MRO - Earnings call 4 2023 | Marathon Oil Corp

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Operator

Good morning, and welcome to the Marathon Oil 4Q and Full Year 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, Investor Relations. Please go ahead, sir.

Guy Baber

and our well call much, joining everyone very on us this you thanks to as for Thank morning. our investor Yesterday, a after XXXX that outlook. an full press issued XXXX address package release, a and the slide presentation year close, our fourth quarter we results and Those be marathonoil.com. our website on can documents at found

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

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

So that turn the to provide to session. the time, the the rest a over with remarks, move that, the question completion follow-up. ask yourselves to interest team, will After remarks. a in we'll prepared we Lee? question-and-answer I'll their Lee you of prepared who limit And and of X of call and

Lee Tillman

Guy, Thank morning on to and today. good our you, everyone joining call us

a I to calls, have dedication that and commitment foremost I to and thank employees for contractors we their trend, first start of thank few our want highlight accomplishments and values. to excellent always to today. core and work hard and today their notable want On in contractors especially we have discussing enduring privilege our employees I for these delivering As the results our the

priority a recordable First, we on year employees scorecards. top contractors. healthy our top and by performance and for delivered our compensation a our a safety a secure record XXXX, rate of This total TRIR in builds track key workplace remains industry. safe, quartile safety multiyear Providing record employee both element measured us, in for incident our with our and executive of as a

make in flaring, improving company our XX.X% a gas continue in new our reducing progress our for high XXXX, we to capture company. Second, to gas total natural

our continue to ultimate improvement, Flaring. of work continuous will We hard objective on toward journey Zero our moving Routine of

gas third, highest of XX% to for XXXX And the intensity demand years standards goal a the objective of meet natural growing help XXXX levels environmental our full our achieving we achieved excellence. of consistent schedule, world's reduction while GHG ahead with X to and oil relative

our a are I'd get unmatched accomplished. we and deliver for the of We results-driven delivery more track isn't XXXX before framework into proud this well-established to of people type they've company, believe on and a but us. I what those be trend. like record couldn't Yet and success. continuation delivering of our And outlook, our XXXX how new for matters, of results reflect It's I I results what is our on

return challenge My years the with was sector, more heads more game compete our our to S&P, to best companies year just best and not most, operating capital sustainable journey. the now do matter but out with Less And and than X our cash shareholders our and capital in year E&P raise the We're cycle that in into company up free metrics to so of on companies XXX. in, efficiencies. generation, the S&P the to through commodity flow

delivered ESG while our has in, our held in return framework consistently protected last We the performance. quarter quarter differentiated of capital, investment-grade efficiency true corporate sector. sustainable to And X balance years, for we've returns, prioritized enhance of success. out. multi-basin meaningful sheet we free our continued portfolio, cash our the we the all capital For flow, to and produced which We've best elements prioritizing execution

execution of points last believe are X deck. Slide and X consistency summarized strategy in Marathon years over proof the the have the our of commitment our Oil to in our The I marketplace. our successfully differentiated

allocation, generation. First, cash flow peers trailing sustainable of our of almost the Through the XX% disciplined X That free corporate cash that returns-focused XXX. $X.X generated E&P current we market to S&P over that Xx cap, and years. double capital equates over flow our of billion free of

Next, a return of capital meaningful shareholders. to

$X.X and transparent bit held not flow-driven our flow, consistently drill prioritizes of we've return inflation. current the years, framework well our our as and in on to In S&P the shareholders, X last billion returned true total, of investors the our our equivalent market that's that cap. cash capital double Again, E&P cash peers the excess not call of Over to to we've of XXX. first over XX% that

capital the allocation [ to structure. in and testament cost extreme Third portfolio and ], the capital of efficiency, quality discipline inherent a operating our our and both multi-basin

lowest data, been the XX% we've below And the E&P rate X reinvestment average. in to trailing E&Ps has the average. capital third-party the delivered sector, independent best superior well-level peer the S&P according Over years, to efficiency, the the our in space, peer

our of a than And XX% equivalent more XXXX $X.X of yield share Last proof share acquisition. of That's flow program billion shareholder was $X.X driven repurchases count, while integration million our delivered that Ensign Eagle outstanding our seamless CFO, a our our to key emblematic XX%, of $X.X distribution share XX% billion to per Ford of what of debt increase flow, adjusted in points. distributions billion X% providing reduction of a these dividend and the like. gross $XXX breakeven, free our drove we maintaining year, looks properties X the of cash to cash free peer shareholder reduction and on comprehensive delivery share, growth low repurchase production XX% base by our

to then build plan, continue liked we on in disappointed which be records. if offers XXXX same multiyear not you you the of track our And will as our more XXXX, business

allocation and day, sector. on our with the plan inherent outperforming sector, of companies in very confidence be and our in end have expect We of the benchmark to best frameworks our capital I volatility XXX. will our at and all amidst plan executing focus the And our our return strategy again consistently in the in capital the S&P our

expect price billion this outcomes. $XX price a that year, not and are WTI to assuming capital and volatility approximately recognize we cash $XX specifically, our deliver impacts and Henry fully program of our $X Hub More taker, commodity we billion $X.X a predictor, price flow, financial free TTF. We $X.XX

As again key on you return to our to CFO return least help at commodity slide a We'll such, flow within yield. deck the stay own expecting to true XX% CFO for of shareholder capital each visibility framework, forecast. we've to expectations commodities based providing of our double-digit provided cash distribution our shareholders, your sensitivities to of model

work expect perhaps as We leadership EG. further most That's improve we for in well the business and program are results capital to true our believe true portfolio, underlying efficiency our that's our avenues multi-basin improve our XXXX integrated gas maintain lengths. including capital for productivity of our importantly, efficiency, to we sustainable. all capital And and lateral extending U.S.

E.G. legacy our Hub team know, contract exposure, is realizing Hub is which due now sustainable EG global this all Mega our has great the you Henry pricing, performance of now business expiration this advance with our the As to That of financial to has LNG fully XXXX. drive at year. no work all done Gas the end will improved We improvement concept. the believe business

assuming $XX For cumulative EBITDAX generate example, flat of over $X.X approximately we're the TTF EG expecting billion, X pricing. our years, next business to commodity

return With capital turn who our of over to will investment-grade while Dane, commitment also fortifying that, balance I'll sheet. through it our to walk

Dane Whitehead

Thank and you, morning, Lee, everybody. good

we returning differentiated to that as cash building our prioritizes flow driven with shareholder the our call on consistent As track on Lee mentioned, record in XXXX, of our as shareholders continued capital. first capital peer-leading framework

our my make balance at and debt this of same of for while our $XXX a objectives providing while continuing compelling again We've we proposition truly sheet investment-grade million We to both shareholder that's reduction. time Importantly, to sheet. gross did return continuing record XXXX, expectation the in through enhance did track XXXX. on balance built a progress

investment specifically, quarter. distribution last next during count reduction the billion, The current in $XXX came to relative CFO, More market. and our XX% our framework, share of any to of return amounted XXXX about than $X.X opportunity the our closest returns count which XX% of over fourth shareholder by to double returns more market in yield our million reduced our our repurchases, capital of an cap, annual on translates share delivery, with shareholder total year. That's of That compelling majority consistent the the form of including competitor. on share X%

and program share per XX% acquisition XXXX, accretive share [indiscernible]. our peer-leading we repurchase the the our grew production For due full integration year by Ensign to a of oil

cash oil production framework we capital flow line free our via flat. by expect Looking to XXXX, to disciplined top holding prioritize our allocation

focused We the growth on position group. long-held significant leadership peer maintain in share our also remain fully and expect per driving to

repurchases, While and the remains the foundational, shareholders. base a XXXX base paying our sustainable share to majority capital our committed to our of we of dividend came form dividend returns and in remain to competitive

rates XX%, in by strongest the raised During growth base XXXX, our our of one sector. we dividend

sustainability, peer free we post-dividend laser of group. flow did the Importantly, maintaining so breakevens on X in focus with lowest cash the

same. X XX% of form years our compelling reference our shareholder distribution XXXX approach the of dividends. our of double-digit expected differentiated about committed and $X.X Our remain last and to the again consistently share shareholder XX% minimum to in and of the returns visibility Priority level a base distributions #X delivering remains at providing and consistent repurchases will approach That returns a billion over to has price company, positively least deck, in CFO translates shareholder yield.

per negatively driving share to pricing, a trading our accretive. stock highly efficient continue base share in impacting flow They synergistic, in are we're flow breakeven. remain our share the at our to very cash the grow without $XX growth repurchases peer-leading continuing at also means and per dividend cash our mid-teens free and our yield strip With free range per highly low a value

flow CFO return growth excess to to per improving sustainable committed at near We're investment-grade base To cash in of summarize our will top sheet, the direct reducing also plans, XX% our debt. plan continue our balance further driving our of which dividend. gross we our XXXX share of peer-leading growth shareholders, be and capital competitive to to sector, least and

We have pricing. with and Xx to our financial strip capital tremendous net EBITDA flexibility of debt at approximately strength structure, in

a $XXX bonds taxable our at rate advantaged capital is in interest year. likely we'll debt million relative to mature unique vehicle this done previously. as and those tax-exempt that remarket we've an have We This of really structure,

us XXXX. opt to at and bonds, year. of to to potentially debt Ensign term of our on of on remaining would flexibility We facility bonds that will due term par, tax-exempt available we goal billion total, a The the us in also we for commercial have retain our our in $X this at wide manage off markets capacity as maturing loan are And credit reminder, And paper refinance outstanding billion. end to X.X enforcement have the loan, ] debt. refinance if plenty medium-term of matures $X.X gross of open $X.X that capacity [ the and to almost we even the which get of pay billion

alternative transition AMT me Mike income. details cash our prior Consistent to through XXXX program. to messaging, tax our One of I tax The our an XX% year. U.S. to financial before capital on for we'll our it is 'XX this the our some taxpayer becoming final comment outlook on or over with AMT guidance rate turn of minimum assumes walk pretax

past organic income Our foreign tax EG our tax recently completed The We is of qualified as enhancement that largely today exposure activities new here and year will offset primary on a current spent involves or capital tax in R&D be research information study by R&D we're credits. credits. development for providing credits. domestic, years

approximately cash sell-side offset at As of benefit our expect any a to apply models a as likely to tax direct R&D of million this significant free payments. AMT flow point. we portion included in year is direct cash these not most to a result, $XXX A XXXX this our credits

program. who With that, capital over 'XX through I'll us of will hand to the walk final Mike, points our

Mike Henderson

Dane. Thanks,

we program. XXXX company, results-driven I'll As with earlier, our the we're line bottom of so start highlighted results capital a expected

segment. billion high-quality $X at deliver to E&P of flow cash financial XXXX the $X.X a profile. top rates enable reinvestment of us our free cash the very capital breakeven This with X bottom our anticipate benchmark deliver compelling investors shareholder truly capital expect of peer We flow return fully lowest these We efficiency and outcomes line again, the the and program, of group. underlying our in will free billion our program to

To rigs X year. average frac deliver and operate on we these crews approximately X this outcomes,

our expect capital free stronger in flow over the oil of We wells the function to concentrated our a our second should of full deliver cash oil midpoint half-weighted the consistent about approximately of be first year. of XXX,XXX drive of day, per to we the of our barrels year, company with year again half CapEx XX% expect program what to previewed we This production guidance, the largely first and underlying sales. production the half quarter. At of flat total with last of timing

BOE our of equivalent This per on is driving in share function Dane expect value volume. We're mix to as significant our decline modest on decline oil a a in highlighted, over basis. and we fully well to this a continue production production importantly, Yet year. guiding growth largely oil year-on-year focus

Given the list allocating gas high areas returns and prices the thus, of we're our flow prioritization each free and consistent generation. capital [ relative in volume our oil, corporate oil plays, with natural cash weakness for in extreme ] to of

ongoing some base Guinea. Equatorial expecting modest also in We're decline

our there year, consistent As be some will last is production. with typical our quarter-to-quarter variability business for and in

should weather-related by X,XXX quarter outages, the low First for impacted of winter barrels mark of in Bakken. the per oil concentrated a largely day year, point about

bring We progresses. as levels as grow sales will from wells quarter year then to first we the more

of our Now program. the more to important details XXXX

wells flat to productivity peer-leading driven record last is efficiency, an than improving to fewer by capture additional at our Approximately conservative underlying average we've This on and excellence. deliver will of a to high year. our well capital where is sales programs allocated demonstrated our total X% function to XX% of production expect Ford our net lateral increase that assumptions. Bakken with guidance execution We Eagle X% underlying modest durable deflationary oil levels, of confidence track and be length to built capital XX%

external leading oil in indicates efficiency. believe basin the the XXXX, each and better better months foot the our than data we state basin average than we're For structure, Bakken. capital delivered basin the cost in we per With X XX% productivity, Eagle Ford XX% average in

We expect finally, year leading capital maintain and XXXX of continue another in our as our productivity we efficiency. to performance advantage enhancing

investment delivered where activity will in to our and XX% potential of to in be drilling Alba transitioning bulk performance. back spend the preparation competitive year, our manner. years X-mile exclusive and our into D&C will a be long completion with items in of year, of [indiscernible]. This Since wells ago, be to minute. our the lead remaining X-mile a spend lateral in disciplined We're We'll a best well details limited resource modestly laterals. for more The plus work basin this with with getting an dedicated almost increasing over productivity in the EG program. will couple to play in consistent CapEx Permian, we're get Permian EG among But and capital we've program Permian a the up

nondevelopment year this regulatory and projects some environmental, such spending, is nonrecurring as emissions related to largely water Our infrastructure pipeline well as capital and due higher additions. more as

For this X% context, of capital. this It's ago, our a about couple represented XX% year. of about years total bucket

lower trend would designated in capital added projects the add however, related enhancing reliability uptime and many to emissions of also of that those year and economic XXXX. Importantly, this non-D&C to benefit our expect our have peak we I performance. as

and EG Lee for to the Now wrap-up.

Lee Tillman

Mike. you, Thank

our in XX Slide on deck. Focusing

a linkage. year. we combination sales Gas a contract in announced end we are cargoes XXXX legacy January, EG year. this the but and LNG price Alba The contractual of is of year, covered the contracted all the by exposure Henry cargo us JKM the both last lifted terms. first afford contract TTF with LNG now Integrated our at our Consistent realizing new LNG prior nice of now these balance X-year under And global contract is our business price been With sales JKM pricing. of fully will our That our LNG have our This Hub-linked of expiration last TTF-linked. majority at disclosure,

global on weather, pricing from therefore, pricing drive Hub improved winter million guiding Henry $XXX LNG the generation and has assuming weakened for should increase performance EG operations. year, this actual is of still EBITDAX LNG million. $XXX global We're Although TTF. XXXX EBITDAX and between a still to somewhat warmer our significant, significant arbitrage financial million $XXX to international of That's $XX

Importantly, we to a don't this expect X-year financial be uplift.

Mega with by Gas by and For focused improved supported signed sustaining partner the we've concept all EG been the EG our progressing this some time, Hub financial government of year. elements last performance on the HOA

X-year sustainability generation. EBITDAX to intended is outlook of the our EG The we're demonstrate flow today cash EG providing

the deliver approximately X to expect EBITDAX EG Over assuming and we billion, years, $X.X $XX of cumulative next flat. TTF $XX Brent

there monetization world. LNG global gas monetization LNG interest and volume the years, maximize of which coming in period. infill duration working to include our gas program, performance take continue the through to of mitigate of Alba strong plant of higher unique the third drivers the amount will methanol X-year most pricing, and gas help LNG as areas full of the cap Alba infrastructure over advantage equity further They we margin, optimization gas-prone Alba through of realizing in highly of party ongoing valuable a Beyond and the the and decline ethane are X few gas the well the maximize throughput higher

next the X longer-term continue EBITDAX global next the EG we to our as extend life years Hub agreement, Mega decade recent advance concept. to the the Gas fully well expect LNG into the of life this scenario while reflects LNG we And sales of beyond X-year

we've performance flow the S&P financial of delivering last X mandate measured competitive build our returns, the and on return the corporate years, XXXX in track with consistent investment alternatives highly fully record. to capital. as more I cash this for by been attractive most summary, In generation free with market expect

perhaps and sustainable integrated output Our of and U.S. and shareholders most commodity due consistent importantly, clear depth free everything range delivers call our a growth simple. portfolio, record sector-leading fully peer-leading portfolio to proven business It's a we're of LNG compelling realizing our a compelling approach doing now visibility metrics. and gas is on pricing renewal. This portfolio multi-basin is and of the to the is concept. High-quality, discipline. distributions due of to and Gas framework Hub flow, broad multi-basin cash decade business our across the of of all multiyear is continue first as And inventory multifaceted and disciplined prices, that's with commodity a we of share over provides return high cash gas shareholder that through the to also cycle. progressing elements execution return Mega have per U.S. investment we integrated a track And capital quality regional that case global the differentiated unique flow, differentiated global where which

Rest core cycle commitment our and to built commodity record success. track long-term assured, our our and across strategy upon the is of unwavering, resilience values, our is

we Q&A. open With the for that, can line

Operator

comes from Please with you. next Thank [Operator Our question Arun JPMorgan. proceed. Instructions] Jayaram

Arun Jayaram

some as backyard large the to want I M&A. was for we of Bakken perspective how off transaction on multiple scale did your think should I about in sticks have activity, significant more low-cost recent want provide of cite map -- more the if the -- deal deal. industry I such Lee, yourself, you low-cost last including get adding [ a post to night. Ensign Permian, could a Obviously, on M&A wondering a producer ] in as a did to transaction. a with re-rated start a that announce MRO on appears M&A on announced And level the and Permian structure example to

for where and M&A So MRO. thoughts on this some again, means just what landscape the

Lee Tillman

Arun. you, Thank

are is how it about bigger. of better. but about size we just It's and scale important, get all, not First do getting obviously

path the described X in enhance really remarks. to years So ability that execute we've fundamentally just the on last opportunity consolidation been any I my that needs on to our for opening

even Ensign framework clear, We very successful if of now anything, have a That with the very framework mentioned. assessing the the bar asset transparent unchanged. M&A. for that is higher is you And addition

And just elements reminder, X as a really are of there criteria. Arun, that

to First metrics. financial and foremost, of course, is accretion

to return Secondly, flow-driven framework. our accretion capital of cash

resource that without execution, we day of our or harm from with balance inventory for a to and all to to life competes accretion level where logic, of any investment-grade credibility. well-established X. doing course, which Third, going finally, means sheet. our then capital Clear And us basins excellence inventory industrial this into have

can be We can challenging be a we know that's and patient. discerning, criteria. we But

high-quality operations our and made As and all that. a opportunities a And with in like into the Mike We team decade-plus a we integration mean, over missed for never boxes. in that stumble doing compelling. can we've did I of a seen mentioned, that his couple others Ensign essentially inventory, that step. critical months, integrated ticks wait that's so asset we step, Ensign very those I of what fantastic job

So we acquirer? business? an Absolutely. be disciplined us as criteria to are as you and Should apply discerning and we organic still in be Absolutely. our expect can be our

Arun Jayaram

relatively EBITDAX about was on beyond to relative X-year provided to you wondering which is your follow-up the EG. or outcomes a could stable suggests you X-year outlook, talk in profile these if My guide. EG extend earnings I opportunities Great. financial Lee, XXXX threshold.

by super major if exit As could address I up And you that for wondering given decision does country a exit? well opportunities that EG? as any open recent the you to was

Lee Tillman

that we Well, provided matched Absolutely. The very LNG view sales I year. inked X-year of to clear. just was last all, with scenario be a we first really up the just agreement that want

you like that now match agreement. that up life when was potential certainty sales as LNG around third-party and a well had methanol we kind This of for that all model. we should extend things to we already the future more of TTF-linked active to interpret that of that's we reality the that that LNG even NEG, with Aseng, drilling the so The not X-year Alba past And path is molecules at just whether optimization, now, XXXX. volume see have infill look

that anything don't we X-year So inked other fact, in agreement with, just X-year matching sales view than on view up TTF. as that that

EG you concession In of circumstances set clearly, that's terms a end of where of PSC by a have kind exits at out super of unique that's majors, of very term. its the a the oil again, And an be life play is of going government very by that run by taken It's mature pretty and over there. end much to field likely the government.

set look So we opportunities of very different than would like.

EG infrastructure a now replicate first again, inorganically. standpoint. LNG, that now just we Arun, of the lens as to when we party molecule, talking project you that the that And molecule news third from can equity back, forward And about talked any very well and standpoint doing of third-party framework, able lot there's the to we criteria we sure to that of going Alen opportunity future. within just piece outside when at a molecule as NEG, that both constructed can significant that about for believe of that a would that take I kind something an making bring for do were use we good we're framework the But opportunity we through and us look same is

Operator

Truist with Securities. from comes question Dingmann Neal next Our

Neal Dingmann

maybe upside? wondering, Is Or you First really the laterals? question largely you a could you Mike. maybe efficiencies, longer the little you likely this I'm -- your is just what it referenced other us more which mentioned, detail? noted. driving remarkable Mike, give that's to point leading On key would drivers for you operational

Mike Henderson

Well, I certainly Yes. can that. Neal, answer

remarks. 'XX. yes. really resource our probably and think noted, in well few starts productivity. in there in basin Bakken, peer-leading actually look very I is to by 'XX. that a compared I up productivity comparable complete with 'XX, then 'XX wells a strong Permian, So look back we it of to prepared 'XX Eagle are But going would efficiency, 'XX productivity When looks Myrmidon is I the Underlying things looking I from we Ford, say our back is to we in at flat 'XX play I go there. would improving marginally to highlighted I on it consistently say what as -- the delivered capital my pretty in And When into at 'XX. And few the and

I So point the that's to. I would think first thing

was mentioned And numbers Ford, in second at level. look up very up laterals. as you Eagle The a notionally We remarks, up And the they're were they X% a couple Even XX% thing, just about noticed, And points. of Bakken part up efficiency percentage kind longer single-digit the by big as is of prepared little then company is the they're bit And forecasting of that well. a the part of you capital are driver. at Permian, a we XX% then albeit low that third there. is modest, deflation, year-on-year.

Neal Dingmann

to question, Lee, Or to I'm just there the dividends? Dane, of wondering, my maybe towards anything would that on continues or do you capital more should think ramp And And program towards sense. allocation. shares Obviously, variable for to about that growth? mean move back, keep continues then share you maybe it continue you believe your -- active most buyback we just second around nicely. lot a you is the how I really per Makes that, to buying be cause strategic?

comments love So just to there. I'd hear your

Dane Whitehead

at a it. Yes. Neal, is cut take I'll first this Dane.

dividend we but sustainability is, our on mechanism variable a firm front for and point. The the for all our us. line dividend vehicles dividend, of table, along, this the at to to sort and a We've sits is XX% center sort is commitment that I talked use bottom return the not about, primary commitment. of of third the expect mix important us framework in return remain it's that very base capital. That's to said is shareholders critically Base of unchanged XXXX. So of

repurchases will now, So the the share flat. pace be mid-XXs. And in we're leading Because that probably the peer low- of breakeven as kind -- much of as anything. to dividend right increases by it's driven keeps post dividend

as And you mid-teens, Share free super-efficient they on significant per buybacks, growth a again noted, share cash basis. that drive at yield, vehicle. pretty flow

of us down -- The debt of is year CapEx some you saw cash and us pay worth down second available $XXX this We of last for paid debt. million do -- use it year.

leverage like pre-Ensign to more debt but And stated debt gross we've [ debt-to-EBITDA like million of $X Our that pricing, like down today. with. we've was We'd them at get debt, to the levels got $X.X which level. are down. million net ] to are onetime strip gross I'd They drive comfortable

the to sheet. to return excess allocate continue some free And further so we'll improving of XX% excess flow the cash in balance

Lee Tillman

I'll X to thing just add too. Maybe that,

power I showing per that you the share repurchase really the matter. up consistent in growth really see think that meaningful metrics the in of and share a program,

XXXX, our If that you growth shares. in out just peer on of our share group best basis we of look translated was a course, That And at roughly per ]. [ outstanding the value next our for X% double into shareholders. took tremendous

in it's in it average, So mean, cycle. and a that. run. we very we dollar let our that I again, We look we program believe powerful. of we set It's and still think kind place through the

outstanding X% rewind 'XX, we've that October our all comes retired. you If to the that XX% shares way back of

with still and We committed. program very have program of of authorization repurchase it's So remain we a against billion us, Board the been for outstanding $X.X powerful extremely our Directors.

Operator

Matt Our from Portillo TPH. comes next question with

Matthew Portillo

quite in and on looking time early wanted encouraging the asset-level that I a looks the I run Ajax, to Two from Bakken, guess, productivity at you. by questions perspective. results first production

Bakken you could spacing Just learnings your much And up then curious acreage how kind talk for set on here? of a be design forward? development moving about potentially the your you acreage position, across look might your X-mile of also, as if

Mike Henderson

Matt. one, that answer I'll Yes,

pattern spacing terms ] the X kind in there, it of [ In a by spacing. was X of

in the tell probably early kind So brought Forks quarter. bit I What southwest quarter Bakken, just that's there. active of there's where data pretty maybe say lot of this through, read got there. down We've Three the a of change next last no you X don't online. little you, a And terms area, probably we've Middle share. Obviously, probably as of to years. the a been well in we've I'd some may couple feels X the in Hector down What wells I'd production opportunity wells early. know, the to of of have

us assured, to get about extended there laterals, if And any can the there to expect So land work we'll position be you though, to in our continue more those future. hard. talking opportunities rest are

Lee Tillman

the declare I there, and for that a though, waiting longitudinal at the things too, you significant. think data foot it's X of already total savings to captured bit I very Matt, cost look that victory, little when production well though per certainly, we've more add still even would we're the is

So from very about we execution performance. standpoint, good D&C an the feel

early So production returns the cost absolutely the on strong, as said, the D&C side. we on side, very side on but encouraging

Mike Henderson

bit provide a maybe little color more there. I'll Matt,

of we're XX%, at the The per foot first base, sorry, looking we loosely wells comparable that TWC execute XX on X milers. -- did below

you not couple might I think thousand of you but of couple you'll I The probably over back term. a will expect the volumes XX% as get as that long barrels equivalent oil the stout a think with be that Hector, IPs in day, oil. production, early

with well take present well compelling for So Ajax productivity like future. going as would out, I And the pointed costs. think to that's in the case to we pretty the that a you

Matthew Portillo

as follow-up, then program, towards of or development? was Texas you this And curious progressed just moving on then how to plan Delaware working well one, about kind I And a have Great. in you. the delineating Curious, two, XXXX going year in it learning here. XXXX. Or know be are still of development resource? still like is just the that on Are for the area. looks a costs give you your X/X take,

given think more the and on still wells that trends, the get in to cost of there's some cost the the year get Delaware Texas productivity also an reps last down initiative was ledger I play, that of work. but out kind needed high

Patrick Wagner

our up maybe is this development Pat. project let development take I'll the piece. Mike Matt, as team into we and cost last -- year. I'll said, this piece, moved take Yes, the this you

no it's an program. longer in development So is our project, it exploration

that oil [ for shallow expect. in high Woodford, time, X as I water-oil cut some just They declines, Excellent have to low the productivity, we perform we XX been have probably X and As think you Meramec. wells know, ] continue the ratios. in online

this will year. be X bringing wells on We

We've and wells, laterals. leasehold are then to those pads of on. longer multi-well Two X there's gone be bringing that we'll

acre XX,XXX We position. have this blocky

us on X that will bringing wells really miles. the So laterals. average drill we're gives to year long ability around The this

the we'll wells the and year, be standpoint, X up X development to Woodford Next will be we're at looking x drilling the From in the Meramec. future spacing XX,XXX feet. still in a

maybe. there, I I hit it think all

Mike Henderson

perspective, programs, net we're say still of ] just the from not Matt, to is completed wells, I'd completed [ a Yes, cost kind yet. speak. We've drilling so them what

So of perspective, encouraging a the I we it drilling, see quite seemed of -- predrill get say share. we the And in I would I cost do more as What frankly, line the would through that you the is, to say kind on were What progressed expectations. all therefore, with costs cost have all don't that data better. efficiencies thing as reps. would are maybe get improvement from getting in when expect natural that we would could get, spend, the we drilling

Lee Tillman

just Yes. little asset brought a subtlety. X thing the is Permian I'll Oklahoma, bit One too, a and together. the that -- this fact other of teams, we mention, But

this where a is structure. because under something in. drilling benefit teeth course, X areas kind can of and leadership our of single we Oklahoma. that's of cut in learning And Now already we've completing from That's that Woodford/Meramec the

it's play more pressure. that let's Delaware hard it's be now and learnings honest, will, So asset with those I It's Woodford/Meramec this joint challenging we drilling. into of if we're now deeper, the a expertise it team lot because is hard drilling. this, mean, have rock bringing you challenging Texas

us to bringing allowing curve in Oklahoma certainly learning a So more the advance expertise bit up that efficiently. from is

Operator

with question Neil Sachs. next Goldman from Our comes Mehta

Neil Mehta

to just some post-XXXX about capital of efficiency at the can of continue The $X you post-XXXX. you thoughts, first that Just setting for billion ensuring capital was pace? another And had I question think this sticks and XXXX But oil efficiency sort year, year. you're strong very this at able CapEx? as hold XXX of

Lee Tillman

feels just Well, now like we're it releasing XXXX. Yes.

-- ] of productivity. we're say, let XXXX definitely we first well feel our, But [ just me good underlying about a very So is of say leap. bit I'll a all, think

very actually X very still peer operated productivity that mature when it's of basins, you on think we remarkable uses specs. think top about much fact the that and pretty market the line we're I the is holding what the the already at

So context. all think to I of keep have this in the you proper

have completions. Permian available the a for supply about, some And side. fundamental chain right? is the better as of capital. I'm competing that certainly on as the as lot efficiency of But start well hold there's optimization. Woodford rate hard I more the metrics. we Mike certainly, improve line not tools modeling, do There day, we we the well clearly, ways things again, mean And us, capital per certainly, our look rock stages longer from a there's the on about believe a efficiency, the and horizon, talking line as a productivity execution design, out see to penetration talked our just continue There's laterals, of drilling that drilling. longer-term we we bit if to will hold standpoint, to over some

manage continue our how best work and integrate to supply chain. on We to

sheer there's commercial finally, just then And leverage. the

But protect hard those We peer-leading path may opportunity continue parts put different You certainly we to to bucket. that very efficiency a we deflation, for... capital that of the different though Even move moving to capital as inflation efficiency to geology. time. give be on in can an we've continue all kind our overarching see of work us to worked in things forward

Neil Mehta

And it in It's on definitely a your tough just you is natural is referenced obviously outlook follow-up environment, the question as U.S. comments. gas the notable. in Then the

about to you plan of your -- you value the maximize which areas netbacks? Are So for XXXX your how prosecute. to want designing your trying is thinking and you're

Lee Tillman

Yes.

Mike clear for I program describing already capital the pretty where 'XX reflects pricing the that natural program of was gas reality think in today. our sits

in model, we're Thus, optimization, it we're a gas not and our design. pricing XXXX sits volumes. But essentially in capital won't basins, obviously, the driving compete right? black and play, value Eagle compete where mean, able to X where to are We're future. much Permian. oil of Oklahoma OEB, on today taking I making like is even mean of multi-basin to a doesn't we which we're cycle, is said, by in Ford, I It in take the allocation surprisingly, combination struggling, capital of that's and Bakken very that it's little think for driven hard And the oil So America. by the program downtick because focus, a though our value our look. today, kind because of commodity efficient bit North over Mike a returns given very

Operator

question from comes with of Doug America. Bank next Our Leggate

Unknown Analyst

This Doug. is actually [ for Cleo ]

to So appreciate inventory question you questions. I taking first the depth. My goes

the continue You a with very show guys obviously mature on consistent to those assets. capital harvesting program emphasis

you so, do load the each do of the plays. if about you U.S. you it? can you that that you when on you depth work evolving of And see hoping So when provide carrying your on program? Permian X how as ever X future, that into And the think the a program, view Anadarko resource see see

Lee Tillman

try so in There's me that. unpack of let there, bit maybe to a little lot a

me the First question. all, with deal inventory maybe of just let

the there and that include work that been replacing can reductions X laterals, that. from we last over in has like we ways do have able And very team to we're extending are and inventory is Our refrac in several One organic everything cost where at the like places Eagle operate, ongoing successful places years. Ford. redevelopment enhancement,

that's even bolt-ons do So small helpful. We trades. and

a Texas reasons allow to good small around then about the of Delaware the to program that X-mile-plus acquisitions, more contiguous the primarily work all migration a in from just did us program. talked is having of we then the of contiguous the a Ensign. position play development about position And because kind is migration trades like And there get I'm finally, there. of large small -- sorry, of One M&A we're more we there. -- And of now larger just there then Delaware scale we the Delaware of scale with talked into kind kind the exploration

period prosecute -- the to But that than cycles, typically, relatively hold a to -- those what model. another. to of avenues lean you to all X And we've XX-plus some last on you these in more over been to X over but of X see got inventory X that's and years have plus time. And We've of sustainable replenish. continue replenishment constant decade that really able need

that us expect to should use you forward. same playbook So going

every to mean, M&A. a enhancement. is we're I organic large-scale like not have investing things going year, every year in But certainly,

exploration of our investing are We progress some plays. to still and trying

basin So we and how at we are At parcel part we an a those -- level. replenishment. things inventory capital level, just enterprise address of allocate

allocation. look at instance, that's Permian today, see from you our more And looking for holistic we inventory, when to compete capital starting for standpoint. it why, at we're So a

flow coming inventory, And generation. think we mindset to of so and highest fit on we XX-plus managing year the the best enterprise that free for through think through with capital level at and basins generate and return allocation a in when continue based it us out cash it with to receiving sustainable an

Unknown Analyst

get sense be the But EG. let's MMBtu I'm per say, laid scenario. earnings it. linearity if shown very the would here the $XX I'm in extreme comments. ratability to wondering I same the Not to about a the those compared that My you've to a exhibit just scenario stupid of out? to prices appreciate that the blew $XX trying to quick follow-up out goes of to $XX commodity you sensitivity. just perspective for

Lee Tillman

we're level I there goes We the products. happy. that, provided some it an all, $XX comments. all in key there to of I and is be But very bit linearity enterprise of this the a first to though. going think, at Well, mentioned X sensitivity my of of for now, And reasons

the because how framework. be that sensitivities can the EG should those included deck, global overall you see the to So enterprise commercial data It's in But it test certainly, delivery. LNG able is we've into you a to factors pricing. linked

the a level the commodity volumes pricing. cost relationship then structure, same should to that same under So with of extent that delivering the we're pretty linear be

Unknown Analyst

I you. Thank appreciate that.

Lee Tillman

I am the too, a going way. as to prediction take that $XX by

Operator

Scotiabank. comes Paul Cheng next from with question Our

Paul Cheng

you and shifting Dane, changing on is Maybe price. in this guys the bit accounting both the a EG, for Lee transfer are

way the other fully than, [ that that affiliate That's -- the was that level? Does say, first how changed you curious equity decision-making way and it ] owned the operation. are shift operation Just question. in that for on any the earnings between

operating in consolidation. foresee service of your that supply, will with Do we of the -- region, are actually in question rest peers. because the people second terms of going back the that to landscape that so think to that you the -- go I that, terms of because want players. some change In The of service see pricing better the to to rational, going on bigger you maybe more consolidation, for become the become the the

what that, I just on due in? any, have landscape the your mean, are curious you may So that view changed, to that consolidation competitive the if regions that in operating

Lee Tillman

here, again, to lots Paul. Great. Well, unpack Great.

lack earnings you're consolidated into our the the have the we've And from in some provided in around when bring get to jump step not income But me of companies entities, reporting. be also also or that fact, just element this structure any equity some say, does migrating breakdown in and profitability occur. spot in very ways, of of out. profitability timing off start clarity we complex, obviously, a hopefully help of from that is of dividend kind or we'll kind we new shifting consolidated And here the confusion more point. in will equity receive, know we we that between the of over eliminate contractual that Let this I'll EG in but deck, to that on company. dislocation guidance mean, under this entity. I question. me on still an to and the EG will transparency in the the detailed maybe the Because the limit when by that generate more consolidated we Dane

have tell said, what new making would you, is you anything standpoint thing our beauty because other structure. And that across aligned change an would equity this around only from the we're percentage value we in EG chain. this of I The decision well, the

that have across it aspect through way the there. every the missed impact or all plant. know, in alignment we really investments there's no from of Dane, we value don't the about our decision-making anything LNG think because how I I So to chain upstream, if

Dane Whitehead

the No, sort XX that $XXX to the slide price of tie holistic best at I completely. XXXX, that add provided about all EBITDA sensitivity, so how we guidance $XXX business the business That's And $XX to say really way generation. is is -- I want. just deck, gave it. in can million you EG the an aggregate would how will look at assuming I agree of the level, that's we a TTF. Page think on EBITDA we million But unit you of

it's consolidated really don't think coming We equity point, that decision-making, So or echo I whether it an affiliate Lee's drives from. doesn't all. earning to is our where which like it it entity,

thing guidance now is is you a 'XX. for other quite average. we out that provided X-year years previously a stronger we've The bit And given than what actually gone X and

running this the the future it's bringing same lot into business a and fully that's gas the strong, is infill baked opportunities of room and yet. very improving the model lot and not here So the into system, there's a with -- and

So we're on pretty bullish EG.

Lee Tillman

we basins. them best assets, the, kind already today. of done more the bit all have was and to the is the mature material basins operators absolutely think challenging have so the be many and becomes just a some probably, in where certainly tend as it offer in in you some factor I'll had a I position. ways, a the basins aggregating best around question competitive Consolidation it, call last in It's landscape, of of

it, not The in between Ensign, the those I versus example, that allocation other the inventory life came to to but for assets act balance. It life with to XXX-plus think, the our it struck you and Ford, EBITDA within brought was that And use today. also of locations continue cash overall accretive and accretive Eagle opportunities immediately but only inventory. compete with And those is in inventory company. capital brought competed really would have flow PDP production I balancing challenge, it's the forward we where and instance,

assets unique mature But the run highest at as are ultimately, the quality operators, that in and there be some we you so will by put basins. category. high-quality challenges And look the certainly ourselves more

Operator

from Our Citigroup. with Scott question comes next Gruber

Scott Gruber

a I just does have approach. industry I prudent seem certainly here secure X very But rush up. framework your an good scale Yes. to here. obviously, and is there think Lee, question to be rock M&A

from fading? the resource, opportunity and ultimately, whether So that's in for does M&A or the is, this you within the that M&A set acquisitions set the to guess of the phase? quality the -- of strategy? approach and opportunity tweak adding question worry are get investors warrant inorganic, And with hyper longer-term construct question about shrinking we context do for consolidation you the organic I your is, your quality or the of outlook comfortable a

Lee Tillman

transactions attributes counterparties. counterparties these But the Most reflect sustainability something. for of in phase searching searching They're the very to that our for Yes. Well, our are no our of they're inventory. we're They're definitely, upside resilience. today. our They're They all I balance see Again, to no compromise bespoke. health. for of compromise those for scale. today. for to searching shareholders today. to in we shareholders upside searching searching criteria Again, criteria sheet are mean,

kind a of fill as won't -- but they're So to refer desperation, that trying a drives to necessarily this behavior. void. And what I different it drives it is

years sitting us, XX-plus we're inventory. of For with

So and for We demonstrated that. got when levers that still M&A that in we assets the available can can patient. is very there. we replenishment. we our We've exercise We Large-scale level are keep levers the also And do that in -- even and of same X be the business we have be mind can of thoughtful. those can be have discipline organic same we a apply. side transactions track inventory occur, just

they're so not anywhere. And going

their still find And into ultimately, so the by best hands will aspect best being the operated is there that operators. of, assets

Operator

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

Lee Tillman

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

Operator

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

You now may disconnect.

Marathon Oil (MRO) 22 Feb 242023 Q4 Earnings call transcript