Murphy Oil Corporation · NYSE:MUR
Murphy Oil — Investor Presentation (June 2024)
50 slides from Murphy Oil's investor presentation, June 2024
Slide 1: Investor Update June 2024
INVESTOR UPDATE JUNE 2024 www.murphyoilcorp.com NYSE: MUR 1
Slide 2: Cautionary Statement
Cautionary Statement Cautionary Note to US Investors – The United States Securities and Exchange Commission (SEC) requires oil and natural gas companies, in their filings with the SEC, to disclose proved reserves that a company has demonstrated by actual production or conclusive formation tests to b
Slide 3: Agenda
Agenda 01 04 Murphy at a Glance Murphy Exploration 02 05 Murphy Priorities Looking Ahead 03 06 Murphy 2024 Plan Appendix www.murphyoilcorp.com NYSE: MUR 3
Slide 4: Murphy at a Glance
Murphy at a Glance Murphy is an independent exploration and production company, producing in three areas with an advantaged portfolio and exploration upside 1Q 2024 Production1 Onshore United States • Eagle Ford Shale on private lands in Texas with ~1,200 future locations on ~120,000 net acres 17% •
Slide 5: Who Is Murphy?
Who Is Murphy? Sustainable, multi-basin oil and natural gas assets that are safely operated with low carbon emissions intensity across North America High-potential exploration portfolio with industry-leading offshore capabilities Strong generator of free cash flow with capital allocation flexibility
Slide 6: Murphy Priorities
MURPHY PRIORITIES www.murphyoilcorp.com NYSE: MUR 6
Slide 7: What's New in 2Q 2024
What’s New in 2Q 2024 Gulf of Mexico Exploration Update Eagle Ford Shale Update • Evaluating results following logging operations at • 7 operated Catarina wells online in 2Q 2024 non-operated Ocotillo #1 well as planned • Encountered non-commercial hydrocarbons at • 4 non-operated Tilden wells onlin
Slide 8: What's New in 2Q 2024
What’s New in 2Q 2024 Share Repurchase1 Updated Exploration Expense Guidance • Repurchased $50 MM of stock, or 1.2 MM shares, • Revised 2Q 2024 exploration expense to at an average price of $41.19 / share $45 MM from $65 MM Debt Reduction1 Maintaining Guidance Ranges • Repurchased $50 MM of long-ter
Slide 9: Advancing Strategic Priorities
Advancing Strategic Priorities DELEVER EXECUTE EXPLORE RETURN • Repurchased $50 MM of debt in 2Q • Produced 170 MBOEPD with • Evaluating results following logging Progressed Murphy 2.0 20241 via open market transactions 89 MBOPD, or 52 percent, oil volumes operations at non-operated Ocotillo of Capi
Slide 10: Ongoing Financial Discipline Drives Top Quartile Performance
Ongoing Financial Discipline Drives Top Quartile Performance Free Cash Flow1 / Production Debt / EBITDAX2 Top Quartile Performer $ / BOE $15 2.5x in FY 2023 $10 2.0x • Highest free cash flow $5 1.5x producing portfolio $0 MUR 1.0x • Lowest debt level among ($5) 0.5x oil-weighted peers ($10) 0.0x ($1
Slide 11: Long History of Benefitting Shareholders
Long History of Benefitting Shareholders Peer Beneficial Ownership by Directors and Executive Officers > $7.1 Billion % of Outstanding Shares 14% 12% Returned to Shareholders 10% Since 1961 Peers with < 1.0% ownership 8% 6% > $3.7 Billion 4% 2% 0% Returned to Shareholders A B C MUR D E F G H I J K L
Slide 12: Targeting Lower Debt with Ample Liquidity
Financial Results Targeting Lower Debt with Ample Liquidity Solid Foundation to Withstand Commodity Price Debt Maturity Profile2 $MM Cycles $1,250 • $1.1 BN of liquidity on Mar 31, 2024 $1,000 • Includes $800 MM senior unsecured credit facility $750 due Nov 2027 with no borrowings as of Mar 31, 2024
Slide 13: Capital Allocation Priorities
Capital Allocation Priorities Reducing Long-Term Debt, Increasing Shareholder Returns Beyond Quarterly Dividend With Framework1 Adjusted Free Cash Flow Murphy 1.0 – Murphy 2.0 – Murphy 3.0 – Formula Long-Term Debt Long-Term Debt Long-Term Debt > $1.8 BN of $1.0 BN – $1.8 BN ≤ $1.0 BN Cash Flow From
Slide 14: Ongoing Sustainability Initiatives
Ongoing Sustainability Initiatives Reducing Greenhouse Gas Emissions Tupper Montney Produced Water Pond • Displaced 0.9 MM gallons of diesel with natural gas in onshore drilling and completions in 1Q 2024 • Reduced flaring and methane emissions with more effective vapor recovery units in the Eagle F
Slide 15: Murphy 2024 Plan
MURPHY 2024 PLAN www.murphyoilcorp.com NYSE: MUR 15
Slide 16: 2024 Capital and Production Plan
2024 Capital and Production Plan Prioritizing Capital To Maximize Production and Adjusted Free Cash Flow1 2Q 2024 Guidance FY 2024E Production By Area • 176 – 184 MBOEPD production, 93 MBOPD or 51% oil, 56% liquids volumes 16% • Impacted by: • 2,000 BOEPD of offshore non-op unplanned maintenance Off
Slide 17: 2024 North America Onshore Plan
2024 North America Onshore Plan Balancing Investments for Free Cash Flow Generation 98 MBOEPD Forecast for FY 2024 FY 2024E Wells Online 25 • 25% oil volumes, 30% liquids volumes 20 Eagle Ford Shale 15 • 20 operated wells online 10 • 15 Catarina wells • 5 Tilden wells 5 • 20 gross non-operated Tilde
Slide 18: Eagle Ford Shale
Eagle Ford Shale Enhancing Portfolio Through Strong Execution 1Q 2024 29 MBOEPD, 86% Liquids Eagle Ford Shale Acreage • 71% oil volumes • 4 gross non-operated wells online in Tilden KARNES 2Q 2024 Plan TILDEN • 7 operated wells online in Catarina • 4 gross non-operated wells online in Tilden CATARIN
Slide 19: Tupper Montney
Tupper Montney Completions Design Drives Ongoing Strong Well Performance 1Q 2024 348 MMCFD Net, 100% Natural Gas Tupper Montney Acreage • No new wells online 2Q 2024 Well Delivery Schedule • 13 operated wells online • Completes 2024 well delivery program • Reached processing plant capacity of ~ 500
Slide 20: Kaybob Duvernay
Kaybob Duvernay Future Oil-Weighted Optionality Preserved 1Q 2024 4 MBOEPD, 68% Liquids Kaybob Duvernay Acreage • No new wells online 2Q 2024 Well Delivery Schedule • 3 operated wells online • Completes 2024 well delivery program Robust Remaining Well Inventory • 488 future locations on ~110,000 net
Slide 21: Offshore Update
Offshore Update Focusing on Executing Highly-Accretive Development Projects Total Offshore 1Q 2024 79 MBOEPD, 84% Oil Highly-Accretive Development and Tieback Projects Field Drilling Completions Online Gulf of Mexico 1Q 2024 73 MBOEPD, 82% Oil Khaleesi 2Q 2024 • Completed Khaleesi #4, online 2Q 2024
Slide 22: 2024 Offshore Workovers and Projects
2024 Offshore Workovers and Projects Execution Update Completed Workovers and Projects Operated Workovers and Projects • $50 MM 1Q 2024 total workover expense Net • Operated Marmalard #1 and #2 zone changes Field Location Project Online Production Status completed in 1Q 2024 Marmalard Mississippi Zo
Slide 23: Lac Da Vang Field Development Project
Lac Da Vang Field Development Project Cuu Long Basin, Vietnam Cuu Long Basin Lac Da Vang Field Development Overview BLOCK 15-01/05 LAC DA TRANG NORTH WEST SU TU VANG • Murphy 40% (Op), PetroVietnam Exploration Production 35%, SK Earthon 25% LAC DA TRANG WEST • 100 MMBOE estimated gross recoverable L
Slide 24: Murphy Exploration
MURPHY EXPLORATION www.murphyoilcorp.com NYSE: MUR 24
Slide 25: Exploration Update: Gulf of Mexico
Exploration Update Gulf of Mexico Gulf of Mexico Exploration Area FY 2024 Exploration Wells Ocotillo • Ocotillo #1 (Mississippi Canyon 40) Eden Park VK DD Silver Dollar • Oxy 33% (Op), Murphy 33%, Chevron 34% Silver Dollar West • Exploration well spud 2Q 2024 Powerball Medusa Delta House Orange Dalm
Slide 26: Exploration Update: Cuu Long Basin, Vietnam
Exploration Update Cuu Long Basin, Vietnam Asset Overview Cuu Long Basin BLOCK 15-01/05 LAC DA TRANG • Murphy 40% (Op), PetroVietnam Exploration NORTH WEST SU TU VANG Production 35%, SK Earthon 25% LAC DA TRANG WEST • Contracted rig for 2H 2024 exploration program Block 15-2/17 LAC DA VANG LAC DA TR
Slide 27: Tano Basin, Côte d'Ivoire
Development and Exploration Update Tano Basin, Côte d’Ivoire Asset Overview Tano Basin • ~1.5 MM gross acres, equivalent to 256 Gulf of Mexico blocks CÔTE D’IVOIRE GHANA • Seismic reprocessing projects progressing on schedule CI-102 • Block CI-502 fast-track data expected 3Q 2024, final data mid-202
Slide 28: Looking Ahead
LOOKING AHEAD www.murphyoilcorp.com NYSE: MUR 28
Slide 29: Diversified, Low Breakeven Portfolio
North America Onshore Locations More Than 50 Years of Robust Inventory with Low Breakeven Rates Diversified, Low Breakeven Portfolio Eagle Ford Shale and Kaybob Duvernay • Multi-basin portfolio provides optionality > 25 years of inventory < $50 / BBL in all price environments ~ 55 years of total inv
Slide 30: Offshore Development Opportunities
Offshore Development Opportunities Multi-Year Inventory of High-Return Projects Diversified, Low Breakeven Opportunities in Offshore Portfolio • Multi-year inventory of identified offshore projects in current portfolio • Maintaining annual offshore production of 90 – 100 MBOEPD with average annual C
Slide 31: Disciplined Strategy Leads to Long-Term Value With Current Assets
Disciplined Strategy Leads to Long-Term Value With Current Assets NEAR-TERM LONG-TERM • Reducing debt by $300 MM to reach $1.0 BN debt target in • Realizing average annual production of 20241 with no debt maturities until Dec 2027 210-220 MBOEPD with > 50% average oil weighting • Reinvesting ~50% of
Slide 32: Advancing Strategic Priorities
Advancing Strategic Priorities Diverse portfolio provides optionality Long runway of opportunities with exploration upside Long history of returning to shareholders Low leverage and zero debt maturities until December 2027 On track to achieve Murphy 3.01 in 2024 Leader among peers in key financial m
Slide 33: Investor Update
INVESTOR UPDATE JUNE 2024 www.murphyoilcorp.com NYSE: MUR 33
Slide 34: Appendix
Appendix 1 Non-GAAP Definitions and Reconciliations 2 Glossary of Abbreviations 3 2Q 2024 Guidance 4 Current Fixed Price Contracts 5 Supplemental Information 6 Acreage Maps www.murphyoilcorp.com NYSE: MUR 34
Slide 35: Non-GAAP Financial Measure Definitions and Reconciliations
Non-GAAP Financial Measure Definitions and Reconciliations The following list of Non-GAAP financial measure definitions and related reconciliations is intended to satisfy the requirements of Regulation G of the Securities Exchange Act of 1934, as amended. This information is historical in nature. Mu
Slide 36: Non-GAAP Reconciliation: EBITDA and EBITDAX
Non-GAAP Reconciliation EBITDA and EBITDAX Murphy defines EBITDA as net income (loss) attributable to Murphy1 before interest, taxes, depreciation, depletion and amortization (DD&A). Murphy defines EBITDAX as net income (loss) attributable to Murphy before interest, taxes, DD&A and exploration expen
Slide 37: Non-GAAP Reconciliation: Free Cash Flow
Non-GAAP Reconciliation Free Cash Flow Presented below is free cash flow (a non-GAAP financial measure calculated as net cash provided by continuing operations activities, less non-cash working capital changes, property additions and dry hole costs). Management believes free cash flow is important i
Slide 38: Non-GAAP Reconciliation: Enterprise Value
Non-GAAP Reconciliation Enterprise Value Presented below is enterprise value (EV), defined as market capitalization plus outstanding indebtedness less cash and cash equivalents. Enterprise value is a non-GAAP financial measure and should not be considered a substitute for other financial measures as
Slide 39: Glossary of Abbreviations
Glossary of Abbreviations AECO: Alberta Energy Company, the Canadian EBITDAX: Income from continuing operations MCF: Thousands of cubic feet benchmark price for natural gas before taxes, depreciation, depletion and amortization, net interest expense, and MCFD: Thousands of cubic feet per day BBL: Ba
Slide 40: 2Q 2024 Guidance
2Q 2024 Guidance Oil NGLs Gas Total Producing Asset (BOPD) (BOPD) (MCFD) (BOEPD) US – Eagle Ford Shale 18,500 4,000 22,700 26,300 – Gulf of Mexico excluding NCI1 61,700 4,600 58,700 76,100 Canada – Tupper Montney – – 380,600 63,400 – Kaybob Duvernay 2,200 500 7,800 4,000 – Offshore 10,000 – – 10,000
Slide 41: Current Fixed Price Contracts – Natural Gas
Current Fixed Price Contracts – Natural Gas Tupper Montney, Canada Volumes Price Commodity Type (MMCFD) (MCF) Start Date End Date Natural Gas Fixed Price Forward Sales at AECO 162 C$2.39 4/1/2024 12/31/2024 Natural Gas Fixed Price Forward Sales at AECO 25 US$1.98 4/1/2024 10/31/2024 Natural Gas Fixe
Slide 42: Maintaining Proved Reserves and Reserve Life
2023 Proved Reserves Maintaining Proved Reserves and Reserve Life • Total proved reserves 724 MMBOE at YE 2023 vs 697 MMBOE at YE 2022 2023E Proved Reserves By Area • Achieved 139% total reserve replacement • Added ~13 MMBOE of proved reserves for Lac Da Vang field in Vietnam 22% • Maintained proved
Slide 43: North America Onshore Well Locations
North America Onshore Well Locations Tupper Montney Well Locations Inter-Well Gross Remaining Area Net Acres Spacing (ft) Locations Eagle Ford Shale Operated Well Locations Tupper Montney 118,235 984 - 1,323 976 Inter-Well Gross Remaining Area Net Acres Reservoir Spacing (ft) Locations Lower EFS 300
Slide 44: Peer Acreage: Eagle Ford Shale
Eagle Ford Shale Peer Acreage Acreage as of April 30, 2024 www.murphyoilcorp.com NYSE: MUR 44
Slide 45: Peer Acreage: Kaybob Duvernay
Kaybob Duvernay Peer Acreage Murphy Paramount Whitecap Crescent Point Chevron Kiwetinohk PCC Cenovus GMT Hitic Halo Cygnet Duvernay Energy Open Crown Other Leased Battery Facility 6 Miles Acreage as of April 30, 2024 www.murphyoilcorp.com NYSE: MUR 45
Slide 46: Peer Acreage: Tupper Montney
Tupper Montney Peer Acreage Advantage Montney ARC Montney Birchcliff Montney Ovintiv Montney Tourmaline Montney Shell Montney Other Competitors Open Crown Murphy TCPL Pipeline Murphy Pipeline Battery Facility 0 Miles 10 Acreage as of April 30, 2024 www.murphyoilcorp.com NYSE: MUR 46
Slide 47: Murphy Blocks: Gulf of Mexico
Gulf of Mexico Murphy Blocks Gulf of Mexico Exploration Area PRODUCING ASSETS Asset Operator Murphy WI1 Ocotillo Eden Park Calliope Murphy 29% VK DD Silver Dollar Cascade Murphy 80% Chinook Murphy 86% Silver Dollar West Clipper Murphy 80% Orange Medusa Delta House Powerball Dalmatian S. Dalmatian Mu
Slide 48: Sergipe-Alagoas Basin, Brazil: Asset Overview
Exploration Update Sergipe-Alagoas Basin, Brazil Sergipe-Alagoas Basin Asset Overview • ExxonMobil 50% (Op), Enauta Energia S.A. 30%, Murphy 20% BRAZIL • Hold WI in 9 blocks, spanning >1.6 MM gross acres • >2.8 BN BOE discovered in basin • >1.2 BN BOE in deepwater since 2007 351 • Evaluating next st
Slide 49: Potiguar Basin, Brazil: Asset Overview
Exploration Update Potiguar Basin, Brazil Potiguar Basin Asset Overview Murphy WI Block • Murphy 100% (Op) Other Block Discovered Field • Hold WI in 3 blocks, spanning ~775 M gross acres 0 Kilometers 50 • Proven oil basin in proximity to Pitu oil discovery Petrobras Extending the Play Into the Deepw
Slide 50: Investor Update
INVESTOR UPDATE JUNE 2024 www.murphyoilcorp.com NYSE: MUR 50