1. business and industrial
2. energy
3. natural gas

BAML 2014 Global Energy Conference
J.R. Sult
Executive Vice President & Chief Financial Officer
November 13, 2014
Forward-Looking Statement
All statements in this presentation (and oral statements made regarding the subjects of this presentation) other than historical facts are forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements rely on a
number of assumptions concerning future events and are subject to a number of uncertainties and factors that could cause actual results to differ materially from such statements,
many of which are outside the Company’s control. Forward-looking information includes, but is not limited to: the Company’s operational, financial and growth strategies, including
growth activities and expectations, and the timing thereof; the Company’s ability to successfully effect those strategies and the expected results therefrom; the Company’s financial
and operational outlook, and ability to fulfill that outlook; planned drilling programs, wells, projects, acreage additions, rig additions, well testing, exploration activities,
maintenance activities, and the planned timing and expected results thereof; production growth estimates; resource estimates and potential; 2P resource estimates; estimated
resource play production growth; exploration activities, growth opportunities and production expectations in Oklahoma, Bakken and Eagle Ford; drilling plans, exploration activities,
planned acquisitions, timing and resource estimates in Key Largo, Equatorial Guinea and Gabon; the 2014 exploration drilling schedule; continued additions to the Oklahoma
acreage position; enhanced completion designs, stac and frac pilots, high density pilots and development plans, and the planned timing and expected benefits thereof; and the
planned use of proceeds from the sale of the Norway business.
While the Company believes that the assumptions concerning future events are reasonable, a number of factors could cause results to differ materially from those indicated by
such forward-looking statements including, but not limited to: conditions in the oil and gas industry, including the level of supply or demand for liquid hydrocarbons and natural gas
and the impact on the price of liquid hydrocarbons and natural gas; changes in political or economic conditions in key operating markets, including international markets; the
amount of capital available for exploration and development; timing of commencing production from new wells; drilling rig availability; availability of materials and labor; the
inability to obtain or delay in obtaining necessary government or third-party approvals and permits; non-performance by third parties of their contractual obligations; unforeseen
hazards such as weather conditions, acts of war or terrorist acts and the governmental or military response thereto; changes in safety, health, environmental and other regulations;
and other geological, operating and economic considerations. These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges
and uncertainties described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, and those set forth from time to time in the Company’s filings
with the Securities and Exchange Commission (the “SEC”), which are currently available at www.MarathonOil.com. Except as required by law, the Company expressly disclaims any
intention or obligation to revise or update any forward-looking statements whether as a result of new information, future events or otherwise.
See definitions of terms used throughout this presentation in the Appendix.
Cautionary Note to U.S. Investors - The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable or possible
reserves which are estimated remaining quantities of oil and gas and related substances anticipated to be economically producible, as of a given
date, by application of development projects to known accumulations. Any resource estimates in this presentation that are not specifically
designated as being estimates of proved, probable or possible reserves, such as 2P unconventional resource and other similar terms, may include
other estimated reserves that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. investors are urged to consider
closely the disclosures in the Company’s periodic filings with the SEC, available from us at 5555 San Felipe Street, Houston, Texas 77056 and the
Company's website at www.MarathonOil.com. You can also obtain this information from the SEC by calling 1-800-SEC-0330.
Marathon Oil Corporation
2
Strong 3Q Operational Performance
U.S. Resource Plays Deliver >40% Year Over Year Growth
 High quality U.S. resource plays deliver strong production growth

43% year-over-year; 13% quarter-over-quarter

Eagle Ford brings record 87 gross operated wells to sales
 Total MRO production from continuing operations (excluding Libya) up 12%
year-over-year
 Additional rig added to Bakken; on track to add 2 additional rigs to
Oklahoma by year-end
 GOM Key Largo inboard Paleogene prospect spud during quarter
 Norway business sale closed October 15; ~$2.1B in proceeds
Marathon Oil Corporation
3
U.S. Resource Plays Over Half of E&P Production Mix
Predictable Execution Delivering Consistent Growth
Eagle Ford, Bakken & Oklahoma Unconventional Available for Sale Volumes
250,000
192,000
200,000
170,000
BOED
150,000
134,000
100,000
50,000
0
U.S Resource play
% E&P Production*
3Q 2013
2Q 2014
3Q 2014
39%
49%
52%
*Combined N.A. & International E&P production available for sale (excluding Libya & discontinued operations)
Marathon Oil Corporation
4
Eagle Ford Executing with Confidence
Record 87 Wells to Sales in 3Q 2014
 Production averaged 117,000 net BOED; increased
43% over 3Q 2013 and 15% over prior quarter
MBOED
Eagle Ford Production Volumes
140
120
100
80
60
40
20
0
 Enhanced completion design continues to deliver
strong results
 59 wells at >180 days production
 Yielding on average 25% improvement relative to
modeled type curves
3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014
 Pace of Eagle Ford wells to sales up 14% quarterover-quarter; 87 gross operated wells to sales
Gross Operated Eagle Ford Wells to Sales
Number of Wells
100
Record !
80
60
40
20
71
86
76
 Incremental capital expenditure delivering ~100% ROR
87
 Austin Chalk Co-Development continues on plan
 8 gross operated Austin Chalk wells to sales during 3Q
with 30-day IP rates ranged from 800 – 1,300 BOED
(69% liquids)
 16 Austin Chalk wells drilling, completed or awaiting
first production
49
0
3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014
 On target to complete 30 wells total in 2014
Marathon Oil Corporation
5
Tighter Stage Spacing Capturing Value
Eagle Ford
Stage Spacing Evolution
Stage Spacing
 Early 250’ stage spacing wells
delivering on average 25%
improvement over 350’ type curve
 Incremental capital yields IRR ~100%
 Testing stage spacing tighter than 250’
1Q 2013
2Q 2013
3Q 2013
4Q 2013
1Q 2014
2Q 2014
First Production Date
Stage Spacing Performance
Normalized Cumulative MBOE
160
140
120
100
80
60
40
250' Stage Spacing Avg. Actual Prod
20
350' Stage Spacing Type Curve
0
0
30
60
90
120
Producing Days
150
180
Marathon Oil Corporation
6
On Plan to Delineate Austin Chalk Co-development
Eagle Ford
Austin Chalk Co-Development Delineation
Q3 Results
 Encouraging early results from
16 wells
Morgan
1,058 BOEPD
Direct Assets
792 BOEPD
 Includes 11 wells brought
online YTD 2014
 30-day IPs up to 1,650 BOED
Kowalik 228-1R
892 BOEPD
 Initial 18,000 net acres
delineated, 140 MMBOE 2P
resource
Mobil B
1,120-1,190 BOEPD
Kraner B
950-1,300 BOEPD
 On target to complete 30 wells
in 2014
Rates shown are 30-day IPs
Austin Chalk Producing Wells
Austin Chalk Q4 2014 Wells
Current Austin Chalk Development Area
Further Austin Chalk Delineation Area
Marathon Oil Corporation
7
Stack and Frac Targeting Upper Eagle Ford
Eagle Ford
Stack and Frac Pilot
 Pilot testing extends Austin Chalk / Lower
Eagle Ford success
Austin
Chalk
Avg. thickness
~100’
Upper
Eagle Ford
Avg. thickness
~45’
 Upper Eagle Ford prospective across Karnes
and Atascosa acreage
Ash
Ash
Clay/Ash
 Testing vertical density in large hydrocarbon
column to drive further recovery
 Designed to optimize co-development of
multiple horizons
 Up to 4 wells per stack, dependent on location
Lower
Eagle Ford
Avg. thickness
~130’
Tight Lime
 Presence of interbedded ash and limestone
may limit vertical stimulation height
 First Stack and Frac pilot targeting Austin
Chalk, Upper Eagle Ford and Lower Eagle
Ford has spud and is currently drilling
~175’ spacing
Marathon Oil Corporation
8
Bakken Shifting Up a Gear
More than 30% of enhanced completion pilots on-line
 Production averaged 56,000 net BOED;
increased 47% over 3Q 2013 and 12% over prior
quarter
Bakken Production Volumes
60
MBOED
50
 Pace of Bakken wells to sales consistent with 2Q
2014; 19 gross operated wells to sales
40
30
 16 recompletions with favorable results in Hector
and Ajax areas; 13 recompletions to sales
20
10
0
3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014
 Bakken driving to higher density pilots
 3 of the 4 planned pilots have spud; 6 Middle
Bakken and 6 Three Forks 1st Bench
Number of Wells
Gross Operated Bakken Wells to Sales
35
30
25
20
15
10
5
0
1
21
21
8
4
19
 Enhanced completion design tests progressing
with encouraging early results
13
 8 of 19 gross operated wells to sales piloting
enhanced designs (fluid/proppant loading,
reduced stage spacing, surfactant)
19
11
3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014
Wells to sales
Refracs
 Planned program of 55 tests on 46 wells in
2014/early 2015; 19 of 55 tests on-line
 Incremental drilling rig added in September
Marathon Oil Corporation
9
Rapid Transition to Higher Density Pilots
Bakken
 4 operated high density pilots
planned in three major areas
 Initial results expected in 1H
2015
 Exposure to deeper TF
benches via operated and
OBO pilots
Myrmidon
Brodahl Pilot
6 x MB
6 x TF 1st Bench
Drilling
TAT USA 34 Pilot
6 x MB
6 x TF 1st Bench
6 x TF 2nd Bench
1Q 2015 spud
 MRO planned TF2 pilots
 Participating in three OBO
pilots and one JIP
 High density and completion
pilot results will be integrated
into full field development
Hecker Pilot
6 x MB
Drilling
Hector
Ajax
Lucy Fleckenstein Pilot
6 x MB
6 x TF 1st Bench
Drilling
Contour is top structure of Middle Bakken, tvdss
Marathon Oil Corporation
10
Shifting Up a Gear in Completion Designs
Bakken
 Over 50% of remaining wells in
2H 2014 involved in completion
pilots
Myrmidon
 2014/15 Completion Pilots
3
 Varied fluid/sand volumes: 27
– 9 wells also reduce stage
spacing, trial surfactant, or trial
Plug & Perf




4
3
2
2
Hector
4
2
2 2
Cemented Plug & Perf: 12
Hybrid slickwater fracs: 4
Reduced Stage Spacing: 9
Added Surfactant: 3
 55 trials on 46 unique wells
2
2
 Results expected in early 2015
and will be integrated with high
density pilots
Ajax
Contour is top structure of Middle Bakken, tvdss
Marathon Oil Corporation
11
Oklahoma Resource Basins Moving to Scale
Continuing to build acreage position and adding rig capacity
 Production averaged 19,000 net BOED;
ORB Production Volumes
increased 27% over 3Q 2013
20
 6 gross operated wells to sales in 3Q 2014
MBOED
15
 4 SCOOP wells to sales; including best
operated well to date, single mile lateral
with 30 day IP of 2,800 BOED, 55% liquids
10
5
0
3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014
 2 Southern Mississippi Trend wells to sales
 Executed agreements for additional 12,000
Number of Wells
Gross Operated ORB Wells to Sales
7
6
5
4
3
2
1
0
net acres in SCOOP, including acres with
Springer upside potential
 2 additional rigs on track to be added by
year-end
6
2
3
4
4
3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014
Marathon Oil Corporation
12
SCOOP Outperforming & Competing for Capital
Oklahoma Resource Basins
SCOOP Play ~140,000 net acres
 Continue to increase acreage position
and delineate SCOOP
 Added ~22,000 acres YTD
Legend
Active Lease
Oil
Legend
Condensate
Dry Gas
 Rig program driven by lease hold in
2014
MRO Dunn 1-14XL
1,550 BOED
MRO Winter Creek 1-22XL
990 BOED
MRO Loren Brown 1-26XL
2,000 BOED
 SCOOP wells performing strongly
 6 operated wells (3 XL) to sales
in 1H 2014
 9 operated wells (1 XL) to sales
in 2H 2014
Rates shown are 30-day IPs
*XL= Extended lateral (>1mi)
Marathon Oil Corporation
13
STACK Offers Ground-floor Acreage Growth
Oklahoma Resource Basins
STACK Play ~100,000 net acres
Osage
Producer
 Continuing to grow acreage position
 Added ~16,500 acres YTD
S. Miss Trend
 4 producing Southern Miss Trend
operated wells (3 Meramec, 1 Osage)
Meramec
Producers
 Interest in 3 more OBO Meramec wells
Cana Woodford
 Encouraging early results
 1 additional 2014 well planned
 Successful Cana Woodford workovers
 5 recent acid workovers yielded an
average 85% uplift (~5 MMCFD total gross)
to pre-stimulation rates
SCOOP
COOP Woodford Well
COOP S. Miss Well
OBO Woodford Well
OBO S. Miss Well
Marathon Oil Corporation
14
Exploring New Horizons
Oklahoma Resource Basins
Granite Wash
Springer
Marlow
Legend
MRO Granite Wash
Woodford Wells
Granite Wash
SCOOP
 Exploring further horizons within existing
SCOOP & STACK acreage
 Testing horizontal redevelopment of
Granite Wash including Marlow and
Ammo fields
 New targets in Springer formation
 2 Marlow wells to sales in 2014
 Goddard and Boatwright shales
 Encouraging early results
 30% to 50% liquid yields
 Anticipate high liquid yields
 Initial results available in 2015
 Additional exploration of other Granite
Wash structures in 2015
Marathon Oil Corporation
15
Focused Exploration Creating Optionality
Key Largo spud, EG near term oil potential, Gabon position strengthened
S
Key Largo




MRO operated, 60% WI
In-board Paleogene 3-way trap against salt
Gross unrisked resources 250 to 500 MMBOE
Spud September 2014
Salt
WR622
WR578
Key Largo
N
Salt
Middle Miocene
Lower Miocene
30,000’
Oligocene
Paleogene
1 mile
35,000’
Salt
Cretaceous
Sodalita West
Equatorial Guinea
25,000’
Rodo
 MRO operated, 80% to 100% WI
 Amplitude supported oil-prone play
Block A
Alba Field
 Multiple follow on prospects
 Gross unrisked resources 200 to 500 MMBOE
 Two well program to commence 4Q 2014
Gabon Tchicuate Block (formerly G13 Block)




MRO operated, 80% WI (100% PI)
Pre-salt offshore play
EPSC signed August 8, 2014
3D Seismic acquisition began in November 2014
Marathon Oil Corporation
Diaba Block
Tchicuate Block
275,000 gross acres
16
Executing on 2014 Priorities
Allocating Capital to Highest Return Investments
 On track for 2013 - 2014 resource play production growth
>30%
 Eagle Ford executing with confidence
 Record 87 wells to sales in 3rd quarter
 Austin Chalk co-development advancing
 Bakken shifting up a gear
 Enhanced completion designs showing encouraging early
results
 Spud 3 of 4 downspacing pilots, focused on 12-wells per DSU
 Additional rig added in September
 Oklahoma resource basins moving to scale
 2 additional rigs to be added by year-end
 Continuing to build on significant acreage position
 Portfolio optimization and capital allocation
 Sale of Norway business closed on October 15
 Organic growth is first priority for redeployment of proceeds
 Focused exploration with key oil tests in GOM and EG
 Communicate 2015 capital, investment and exploration
budget in December 2014
Marathon Oil Corporation
17
Roadmap to be Recognized as Premier Independent E&P
Marathon Oil’s Seven Strategic Imperatives (SI7)
Long-term
Shareholder
Value
Living
Our
Values
Investing
in our
People
Quality
and Material
Resource
Capture
Operating
and Capital
Efficiency
Rigorous
Portfolio
Management
Driving
Profitable
& Sustainable
Growth
18
Appendix
Definitions
Term
Definition
2P
Most likely or “2P” volumes represent most likely deterministic estimates of proved
plus probable reserves as defined by the SEC, plus contingent or “2C” volumes with
the same technical certainty as proved and probable reserves that are expected to
be recovered but that cannot yet be classified as reserves, or the P50 on the
cumulative distribution of results from probabilistic estimates
AC
Austin Chalk
AVO
Amplitude versus offset
B
Billion
BBL
Barrel
BBOE
Billions of barrels of oil equivalent
BOE
Barrels of oil equivalent
BOED
Barrels of oil equivalent per day
COOP
Company operated
E&P
Exploration and Production
EF
Eagle Ford
EG
Equatorial Guinea
Marathon Oil Corporation
20
Definitions
Term
Definition
EPSC
Exploration and Production Sharing contract
EUR
Estimated ultimate recoverable
FT
Feet
GOM
Gulf of Mexico
IP
Initial production rate
IRR
Internal rate of return
JIP
Joint-interest pilot
MB
Middle Bakken
MBOE
Thousand barrels of oil equivalent
MBOED
Thousand barrels of oil equivalent per day
MM
Million
MMBOE
Million barrels of oil equivalent
MMCFD
Million cubic feet equivalent per day
MRO
Marathon Oil Corporation
MRO-OP
Marathon Oil Corporation operated
Marathon Oil Corporation
21
Definitions
Term
Definition
OBO
Operated by others
ORB
Oklahoma Resource Basins
PI
Paying Interest
Production
Production available for sale
SCOOP
South Central Oklahoma Oil Province
SL
Single lateral
TD
Target depth
TF
Three Forks
TF1
Three Forks First Bench
TF2
Three Forks Second Bench
TVDSS
Total Vertical Depth Subsea
US
United States
WI
Working interest
XL
Extended lateral
YTD
Year-to-date
Marathon Oil Corporation
22
GOM Exploration Activity Moves Front and Center
Conventional Exploration Drilling Schedule
J
F
M
A
M
J
2014
J
A
S
O
N
Country
Well
Kurdistan
Mangesh-1
Kurdistan
East Swara Tika-1
Kurdistan
Jisik-11
Kurdistan
Mirawa-21,2
Kenya
Sala-1
Kenya
Sala-22
Ethiopia
Shimela-1
Ethiopia
Gardim-1
Gulf of Mexico
Shenandoah2
Gulf of Mexico
Key Largo1
60% WI
Gulf of Mexico
Perseus
30% WI
EG
Sodalita West1
Q1
Q2
20%WI
Q3
D
Q4
Testing
TD
20%WI
45% WI
TD
Testing
TD
Testing
45%
50% WI
TD Testing
50% WI
20% WI
20% WI
10% WI
80%
present
1
2
Marathon operated wells
Appraisal wells
Marathon Oil Corporation
23
Key Largo Leveraging Superior Properties of Inboard Paleogene Trend
Gulf of Mexico
 Play characteristics




Large structures
Laterally extensive, thick sandstones
High net to gross sand thickness
Average porosities >20% and permeability
>50 milli-Darcy
 Light, sweet and low viscosity oils
Shenandoah
Bigfoot TLP
Solomon
Cascade-Chinook FPSO
Key Largo
Stones FPSO
Jack-St Malo FPU
 Key Largo Paleogene prospect




WR622
Salt
MRO operated, 60% WI
3-Way trap against salt
Gross unrisked resources 250 to 500 MMBOE
Spud September 2014
– Water depth: 7,500 ft
– Proposed total depth: 34,800 ft
50
miles
0
WR578
Key Largo
Middle Miocene
Salt 25,000’
Lower Miocene
30,000’
Oligocene
Paleogene
1 mile
Marathon Oil Corporation
Cretaceous
35,000’
Salt
24
Near-Field, Oil-Prone Exploration Opportunity
Equatorial Guinea block A12, Sub Area B amplitude driven play
 Total gross resource potential 200 to 500 MMBOE
 Within multiple prospects
 MRO operated (80% to 100% WI)
 2014 - 2015 Program targeting gross 100 MMBOE
mean, un-risked
 Prospects de-risked by AVO & updip discoveries
 Chance of finding hydrocarbons estimated > 50%
Rodo
Marathon Oil Corporation
Riaba
25
Emerging Offshore Pre-salt Play
Gabon
 Gabon emerging pre-salt play
100 miles
 >12 BBOE gross resource potential
 Diaba block (MRO 21.25% WI, TOTAL
operator)
 > 3 BBOE unrisked gross resource potential
 Diaman-1B gas discovery
– Confirmed working petroleum system in pre-salt
objectives
 7 Additional prospects identified
 Tchicuate block* (MRO 80%WI/100%PI)
 Exploration and Production Sharing contract signed
August 8, 2014
 MRO as operator
– MRO successfully operated in Gabon from 1992 – 2009
 5 prospects identified
 Located in pre-salt offshore play
 3D Seismic acquisition began in November 2014
Rabi Kounga Field
(~900 MMBOE)
Diaba block
2.2 MM gross acres
Diaman-1B
Block
G13
Tchicuate
275,000 gross acres
Tchicuate
Democratic
Republic of
Congo
55prospects
prospectsidentified
identified
* Formerly G13 block
Marathon Oil Corporation
26