TO OUR STAKEHOLDERS
Sustainability is at the core of Marathon Oil’s business strategy. As we pursued profitable and sustainable growth in 2017, we remained committed to responsible, safe and ethical operations.
We focused on meeting our obligations to key stakeholders, including addressing workplace safety, protecting the environment, making a difference in our communities and delivering returns to shareholders.
the year in review
lee M. Tillman, president and chief executive officer
We Are Accountable for Our Nonfinancial Performance
We believe that the way we conduct our business is as important as our operational and financial results, and we are accountable to our stakeholders for our nonfinancial performance as well as our profitability. This 2017 Living Our Values Corporate Sustainability Report presents Marathon Oil’s progress in the areas of governance, society, workforce and the environment. It is only with a commitment to earn and keep our license to operate that Marathon Oil can execute our business
We Are Advancing Our Business Strategy
Marathon Oil initiated a strategic portfolio transformation five years
We Are Addressing Safety, Environmental and Social Challenges
Reducing our impact on the environment, and complying with laws and regulations, remains a constant driver of our operational activities. When we protect the air, water, land
Our growth in 2017 highlighted the value of our commitment to be a responsible operator and good corporate citizen. As we entered the Permian Basin, expanded our operations in Oklahoma, invested in increased activity in Bakken, continued improving well performance in the core of the Eagle Ford, and managed the impacts of Hurricane Harvey in Houston and Eagle Ford, we took care to foster and strengthen our community relationships. Our social investment strategy to create a pathway to success for children through education, training and community support continued to have a positive impact in our U.S. unconventional resources and in our integrated gas business in Equatorial Guinea.
We Are Proud of Our Progress
Marathon Oil has demonstrated our ability to adjust and to respond to opportunities, challenges and changes in the marketplace. Our strategy is transparent, embedded across the enterprise and aligns fully with our Company performance metrics. Our compensation structure continues to hold Marathon Oil executives accountable for results, including more visibility on both returns and per-share metrics, not just production. In short, Marathon Oil is well prepared to create long-term value.
We are well positioned for sustainability because of the dedication of our employees and the commitment of our board of directors. The way Marathon Oil employees took care of each other, their communities and our business during and after Hurricane Harvey was truly inspiring and exemplified the core values that we hold paramount. Our board continued to guide our business strategy and enhance our approach to governance, while being responsive to our shareholders. We welcomed two new board members in March 2018, Doug Foshee and Lisa Hyland, who bring strong industry experience, diverse perspectives, demonstrated leadership and a strategic mindset to Marathon Oil.
In 2018, long-time board member Philip Lader retired from our board. As the chairman of our Health, Environmental, Safety and Corporate Responsibility (HES&CR) committee, his consistent leadership set the tone for Marathon Oil management’s approach to nonfinancial performance and fostered transparency. I want to thank Phil for the high expectations and standards of sustainability he instilled in us, and I look forward to an equally beneficial relationship with Lisa Hyland, the new chair of the HES&CR committee.
Thank you for your continuing interest in what Marathon Oil is doing to achieve sustainability in all aspects of our business.
President and CEO
Featured This Year
Marathon Oil uses well-established business processes to evaluate climate change risk in our investment decisions, and engages with external stakeholders to understand their perspectives.
Marathon Oil and our workforce were deeply affected by the record-shattering storm. But we cared for each other, our neighbors and communities, while continuing critical business functions and safeguarding our South Texas Eagle Ford asset.
Digital Oilfield Capabilities
We’re expanding digital oilfield capabilities throughout our U.S. unconventional resource plays. They’re allowing us to automate field operations, transmit and manage large amounts of data, perform site and equipment surveillance remotely, and analyze and optimize operations.
Since 2002, Marathon Oil has been the operator of a world-class integrated gas business in Equatorial Guinea. We’re striving to bring progress, opportunities and national capacity to the community and host nation, while building long-term shareholder value.