·            Recorded more than 95 percent average operational availability for Company-operated E&P assets

·            Enhanced global exploration program, announcing plans to pursue activities in Kenya, Ethiopia and Gabon, to create a balanced portfolio targeting significant value creation

·            Continued commitment to financial discipline and progress toward the previously stated goal of divesting between $1.5 billion and $3 billion of non-core assets over the period of 2011 through 2013, of which approximately $1.3 billion was completed or contracted through the end of 2012

·            Issued $1 billion of 3-year senior notes at 0.9 percent interest and $1 billion of 10-year senior notes at 2.8 percent interest

·            Increased quarterly dividend 13 percent to $0.17 per share

2013 Key Benchmarks

·            Project 6 to 8 percent growth in Upstream net production available for sale compared to 2012, progressing toward the Company's goal of 5 to 7 percent compound annual net production growth from 2010 through 2017. (Both exclude Libya and Alaska. Libya is excluded because of the uncertainty around sustained production levels, while Marathon Oil sold its Alaska business on Jan. 31, 2013.)

o    Implement $5.2 billion capital, investment and exploration expenditures budget

o    Spud 350-400 gross operated wells in key U.S. resource plays

o    Continue downspacing pilot in Eagle Ford to identify optimal spacing of wells

o    Continue to build infrastructure to support production growth across Eagle Ford operating area

·            Anticipate 2013 Upstream reserve replacement ratio of more than 100 percent, excluding acquisitions, divestitures and Libya

·            Expect to participate in 10 to 13 exploration wells across the deepwater Gulf of Mexico, Ethiopia, Kenya, Gabon, the Kurdistan Region of Iraq and Norway

·            Continue portfolio optimization through divestitures and capital discipline


Driven by strong reserves growth in the Company's U.S. resource plays, Marathon Oil's total net proved reserves were 2.0 billion boe at the end of 2012, an increase of 12 percent from the prior year. Of that total, 77 percent were liquid hydrocarbons and SCO and 72 percent were developed. The Company's overall reserve replacement ratio was 226 percent, with 389 million boe of net proved reserves added, while producing 172 million boe. Excluding acquisitions of 70 million boe, the overall reserve replacement ratio was 185 percent.

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