Marathon Oil — Q3 2005 Earnings Presentation
20 slides from Marathon Oil's earnings presentation, Nov 1, 2005
Slide 1: Third Quarter 2005 Earnings Conference Call and Web Cast
Third Quarter 2005 Earnings Conference Call and Web Cast October 27, 2005
Slide 2: Forward Looking Statement
Forward Looking Statement Except for historical information, this presentation contains forward-looking information with respect to the timing and levels of the company's worldwide liquid hydrocarbon and natural gas and condensate production, integrated gas segment earnings, net interest, administra
Slide 3: Adjusted Net Income
Adjusted Net Income $1,000 ‘$800 $600 $400 = s200 $0 $200 1@2004 | 2a2004 | saz004 | 42004 | 10.2005 | 202005 | 32005 mm Net Income 258 382 222 429 324 873 770 (3 UK Gas Cont 3 55 75 65 33 97 48 jains Adj 7 ‘=aimpairment 34 =aDef Tax Ag} AS mmm Gain On Sale 2 -SAdj Netincome*| 250 407 297 415 357 75
Slide 4: Adjusted Net Income Per Share
Adjusted Net Income Per Share ‘mm Adjusted Net Income per Share" — Weighted Average Diluted Shares 250 150 oe 4.19 im 1.02 050 i| 000 12004 = 202004 © 3q2004 © 4q2004 © 142008 © 20205 © 30.2008 $/Share "See slide three of this presentation for @ reconciliation of Adjusted NI to Net Income, See slide
Slide 5: Total Segment Income
Total Segment Income BESP ORMBT GIG 1610 4007 $1,000 rit 855. $800 760 772 $6001 528 $400 $200 1.435 192004 20.2004 © 302004 4.2004 © 12005-20205 302005
Slide 6: Upstream Segment
Upstream Segment Income and Worldwide Sales Volumes $900 ) gem Domestic income maa international income —WW SalesVolume 400 se00 300 Fay $700 ¢ ao a seo0 555 20 = = ss00 2 eo 438 443 200 g 5400 3 5 * 354 3 8 150 = s300 Fi 100 § $200 sto 50 so ° 40.2006 2a2004 3qz004 4a 2004 122005 202005 3@ 2005 fiv
Slide 7: Domestic Upstream
Domestic Upstream Income and Sales Volumes mmm income —Sales Volumes ws - a gw. = lg a = 8 305 = = s00 25 = 150 2 5250 238 2 os 2 g wie 3 S 5 we A ‘ve me: a ya 200¢ © 2a2004 © 307004 © 40.2001 1.7005 2a2005 307005 NYHEX promptwn wan | 3525 | 3020 | «a9 | «o27 | 003 | saz | 633t Bid WeekNatGas mcr |
Slide 8: Domestic Income
Domestic Income 100 107 60 |_| 27 Ea a7 394 292005 Prices Volumes OtherRevenue Other 397 3Q2005
Slide 9: Domestic Upstream Sales Volumes and Expenses
Domestic Upstream Sales Volumes and Expenses SSaLiquids Wat Gas —Totel Expenses 2 B 20 a 8 = 50 3 $ PA E g 3 10 2 4 & F a * & 20 ° ove amor mara samc «a00 107005 | 7a7005 30705 Tooibw.wn0H [was [wa [ww | wm [wo | we | was Sales Vols: Tie 00) 2 [w# | |« |» |» [a woos onucry [mor [ on [so asa | oro |
Slide 10: Domestic Upstream Expenses and Profitability
Domestic Upstream Expenses and Profitability —Prottabity —Totat Expenses —Avgerage Realized Price 0 5 yam = 2a00s = saz004§ 7004 © 1.7005 270053012005 (BOE) ‘Avg, Realized Price] 28.92 30.86 3170 2225 B45 38.15 4496 Expem 12.55 425 ED 1782 15t 16.2 18.15 Income per BOE et 16.09 wn sat 2032 are 26.26
Slide 11: International Upstream
International Upstream Income and Sales Volumes sxaincome —Salex Volumes 450 200 s4o0 ™ 9 2 50 = ¢ = iss w f = 0 = 250 230 g 1 205 m & g as » 8 8 $ 8 sso > £ 07 ° 3 100 ° 6 0 2 ‘0 ° ya 2004 zar00s 302004 4a.2004 107005 ma 7005 307005 Dated Brent wauH | s203 | 2592 | Se | Ws | are | stm | ota ‘hug Re
Slide 12: International Income
Millions 42 International Income 20 214 S62 Ea | | sao0 100 202005 Prices Volumes Dosa Exploration Expense Other 3q2005
Slide 13: International Upstream Sales Volumes and Expenses
International Upstream Sales Volumes and Expenses Liquids Lirungs mmm Natural Gas — Total Exponses 20 8 Q i i 8 10 Ss a = 120 $ 8 10 $ 2 80 5 d $ & 28 i 2 ¢ g « 5 n ° 0 taz004 ” zaa00s 3a2004 402008 107005 | 20205 | 302005 Total Exp. (S/BOE) 15.40 19.54 19.44 17.95 17.03 18,26 23.29 Sales Volumes: T
Slide 14: International Upstream Expenses and Profitability
International Upstream Expenses and Profitability —Proftabiity —Total Expenses —Avgorage Reallzed Price 45 40 35 30 2 25 & 2 5 10 5 a 12004 242004 © 342004 © 442004 © 142005 © 202005 302005 (7808) ‘Avg. Realized Prices | 242 26.28 2.98 32.10 wan 38.16 38.76 Expenses 15.40 1858 19.44 1785 03 1025 228
Slide 15: Downstream Segment
Downstream Segment Income and Refinery Throughputs ‘=aseqment income —Total Throughpus 1400 ss00 ss00 700 s=00 sr soo 00 00 200 Ea ae 500 210 08: 7 | ” | ° 7004 202004 302004 40.2004 © 1.2005 2072005 30.2005 ‘Segment Income — Millions g Total Throughputs - MBPD RefWholesale margin (ga) | 0344 | 1255
Slide 16: SSA Gasoline/Distillate Sales and Gross Margins
16 SSA Gasoline/Distillate Sales and Gross Margins [=aGarolnenist Sales —cross Margin 0 me 0 5 ws m / ma 8 in § 1 2 wo = us gr 3 D mo 00 ‘a 2004 20200 ar004 40.2004 102005 20.7005 30.2005 SSA Retail Unis wa | 16 | 10s | vaso | se50 | 1007 | 100 Light products margin | 1445 | 1g2 | 1405 | v2.19 | wos
Slide 17: Integrated Gas and Corporate
Integrated Gas and Corporate | | 2QA 3QA Integrated Gas Segment Earnings ($ millions) | 11, (6) Unallocated Administrative Expense ($ millions) | 85 108 iNet Interest Expense ($ millions) 35, 32 Effective Tax Rate (Percent) | 33.3, 37.9 ‘Cash Adjusted Debt ($ millions) 3,104 3,286
Slide 18: 3Q 2005 Estimates and Prior Actuals
3Q 2005 Estimates and Prior Actuals 2004 Actuals 1a, 20) 30 Domestic Production and Sales: | Liquids (480) 2 7) tas], a), 075, Nat Gas (4B4CFD) 71 Git) 590) a5) S70, ——«S79)—sae)_ons.c25 Domest Total (4B}0E) ER) International Sales Volumes": a T | Liquids (MBD) * 92) a 76 7H 1 86 116-124 Nat Gas Q4R
Slide 19: Third Quarter 2005
Third Quarter 2005 Earnings Conference Call and Web Cast October 27, 2005
Slide 20: Searchable text section of graphics shown above
Searchable text section of graphics shown above Third Quarter 2005 Earnings Conference Call and Web Cast October 27, 2005 [LOGO] F orward Looking Statement Except for historical information, this presentation contains forward-looking information with respect to the timing and levels of the company’s