Murphy Oil Corporation · NYSE:MUR
Murphy Oil — Investor Presentation (October 2022)
49 slides from Murphy Oil's investor presentation, Oct 3, 2022
Slide 1: Investor Update October 2022
0 www.murphyoilcorp.com NYSE: MUR 0 INVESTOR UPDATE OCTOBER 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 36.4 MBOEPD in 2Q 2022, comprised of 72% oil and 86% 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: 2022 Sustainability Report Highlights
5 www.murphyoilcorp.com NYSE: MUR 5 STRONG GOVERNANCE OVERSIGHT CONTINUED ENVIRONMENTAL STEWARDSHIP POSITIVELY IMPACTING OUR PEOPLE AND COMMUNITIES 2022 Sustainability Report Highlights 46 % improvement in Total Recordable Incident Rate (TRIR) 50 % improvement in Lost Time Incident Rate (LTIR) from
Slide 7: Murphy Priorities
6 www.murphyoilcorp.com NYSE: MUR 6 MURPHY PRIORITIES
Slide 8: What's New in 3Q 2022
7 www.murphyoilcorp.com NYSE: MUR 7 What’s New in 3Q 2022 Well Delivery Update • Fifth of 7 wells online at Khaleesi / Mormont / Samurai in Gulf of Mexico • 3Q 2022 onshore operated well schedule progressing as planned • 4 Eagle Ford Shale wells • 5 Tupper Montney wells Gulf of Mexico Updates • Clos
Slide 9: Khaleesi, Mormont, Samurai Field Development Details
8 www.murphyoilcorp.com NYSE: MUR 8 Khaleesi, Mormont, Samurai Field Development Details Samurai GC - 432 Mormont West GC - 478 Mormont East GC - 478 Khaleesi GC - 389 Export Laterals King’s Quay FPS Field Development Project • Achieved first oil at King’s Quay FPS April 2022, ahead of schedule and
Slide 10: Well Design Enhancements, Top-Tier Execution
9 www.murphyoilcorp.com NYSE: MUR 9 Well Design Enhancements, Top - Tier Execution Achieve Higher Rates Across Assets • Enhanced Eagle Ford Shale completions design, longer Tupper Montney laterals supporting superior well results • Khaleesi, Mormont, Samurai field producing at rates above expectatio
Slide 11: 2022 Capital Allocation Plan
10 www.murphyoilcorp.com NYSE: MUR 10 2022 Capital Allocation Plan Prioritizing Capital To Support Free Cash Flow $301 $266 $205 $153 $925 0 200 400 600 800 1,000 1Q 2022A 2Q 2022A 3Q 2022E 4Q 2022E FY 2022E Accrued CAPEX by Quarter $MM Note: Accrued CAPEX, based on midpoint of guidance range and ex
Slide 12: 2022 Exploration Update
11 www.murphyoilcorp.com NYSE: MUR 11 2022 Exploration Update Progressing Plans in Targeted Basins Mexico – Operated, 40% WI • First additional exploration period approved by regulator in Block 5 • Targeting drilling Tulum - 1EXP well in 4Q 2022 • Drilling permit received Gulf of Mexico • Preparing
Slide 13: Progressing Strategic Priorities
12 www.murphyoilcorp.com NYSE: MUR 12 Progressing Strategic Priorities • Redeemed remaining $42 MM of 2024 Senior Notes • Tendered $198 MM of senior notes, comprised of $100 MM of 5.75% Notes due 2025 and $98 MM of 6.375% Notes due 2028 • Established capital allocation framework with debt reduction
Slide 14: Capital Allocation Priorities
13 www.murphyoilcorp.com NYSE: MUR 13 Capital Allocation Priorities Framework 1 Allows for Long - Term Debt Reduction, Shareholder Returns Beyond Quarterly Dividend Murphy 1.0 – Long - Term Debt > $1.8 BN • Allocate adjusted FCF to long - term debt reduction • Continue supporting the quarterly divid
Slide 15: Long History of Benefitting Shareholders
14 www.murphyoilcorp.com NYSE: MUR 14 Long History of Benefitting Shareholders $4.3 Billion Returned to Shareholders In last 10 years > $1.8 Billion in Share Repurchases 2012 – 1H 2022 > $ 6.6 Billion Returned to Shareholders Since 1961 > $0 $200 $400 $600 $800 $1,000 97 98 99 00 01 02 03 04 05 06 0
Slide 16: Murphy Portfolio
15 www.murphyoilcorp.com NYSE: MUR 15 MURPHY PORTFOLIO
Slide 17: Eagle Ford Shale
16 www.murphyoilcorp.com NYSE: MUR 16 Eagle Ford Shale Enhancing Portfolio and Production Through Strong Execution, Improved Completions Eagle Ford Shale Acreage 2Q 2022 36 MBOEPD, 86% Liquids • 23 operated wells online – 17 Karnes, 6 Catarina 3Q 2022 Well Delivery Schedule • 4 operated wells online
Slide 18: Tupper Montney
17 www.murphyoilcorp.com NYSE: MUR 17 Tupper Montney Acreage Tupper Montney 2022 Wells Forecast to Achieve Fast Payback 2Q 2022 275 MMCFD • 15 wells online 3Q 2022 Well Delivery Schedule • 5 wells now producing • Completes FY 2022 program Achieving Record - High Production Results • Continue realizi
Slide 19: Gulf of Mexico Development and Tiebacks
18 www.murphyoilcorp.com NYSE: MUR 18 Gulf of Mexico Development and Tiebacks Drive Future Free Cash Flow 2Q 2022 70 MBOEPD, 79% Oil FY 2022 Capital Plan • ~80% of spend for major projects in Gulf of Mexico • Remainder for development and tie - back projects Development and Tieback Projects • Drilli
Slide 20: Gulf of Mexico Assets
19 www.murphyoilcorp.com NYSE: MUR 19 Gulf of Mexico Assets Gulf of Mexico Opportunistic, High - Returning Bolt - On Acquisitions Enhance Portfolio Value Acquisitions Enhanced With Near - Term Development • Incremental production forecast of 1.5 MBOEPD in FY 2022 and 4.1 MBOEPD in FY 2023 • 1 Kodiak
Slide 21: 2022 Exploration Plan Salina Basin, Mexico
20 www.murphyoilcorp.com NYSE: MUR 20 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 • First additional explo
Slide 22: Exploration Update Gulf of Mexico
21 www.murphyoilcorp.com NYSE: MUR 21 Exploration Update Gulf of Mexico Interests in 113 Gulf of Mexico OCS Blocks • ~650,000 total gross acres • 69 exploration blocks • ~1 BBOE gross resource potential • 20 key prospects • Targeting two - well exploration program in FY 2023 • Oso #1, second well un
Slide 23: Looking Ahead
22 www.murphyoilcorp.com NYSE: MUR 22 LOOKING AHEAD
Slide 24: Today's Strategic Plan Drives Tomorrow's Durable Returns
23 www.murphyoilcorp.com NYSE: MUR 23 Today’s Strategic Plan Drives Tomorrow’s Durable Returns LONG - TERM TODAY NEAR - TO MEDIUM - TERM Completing Major Offshore Projects • Demonstrating strong offshore executing capabilities with first oil at operated King’s Quay FPS Reducing Debt While Restoring
Slide 25: Looking Forward
24 www.murphyoilcorp.com NYSE: MUR 24 Looking Forward Executing operational plans that enable significant delevering through capital allocation framework Drilling high - potential, operated exploration wells beginning in 4Q 2022 Executing capital allocation framework that includes analyzing offshore
Slide 26: 25 www.murphyoilcorp.com NYSE: MUR 25 INVESTOR UPDATE OCTOBER 2022
25 www.murphyoilcorp.com NYSE: MUR 25 INVESTOR UPDATE OCTOBER 2022
Slide 27: Appendix
26 www.murphyoilcorp.com NYSE: MUR 26 Appendix 1 Non - GAAP Definitions and Reconciliations 2 Glossary of Abbreviations 3 3Q 2022 Guidance 4 Current Hedging Positions 6 Acreage Maps 5 Supplemental Information
Slide 28: Non-GAAP Financial Measure Definitions and Reconciliations
27 www.murphyoilcorp.com NYSE: MUR 27 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 29: EBITDA and EBITDAX
28 www.murphyoilcorp.com NYSE: MUR 28 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 30: Adjusted EBITDA
29 www.murphyoilcorp.com NYSE: MUR 29 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 31: Adjusted EBITDAX
30 www.murphyoilcorp.com NYSE: MUR 30 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 32: Glossary of Abbreviations
31 www.murphyoilcorp.com NYSE: MUR 31 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 33: 3Q 2022 Guidance
32 www.murphyoilcorp.com NYSE: MUR 32 3Q 2022 Guidance Producing Asset Oil (BOPD) NGLs (BOPD) Gas (MCFD) Total (BOEPD) US – Eagle Ford Shale 27,600 4,800 28,900 37,200 – Gulf of Mexico excluding NCI 1 56,300 4,300 61,300 70,800 Canada – Tupper Montney – – 394,400 65,700 – Kaybob Duvernay and Placid
Slide 34: Current Hedging Positions – Oil
33 www.murphyoilcorp.com NYSE: MUR 33 Current Hedging Positions – Oil * As of August 2, 2022 United States Commodity Type Volumes (BBL/D) Price (BBL) Start Date End Date WTI Fixed Price Derivative Swap 20,000 $44.88 7/1/2022 12/31/2022 Commodity Type Volumes (BBL/D) Put Price (BBL) Call Price (BBL)
Slide 35: Current Fixed Price Contracts – Natural Gas
34 www.murphyoilcorp.com NYSE: MUR 34 Current Fixed Price Contracts – Natural Gas Montney, Canada Commodity Type Volumes (MMCF/D) Price (MCF) Start Date End Date Natural Gas Fixed Price Forward Sales at AECO 247 C$2.34 7/1/2022 10/31/2022 Natural Gas Fixed Price Forward Sales at AECO 266 C$2.36 11/1
Slide 36: Financial Results: Strengthening Balance Sheet
35 www.murphyoilcorp.com NYSE: MUR 35 Financial Results Strengthening Balance Sheet Solid Foundation for Commodity Price Cycles • $432 MM of cash and cash equivalents at June 30, 2022 • Redeemed $200 MM of 6.875% Senior Notes due 2024 • Achieved $240 MM of additional long - term debt reduction: • Te
Slide 37: North America Onshore Well Locations
36 www.murphyoilcorp.com NYSE: MUR 36 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 38: Eagle Ford Shale Peer Acreage
37 www.murphyoilcorp.com NYSE: MUR 37 Eagle Ford Shale Peer Acreage
Slide 39: Kaybob Duvernay Peer Acreage
38 www.murphyoilcorp.com NYSE: MUR 38 Kaybob Duvernay Peer Acreage SAXON KAYBOB WEST KAYBOB EAST KIWENTINOHK Crescent Point CHEVRON PARAMOUNT XTO REPSOL PLACID CENOVUS 6 Miles KEYERA SIMONETTE ENERGY TRANSFER KAYBOB Paramount Chevron Murphy Kiwetinohk Cenovus Crescent Point XTO Repsol Other Leased J
Slide 40: Tupper Montney Peer Acreage
39 www.murphyoilcorp.com NYSE: MUR 39 Tupper Montney Peer Acreage ARC Montney Shell Montney Advantage Montney Other Competitors Open Crown Tourmaline Montney Ovintiv Montney Birchcliff Montney TCPL Pipeline Murphy Facility Battery Murphy Pipeline 0 10 Miles
Slide 41: Placid Montney Peer Acreage
40 www.murphyoilcorp.com NYSE: MUR 40 Placid Montney Peer Acreage ARC Open Crown Other Leased Paramount Kiwetinohk CNRL XTO Non - Operated Area Hawthorne Energy Facility Battery Spartan Delta Murphy Cenovus KIWETINOHK ARC PARAMOUNT XTO CENOVUS HAWTHORNE ENERGY CNRL SAXON KAYBOB WEST KAYBOB EAST PLAC
Slide 42: Kaybob Duvernay
41 www.murphyoilcorp.com NYSE: MUR 41 Kaybob Duvernay Maintaining Production With New Well Deliveries Kaybob Duvernay Acreage 7 0 Miles Kaybob East Simonette Kaybob North Kaybob West Saxon Two Creeks Murphy Acreage Pipeline Facility Battery 2022 Wells 2Q 2022 6 MBOEPD, 75% Liquids FY 2022 Capital Pl
Slide 43: Gulf of Mexico Producing Assets
42 www.murphyoilcorp.com NYSE: MUR 42 PRODUCING ASSETS Asset Operator Murphy WI 1 Calliope Murphy 29% Cascade Murphy 80% Chinook Murphy 86% Clipper Murphy 80% Cottonwood Murphy 80% Dalmatian Murphy 56% Front Runner Murphy 50% Habanero Shell 27% Khaleesi Murphy 34% Kodiak Kosmos 59% Lucius Anadarko 1
Slide 44: Offshore Canada: Terra Nova Asset Life Extension
43 www.murphyoilcorp.com NYSE: MUR 43 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 45: Exploration Update Sergipe-Alagoas Basin, Brazil
44 www.murphyoilcorp.com NYSE: MUR 44 Exploration Update 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 opportun
Slide 46: Exploration Update Potiguar Basin, Brazil
45 www.murphyoilcorp.com NYSE: MUR 45 Exploration Update Potiguar Basin, Brazil Asset Overview • Wintershall Dea 70% (Op), Murphy 30% • Received offshore operator approval from ANP, necessary step to acquire Wintershall WI position at no cost • Hold WI in 3 blocks, spanning ~775 M gross acres • Prov
Slide 47: Development Update Cuu Long Basin, Vietnam
46 www.murphyoilcorp.com NYSE: MUR 46 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 submitted to government for approval • LDT - 1X
Slide 48: Exploration Update Cuu Long Basin, Vietnam
47 www.murphyoilcorp.com NYSE: MUR 47 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 49: 48 www.murphyoilcorp.com NYSE: MUR 48 INVESTOR UPDATE OCTOBER 2022
48 www.murphyoilcorp.com NYSE: MUR 48 INVESTOR UPDATE OCTOBER 2022