Murphy Oil Corporation · NYSE:MUR
Murphy Oil — Merger or Acquisition (March 2019)
16 slides from Murphy Oil's merger presentation, Mar 21, 2019
Slide 1: Murphy Announces Strategic Sale of Malaysian Portfolio
MURPHY OIL CORPORATION 1 www.murphyoilcorp.com NYSE: MUR MURPHY ANNOUNCES STRATEGIC SALE OF MALAYSIAN PORTFOLIO MARCH 21, 2019 ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER
Slide 2: Cautionary Statement & Investor Relations Contacts
MURPHY OIL CORPORATION 2 www.murphyoilcorp.com NYSE: MUR Cautionary Statement & Investor Relations Contacts Cautionary Note to U.S. Investors – The United States Securities and Exchange Commission (SEC) requires oil and natural gas comp anies, in their filings with the SEC, to disclose proved reserv
Slide 3: Sale of Murphy's Malaysian Business for $2.127 BN All-Cash
MURPHY OIL CORPORATION 3 www.murphyoilcorp.com NYSE: MUR Sale of Murphy’s Malaysian Business for $2.127 BN All - Cash Positive Outcomes for Murphy • Further Benefit Shareholders with Share Repurchase & Debt Reduction • Simplifying Portfolio with Strategic Exit from Malaysia • Enhancing Focus on Oil
Slide 4: Transaction Summary Details
MURPHY OIL CORPORATION 4 www.murphyoilcorp.com NYSE: MUR Transaction Summary Details Transaction Summary Buyer PTTEP Purchase Price $2.127 BN Additional Contingent Payment 1 Up to $100 MM Effective Date Jan 1, 2019 Expected Close 2Q 2019 Properties Summary 2018 Production 48 MBOEPD 2019E Production
Slide 5: Expected Use of Proceeds
MURPHY OIL CORPORATION 5 www.murphyoilcorp.com NYSE: MUR Expected Use of Proceeds $500 MM Share Repurchase Authorization $750 MM Cash on Balance Sheet • Potential Oil - Weighted Acquisition • Accretive Deep Water / US Onshore Opportunities Returning Immediate Value Delivering Dividends & Share Repur
Slide 6: Malaysia Divestiture & Use of Proceeds 2019-2023
MURPHY OIL CORPORATION 6 www.murphyoilcorp.com NYSE: MUR Jan 01 2019 Cash Balance Divestiture Proceeds Use of Proceeds Post-Divest. Cash Balance Free Cash Flow Generated Free Cash Flow Used Dec 31 2023 Cash Balance Cash Balance With Use of Proceeds Jan 01 2019 Cash Balance CF > CAPEX Before Dividend
Slide 7: Changes to 2019 Plan Post Asset Sale
MURPHY OIL CORPORATION 7 www.murphyoilcorp.com NYSE: MUR Previous 2019 Annual CAPEX $1.25 – $1.45 BN • $106 MM Allocated to Malaysia Previous 2019 Production 202 – 210 MBOEPD • 46,000 – 48,000 BOEPD Allocated to Malaysia Changes to 2019 Plan Post Asset Sale NOTE: Production Volumes, Sales Volumes, R
Slide 8: Murphy Transformation Over Time
MURPHY OIL CORPORATION 8 www.murphyoilcorp.com NYSE: MUR 2014 $93 WTI 2015 $49 WTI 2016 $43 WTI 2017 $51 WTI 2018 $65 WTI 2019 $55 WTI • Total Proceeds on Sale of Assets: ~$5 BN • Total Gains on Sale of Assets: ~$2 BN Murphy Transformation Over Time 2014 – 2015 Repositioning Post - Spin; Streamlinin
Slide 9: History of Benefitting Shareholders
MURPHY OIL CORPORATION 9 www.murphyoilcorp.com NYSE: MUR -5% 0% 5% x Denotes Equity Issued in 2016 Source: Bloomberg, as of Dec 31, 2018 Note: Adjusted CFO = Cash Flow from Operations Before Changes in Non - Cash Working Capital History of Benefitting Shareholders 0% 1% 2% 3% 4% MUR Source: Bloomber
Slide 10: Long-Term Plan Post-Malaysia Asset Sale: 2019-2023 Production Growth
MURPHY OIL CORPORATION 10 www.murphyoilcorp.com NYSE: MUR US Onshore US Onshore US Onshore CAN Onshore CAN Onshore NA Offshore NA Offshore NA Offshore Malaysia Malaysia Other SE Asia 0 50 100 150 200 250 2019E Malaysia Divestiture Growth 2023E [MBOEPD Long - Term Plan Post - Malaysia Asset Sale 2019
Slide 11: Continuing the Legacy of Rewarding Shareholders
MURPHY OIL CORPORATION 11 www.murphyoilcorp.com NYSE: MUR Continuing the Legacy of Rewarding Shareholders Monetizing 2P Reserves at Full Value Enhancing Financial Flexibility & Strengthening Balance Sheet Simplifying Portfolio with Strategic Exit From Malaysia Focusing on Oil - Weighted, High Margin
Slide 12: Onshore Appendix
MURPHY OIL CORPORATION 12 www.murphyoilcorp.com NYSE: MUR ONSHORE APPENDIX
Slide 13: Non-GAAP Financial Measure Definitions & Reconciliations
MURPHY OIL CORPORATION 13 www.murphyoilcorp.com NYSE: MUR Non - GAAP Financial Measure Definitions & 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 19
Slide 14: Non-GAAP Reconciliation: Free Cash Flow
MURPHY OIL CORPORATION 14 www.murphyoilcorp.com NYSE: MUR Non - GAAP Reconciliation FREE CASH FLOW Murphy defines Free C ash F low as net cash provided from continuing operations activities (as stated in the Consolidated Statements of Cash Flows) reduc ed by capital expenditures and investments. Fre
Slide 15: Non-GAAP Reconciliation: Adjusted Cash Flow from Operations
MURPHY OIL CORPORATION 15 www.murphyoilcorp.com NYSE: MUR Non - GAAP Reconciliation ADJUSTED CASH FLOW FROM OPERATIONS Murphy defines Adjusted Cash Flow from Operations (CFFO) as net cash provided from continuing operations activities (as state d i n the Consolidated Statements of Cash Flows) before
Slide 16: Murphy Announces Strategic Sale of Malaysian Portfolio
MURPHY OIL CORPORATION 16 www.murphyoilcorp.com NYSE: MUR MURPHY ANNOUNCES STRATEGIC SALE OF MALAYSIAN PORTFOLIO MARCH 21, 2019 ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER 16