11 Investor Relations

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1 Fourth Quarter 2017 Table of Contents: Segment Income Summary 2 Zach Dailey 713/ Statements of Income zbdailey@marathonoil.com Balance Sheets 4 Statements of Cash Flows 5 John Reid 713/ Net PP&E 6 jreid@marathonoil.com United States E&P Supplemental Financial Data United States E&P Sales Volumes 7 8 Janine Kaul 713/ United States E&P Price Realizations jkaul@marathonoil.com International E&P Supplemental Financial Data International E&P Sales Volumes Investor Relations International E&P Price Realizations Discontinued Operations - Canadian Business San Felipe Non-GAAP Reconciliations 1 14 Houston, TX Non-GAAP Reconciliations 2 15 Non-GAAP Reconciliations 3 16 Non-GAAP Performance Metrics 17 Non-GAAP Reserve Calculation 18 Market Data We closed on the sale of our Canadian oil sands business in the second quarter of The Canadian oil sands business is reflected as discontinued operations in all periods presented. The discontinued operations presentation of the Canadian oil sands business has not yet been audited; therefore, reported values are preliminary. February 14, 2018 Additional information regarding Investor Relations, Financial Highlights, and News Releases can be reviewed on our website at:

2 Segment Income Summary (Dollars in millions) United States E&P Income (loss) before taxes $ (307) $ (111) $ (89) $ (136) $ (643) $ (79) $ (107) $ (38) $ 77 $ (147) Income tax provision (benefit) (112) (41) (30) (45) (228) 1 1 Segment income (loss) (195) (70) (59) (91) (415) (79) (107) (38) 76 (148) Effective tax rate 36% 37 % 34% 33% 35% % % % 1% (1)% International E&P Income (loss) before taxes (8) Income tax provision (benefit) (12) (2) Segment income Effective tax rate 150% (4)% 24% 29% 18% 35% 44% 50% 59% 50 % SEGMENT TOTAL Income (loss) before taxes (315) (58) (11) 18 (366) 64 (2) Income tax provision (benefit) (124) (43) (11) (1) (179) Segment income (loss) $ (191) $ (15) $ $ 19 $ (187) $ 14 $ (48) $ 66 $ 194 $ 226 Segment income (loss) before taxes $ (315) $ (58) $ (11) $ 18 $ (366) $ 64 $ (2) $ 172 $ 365 $ 599 Not allocated to segments - Corporate items Net interest and other (79) (88) (89) (80) (336) (78) (89) (82) (71) (320) General and administrative (65) (63) (61) (52) (241) (55) (51) (51) (59) (216) Other costs and income (13) (24) (4) (13) (54) (9) (19) (6) (7) (41) Items not allocated to segments, before income taxes: Net gain (loss) on dispositions (63) Proved property impairments (47) (47) (201) (24) (225) Exploratory dry well costs, unproved property impairments and other (118) (118) (250) (250) Pension settlement (48) (31) (14) (10) (103) (14) (3) (8) (7) (32) Unrealized gain (loss) on derivative instruments (23) (91) 25 (21) (110) (56) (145) (81) Gain on termination of interest rate swaps Loss on extinguishment of debt (46) (5) (51) Reduction in workforce (7) (1) (8) Rig termination payment (113) (113) Other (14) (37) 4 (47) (1) Income (loss) from continuing operations before income taxes (613) (192) (313) (46) (1,164) (16) (112) (458) 132 (454) Benefit (provision) for income taxes before special items (34) (41) (101) (172) (348) Valuation Allowance (1,346) (1,346) (41) (41) Benefit (provision) for income taxes related to special items from continuing operations 51 (15) 53 (23) Benefit (provision) for income taxes (1,337) (923) (34) (41) (141) (160) (376) Income (loss) from continuing operations (360) (138) (206) (1,383) (2,087) (50) (153) (599) (28) (830) Income (loss) from discontinued operations (a) (47) (32) (53) (4,907) 14 (4,893) Net income (loss) $ (407) $ (170) $ (192) $ (1,371) $ (2,140) $ (4,957) $ (139) $ (599) $ (28) $ (5,723) (a) The Company closed on its sale of the Canadian oil sands business in the second quarter of The Canadian oil sands business is reflected as discontinued operations in all periods presented. The discontinued operations presentation has not yet been audited; therefore, reported values are preliminary. 2

3 Consolidated Statements of Income (Dollars in millions except per share data) REVENUES AND OTHER INCOME: Sales and other revenues, including related party $ 566 $ 685 $ 781 $ 898 $ 2,930 $ 954 $ 958 $ 1,114 $ 1,185 $ 4,211 Marketing revenues Income from equity method investments Net gain (loss) on disposal of assets (60) Other income Total revenues and other income $ 570 $ 1,103 $ 990 $ 1,124 $ 3,787 $ 1,072 $ 1,059 $ 1,252 $ 1,382 $ 4,765 COSTS AND EXPENSES: Production Marketing, including purchases from related parties Other operating Exploration Depreciation, depletion and amortization , ,372 Impairments Taxes other than income General and administrative Total costs and expenses 1,104 1,207 1,214 1,094 4,619 1,010 1,085 1,629 1,174 4,898 Income (loss) from operations (534) (104) (224) 30 (832) 62 (26) (377) 208 (133) Net interest and other (79) (88) (89) (76) (332) (78) (86) (35) (71) (270) Loss on early extinguishment of debt (46) (5) (51) Income (loss) from continuing operations before income taxes (613) (192) (313) (46) (1,164) (16) (112) (458) 132 (454) Estimated income tax provision (benefit) Current Deferred (295) (57) (124) 1, (105) (61) Total provision (benefit) for income taxes (253) (54) (107) 1, Income (loss) from continuing operations (360) (138) (206) (1,383) (2,087) (50) (153) (599) (28) (830) Income (loss) from discontinued operations (a) (47) (32) (53) (4,907) 14 (4,893) NET INCOME (LOSS) $ (407) $ (170) $ (192) $ (1,371) $ (2,140) $ (4,957) $ (139) $ (599) $ (28) $ (5,723) Effective tax rate on continuing operations 41% 28% 34% (2,907)% (79)% (213)% (37)% (31)% 121% (83)% Per common share data: Basic: Weighted average shares (millions) Income (loss) from continuing operations $ (0.49) $ (0.16) $ (0.24) $ (1.63) $ (2.55) $ (0.06) $ (0.18) $ (0.70) $ (0.03) $ (0.97) Income (loss) from discontinued operations (a) $ (0.07) $ (0.04) $ 0.01 $ 0.01 $ (0.06) $ (5.78) $ 0.02 $ $ $ (5.76) NET INCOME (LOSS) $ (0.56) $ (0.20) $ (0.23) $ (1.62) $ (2.61) $ (5.84) $ (0.16) $ (0.70) $ (0.03) $ (6.73) Diluted: Weighted average shares (millions) Income (loss) from continuing operations $ (0.49) $ (0.16) $ (0.24) $ (1.63) $ (2.55) $ (0.06) $ (0.18) $ (0.70) $ (0.03) $ (0.97) Income (loss) from discontinued operations (a) $ (0.07) $ (0.04) $ 0.01 $ 0.01 $ (0.06) $ (5.78) $ 0.02 $ $ $ (5.76) NET INCOME (LOSS) $ (0.56) $ (0.20) $ (0.23) $ (1.62) $ (2.61) $ (5.84) $ (0.16) $ (0.70) $ (0.03) $ (6.73) ADJUSTED INCOME (LOSS) FROM CONTINUING OPERATIONS $ (0.37) $ (0.19) $ (0.13) $ (0.11) $ (0.78) $ (0.13) $ (0.24) $ (0.08) $ 0.07 $ (0.38) ADJUSTED NET INCOME (LOSS) $ (0.43) $ (0.23) $ (0.11) $ (0.10) $ (0.85) $ (0.07) $ (0.17) $ (0.08) $ 0.07 $ (0.25) Dividends paid per common share $ 0.05 $ 0.05 $ 0.05 $ 0.05 $ 0.20 $ 0.05 $ 0.05 $ 0.05 $ 0.05 $ 0.20 (a) The Company closed on its sale of the Canadian oil sands business in the second quarter of The Canadian oil sands business is reflected as discontinued operations in all periods presented. The discontinued operations presentation has not yet been audited; therefore, reported values are preliminary. 3

4 Consolidated Balance Sheets Mar. 31 June 30 Sept. 30 Dec.31 Mar.31 June 30 Sept. 30 Dec. 31 (In millions) ASSETS Current assets: Cash & cash equivalents $ 1,978 $ 2,518 $ 1,788 $ 2,488 $ 2,490 $ 2,614 $ 1,795 $ 563 Receivables less allowance for doubtful accounts ,082 Notes receivable Inventories Other current assets Current assets held for sale (a) Total current assets 3,268 3,754 3,042 3,665 3,743 4,424 3,690 2,566 Equity method investments Property, plant and equipment, net 17,589 16,555 16,933 16,727 16,533 18,337 17,645 17,665 Goodwill Other noncurrent assets 1,666 1,818 1, Noncurrent assets held for sale (a) 9,271 9,341 9,448 9,098 2, Total assets $ 32,868 $ 32,527 $ 32,310 $ 31,094 $ 24,537 $ 24,241 $ 22,947 $ 22,012 LIABILITIES Current liabilities: Accounts payable, including related party $ 986 $ 852 $ 878 $ 967 $ 1,081 $ 1,158 $ 1,313 $ 1,395 Payroll and benefits payable Accrued taxes Long-term debt due within one year , Other current liabilities Current liabilities held for sale (a) Total current liabilities 1,526 1,382 1,408 2,240 3,099 2,082 1,762 1,968 Long-term debt 7,272 7,272 7,269 6,581 5,723 6,715 6,488 5,494 Deferred income taxes Defined benefit postretirement plan obligations Asset retirement obligations 1,521 1,503 1,512 1,602 1,622 1,642 1,522 1,428 Deferred credits and other liabilities Noncurrent liabilities held for sale (a) 1,796 1,800 1,809 1, Total liabilities 13,517 13,374 13,388 13,553 11,953 11,836 11,172 10,304 TOTAL STOCKHOLDERS' EQUITY 19,351 19,153 18,922 17,541 12,584 12,405 11,775 11,708 Total liabilities and stockholders' equity $ 32,868 $ 32,527 $ 32,310 $ 31,094 $ 24,537 $ 24,241 $ 22,947 $ 22,012 Common stock issued Common stock held in treasury Net shares outstanding at balance sheet date Cash adjusted debt-to-capital ratio 21% 20% 22% 21% 28% 27% 28% 30% (a) The Company closed on its sale of the Canadian oil sands business in the second quarter of Assets and liabilities of our Canadian business are presented as held for sale in the historical consolidated balance sheets in all periods presented. The assets held for sale presentation has not yet been audited; therefore, reported values are preliminary. 4

5 Consolidated Statements of Cash Flows (YTD) Mar. 31 June 30 Sept. 30 Dec.31 Mar.31 June 30 Sept. 30 Dec. 31 (In millions) OPERATING ACTIVITIES: Net income (loss) $ (407) $ (577) $ (769) $ (2,140) $ (4,957) $ (5,096) $ (5,695) $ (5,723) Adjustments to reconcile to net cash provided from operating activities: Discontinued operations (a) ,907 4,893 4,893 4,893 Depreciation, depletion and amortization 549 1,061 1,583 2, ,148 1,789 2,372 Impairments Exploratory dry well costs and unproved property impairments Net (gain) loss on disposal of assets 60 (234) (281) (389) (1) (7) (26) (58) Deferred income taxes (295) (352) (476) (61) Net (gain) loss on derivative instruments (77) (140) (162) (11) Net cash received (paid) in settlement of derivative instruments (7) Stock based compensation Equity method investments, net Changes in: Current receivables (1) (15) (192) (334) Inventories (10) (5) 4 10 Current accounts payable and accrued liabilities (107) (207) (212) (137) (1) (41) All other operating, net (77) 27 9 (28) (117) Net cash provided by operating activities from continuing operations ,487 1,988 INVESTING ACTIVITIES: Additions to property, plant and equipment (441) (728) (949) (1,204) (283) (775) (1,305) (1,974) Acquisitions, net of cash acquired (902) (902) (1,828) (1,828) (1,891) Deposits for acquisition (89) (180) Disposal of assets, net of cash transferred to buyer ,219 1,726 1,757 1,787 Equity method investments - return of capital All other investing, net (1) 1 (5) (26) (30) Net cash used in investing activities from continuing operations (408) (20) (965) (833) (450) (833) (1,353) (2,044) FINANCING ACTIVITIES: Borrowings Debt repayments (1) (1) (1) (1,764) (2,764) Debt extinguishment costs (46) (46) Common stock issuance 1,232 1,236 1,236 1,236 Purchases of common stock (4) (5) (6) (7) (10) (10) (11) Dividends paid (34) (77) (119) (162) (42) (85) (128) (170) All other financing, net 1 (1) Net cash provided by (used in) financing activities 1,198 1,155 1,111 1,068 (50) (96) (960) (2,003) CASH FLOW FROM DISCONTINUED OPERATIONS: (a) Operating activities 5 (11) Investing activities (13) (25) (34) (41) (9) (13) (13) (13) Changes in cash included in current assets held for sale 8 36 (63) 100 (86) Net increase (decrease) in cash and cash equivalents from discontinued operations Effect of exchange rate on cash and cash equivalents (3) (3) (3) Net increase (decrease) in cash and cash equivalents 859 1, , (693) (1,925) Cash and cash equivalents at beginning of period 1,119 1,119 1,119 1,119 2,488 2,488 2,488 2,488 Cash and cash equivalents at end of period $ 1,978 $ 2,518 $ 1,788 $ 2,488 $ 2,490 $ 2,614 $ 1,795 $ 563 (a) The Company closed on its sale of the Canadian oil sands business in the second quarter of The Canadian oil sands business is reflected as discontinued operations in all periods presented. The discontinued operations presentation has not yet been audited; therefore, reported values are preliminary. 5

6 Net Property, Plant and Equipment Dec. 31 Mar.31 June 30 Sept. 30 Dec. 31 (In millions) United States E&P $ 14,158 $ 14,025 $ 15,888 $ 15,783 $ 15,867 International E&P 2,470 2,419 2,358 1,772 1,710 Corporate Net property, plant and equipment $ 16,727 $ 16,533 $ 18,337 $ 17,645 $ 17,665 6

7 United States E&P Supplemental Financial Data (Dollars in millions except per BOE statistics) Sales and Other Operating Revenues $ 493 $ 617 $ 604 $ 661 $ 2,375 $ 674 $ 695 $ 806 $ 963 $ 3,138 Segment Income (Loss) (195) (70) (59) (91) (415) (79) (107) (38) 76 (148) DD&A (a) , ,011 Capital Expenditures (b) ,081 Exploration Expense Exploratory dry well costs and unproved property impairments G&G and Other Total exploration expense Costs and Expenses per BOE Production $ 6.17 $ 6.28 $ 5.70 $ 5.66 $ 5.96 $ 5.79 $ 5.86 $ 5.38 $ 5.33 $ 5.57 Other operating (c) Taxes other than income Exploration DD&A (a) United States E&P income (loss) per BOE $ (8.97) $ (3.44) $ (2.97) $ (4.57) $ (5.07) $ (4.23) $ (5.28) $ (1.67) $ 3.16 $ (1.72) (a) DD&A expense and DD&A costs per BOE are based upon volumes sold. (b) Includes accruals. (c) Includes Shipping and Handling, General and Administrative, and Other Operating expenses. 7

8 United States E&P Sales Volumes Net liquid hydrocarbon sales (mbbld) Crude oil and condensate Oklahoma Eagle Ford Bakken Northern Delaware All other United States (a) Total crude oil and condensate Natural gas liquids Oklahoma Eagle Ford Bakken Northern Delaware All other United States (a) Total natural gas liquids Total liquid hydrocarbons Oklahoma Eagle Ford Bakken Northern Delaware All other United States (a) Total liquid hydrocarbons Net natural gas sales (mmcfd) Oklahoma Eagle Ford Bakken Northern Delaware All other United States (a) Total natural gas Total net sales (mboed) (a) Conventional onshore U.S. production. 8

9 United States E&P Price Realizations Average price realizations (excluding hedging) Liquid hydrocarbon price realizations ($ per bbl) Crude oil and condensate Oklahoma $ $ $ $ $ $ $ $ $ $ Eagle Ford Bakken Northern Delaware All other United States (a) United States crude oil and condensate Natural gas liquids Oklahoma $ $ $ $ $ $ $ $ $ $ Eagle Ford Bakken Northern Delaware All other United States (a) United States natural gas liquids Total liquid hydrocarbons Oklahoma $ $ $ $ $ $ $ $ $ $ Eagle Ford Bakken Northern Delaware All other United States (a) United States liquid hydrocarbons Realized gain (loss) on crude oil commodity derivatives per barrel of liquid hydrocarbon sold $ 1.64 $ 0.12 $ 1.55 $ 0.32 $ 0.92 $ 0.34 $ 1.07 $ 2.42 $ (0.76) $ 0.75 Natural gas price realizations ($ per mcf) Oklahoma Eagle Ford Bakken Northern Delaware All other United States (a) United States natural gas United States average price realizations ($ per boe) $ $ $ $ $ $ $ $ $ $ Market prices NYMEX prompt WTI oil ($/bbl) $ $ $ $ $ $ $ $ $ $ NYMEX settlement natural gas ($/mcf) Bloomberg Mont Belvieu NGL ($/bbl) (b) (a) Conventional onshore U.S. production. (b) Bloomberg Finance LLP: Y-grade Mix NGL of 50% ethane, 25% propane, 10% butane, 5% isobutane and 10% natural gasoline. 9

10 International E&P Supplemental Financial Data (Dollars in millions except per BOE statistics) Sales and Other Operating Revenues $ 96 $ 159 $ 152 $ 258 $ 665 $ 203 $ 220 $ 364 $ 367 $ 1,154 Segment Income DD&A (a) Capital Expenditures(b) Exploration Expense Exploratory dry well costs and unproved property impairments 2 7 (6) 3 G&G & Other Total exploration expense (3) Costs and Expenses per BOE, from Operations Production $ 6.08 $ 5.09 $ 4.05 $ 5.23 $ 5.05 $ 3.72 $ 4.68 $ 4.82 $ 3.98 $ 4.33 Other operating (c) Exploration (0.23) DD&A (a) International E&P income per BOE $ 0.44 $ 5.10 $ 5.13 $ 8.14 $ 5.11 $ 8.12 $ 4.89 $ 6.79 $ 8.39 $ 7.06 Equatorial Guinea EG Income before DD&A, Tax, and Exploration (d) $ 69 $ 126 $ 174 $ 163 $ 532 $ 161 $ 134 $ 183 $ 186 $ 664 (a) DD&A expense and DD&A costs per BOE are based upon volumes sold. (b) Includes accruals. (c) Includes Shipping and Handling, General and Administrative, and Other Operating expenses. (d) See "Non-GAAP Reconciliations". 10

11 International E&P Sales Volumes Net liquid hydrocarbon sales (mbbld) Crude oil and condensate Equatorial Guinea Libya United Kingdom Other International Total crude oil and condensate Natural gas liquids Equatorial Guinea United Kingdom Total natural gas liquids Total liquid hydrocarbon Equatorial Guinea Libya United Kingdom Other International Total liquid hydrocarbon liftings Net natural gas sales (mmcfd) Equatorial Guinea Libya 14 4 United Kingdom (a) Total natural gas Total international net sales (mboed) Net sales volumes of Equity Method Investees (b) LNG (mtd) 4,322 5,797 6,620 6,743 5,874 6,147 6,243 6,943 6,353 6,423 Methanol (mtd) 1,280 1,303 1,529 1,316 1,358 1,307 1,182 1,366 1,637 1,374 Condensate & LPG (boed) 10,208 11,306 16,766 15,381 13,430 14,546 11,608 17,216 14,605 14,501 (a) Includes gas acquired for injection and subsequent resale. (b) LNG, methanol, and condensate & LPG sales from Equatorial Guinea are conducted through equity method investees. 11

12 International E&P Price Realizations Average price realizations Liquid hydrocarbon price realizations ($ per bbl) Crude oil and condensate Equatorial Guinea $ $ $ $ $ $ $ $ $ $ Libya United Kingdom Other International International crude oil and condensate Natural gas liquids Equatorial Guinea $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 United Kingdom International natural gas liquids Total liquid hydrocarbons Equatorial Guinea $ $ $ $ $ $ $ $ $ $ Libya United Kingdom Other International Total International liquid hydrocarbons Natural gas price realizations ($ per mcf) Equatorial Guinea $ 0.24 $ 0.24 $ 0.24 $ 0.24 $ 0.24 $ 0.24 $ 0.24 $ 0.24 $ 0.24 $ 0.24 Libya United Kingdom International natural gas International average price realizations ($ per boe) $ $ $ $ $ $ $ $ $ $ Market prices Brent (Europe) Oil ($/bbl) $ $ $ $ $ $ $ $ $ $

13 Discontinued Operations - Canadian Oil Sands Business (Dollars in millions) Sales and Other Revenues (a) $ 160 $ 199 $ 239 $ 265 $ 863 $ 258 $ 173 $ $ $ 431 Net gain (loss) on disposal of assets (43) (43) Total revenues and other income (a) Costs and Expenses (a) Production Depreciation, depletion and amortization Impairments 6,636 6,636 Other Total Costs and Expenses , ,955 Pretax income (loss) from discontinued operations (a) (70) (46) (71) (6,581) 14 (6,567) Provision (benefit) for income taxes (a) (23) (14) 9 10 (18) (1,674) (1,674) Income (loss) from discontinued operations (a) (47) (32) (53) (4,907) 14 (4,893) Net synthetic crude oil production (mbbld) (b) Net synthetic crude oil sales (mbbld) (b) (a) The Company closed on its sale of the Canadian oil sands business in the second quarter of The Canadian oil sands business is reflected as discontinued operations in all periods presented. The discontinued operations presentation has not yet been audited; therefore, reported values are preliminary. (b) The effective date of the above transaction is January 1,

14 Non-GAAP Reconciliations (Dollars in millions) Net income (loss) from continuing operations $ (360) $ (138) $ (206) $ (1,383) $ (2,087) $ (50) $ (153) $ (599) $ (28) $ (830) Adjustments for special items (pre-tax): Net (gain) loss on dispositions 63 (296) (38) (108) (379) (6) (19) (32) (57) Proved property impairments Exploratory dry well costs, unproved property impairments and other Pension settlement Unrealized (gain) loss on derivative instruments (25) (77) (43) Gain on termination of interest rate swaps (47) (47) Loss on extinguishment of debt Reduction in workforce Rig termination payment Other (4) 47 1 (3) (4) (53) (59) Provision (benefit) for income taxes related to special items from continuing operations (51) 15 (53) 23 (66) (1) (12) (13) Valuation allowance 1,346 1, Adjustments for special items from continuing operations $ 90 $ (26) $ 95 $ 1,288 $ 1,447 $ (62) $ (49) $ 531 $ 84 $ 504 Adjusted net income from continuing operations (a) $ (270) $ (164) $ (111) $ (95) $ (640) $ (112) $ (202) $ (68) $ 56 $ (326) (Dollars in millions) Net income (loss) $ (407) $ (170) $ (192) $ (1,371) $ (2,140) $ (4,957) $ (139) $ (599) $ (28) $ (5,723) Adjustments for special items from continuing operations (pretax): Net (gain) loss on dispositions 63 (296) (38) (108) (379) (6) (19) (32) (57) Proved property impairments Exploratory dry well costs, unproved property impairments and other Pension settlement Unrealized (gain) loss on derivative instruments (25) (77) (43) Gain on termination of interest rate swaps (47) (47) Loss on extinguishment of debt Reduction in workforce Rig termination payment Other (4) 47 1 (3) (4) (53) (59) Provision (benefit) for income taxes related to special items from continuing operations (51) 15 (53) 23 (66) (1) (12) (13) Valuation allowance 1,346 1, Adjustments for special items from continuing operations $ 90 $ (26) $ 95 $ 1,288 $ 1,447 $ (62) $ (49) $ 531 $ 84 $ 504 Adjustments for special items from discontinued operations (pre-tax): Canadian oil sands business impairment (b) 6,636 6,636 Net (gain) loss on disposition (b) Provision (benefit) for income taxes related to special items from discontinued operations (1,674) (1,674) Adjusted net income (a) $ (317) $ (196) $ (97) $ (83) $ (693) $ (57) $ (145) $ (68) $ 56 $ (214) (a) Non-GAAP financial measure. (b) The Company closed on its sale of the Canadian oil sands business in the second quarter of The Canadian oil sands business is reflected as discontinued operations in all periods presented. The discontinued operations presentation has not yet been audited; therefore, reported values are preliminary. 14

15 Non-GAAP Reconciliations (Dollars in millions) Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Cash Flows (YTD) Net cash provided by operating activities from continuing operations $ 69 $ 267 $ 526 $ 901 $ 501 $ 923 $ 1,487 $ 1,988 Changes in: Current receivables (1) (15) (192) (334) Inventories (10) (5) 4 10 Current accounts payable and accrued expenses (107) (207) (212) (137) (1) (41) U.K. Tax Payment (108) Net cash provided by operating activities from continuing operations before changes in working capital and the U.K. tax payment (a) $ 66 $ 357 $ 544 $ 907 $ 513 $ 984 $ 1,486 $ 2,123 Cash and cash equivalents at end of period $ 1,978 $ 2,518 $ 1,788 $ 2,488 $ 2,490 $ 2,614 $ 1,795 $ 563 Less: Borrowings Debt repayments (1) (1) (1) (1,764) (2,764) Debt extinguishment costs (46) (46) Acquisitions, net of cash acquired (902) (902) (1,828) (1,828) (1,891) Deposits for acquisition (89) (180) Disposal of assets, net of cash transferred to buyer (b) ,219 1,726 1,757 1,787 Net increase (decrease) in cash and cash equivalents from discontinued operations (b) U.K. Tax Payment (108) Cash and cash equivalents at end of period before Acquisitions, Dispositions, Borrowings, Debt Repayments, and the U.K. tax payment (a) $ 1,961 $ 1,849 $ 1,854 $ 1,936 $ 2,670 $ 2,587 $ 2,558 $ 2,467 Adjusted G&A (Dollars in millions) Total Company G&A expenses Adjustments to G&A expenses Pension settlement Reduction in workforce 55 8 Other 1 Adjusted G&A expenses (a) (a) Non-GAAP financial measure. (b) The Company closed on its sale of the Canadian oil sands business in the second quarter of The Canadian oil sands business is reflected as discontinued operations in all periods presented. The discontinued operations presentation has not yet been audited; therefore, reported values are preliminary. 15

16 Non-GAAP Reconciliations (Dollars in millions) Equatorial Guinea EBITDAX EG - Income from equity method investments $ 14 $ 37 $ 59 $ 65 $ 175 $ 69 $ 51 $ 63 $ 73 $ 256 EG - Net income excl. equity method investments EG Total Net Income All Other International E&P Segment Income (14) (8) (31) 29 (24) Total International E&P Segment Income EG Total Net Income Depreciation, Depletion and Amortization Tax Exploration 1 1 EG Net Income before DD&A, Tax, and Exploration (EBITDAX) (a) $ 69 $ 126 $ 174 $ 163 $ 532 $ 161 $ 134 $ 183 $ 186 $ Total Company provision (benefit) for income taxes from continuing operations $ (253) $ (54) $ (107) $ 1,337 $ 923 $ 34 $ 41 $ 141 $ 160 $ Segment provision (benefit) for income taxes (124) (43) (11) (1) (179) Provision (benefit) for income taxes related to special items from continuing operations (51) 15 (53) 23 (66) (1) (12) (13) - Valuation Allowance (special item) 1,346 1, Provision (benefit) for Income Taxes not allocated to Segments excluding impacts of Special Items (a) $ (78) $ (26) $ (43) $ (31) $ (178) $ (16) $ (5) $ (5) $ 1 $ (25) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD Consolidated effective tax expense (benefit) rate on continuing operations (41)% (28)% (34)% 2,907 % 79 % 213 % 37 % 31 % 121 % 83 % Adjustments to consolidated effective tax rate: Impact of Libyan operations 1 % 3 % 3 % (1,444)% % (229)% (30)% (24)% (129)% (78)% Valuation Allowance % % % (1,512)% (115)% % % (7)% % (5)% Consolidated effective tax expense (benefit) rate on continuing operations rate excluding Libya and Valuation Allowance (a) (40)% (25)% (31)% (49)% (36)% (16)% 7 % % 8 % % (a) Non-GAAP financial measure. 16

17 Non-GAAP Performance Metrics Components of CROIC and CFPDAS (In millions, except for share price) 2017 Net cash provided by operating activities from continuing operations $ 1,988 Changes in: Current receivables (334) Inventories 10 Current accounts payable and accrued expenses 297 Net cash provided by operating activities from continuing operations before changes in working capital $ 2,015 Interest expense $ 327 Interest Income (34) Capitalized Interest (3) Net interest (before-tax) 290 Tax on net interest Net interest (after-tax) $ 290 Operating cash flow before working capital and net interest after tax $ 2,305 Stockholder's equity as of December 31, 2016 $ 17,541 Stockholder's equity as of December 31, ,708 Average stockholder's equity for 2017 $ 14,625 Long-term debt (including current portion) as of December 31, 2016 $ 7,267 Less: Cash and cash equivalents as of December 31, 2016 (2,488) Net debt as of December 31, 2016 (a) $ 4,779 Long-term debt (including current portion) as of December 31, 2017 $ 5,494 Less: Cash and cash equivalents as of December 31, 2017 (563) Net debt as of December 31, 2017 (b) $ 4,931 Average net debt for 2017: (c) = (a + b) / 2 $ 4,855 Average MRO closing share price in 2017 (d) $ Debt shares = (c) / (d) 340 Diluted weighted average shares 850 Total shares including debt shares 1,190 Definitions CROIC - Cash return on invested capital; calculated by taking cash flow (operating cash flow before working capital + net interest after tax) divided by (average stockholder's equity + average net debt). CFPDAS - Cash flow per debt adjusted share; calculated by taking cash flow (operating cash flow before working capital + net interest after tax) divided by total shares including debt shares. Debt shares is the average net debt during a calendar year divided by the average annual stock price. Management cannot reliably predict certain of the necessary components of CROIC and CFPDAS for future years, such as net cash provided by operating activities, working capital, cash and cash equivalents, average share price. Accordingly, Marathon Oil is unable to present a quantitative reconciliation of any forward-looking non-gaap performance metric to its most directly comparable forward-looking GAAP measure. 17

18 Non-GAAP Reserve Calculation Estimated Net Proved Reserves from Continuing Operations (mmboe) Year Year Beginning balance: 1,465 1,404 Additions (incl. improved recovery) Revisions Acquisitions Dispositions (84) (10) Production (126) (138) Ending balance: 1,404 1,449 Changes in Reserves (excluding dispositions) Production Reserve Replacement Ratio (excluding dispositions) 118% 140% Organic Changes in Reserves (excluding acquisitions, dispositions) Production (excl. acquisitions) Organic Reserve Replacement Ratio (excluding acquisitions, dispositions) 93% 121% Costs Incurred from Continuing Operations (Dollars in millions; except per boe data) Year Year Property Acquisition Costs - Proved Property Acquisition Costs - Unproved 632 1,747 Exploration Development Costs Incurred from Continuing Operations 2,082 3,855 Finding and Development Costs 2,082 3,855 Changes in Reserves (excluding dispositions) Finding and development costs per BOE Finding and Development Costs $ 2,082 $ 3,855 Property Acquisition Costs (908) (1,939) Capitalized Asset Retirement Costs (111) 197 Adjusted Finding and Development costs $ 1,063 $ 2,113 Organic Changes in Reserves (excluding acquisitions, dispositions) Adjusted Finding and development costs per BOE $ 9.24 $

19 E&P E&P E&P Average NYMEX Average NYMEX Average Brent (Europe) Prompt WTI Oil Prices Settlement Natural Gas Prices Oil Prices ($/barrel) ($/mmbtu) ($/barrel) JAN JAN JAN FEB FEB FEB MARCH MARCH MARCH APR APR APR MAY MAY MAY JUNE JUNE JUNE JULY JULY JULY AUG AUG AUG SEPT SEPT SEPT OCT OCT OCT NOV NOV NOV DEC DEC DEC AVG AVG AVG E&P E&P E&P Average Bloomberg (a) Average Bloomberg (a) Average Bloomberg (b) Mont Belvieu Natural Gas Liquids Prices Conway Natural Gas Liquids Prices LLS St. James ($/barrel) ($/barrel) ($/barrel) JAN JAN JAN FEB FEB FEB MARCH MARCH MARCH APR APR APR MAY MAY MAY JUNE JUNE JUNE JULY JULY JULY AUG AUG AUG SEPT SEPT SEPT OCT OCT OCT NOV NOV NOV DEC DEC DEC AVG AVG AVG (a) Bloomberg Finance LLP: Y-grade Mix NGL of 50% ethane, 25% propane, 10% butane, 5% isobutane and 10% natural gasoline (b) Bloomberg Finance LLP: LLS St. James 19