Murphy Oil Corporation · NYSE:MUR
Murphy Oil — Investor Presentation (March 2022)
47 slides from Murphy Oil's investor presentation, Mar 21, 2022
Slide 1: Investor Update March 21, 2022
0 www.murphyoilcorp.com NYSE: MUR 0 INVESTOR UPDATE MARCH 21, 2022
Slide 2: Cautionary Note to US Investors
1 www.murphyoilcorp.com NYSE: MUR 1 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 forma
Slide 3: Agenda
2 www.murphyoilcorp.com NYSE: MUR 2 Agenda 01 Murphy at a Glance 02 Murphy Priorities 03 Murphy Portfolio 04 Looking Ahead
Slide 4: Murphy at a Glance
3 www.murphyoilcorp.com NYSE: MUR 3 Murphy at a Glance Onshore United States • Eagle Ford Shale on private lands in Texas with ~1,300 future locations on ~122,000 net acres • Produced 33.4 MBOEPD in 4Q 2021, comprised of 69% oil and 85% liquids Onshore Canada • Tupper Montney ~1,400 future locations
Slide 5: Why Murphy Oil?
4 www.murphyoilcorp.com NYSE: MUR 4 Why Murphy Oil? Sustainable oil and natural gas assets that are safely operated with low carbon emissions intensity in three operating areas across North America High - potential exploration portfolio with industry - leading offshore capabilities Strong generator
Slide 6: 2021 Sustainability Highlights
5 www.murphyoilcorp.com NYSE: MUR 5 2021 Sustainability Highlights Progressing Long - Term Goals With Sustainable Operations Ranked #1 in Governance by ISS since 2018 Progressing Environmental Goals • Achieved lowest carbon emissions intensity in corporate history – in - line with top quartile of oi
Slide 7: Murphy Priorities
6 www.murphyoilcorp.com NYSE: MUR 6 MURPHY PRIORITIES
Slide 8: What's New in 1Q 2022
7 www.murphyoilcorp.com NYSE: MUR 7 What’s New in 1Q 2022 Onshore Well Delivery Update • Eagle Ford Shale FY 2022 well program progressing on schedule • On track to bring online 3 operated wells in Kaybob Duvernay in 1Q 2022 • All drilling and completions permits in place for 20 - well program in Tu
Slide 9: Gulf of Mexico Khaleesi / Mormont / Samurai Project Update
8 www.murphyoilcorp.com NYSE: MUR 8 Gulf of Mexico Khaleesi / Mormont / Samurai Project Update King’s Quay Floating Production System • Ready for final commissioning Subsea Flowlines and Risers • First oil pipelines, umbilicals, risers and laterals installed • SURF* pre - commissioning ongoing • Beg
Slide 10: 2022 Capital Allocation Plan
9 www.murphyoilcorp.com NYSE: MUR 9 2022 Capital Allocation Plan Prioritizing Capital To Support Free Cash Flow Disciplined Capital Plan Supports Further Delevering, Enhanced Shareholder Returns • FY 2022 guidance $840 – $890 MM • ~60% of spend is in 1H 2022 • Highest annual CAPEX from 2022 – 2025 •
Slide 11: 2022 Production Plan
10 www.murphyoilcorp.com NYSE: MUR 10 0 20 40 60 80 100 120 140 160 180 200 1Q 4Q US Onshore Canada Onshore Offshore 2022 Production Plan Major Project Execution Drives Production Ramp Strong Execution Ability Strengthens Production Profile • 1Q 2022 production 136 – 142 MBOEPD • 53% oil, 60% liquid
Slide 12: 2022 Exploration Plan
11 www.murphyoilcorp.com NYSE: MUR 11 Targeting ~200 MMBOE Net Resources in FY 2022 Program • $75 MM 2022 CAPEX Cutthroat - 1, Sergipe - Alagoas Basin, Brazil • Murphy 20% WI, non - operated • >2.8 BN BOE discovered in basin • Material opportunities identified on Murphy WI blocks • Spud in Feb 2022,
Slide 13: Murphy Portfolio
12 www.murphyoilcorp.com NYSE: MUR 12 MURPHY PORTFOLIO
Slide 14: 2022 North America Onshore Plan
13 www.murphyoilcorp.com NYSE: MUR 13 2022 North America Onshore Plan Balancing Investments for Free Cash Generation Note: Non - op well cadence subject to change per operator plans Eagle Ford Shale non - operated wells adjusted for 14% average working interest 2022 Wells Online 0 5 10 15 20 25 30 3
Slide 15: Eagle Ford Shale
14 www.murphyoilcorp.com NYSE: MUR 14 Eagle Ford Shale Solid 2021 Underpinned By Ongoing D&C Improvements Eagle Ford Shale Acreage CATARINA TILDEN KARNES Zavala Atascosa Karnes McMullen Frio Dimmit La Salle Live Oak Bee Wilson $220 MM FY 2022 Capital Plan • 27 operated wells online – 17 Karnes wells
Slide 16: Tupper Montney
15 www.murphyoilcorp.com NYSE: MUR 15 5 0 Miles BC Alberta Tupper Montney Acreage Tupper Montney Continual Improvement Drives Stronger Well Performance $120 MM FY 2022 Capital Plan • 20 operated wells online • All permits in place to drill and complete Record - High IP30 Rates in 2021 • Modification
Slide 17: Gulf of Mexico Development and Projects Drive Future Free Cash Flow
16 www.murphyoilcorp.com NYSE: MUR 16 Gulf of Mexico Development and Projects Drive Future Free Cash Flow $330 MM FY 2022 Capital Plan • $265 MM for major projects in Gulf of Mexico • $65 MM for development and tie - back projects Development and Tieback Projects • Drilling Dalmatian #1 (Desoto Cany
Slide 18: 2022 Exploration Plan Sergipe-Alagoas Basin, Brazil
17 www.murphyoilcorp.com NYSE: MUR 17 2022 Exploration Plan Sergipe - Alagoas Basin, Brazil Asset Overview • ExxonMobil 50% (Op), Enauta Energia S.A. 30%, Murphy 20% • Hold WI in 9 blocks, spanning >1.6 MM acres • >2.8 BN BOE discovered in basin • >1.2 BN BOE in deepwater since 2007 • Material oppor
Slide 19: 2022 Exploration Plan Salina Basin, Mexico
18 www.murphyoilcorp.com NYSE: MUR 18 Block 5 Overview • Murphy 40% (Op), Petronas 30%, Wintershall Dea 30% • 34 leads / prospects • Mean to upward gross resource potential • 800 MMBO – 2,000 MMBO • Proven oil basin in proximity to multiple oil discoveries in Miocene section • Targeting exploration
Slide 20: Looking Ahead
19 www.murphyoilcorp.com NYSE: MUR 19 LOOKING AHEAD
Slide 21: Disciplined Strategy Leads to Long-Term Value at Conservative Prices
20 www.murphyoilcorp.com NYSE: MUR 20 Disciplined Strategy Leads to Long - Term Value at Conservative Prices 2022 2023 2024 2025 2026 2027 2028 • Accelerating debt reduction goal to $600 MM – $650 MM in FY 2022* • Optionality for $900 MM – $1 BN debt reduction in FY 2023* • Enhancing payouts to shar
Slide 22: Focused on FY 2022 Targeted Priorities
21 www.murphyoilcorp.com NYSE: MUR 21 Focused on FY 2022 Targeted Priorities • Increasing debt reduction goal to $600 – 650 MM in FY 2022* • Reviewing total debt target for additional, accelerated reduction* DELEVER • Progress major operated projects in the Gulf of Mexico ahead of first oil in 2Q 20
Slide 23: Why Murphy Oil?
22 www.murphyoilcorp.com NYSE: MUR 22 Why Murphy Oil? Sustainable oil and natural gas assets that are safely operated with low carbon emissions intensity in three operating areas across North America High - potential exploration portfolio with industry - leading offshore capabilities Strong generato
Slide 24: 23 www.murphyoilcorp.com NYSE: MUR 23 INVESTOR UPDATE MARCH 21, 2022
23 www.murphyoilcorp.com NYSE: MUR 23 INVESTOR UPDATE MARCH 21, 2022
Slide 25: Appendix
24 www.murphyoilcorp.com NYSE: MUR 24 Appendix 1 Non - GAAP Definitions and Reconciliations 2 Glossary of Abbreviations 3 Proved Reserves 4 1Q 2022 Guidance 6 Supplemental Information 5 Current Hedging Positions 7 Acreage Maps
Slide 26: Non-GAAP Financial Measure Definitions and Reconciliations
25 www.murphyoilcorp.com NYSE: MUR 25 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. Murphy undertakes no
Slide 27: EBITDA and EBITDAX
26 www.murphyoilcorp.com NYSE: MUR 26 EBITDA and EBITDAX Murphy defines EBITDA as net income (loss) attributable to Murphy 1 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 ex
Slide 28: Adjusted EBITDA
27 www.murphyoilcorp.com NYSE: MUR 27 ADJUSTED EBITDA Murphy defines Adjusted EBITDA as net income (loss) attributable to Murphy 1 before interest, taxes, depreciation, depletion and amortization (DD&A), impairment expense, discontinued operations, foreign exchange gains and losses, mark - to - mark
Slide 29: Adjusted EBITDAX
28 www.murphyoilcorp.com NYSE: MUR 28 ADJUSTED EBITDAX Murphy defines Adjusted EBITDAX as net income (loss) attributable to Murphy 1 before interest, taxes, depreciation, depletion and amortization (DD&A), exploration expense, impairment expense, discontinued operations, foreign exchange gains and l
Slide 30: Glossary of Abbreviations
29 www.murphyoilcorp.com NYSE: MUR 29 BBL: Barrels (equal to 42 US gallons) BCF: Billion cubic feet BCFE: Billion cubic feet equivalent BN: Billions BOE: Barrels of oil equivalent (1 barrel of oil or 6,000 cubic feet of natural gas) BOEPD: Barrels of oil equivalent per day BOPD: Barrels of oil per d
Slide 31: 2021 Proved Reserves
30 www.murphyoilcorp.com NYSE: MUR 30 25% 26% 49% • Total proved reserves 699 MMBOE at YE 2021 vs 697 MMBOE at YE 2020 • Achieved 102% total reserve replacement • Proved developed reserves 58% • Liquids - weighting improved to 45% • 41% at YE 2020 • Preserved reserve life index >12 years • Proved re
Slide 32: 1Q 2022 Guidance
31 www.murphyoilcorp.com NYSE: MUR 31 1Q 2022 Guidance Producing Asset Oil (BOPD) NGLs (BOPD) Gas (MCFD) Total (BOEPD) US – Eagle Ford Shale 20,600 4,100 23,300 28,600 – Gulf of Mexico excluding NCI 1 45,500 3,500 55,800 58,300 Canada – Tupper Montney – – 243,200 40,500 – Kaybob Duvernay and Placid
Slide 33: Current Hedging Positions – Oil
32 www.murphyoilcorp.com NYSE: MUR 32 Current Hedging Positions – Oil * As of January 26, 2022 United States Commodity Type Volumes (BBL/D) Price (BBL) Start Date End Date WTI Fixed Price Derivative Swap 20,000 $44.88 1/1/2022 12/31/2022 Commodity Type Volumes (BBL/D) Put Price (BBL) Call Price (BBL
Slide 34: Current Hedging Positions – Natural Gas
33 www.murphyoilcorp.com NYSE: MUR 33 Current Hedging Positions – Natural Gas Montney, Canada Commodity Type Volumes (MMCF/D) Price (MCF) Start Date End Date Natural Gas Fixed Price Forward Sales at AECO 186 C$2.36 1/1/2022 1/31/2022 Natural Gas Fixed Price Forward Sales at AECO 176 C$2.34 2/1/2022
Slide 35: Strengthening Balance Sheet
34 www.murphyoilcorp.com NYSE: MUR 34 Financial Results Strengthening Balance Sheet Solid Foundation for Commodity Price Cycles • $521 MM of cash and cash equivalents at Dec 31, 2021 • Net debt of $1.9 BN • Redeemed $300 MM of 6.875% Notes due 2024 in FY 2021 • $242 MM of 2024 senior notes remain ou
Slide 36: North America Onshore Well Locations
35 www.murphyoilcorp.com NYSE: MUR 35 North America Onshore Area Net Acres Reservoir Inter - Well Spacing (ft) Remaining Wells Karnes 10,092 Lower EFS 300 108 Upper EFS 1,000 151 Austin Chalk 1,100 106 Tilden 64,770 Lower EFS 630 231 Upper EFS 1,200 51 Austin Chalk 1,200 86 Catarina 48,375 Lower EFS
Slide 37: Eagle Ford Shale Peer Acreage
36 www.murphyoilcorp.com NYSE: MUR 36 Eagle Ford Shale Peer Acreage
Slide 38: Kaybob Duvernay Peer Acreage
37 www.murphyoilcorp.com NYSE: MUR 37 Kaybob Duvernay Peer Acreage T58 T59 T60 T61 T62 T63 T64 T65 T66 T67 T58 T59 T60 T61 T62 T63 T64 T65 T66 T67 R13W5R14R15R16R17R18R19R20R21R22R23R24R25R26R27 R14W5R15R16R17R18R19R20R21R22R23R24R25R26R27 Fox Creek SAXON KAYBOB WEST KAYBOB EAST KIWENTINOHK Crescent
Slide 39: Tupper Montney Peer Acreage
38 www.murphyoilcorp.com NYSE: MUR 38 T74 T75 T76 T77 T78 T79 T80 T77 T78 T79 T80 R12W6R13R14R15R16R17R18R19R20 R13W6 Tupper Montney Peer Acreage ARC Montney Shell Montney Advantage Montney Other Competitor Montney Open Crown - Montney Tourmaline Montney Ovintiv Montney Birchcliff Montney Dry Gas Li
Slide 40: Placid Montney Peer Acreage
39 www.murphyoilcorp.com NYSE: MUR 39 Placid Montney Peer Acreage T58 T59 T60 T61 T62 T63 T64 T65 T66 T67 T58 T59 T60 T61 T62 T63 T64 T65 T66 T67 R13W5R14R15R16R17R18R19R20R21R22R23R24R25R26R27 R14W5R15R16R17R18R19R20R21R22R23R24R25R26R27 ARC Open Crown - Mont Other Leased - Mont Paramount Kiwetinoh
Slide 41: Producing Assets Gulf of Mexico
40 www.murphyoilcorp.com NYSE: MUR 40 PRODUCING ASSETS Asset Operator Murphy WI 1 Calliope Murphy 29% Cascade Murphy 86% Chinook Murphy 86% Clipper Murphy 80% Cottonwood Murphy 80% Dalmatian Murphy 56% Front Runner Murphy 50% Habanero Shell 27% Kodiak Kosmos 48% Lucius Anadarko 12% Marmalard Murphy
Slide 42: Offshore Canada Terra Nova Asset Life Extension Project
41 www.murphyoilcorp.com NYSE: MUR 41 Offshore Canada Advancing Terra Nova Asset Life Extension Project FPSO – Floating production storage and offloading vessel Terra Nova FPSO • Suncor 48% (Op), Cenovus 34%, Murphy 18% • Partner group advancing asset life extension (ALE) project • Will extend produ
Slide 43: Exploration Update Gulf of Mexico
42 www.murphyoilcorp.com NYSE: MUR 42 Exploration Update Gulf of Mexico Murphy WI Block Offshore Platform FPSO 2023 Well Discovery Key Exploration Project Gulf of Mexico Exploration Area Interests in 126 Gulf of Mexico OCS Blocks • ~725,000 total gross acres, 58 exploration blocks • ~1 BBOE gross re
Slide 44: Exploration Update Potiguar Basin, Brazil
43 www.murphyoilcorp.com NYSE: MUR 43 Exploration Update Potiguar Basin, Brazil Asset Overview • Wintershall Dea 70% (Op), Murphy 30% • Hold WI in 3 blocks, spanning ~775 M gross acres • Proven oil basin in proximity to Pitu oil discovery Extending the Play into the Deepwater • >2.1 BBOE discovered
Slide 45: Development Update Cuu Long Basin, Vietnam
44 www.murphyoilcorp.com NYSE: MUR 44 Development Update Cuu Long Basin, Vietnam Asset Overview • Murphy 40% (Op), PVEP 35%, SKI 25% Block 15 - 1/05 • Received approval of the Lac Da Vang (LDV) retainment / development area • LDV field development plan adopted by all partners, submitted to governmen
Slide 46: Exploration Update Cuu Long Basin, Vietnam
45 www.murphyoilcorp.com NYSE: MUR 45 Exploration Update Cuu Long Basin, Vietnam Asset Overview • Murphy 40% (Op), PVEP 35%, SKI 25% Block 15 - 2/17 • 3 - year primary exploration period ends 4Q 2022 • Seeking extension due to COVID - 19 related delays • 1 well commitment • 2 initial prospects ident
Slide 47: 46 www.murphyoilcorp.com NYSE: MUR 46 INVESTOR UPDATE MARCH 21, 2022
46 www.murphyoilcorp.com NYSE: MUR 46 INVESTOR UPDATE MARCH 21, 2022