Marathon Oil Corporation has announced a $2.3 billion returns-driven development capital budget for 2018, which is self-funding at $50 average WTI, including dividends, and generates meaningful free cash flow at $60 average WTI. More than 90 percent will be directed to the four U.S. resource plays, with corporate cash return on invested capital (CROIC) expected to increase by about 30 percent year over year at $50 average WTI.

Almost 60 percent of the development budget will be allocated to the high-return Eagle Ford and Bakken assets, which have demonstrated step-change performance improvements while operating at scale. Approximately one-third of the development budget will be allocated to the Company's Northern Delaware and Oklahoma assets, where the majority of drilling activity will be transitioning to multi-well pads, while continuing strategic delineation and appraisal.

As a result of this concentrated capital allocation, the U.S. resource plays will increase to about 70 percent of the total Company production mix, driving a natural expansion in margins. Additionally, Marathon Oil expects to deliver a strong annual rate of change on the key corporate performance metrics of CROIC and cash flow per debt adjusted share (CFPDAS), both of which are now integrated into the executive compensation structure.

2018 Production Guidance

For full year 2018, the Company forecasts total production available for sale, excluding Libya, to average 390,000 to 410,000 net barrels of oil equivalent per day (boed), up 12 percent at the midpoint compared to 2017 on a divestiture-adjusted basis. Total annual oil production available for sale, excluding Libya, is expected to increase about 18 percent at the midpoint on a divestiture-adjusted basis, driven by 20 - 25 percent annual oil growth in the U.S. resource plays.

For first quarter 2018, U.S. production is expected to average 265,000 to 275,000 net boed. International production, excluding Libya, is expected to average 105,000 to 115,000 net boed, which reflects planned turnaround activity in EG.