StrategyU.S. Resource Play Focused
Marathon Oil has transitioned from portfolio transformation to execution delivery at scale across our U.S. resource plays. With more than 95% of our 2019 development capital allocated to the U.S. resource plays, our margins will naturally expand as a greater percentage of our production is sourced from these high quality assets.
Marathon Oil enjoys a differentiated position one of the only E&Ps active in the four best oil-rich U.S. resource basins.
First quarter 2019 featured strong execution across our advantaged multi-basin portfolio and was highlighted by solid well productivity and improving well costs in each of our basins. We remain fully committed to our well-established framework for success: improving bottom-line corporate returns, generating sustainable free cash flow, prioritizing return of capital to shareholders, and enhancing our capital efficiency and underlying resource base through differentiated execution.
As of 1Q, we had returned over $90 million to shareholders, more than fully funded by organic free cash flow.
U.S. production averaged 296,000 net barrels of oil equivalent per day (boed) for 1Q 2019, including 177,000 net barrels of oil per day (bopd). Oil production was up 11% from the year-ago quarter on a divestiture-adjusted basis. U.S. unit production costs were $5.21 per barrel of oil equivalent (boe), down 12% from the year-ago quarter due to ongoing cost reductions across the U.S. resource plays.
Though many elements of our business are changing, one thing remains firm: our values. We remain steadfast in our commitment to be safe, responsible and ethical.
We thank all our dedicated employees who make such a difference in driving execution excellence. Their talent and innovation will continue to position us favorably through 2019 and beyond.
U.S. resource play average net production in 1Q 2019
Of 2019 Development Capital Budget allocated to high-return u.S. resource plays
capital efficient u.s. oil growth Projected in 2019 with wells to sales flat
Candor and openness have been critical in building a work environment that enables our employees to grow and thrive.
NFWF News ReleaseConservation
MRO supports programs to protect native aquatic species, migratory grassland birds and pronghorn in the Pecos River Watershed.
SpeechWilliston Basin Petroleum Conf
One of the most important lessons we’ve taken from the Bakken, is to never be satisfied with what you think you knew yesterday.