Performance Highlights

Section 5

Performance Highlights

Sustainability Performance Highlights

Category	2018	2017	Change
Fatalities (Employee and Contractor Workforce)	0	0	N/A
Global Safety Performance - Total Recordable Incident Rate (TRIR)	0.53	0.64	-17.2%
Social Investments - Philanthropic and Sustainable (million dollars)	$19.30	$21.70	-11.1%
Global Greenhouse Gas Emissions (million tonnes CO₂e) ᵃ	5.36	4.06	32.0%
Global Greenhouse Gas Intensity (tonnes CO₂e on a weighted basis/production) (a)	25.35	22.06	14.9%
Methane Emissions (million tonnes CO₂e) ᵃ	0.57	0.62	-8.1%
Methane Intensity (tonnes CO₂e on a weighted basis/production) ᵃ	2.70	3.35	-19.4%
Energy Use (trillion BTU)	44.86	43.70	2.7%
Global Spill Events to the Environment ≥ 1 bbl - number ᵇ	47	35	34.3%
Global Spill Volumes to the Environment ≥ 1 bbl - barrels ᵇ	947	1,028	-7.9%
Employees - Minorities as a Percentage of Workforce (U.S.) ᶜ ᵈ	33.3	30.1	10.6%
Employees - Females as a Percentage of Workforce (Global) ᶜ	28.1	26.1	7.7%

^a Greenhouse gas (GHG) carbon dioxide equivalent (CO₂e) emissions are based on carbon dioxide, methane and nitrous oxide from Marathon Oil-operated facilities only

^b Data includes spills outside of secondary containment ≥ 1 barrel

^c Workforce statistics reflect year-end data

^d As defined by U.S. Equal Employment Opportunity Commission

Financial and Operating Highlights (Dollars in Millions, Except Per Share Data)

Category	2018	2017
Total Revenues and Other Income	$ 6,582	$ 4,765
Income (Loss) from Operations	$ 1,667	$ (114)
Income Tax Expense (Benefit) on Continuing Operations	$ 331	$ 376
Income (Loss) from Continuing Operations	$ 1,096	$ (830)
Discontinued Operations	$ -	$ (4,893)
Net Income (Loss)	$ 1,096	$ (5,723)
Income (Loss) from Continuing Operations per share - Basic	$ 1.30	$ (0.97)
Discontinued Operations per share - Basic	$ -	$ (5.76)
Net Income (Loss) per share - Basic	$ 1.30	$ (6.73)
Dividends per share	$ 0.20	$ 0.20
Long-term Debt	$ 5,499	$ 5,494
Stockholders’ Equity	$ 12,128	$ 11,708
Capital Expenditures ᵃ ᵇ	$ 2,685	$ 2,150
Average Daily Net Sales
United States Segment (mboed)	298	234
International Segment (mboed) ᶜ	122	145
LNG (mtd) ᵈ	5,805	6,423
Methanol (mtd)	1,241	1,374
Condensate and LPG (boed) ᵈ	13,034	14,501
Net Proved Reserves: ᵇ
Crude Oil and Condensate, Natural Gas Liquids and Natural Gas (mmboe)	1,281	1,449
Employees
Number of Employees ᵉ	2,400	2,300

^a Capital expenditures include accruals

^b Excludes discontinued operations

^c Includes natural gas acquired for injection and subsequent resale

^d Reflects net share of equity method investee volumes

^e Reflects year-end data

Five Year Performance Data

Governance	2018	2017	2016	2015	2014
Independent Board Members - percent	86	89	89	89	89
Political Contributions - thousand dollars ᵃ	289	65	194	165	321

Society	2018	2017	2016	2015	2014
Social Investments (Global) - million dollars	19.3	21.7	20.5	24.2	29.3

Environment	2018	2017	2016	2015	2014
GHG Emissions (Global)ᵇᶜ
Direct Emissions - million tonnes CO₂e	5.20	3.91	3.07	3.58	3.55
Indirect Emissions - million tonnes CO₂e	0.16	0.16	0.19	1.06	0.96
Total GHG Emissions - million tonnes CO₂e	5.36	4.06	3.26	4.65	4.52
Total Methane Emissions - million tonnes CO₂e	0.57	0.62	0.67	0.64	0.72
GHG Intensity - tonnes CO₂e on a weighted basis/production (mboe)	25.35	22.06	18.11	24.52	24.47
Total Methane Intensity - tonnes CO₂e on a weighted basis/production (mboe)	2.70	3.35	3.71	3.36	3.89
Methane Emissions as a % of Natural Gas Produced	0.19	0.21	0.24	0.26	0.26
Energy Use
Energy Use - trillion BTU	44.86	43.74	49.44	-	-
Other Operational Air Emissions (Global)
Sulfur Dioxide (SOₓ) - tons	560.0	538.1	104.5	497.6	530.8
Nitrogen Oxides (NOₓ) - tons	29,050	27,923	23,733	23,295	20,974
Volatile Organic Compounds (VOCs) - tons ᵈ	12,959	22,739	16,226	11,127	8,274
Other Categories
U.S. Onshore Water Usage - million barrels used	82	70	29	40	-
Global Spill Events to the Environment ≥ 1 bbl - number ᵉ	47	35	29	47	56
Global Spill Volumes to the Environment ≥ 1 bbl - barrels ᵉ	974	1,028	1,580	3,605	1,153
Total Off-Site Waste Disposal (thousand tons)	73	26	16	-	-
Orphan Site Remediation and Reclamation - million dollars	1.8	0.9	1.0	4.1	1.3

Safety & Workforce	2018	2017	2016	2015	2014
Safety — Global (combined employee and contractor)
Fatalities - number	0	0	0	0	0
Total Recordable Incident Rate (TRIR) - incidents/200,000 work hours	0.53	0.64	0.35	0.39	0.75
Process Safety Management
Tier 1 Process Safety Events - number	2	0	0	1	0
Tier 2 Process Safety Events - number	0	0	0	3	4
Tier 3 Process Safety Events - number	22	31	22	18	86
Other Categories
Employees (Global) - number ᶠ	2,437	2,345	2,302	2,642	3,356
Turnover - percent ᶠ ᵍ	11.7	13.2	14.5	19.8	18.3
Minority Employees (U.S.) - percent ᶠ ʰ	33.3	30.1	24.5	24.4	23.2
Minority Professionals (U.S.) - percent ᶠ ʰ	31.6	28.8	24.6	24.2	22.3
Minority Supervisors/Managers (U.S.) - percent ᶠ ʰ	20.4	16.1	13.2	13.9	12.2
Female Employees (Global) - percent ᶠ	28.1	26.1	25.4	26.0	28.1
Female Professionals (Global) - percent ᶠ	30.7	28.7	23.1	28.2	28.4
Female Supervisors/Managers (Global) - percent ᶠ	22.4	21.1	19.4	21.2	20.7
Percent of Workforce Represented by Unions (Global) - percent ᶠ	0.0	0.0	0.0	0.0	0.0

^a Includes political action committee and corporate contributions

^b Greenhouse gas (GHG) carbon dioxide equivalent (CO₂e) emissions are based on carbon dioxide, methane and nitrous oxide from Marathon Oil-operated facilities only

^c 2017 air emissions have been updated based on a review and resubmittal of emissions data to the EPA

^d Increase in VOCs is primarily due to accounting changes in the Resource Plays

^e Data includes spills outside of secondary containment ≥ 1 barrel

^f Workforce statistics reflect year-end data

^g Data does not include total retirement rates of 2.4%, 4.2%, 5.1%, 11.1% and 5.2% for 2018, 2017, 2016, 2015 and 2014, respectively

^h As defined by U.S. Equal Employment Opportunity Commission

These tables contain data relevant to Marathon Oil’s governance, society, environmental, safety and workplace performance. We understand that the accuracy of the data is inherently constrained by differing reporting rules, definitions, estimating methods and other factors. Marathon Oil endeavors to strengthen global data reporting systems and methodologies but recognizes as accuracy is improved, corrections will be needed periodically. In this table, some totals may not equal the sum of their components and separate calculations of other data may be affected due to independent rounding. The metrics above are for operations under direct Marathon Oil management and operational control. Greenhouse gas (GHG) emissions are estimated using industry guidelines (API’s Compendium of Greenhouse Gas Emissions Methodologies for the Oil and Gas Industry and the IPIECA/API/IOGP Petroleum Industry Guidelines for Reporting Greenhouse Gas Emissions). Except as noted, metrics in this table represent global performance. The gas capture percentage is the estimated volume of wellhead gas flared, over the estimated volume of gross gas produced.