Slide 1: Third Quarter Earnings Conference Call & Webcast
2023 THIRD QUARTER EARNINGS CONFERENCE CALL & WEBCAST NOVEMBER 2, 2023 ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER 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: Why Murphy Oil?
Why Murphy Oil? 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 flexibilit
Slide 4: Advancing Strategic Priorities
Advancing Strategic Priorities DELEVER EXECUTE EXPLORE • Advanced Murphy 2.0 capital allocation • Exceeded upper end of guidance range with production • Resuming drilling operated Oso #1 well in framework of 202 MBOEPD, including 103 MBOPD Gulf of Mexico in 4Q 2023 • Redeemed $249 MM of 5.75% Senior
Slide 5: 3Q 2023 Production, Pricing and Revenue Update
3Q 2023 Production Pricing and Revenue Update Generating High Revenue From Oil Production 3Q 2023 Production 3Q 2023 Revenue by Area by Area Onshore Canada Eagle Ford Shale $99 MM Eagle Ford Shale $223 MM 37,800 BOEPD 11% 19% 25% Onshore Canada 37% 74,800 BOEPD 202 $900 MM MBOEPD Offshore 44% 64% 89
Slide 6: 3Q 2023 Financial Results
Financial Results Generating Income to Support Corporate Priorities 3Q 2023 Financial Results Net Income Attributable to Murphy ($MM Except Per Share) 3Q 2023 • Net income $255 MM Income (loss) $255 $/Diluted share $1.63 • Adjusted net income $249 MM • EBITDA $595 MM Adjusted Income from Continuing
Slide 7: Executing Capital Allocation Framework
Executing Capital Allocation Framework1 Increasing Shareholder Returns Beyond Quarterly Dividend Murphy 2.0 – Long-Term Debt of $1.0 BN – $1.8 BN ~75% of adjusted FCF allocated to debt reduction ~25% distributed through share buybacks and potential dividend increases 3Q 2023 • Redeemed remaining $24
Slide 8: Onshore Portfolio Update
ONSHORE PORTFOLIO UPDATE www.murphyoilcorp.com NYSE: MUR 8
Slide 9: Eagle Ford Shale
Eagle Ford Shale Enhancing Portfolio and Production Through Strong Execution, Improved Completions 3Q 2023 38 MBOEPD, 88% Liquids Eagle Ford Shale Acreage • 7 operated wells online – 4 Catarina, 3 Tilden • Operated activity complete for FY 2023 KARNES 4Q 2023 TILDEN • 3 non-operated wells online – T
Slide 10: Tupper Montney
Tupper Montney New Completions Design Drives Strong Well Performance 3Q 2023 414 MMCFD Net Tupper Montney Acreage • Activity complete for FY 2023 New Completions Design Enhancing Well Performance • Producing 2 of top 10, and 4 of top 15, natural gas wells in Canada1 • Achieving some of highest IP30
Slide 11: Kaybob Duvernay
Kaybob Duvernay Future Oil-Weighted Optionality Preserved 3Q 2023 5 MBOEPD, 67% Liquids Kaybob Duvernay Acreage • Closed divestiture of non-core portion of assets • Produced ~1.7 MBOEPD, 39% oil • Received net cash proceeds of $103 MM Robust Remaining Well Inventory • 488 future locations on ~110,00
Slide 12: Offshore Portfolio Update
OFFSHORE PORTFOLIO UPDATE www.murphyoilcorp.com NYSE: MUR 12
Slide 13: Offshore Update: Executing Accretive Development Projects
Offshore Update Executing Accretive Development Projects 3Q 2023 89 MBOEPD, 81% Oil Total Offshore • Well performance continuing to exceed expectations Development and Tieback Projects • Operated Dalmatian #1 (DeSoto Canyon 90) well online in 4Q 2023 • Drilling and completing operated Marmalard #3 (
Slide 14: Offshore Workover Projects
Offshore Workover Projects Execution Update Well Workover Projects Operated Workover Projects • Operated Neidermeyer #1 well workover scheduled for Net mid-2024 Field Location Project Online Production • Operated Dalmatian #2 subsurface safety value repair Neidermeyer Mississippi Canyon 208 Workover
Slide 15: Lac Da Vang Field Development Project
Lac Da Vang Field Development Project Cuu Long Basin, Vietnam Lac Da Vang Field Development 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 • Nearfield exploration upside LAC DA VAN
Slide 16: Paon Field Development Project
Paon Field Development Project Tano Basin, Côte d’Ivoire Tano Basin Block CI-103 CÔTE D’IVOIRE GHANA • Murphy 85% (Op), PETROCI1 15% CI-102 • Includes undeveloped Paon discovery CI-531 Baleine • Commitment to submit viable field CI-502 Jubilee development plan by YE 2025 Paon CI-103 TEN • Commenced
Slide 17: Exploration Update
EXPLORATION UPDATE www.murphyoilcorp.com NYSE: MUR 17
Slide 18: Exploration Update: Cuu Long Basin, Vietnam
Exploration Update Cuu Long Basin, Vietnam Cuu Long Basin Asset Overview BLOCK 15-01/05 LAC DA TRANG NORTH WEST SU TU VANG • Murphy 40% (Op), PetroVietnam Exploration LAC DA TRANG Production 35%, SK Earthon 25% WEST Block 15-1/05 LAC DA TRANG DISCOVERY LAC DA VANG • Advancing plans for Lac Da Hong L
Slide 19: Exploration Update: Tano Basin, Côte d'Ivoire
Exploration Update Tano Basin, Côte d’Ivoire Tano Basin Asset Overview CÔTE D’IVOIRE GHANA • ~1.5 MM gross acres, equivalent to 256 CI-102 Gulf of Mexico blocks Baleine CI-531 • Initiated seismic reprocessing CI-502 Jubilee • Adjacent to oil discoveries, including Baleine Paon CI-103 TEN • Identifie
Slide 20: Advancing Gulf of Mexico Operated Exploration Plans
Exploration Update Advancing Gulf of Mexico Operated Exploration Plans Gulf of Mexico Exploration Area Oso #1, Atwater Valley 138 • Murphy 33.34% (Op) Eden Park Dalmatian S. VK DD Silver Dollar • Resuming drilling in 4Q 2023 Silver Dollar West • Mean to upward gross resource potential Powerball Medu
Slide 21: Looking Ahead
LOOKING AHEAD www.murphyoilcorp.com NYSE: MUR 21
Slide 22: 2023 Capital and Production Plan
2023 Capital and Production Plan Increasing Oil-Weighted Production With Disciplined Spending FY 2023E Production 4Q 2023 Guidance By Area • 181.5 – 189.5 MBOEPD1 18% • 95 MBOPD or 51% oil, 57% liquids volumes • Includes: 186 47% • 1.5 MBOEPD planned downtime onshore MBOEPD • 500 BOEPD total planned
Slide 23: Capital Allocation Priorities
Capital Allocation Priorities Reducing Long-Term Debt, Increasing Shareholder Returns Beyond Quarterly Dividend With Framework1 $525 MM Remaining Share Repurchase Program2 Authorized by Board Adjusted Free Cash Flow Formula Cash Flow From Operations Before WC Change (-) Capital expenditures Murphy 2
Slide 24: 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 $500 MM in FY 20231 • Realizing average annual production of • Reinvesting ~40% of operating cash flow1 to ~210 MBOEPD with ~53% average oil weighting DELEVER maintain average 55% oil-weighting •
Slide 25: Focused On Strategic Priorities
Focused On Strategic Priorities Executing on our capital allocation framework Maintaining a conventional and unconventional portfolio with exploration upside Focusing on long-term value creation with oil-weighted assets Share buybacks and dividend increases are meaningful with low share count Leadin
Slide 26: Third Quarter Earnings Conference Call & Webcast
2023 THIRD QUARTER EARNINGS CONFERENCE CALL & WEBCAST NOVEMBER 2, 2023 ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER www.murphyoilcorp.com NYSE: MUR 26
Slide 27: Appendix
Appendix 1 Non-GAAP Definitions and Reconciliations 2 Glossary of Abbreviations 3 4Q 2023 Guidance 4 Current Fixed Price Contracts 5 Supplemental Information 6 Acreage Maps www.murphyoilcorp.com NYSE: MUR 27
Slide 28: 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 29: Non-GAAP Reconciliation: Adjusted Earnings
Non-GAAP Reconciliation ADJUSTED EARNINGS Murphy defines Adjusted Earnings as net income attributable to Murphy1 adjusted to exclude discontinued operations and certain other items that affect comparability between periods. Adjusted Earnings is used by management to evaluate the company’s operationa
Slide 30: 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 31: Non-GAAP Reconciliation: Adjusted EBITDA
Non-GAAP Reconciliation ADJUSTED EBITDA Murphy defines Adjusted EBITDA as net income (loss) attributable to Murphy1 before interest, taxes, depreciation, depletion and amortization (DD&A), impairment expense, discontinued operations, foreign exchange gains and losses, mark-to-market gains and losses
Slide 32: Non-GAAP Reconciliation: Adjusted EBITDAX
Non-GAAP Reconciliation ADJUSTED EBITDAX Murphy defines Adjusted EBITDAX as net income (loss) attributable to Murphy1 before interest, taxes, depreciation, depletion and amortization (DD&A), exploration expense, impairment expense, discontinued operations, foreign exchange gains and losses, mark-to-
Slide 33: 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 cubic feet per day BBL: Barre
Slide 34: 4Q 2023 Guidance
4Q 2023 Guidance Oil NGLs Gas Total Producing Asset (BOPD) (BOPD) (MCFD) (BOEPD) US – Eagle Ford Shale 22,800 5,000 27,300 32,400 – Gulf of Mexico excluding NCI1 66,300 4,800 64,000 81,800 Canada – Tupper Montney – – 380,300 63,400 – Kaybob Duvernay and Placid Montney 2,000 500 7,700 3,800 – Offshor
Slide 35: Current Fixed Price Contracts – Natural Gas
Current Fixed Price Contracts – Natural Gas Tupper Montney, Canada Volumes Price Commodity Type (MMCF/D) (MCF) Start Date End Date Natural Gas Fixed Price Forward Sales at AECO 250 C$2.35 10/1/2023 12/31/2023 Natural Gas Fixed Price Forward Sales at AECO 162 C$2.39 1/1/2024 12/31/2024 Natural Gas Fi
Slide 36: Highlights From Fifth Sustainability Report
Highlights From Fifth Sustainability Report Taking Action to Drive Benefit for All Stakeholders CONTINUED POSITIVELY IMPACTING OUR STRONG ENVIRONMENTAL STEWARDSHIP PEOPLE AND COMMUNITIES GOVERNANCE OVERSIGHT ADVANCING OUR CLIMATE GOALS CONSISTENTLY Well-defined BOARD AND MANAGERIAL OUTPERFORMING US
Slide 37: Murphy Ranked Best for 2021 ESG Performance
Murphy Ranked Best for 2021 ESG Performance Independent Benchmarking of North American Upstream Companies, July 2023 Peer Group Consists Overall ESG Scores for the Top 20 Operators (Maximum Points: 300) of 41 of the Largest Murphy Peer 1 Unconventional Public Peer 2 Operators in North Peer 3 Peer 4
Slide 38: Strengthening Balance Sheet
Financial Results Strengthening Balance Sheet Note Maturity Profile2 Solid Foundation to Weather Commodity $MM Price Cycles $750 • Repurchased $75 MM, or 1.7 MM of shares $500 outstanding, in 3Q 2023 at avg price of $44.53 $250 10 Year 20 Year • On track to achieve $500 MM debt reduction $0 goal in
Slide 39: North America Onshore Locations: Diversified, Low Breakeven Portfolio
North America Onshore Locations More Than 50 Years of Robust Inventory with Low Breakeven Rates Diversified, Low Breakeven Portfolio • Multi-basin portfolio provides optionality Eagle Ford Shale and Kaybob Duvernay in all price environments > 15 years of inventory < $40 / BBL > 55 years of total inv
Slide 40: 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 41: 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 118,235 984-1323 993 Inter-Well Gross Remaining Area Net Acres Reservoir Spacing (ft) Locations Kaybob Duvernay
Slide 42: Eagle Ford Shale Peer Acreage
Eagle Ford Shale Peer Acreage Acreage as of November 1, 2023 www.murphyoilcorp.com NYSE: MUR 42
Slide 43: Kaybob Duvernay Peer Acreage
Kaybob Duvernay Peer Acreage Murphy Paramount Whitecap Crescent Point Chevron Kiwetinohk PCC Cenovus GMT Hitic Halo Cygnet Open Crown Other Leased Battery Facility 6 Miles Acreage as of November 1, 2023 www.murphyoilcorp.com NYSE: MUR 43
Slide 44: Tupper Montney Peer Acreage
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 November 1, 2023 www.murphyoilcorp.com NYSE: MUR 44
Slide 45: Gulf of Mexico Murphy Blocks
Gulf of Mexico Murphy Blocks Gulf of Mexico Assets PRODUCING ASSETS Asset Operator Murphy WI1 Eden Park Dalmatian S. Calliope Murphy 29% VK DD Cascade Murphy 80% Silver Dollar Chinook Murphy 86% Silver Dollar West Clipper Murphy 80% Medusa Powerball Delta House Dalmatian Murphy 56% Front Runner Murp
Slide 46: Completing Terra Nova Asset Life Extension Project
Offshore Canada Completing Terra Nova Asset Life Extension Project Terra Nova Field, Offshore Canada Terra Nova FPSO • Suncor 48% (Op), Cenovus 34%, LABRADOR Murphy 18% QUEBEC • Asset life extension project anticipated to return to production by year-end 2023 NEWFOUNDLAND Kilometers 0 200 Terra Nova
Slide 47: Exploration Update: Salina Basin, Mexico
Exploration Update Salina Basin, Mexico Salina Basin Block 5 Overview • Murphy 40% (Op), PC Carigali Mexico 30%, Wintershall Dea 30% Jokol • Proven oil basin in proximity to multiple oil Block 5 discoveries in Miocene section Najaal • Evaluating leads / prospects • Monitoring nearby key 2023 industr
Slide 48: Exploration Update: Sergipe-Alagoas Basin, Brazil
Exploration Update Sergipe-Alagoas Basin, Brazil Sergipe-Alagoas Basin Asset Overview • ExxonMobil 50% (Op), Enauta Energia S.A. 30%, BRAZIL Murphy 20% • Hold WI in 9 blocks, spanning >1.6 MM gross acres • >2.8 BN BOE discovered in basin 351 • >1.2 BN BOE in deepwater since 2007 • Evaluating future
Slide 49: Exploration Update: Potiguar Basin, Brazil
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 Kilometers gross acres 0 50 • Proven oil basin in proximity to Pitu Petrobras oil discovery Petrobras Petrobras Extending the
Slide 50: Third Quarter Earnings Conference Call & Webcast
2023 THIRD QUARTER EARNINGS CONFERENCE CALL & WEBCAST NOVEMBER 2, 2023 ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER www.murphyoilcorp.com NYSE: MUR 50