Friday, November 8, 2019

MRO -- Marathon -- 3Q19 Corporate Presentation

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Later: kallanishenergy.

Original Post

MRO link. Data points:
  • overall:
    • free cash flow, nearly $300 million YTD, post-dividend
    • full year US oil production increased to 13% from 12% previously
    • 3Q19 production up 17% from year ago
    • CAPEX in line with expectations; $2.4 billion budget unchanged
  • plays:
    • Eagle Ford and Bakken
      • more than 500 locations added since beginning of 2018
      • upgraded hundreds of locations to top tier returns
    • Eagle Ford: added 18,000 net acres; bolt-on acres
    • new Texas Delaware oil play
      • 60,000+ net acres at low entry cost
      • potential for 400 extended lateral locations
    • Lousisiana Austin Chalk: exploration drilling
    • bottom line across all plays: greater than three years of drilling inventory added
  • Bakken:
    • this is incredible -- record low completed wells are now costing less than $5 million
    • $4.9 million average 3Q completed well cost -- down 20% from 2018
    • new single well drilling records -- spud to total depth of less than 7 days
    • established new pad record for completion efficiency -- 11 stages / day
    • average 3Q stages/day up 35% vs 2018
    • 4-well Herbert pad achieved average IP30 of 1,720 boed (86% oil) with average CWC of $4.5 million
  • extending the Bakken core 
    • with well costs below $5 million, able to extend top tier locations
    • and look at this: of the top 100 wells in the Bakken, MRO has 60 of those wells
  • MRO accounts for only 9% of wells in the Bakken
    • 2018 delineation tests paid out in ~ ten months
    • Ajax wells, 4Q18
      • four wells
      • > 1 million boe (80% oil)
    • total cumulative at 240 days
    • S. Hector wells, 2H18
      • four wells;
    • > 950,000 boe (79% oil)
    • total cumulative at 200 days
  • 2020 guidance
    • budget at $50-oil
    • break-even below $50 
Tier 1:

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