Marathon Oil today announced a $1.2 billion capital expenditure budget for 2022, fully consistent with the Company’s disciplined capital allocation framework. At $80/bbl WTI and $4.00/MMBtu Henry Hub, the 2022 program is expected to deliver in excess of $3.0 billion of free cash flow at a reinvestment rate of less than 30%. The Company does not plan to deviate from its announced capital budget in the event of continued strong commodity pricing. By staying disciplined and maintaining a low reinvestment rate, Marathon Oil expects to exceed its commitment to return a minimum of 40% of CFO to equity investors, assuming an oil price of $60/bbl WTI or higher.

For reference, at $60/bbl WTI and $3.00/MMBtu Henry Hub, the 2022 program is expected to deliver $1.6 billion of free cash flow at a reinvestment rate of approximately 40%. The resilience of the 2022 capital program is additionally underscored by an enterprise free cash flow breakeven below $35/bbl WTI, assuming $3.00/MMBtu Henry Hub.

Both total Company oil and oil-equivalent production in 2022 are expected to be flat with the 2021 averages, consistent with the objective to prioritize sustainable free cash flow generation over production growth. 

KeyFacts Energy: Marathon Oil US country profile