of cap. to parcel a rim oil But a operator just right to already model where this dialogue that, that little and that down have

and LNG existing There's already our plant plant. the Alen pipeline that gas connects into

already And a tolling is the in infrastructure place we again, which have of model Alen the sharing to place. get for of proceeds percentage or our the we plus that to in commercial So facility model, is already have much profit molecule.

say that's of just stay ultimately I is in end say tuned. for the a gas. really monetization the at the just I right And ongoing. So that's negotiation would that a this continuing only But now route day, would effort

Umang Choudhary

-- you that Very for what XX, to so are guidance to then U.S. probably you moving step capital down And you are helpful. for your question When plan your guidance, And up hit you've is Slide oil perspective and going plan there? implied you efficiency assets, you provide then strong on guidance, XQ likely if FY ] the can the your time. base. more have versus we gains bigger look ADAs demand asset a calls over a I from which which if housekeeping of midpoint keep [ were any expecting, color deployment across to highlighted return and productivity across

Lee Tillman

Yes.

bit with XXXX. what thinking little as of I we capital allocation me kind how certainly, of and ahead a a question around Let to start was look think we're about that,

again, cycle. the think we're very early in I very,

Eagle seen the bit and difficult specifics to and lion's come certainly, we on of start the of through So the to do that it But to are capital share We going Ford it's strong as more we've continue to finalize capital. more that a give results because the will the Bakken compete this. well. bit expect XXXX as for Permian a competing that in the plan

of need about XXXX. the items in to talked infill potentially for then we've some lead And Alba also in the long course, program loop

So when capital about there. shift you any year, next seismic allocation not think

with incremental You're is little more Eagle looking a spend. billion Bakken, EG allocation Permian dollars, a be. Ford, to at, of of the bit again, inclusive case likely again, of But a plays, the oil coupled couple the to little black

On it, against call all, fast squeeze we variation. of, don't where quarter-to-quarter kind business XQ sit First an get of we that of our right now, output the just That's the XQ plan. I'll about

Our is commitments. where our looking annual That's guidance to results. delivering we're drive really the on really focus

So reflect if we on you first about started XXX,XXX. in just quarter for at instance, our year, this

day. quarter, Second barrels oil per XXX,XXX we're about of

at our that quarter upper the average. XXXs by to business All probably We'll and XXX,XXX. Third fourth being plan the we're that be quarter. in in annual meet that commitment kind of XXX driven

a day program, shape oil first have durability that into year, the to our of XXXX. XXX,XXX be believe we of a will quarter-to-quarter like our that will going we in productivity But at volumes. to of a weighted for because going that expect, portfolio. that some bit we'll seeing a there a nominal It's into of half nail we variation program, we're day, per we're likely the that just barrels the of and $X once translate underlying do again And saw production this billion end bit

Operator

Silverstein Josh from of comes question next The UBS.

Joshua Silverstein

years. last whether that been some can pretty anything the $XXX-plus pricing, Is in of are you now some you there over on million contract. EG, other that hedges or in volatile that guys linked lock to to any TTF Glencore guys the do X Just it's through uplift approvals

Lee Tillman

I'll say few Pat well. Yes. and in let maybe as maybe a things jump

upside obviously to linkage our Our philosophy has been that investors. to protect we for TTF and the the want

investment-grade an We balance have sheet.

the the have We peer group. lowest in breakeven enterprise

very We a product standpoint. have from a balanced mix portfolio

give is TTF for hedge bit together, away of feel we can some so the little the that we give with that's maybe broader investors. upside going well. liquid market-based And you the as a we not don't couple of the portfolio when you But TTF know, add other anything? hold I upside and to the biggest asset not way us a that valve. position this Pat, believe as that want markers do all because quite different, to to within of linkage, we going us that some our that's that

Patrick Wagner

No, [indiscernible]. contract at TTF, really our to mean, I is you all. linked hit

a lot liquidity committee hedge we there. looks We'll to that that a have it. there's opportunity to risk We weekly meets at volume of not at commodity look continue and said and

Joshua Silverstein

just thanks hold it. for you to about That's Got then around Can billion for see as of level? kind comment the how of CapEx total the similar of And and that year. kind next well talk the of level XXX runway helpful. here around couple guys on thoughts spending dollar you production much a

Lee Tillman

which Ensign, we capital a the made the like productivity decade you our efficiency And that's out Permian thinking like we something board when efficiency, that maintenance above of like And that being be a Well, look even and that places X, certainly, life that all also we've inventory, XX is see of mix a it on that take at the addition our, at in had that well when miles program capital the of years. really through over as in inventory talked our acreage, area, has our inventory. type I time time. beyond of about in look efficiency or maintenance or There'll believe I program the move the talk I additive is at And there. Similarly, the maintenance but out and projecting look projecting X quality capital forward been you as at is the we some Hector inventory would in resilient. When of done look into that's forward. that durability see very of the plus pretty legacy we've where decade work going extended with can we productivity laterals, about past, shift productivity Bakken example the the and us portfolio, good you program and type inventory. of across out said, about that the effects use

Operator

from Leggate from Doug of comes next The Bank question America.

Douglas Leggate

I on buyback you've that it [indiscernible] say is the And more a value, with what wonder I growth little and the to to obviously Why Lee, market targets debt. and today try pursue obviously to if you backwardated got the you net a that you your want that there. the could it to not debt differently and put just than a value of sheet about is metrics very of oil would think net oil come the from buying share recognition touched per stock I topic are a of price. back balance equity kind arguably sense buyback program. structure transfer if But front address formula capital to curve your program tackle about still of at XX% debt rather make

Lee Tillman

here. to it I'll and jump start off, I'll Maybe Dane then in get

I mind And for we delivering consistently of CFO a XX% that I different more. continuing our kind that bit the today. midterm question, debt against also little either/or a I'll target. stock gross the repurchase in of back work while But all, through Dane to talked on keep First to your gross this us, this look not business we're about minimum that -- mean cycle. mean let is model trying on proposition. to an our is debt are shareholders,

the programs program means still trying which digits, doing well market not into We're our cash in I that We're consistently place. is opportunistic. flow the be averaging. dollar double mean shares TD We're we're putting to yield devastatingly or time getting efficient. is free on

are doing. both, And essence, can in what so we because do that's we,

So that don't have today. make we choice to

how look our still numbers Dane believe in the shared program, as just price have on attractive some of when shares much And we done the we've very a point that you at of dilution that on well. out share repurchase taken we

yield So to competitive in more very it's metric have gross flow shares, that still we approaching free you and how debt? anything the share of a want per we're do on Dane that. drive bit our little continue that say kind about as efficiency cash to as long for us focus to

Dane Whitehead

answer Yes. We capacity how And could a maybe prioritization, the to right now. got it's feel do like about both think we've both. we

more to current investment-grade sheet just billion the the the regard of $X one to path minimum of the balance state. flexibility debt of debt ratings $X have watch XX% over to We over or positive We've return agencies think I over the we time. billion got we're our while in on tools think glide with I all $X.X to maturities, that with shareholders. from liquidity. to billion And about do in manage a gross of that ton to toolkit need XX need months, positioned down a XX next well we

tailwind, pricing So like showing further stock maybe really, the that feel more in than And or a valuation, for in all. things. we're cash a it'll don't pay it situation a to be urgent get something in at will I example, perceiving And more stressed I environment, a just of but flow. little was little free if that was generating this debt, current accelerate our down bunch we're up we pace

Lee Tillman

price also well. cash as move And remember through recalibrate return does also, you framework as of bands our Doug,

we seeing -- if have the then So framework can start by out the put of some backwardation, we that market. will that of adjust obviously, we to virtue we

Douglas Leggate

of we capacity, clearly, my is, game legacy you're the EG, only guess in the town. if I on all recognize follow-up the think I you plant. the potential And don't mind,

to today, inevitable I think happened, full. situation you with plant though. I you what words, I wonder do longevity? to have do in opportunity to the of current opportunities, today have keep kind help In future if what risk it's else needs be. you find plant with long what frame us you the and that the try could other just terms guess, how you So of share If nothing

Lee Tillman

I Doug. No, the understand Yes. question,

Let me Doug. financial terms, describe maybe it in

uplift going X-year at occur in shown Glencore. for contract very So very durable minimum of to duration have we've clearly a is XXXX. with that's we the the uplift that potential this That

great XXXX very I that, say next X with over that durable So that in is financial can capturing we're uplift years. confidence the

infill With as few only the just about, program in talking the game items Alba a we're same, say, well that these we're as the of as which, incremental town. you

Just changers some that life and provides relatively of are decade. projects work game much also really for into undeveloped some us like on us to And next flows cash that EG time modest it for runway take but And assets the mature. to that's a LNG just things operating to broader the time discovered continue to they us. on EBITDA, well those gives extend wonderful, going and opportunities, cross-border could be the

And so first when step. we think kind of back, a was lens the

do and from on our there, moved is which step, to the commercial we've with partners makes the ourselves infill From commercial methanol Alba value And and a between we're recalibration the terms because it the are discussed being now diversion right under Now sense now of the evaluation looking same. next terms. is finally, to at so. options work

you wins those capturing hope said, out with just next well extend I EG and few we've will incremental see into wins, like decade. track those I So actually that of demonstrated LNG, record a the

Operator

comes Truist. question from Neal next The from Dingmann

Neal Dingmann

for first the on just maybe question John, My regional is on -- activity.

the while Permian sort seems Permian? you and upcoming for how wondering, it quarterly remains back Bakken incremental XX-plus a sales Bakken the brisk view of gone activity couple the like wells just I'm activity with do plans Specifically, quarterly has And to wells. to

Lee Tillman

Yes.

standpoint. there's and to think ebb going a from I some naturally, allocation be capital flow

that the like of things keeping so we've First talked want very days, more and a running. fantastic I We some usual, in. to work on getting our ones brought we've execution our a things. Bakken them -- over to facilities invested combination already wells efficiency about, already we're did a of an mean of profitable recognize team the And strong, aggressive amazing doing all, was was are I as team just sales wells, online, the quarter. barrels that was tremendous job had most which third programs. up that . Keeping

capital add across these that move the beauties the things to that the and again, advantage to you across capital of of Mike, you that in have we're But that's I going else. of contributing anything to saw we all we're to don't Bakken. of All and model, very know, performance are balance if allocation the the efficiencies that -- take one multi-basin strong basins. want going

Mike Henderson

at I'd is Permian. thing add, of other actually got running Northern Bakken interpret JV activity. couple got is don't wells lack got We've Eagle moment. and rigs and We've only We've X rigs of in We've Oklahoma of the running Ford. just in Neal, and to X between X running a got rigs the sales Maybe lack running.

year third to indicator, wouldn't an asset for to and is that stand I that's a in a and sales think quarter I it. future it's minus be I little next into quarter think, just I for maybe that that to too key So upside, but contributor fourth we going wells the value in the potential think us read of bit, the place much

Neal Dingmann

versus or would Great when And wondering, look how I today it's a details, the of I'm just just Ensign terms deals announced just a deals Mike. quality does broad in follow-up. deal. Lee, exactly then, say, out you versus M&A year interesting. potential there of market today ago the

Lee Tillman

in X but have tick frankly, look today, the amount sense unicorn say, all They it we in only I did to I patient. what our tremendous really they have as at on criteria. the opportunity we mean X criteria. tick And today was for the rumored Well, Ensign. that little stronger the the of of of us made in the we or that be take or boxes our to the can bit deal with on market that market a addition may boxes Ensign be don't a possibly, a organic was

legacy of completions, keep we Eagle credit XXX-plus wells the already wells, were added well. experience Ford, for XXX-plus the those refrac, in existing in know Ford, Eagle and ultimately on Ensign many no as were for mind, very and designs wells. will Remember, our which And we for high-quality early the took capital there compete into based redevelopment

look our criteria. when seeing for would just just no Neal, really fit compromise. I anything there's us to there today, So that we're at what's And out need not

Operator

Phillips Johnston question next comes from One. The from Capital

Phillips Johnston

too for terms into XXX this year just you QX touched flush in to how granular, you pretty maybe from weighting. QX. and trajectory here. sequential the but high directionally year quarter-over-quarter the the exit to on This next of QX talk activity XXXs similarities a Lee, Can might after rate just about be relative there's some

Lee Tillman

early we I have said, But the you bit little if come where that's Yes. bit looking think of legacy know at from that in probably XXX,XXX. If go Ensign Well, well the XXX,XXX, past, just can even have may pretty kind muddied get year, this informed you I we a little you and profile at year. you in a 'XX a XXXX, what underlying 'XX, have done you by down to business, waters to back probably just trended lighter. the at look good right? Like be in look indicator. probably how the I we're at

that's trending because probably expect way made we at towards the that capital what February. of high in XXXX. to to that granularity this more that of relative that profile our quarter, very And XXX,XXX half, again, and you we'll give to the see that should directionally, going a that's concentration capital lot first on the in familiar of year. Now the and color shape feel in kind XXXs we're in But fourth

Mike Henderson

we year, to that to fourth brought only add last look last thing year, wells back If you I'd The to time last the sales. quarter XX

quarter year, getting This last year, mixed brought XX, wells -- up. time sales. fourth we XX the This I'm quarter quarters to we brought sorry, last

quarter, This we're XX. projecting

It a and comments on building is there really tried that tested. these well, just works there. playbook we've there So

Phillips Johnston

then on I Okay. guess. And just follow-up Great. more EG, one

the about I talked to natural decline you rate XX% think guys sort PDP have an there. past, in of X%

production those your over But next more So check X question I declines the evaluating or offset similar wanted those, if drill will if to trajectory to And good I they they of still that's declines? guess production just years? just EG the is, and couple relatively Obviously, impact number. you're then keep see wells. still to were flat in might offset a how than those infill you wells the

Lee Tillman

in talking decline. the right obviously, those X-well chain even about production our of gas value respect us. And First very to the the of about number coming to wouldn't again, way plant, molecules what of all, PSC is XXXX. valuable through we the EG because sure. terms until be the those extremely all if program even those our the infill for in partially are alignment are wells, XX% get we've code molecules. the thinking of for from going equity we're up is course, wells, LNG talked be wells, of beauty there about the mitigating Alba online With your to to decline wells they But the ZIP across high-value X

the there. it the if really financial financial and decline, if those we look accept performance So through wells able being going you all I a extend of won't the of the lens help at that but to fact obviously asset, where are integrated offset to us

Operator

would This Tillman like concludes our Lee over the remarks. back to question-and-answer to session. turn closing for conference I

Lee Tillman

dedicated you, not be in I for day. All Oil. like their world prouder Marathon concludes employees and all needs what could right. Thank deliver ever. commitment each of by the than thanking close responsibly call. they safely energy interest And our I'd your to to our and Thank every now and achieve more that for the contractors you again and

Operator

you The presentation. conference Thank for concluded. Thanks. now attending today's has

disconnect. You may now

Marathon Oil (MRO) 2 Nov 232023 Q3 Earnings call transcript