Slide 1: First Quarter 2024 Earnings Conference Call & Webcast
2024 FIRST QUARTER EARNINGS CONFERENCE CALL & WEBCAST MAY 2, 2024 ROGER W. JENKINS 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: Advancing Strategic Priorities
Advancing Strategic Priorities DELEVER EXECUTE EXPLORE RETURN • Remained on track for $300 MM • Produced 170 MBOEPD with • Spud Gulf of Mexico non-op Ocotillo Progressed Murphy 2.0 debt reduction goal in 2024, resulting 89 MBOPD, or 52 percent, oil volumes exploration well in 2Q 2024 with of Capital
Slide 4: 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 5: Production, Pricing and Revenue
Production, Pricing and Revenue Generating High Revenue From Oil Production 1Q 2024 Production 1Q 2024 Revenue by Area by Area Onshore Canada Eagle Ford Shale $82 MM Eagle Ford Shale $155 MM 28,600 BOEPD 11% 16.9% 21% Onshore Canada 36.5% 62,000 BOEPD 170 $746 MM MBOEPD 46.6% Offshore 79,100 BOEPD O
Slide 6: 1Q 2024 Financial Results
Financial Results Generating Income to Support Corporate Priorities 1Q 2024 Financial Results Net Income Attributable to Murphy ($MM Except Per Share) 1Q 2024 • Net income $90 MM; adjusted net income $131 MM Income (loss) $90 $/Diluted share $0.59 • EBITDA $343 MM; adjusted EBITDA $405 MM Adjusted I
Slide 7: Targeting Lower Debt with Ample Liquidity
Financial Results Targeting Lower Debt with Ample Liquidity Solid Foundation to Withstand Commodity Debt Maturity Profile1 $MM Price Cycles $1,250 $1,000 • $1.1 BN of liquidity on Mar 31, 2024 $750 • Includes $800 MM senior unsecured credit facility $500 due Nov 2027 with no borrowings as of Mar 31,
Slide 8: 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 9: Operations Update
OPERATIONS UPDATE www.murphyoilcorp.com NYSE: MUR 9
Slide 10: 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 11: 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 Entered Rockies LNG Partnership, Creating Fut
Slide 12: 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 13: 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 • Drilled Khaleesi #4, online 2Q 2024 M
Slide 14: 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 15: 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 16: Exploration Update
EXPLORATION UPDATE www.murphyoilcorp.com NYSE: MUR 16
Slide 17: Gulf of Mexico Exploration
Exploration Update Gulf of Mexico Gulf of Mexico Exploration Area FY 2024 Exploration Plan Ocotillo • Prospects near existing infrastructure Eden Park VK DD Silver Dollar • $39 MM total net well cost Silver Dollar West • Ocotillo (Mississippi Canyon 40) Orange Medusa Delta House Powerball Dalmatian
Slide 18: 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 19: 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 CI-102 • Seismic reprocessing ongoing; final data expected 4Q 2024 Baleine CI-531 Diverse Opportunities Adjacent to Oil Discoverie
Slide 20: Looking Ahead
LOOKING AHEAD www.murphyoilcorp.com NYSE: MUR 20
Slide 21: 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 CAPEX FY 2024E Production By Area By Area • 176 – 184 MBOEPD production, 93 MBOPD or 51% oil, 56% liquids volumes 12% 3% 16% Offshore • Impacted by: 38% US Onshore Offs
Slide 22: 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 23: 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 24: First Quarter Earnings Conference Call & Webcast
2024 FIRST QUARTER EARNINGS CONFERENCE CALL & WEBCAST MAY 2, 2024 ROGER W. JENKINS CHIEF EXECUTIVE OFFICER www.murphyoilcorp.com NYSE: MUR 24
Slide 25: 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 25
Slide 26: 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 27: 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 28: 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 29: 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 30: 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 31: 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 32: 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 33: 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 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 Fix
Slide 34: 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 35: 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 36: 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 37: 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 38: Peer Acreage: Eagle Ford Shale
Eagle Ford Shale Peer Acreage Acreage as of April 30, 2024 www.murphyoilcorp.com NYSE: MUR 38
Slide 39: 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 39
Slide 40: 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 40
Slide 41: 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 42: 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 43: 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 44: First Quarter Earnings Conference Call & Webcast
2024 FIRST QUARTER EARNINGS CONFERENCE CALL & WEBCAST MAY 2, 2024 ROGER W. JENKINS CHIEF EXECUTIVE OFFICER www.murphyoilcorp.com NYSE: MUR 44