CEO Message

Marathon Oil remains focused on the dual challenge of meeting growing global oil and gas demand and supporting energy security, while addressing the risks of climate change. We believe that putting safety first, achieving leading environmental performance and earning our social license to operate each and every day makes us a more profitable company. As a result, safety, environmental stewardship, community partnerships and best-in-class governance have become foundational to how we do business and enable us to continue to maximize long-term shareholder value.

Marathon Oil is committed to delivering affordable, reliable and responsibly produced U.S. oil and gas, a critical component of national, economic and energy security for the United States and its allies. That mandate became even clearer with the Russian invasion of Ukraine and the associated effects on global oil and gas supply.

We further strengthened our multi-basin portfolio in late 2022 with the successful close of the acquisition of Ensign Natural Resources, which materially increased our Eagle Ford scale. We welcomed former Ensign employees to our One Team culture and look forward to growing together as we maintain our investment grade balance sheet and delivering on our ESG commitments.

At Marathon Oil, we’re committed to providing safe workplaces where everyone can perform at their best. This continual focus has allowed us to become an industry leader in safety performance.

When demand for oil and gas increased sharply in 2022, labor shortages resulted in many new short-service workers in the oilfield, which created safety challenges across the industry.

Our company-wide focus on safety helped us navigate these challenges and we were able to finish the year strong. We delivered our third best year of safety performance in company history, as measured by a 0.30 Total Recordable Incident Rate (TRIR). We also improved our contractor workforce by strengthening safety pre-qualification thresholds, held additional safety workshops and safety leadership engagements and launched our first-ever health, environment and safety (HES) culture survey.

Marathon Oil made significant progress against our core environmental objectives this year. We surpassed our 2022 greenhouse gas (GHG) emissions intensity reduction target¹ of 40%, reducing GHG intensity by 47%. We also met our 99% total company gas capture goal² with 99.3% captured in 2022.

Despite our focus on environmental performance and these successes, we continue to look for ways to improve. In 2022, Marathon Oil had a vision to pioneer a production facility that could capture more gas and further reduce emissions without compromising the safety and reliability of our operations. We launched our first successful pilot projects in the Bakken, Oklahoma and Permian in 2022, which we call the lowest emitting automated facilities (LEAF). These enable reliable oil production while minimizing flaring and allowing us to capture and sell low pressure gas.

We know that reflecting, valuing and leveraging diversity, equity and inclusion is essential to attracting, developing and retaining people who bring us the best ideas and the most innovative solutions. Over the last five years, we have increased U.S. racial/ethnic representation by approximately 10%. Employee-led resource groups (ERGs) help drive business success and contribute to our culture. In 2022, we launched two new ERGs representing the Hispanic/Latin and the Asian American and Pacific Islander communities.

We continued to enhance our employee value proposition with an emphasis on mental well-being. We also provided additional financial support to employees in response to a highly inflationary environment.

This year marked our twentieth anniversary of operating in Equatorial Guinea (EG) and 19 years of support for the Bioko Island Malaria Elimination Project, which has helped contribute to a more than 60% reduction in child mortality since 2004. In the United States, we distributed approximately 13,000 books through the Barbara Bush Houston Literacy Foundation My Home Library Program and opened two STEM centers in elementary schools in North Dakota in partnership with the Cal Ripken, Sr. Foundation. On top of our approximately $11 million total investment in global social projects and programs, in 2022 we donated $5 million to support humanitarian relief efforts in response to the crisis in Ukraine.

We remain committed to delivering long-term value for our shareholders, communities and partners. Our strategic focus on resilience, optimization and innovation underpins our ability to meet the challenges posed by climate change while also playing our role to meet growing world energy demand. An “all of the above” energy strategy is necessary to navigate a multi-decade energy transition, or more accurately, energy expansion, and to ensure that we reduce energy poverty.

Thank you to the entire Marathon Oil team for their dedication to powering a sustainable future for people and the planet and to our investors for their confidence in our company.