StrategyU.S.Resource Play Focused
Marathon Oil has transitioned from portfolio transformation to execution delivery at scale across our U.S.resource plays.With more than 95% of our 2019 development capital allocated to the U.S.resource plays,our margins will naturally expand as a greater percentage of our production is sourced from these high quality assets.
Our relentless focus on portfolio management has driven seven country exits since 2013 and generated proceeds of more than $4 billion just in the last 2 years.
With our 2017 entry into the Northern Delaware in the Permian basin,we now enjoy a differentiated position as the only E&P active in the four best oil-rich U.S.resource basins.
In 1Q 2018 we announced that the Company has captured more than 250,000 net acres in multiple new plays in the last year,including a largely contiguous position in the emerging Louisiana Austin Chalk play at a cost of less than $900 per acre.
Our returns-focused investment program coupled with outstanding execution across our multi-basin portfolio drove strong 2Q 2018 production and enabled us to raise our annual resource play production guidance for the second consecutive quarter with no increase to our development capital budget.
Though many elements of our business are changing,one thing remains firm: our values.We remain steadfast in our commitment to be safe,responsible and ethical.
We thank all our dedicated employees who make such a difference in driving execution excellence.Their talent and innovation will continue to position us favorably through 2018 and beyond.
U.S.resource play average net production in 4Q 2018
Of 2019 Development Capital Budget allocated to high-return u.S.resource plays
capital efficient u.s.oil growth Projected in 2019 with wells to sales flat
Using Best PracticesHydraulic Fracturing
In combination with advanced horizontal drilling technology,fracking makes it possible to develop oil and gas resources that were previously inaccessible.
A return to New Mexico
CEO Lee Tillman was an invited keynote at the 2017 New Mexico Oil & Gas Association's Annual Conference.Read his remarks about the Company's entry into the Northern Delaware.