Murphy Oil Corporation · NYSE:MUR
Murphy Oil — Investor Presentation (February 2022)
53 slides from Murphy Oil's investor presentation, Feb 28, 2022
Slide 1: March Investor Presentation
0 www.murphyoilcorp.com NYSE: MUR 0 MARCH INVESTOR PRESENTATION MARCH 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: Low Emissions Intensity Energy Generation
5 www.murphyoilcorp.com NYSE: MUR 5 Low Emissions Intensity Energy Generation Ranked top - quartile in low carbon intensity for 2020 among oil - weighted peers • Lowering emissions intensity 15 - 20% by 2030 • Realizing lower costs while reducing environmental impacts • Deepwater offshore assets hav
Slide 7: 2021 Sustainability Highlights
6 www.murphyoilcorp.com NYSE: MUR 6 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 8: Murphy Priorities
7 www.murphyoilcorp.com NYSE: MUR 7 MURPHY PRIORITIES
Slide 9: What's New in 1Q 2022
8 www.murphyoilcorp.com NYSE: MUR 8 What’s New in 1Q 2022 Major Projects Update • King’s Quay FPS fully moored in Gulf of Mexico • Final pre - commissioning activities ongoing, o n schedule to receive first oil in 2Q 2022 • Khaleesi, Mormont, Samurai well completions progressing • 1 well completed,
Slide 10: FY 2021 Progress on Strategic Priorities
9 www.murphyoilcorp.com NYSE: MUR 9 FY 2021 Progress on Strategic Priorities • Redeemed $300 MM of 2024 Senior Notes • Reduced total debt by $530 MM, or ~17%, since YE 2020 with significant cash flow generation • On track to achieve $1.4 BN debt target by YE 2024 at conservative prices* DELEVER • Ma
Slide 11: 2022 Capital Allocation Plan
10 www.murphyoilcorp.com NYSE: MUR 10 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 12: 2022 Production Plan
11 www.murphyoilcorp.com NYSE: MUR 11 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 13: 2022 North America Onshore Plan
12 www.murphyoilcorp.com NYSE: MUR 12 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 14: 2022 Offshore Plan
13 www.murphyoilcorp.com NYSE: MUR 13 2022 Offshore Plan Focused on Executing Major Projects 2022 Offshore Capital Budget $405 MM • $265 MM for major projects in Gulf of Mexico • $65 MM for development and tie - back projects in Gulf of Mexico • $55 MM for non - op Terra Nova • $15 MM for non - op H
Slide 15: 2022 Exploration Plan
14 www.murphyoilcorp.com NYSE: MUR 14 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 16: Murphy Portfolio
15 www.murphyoilcorp.com NYSE: MUR 15 MURPHY PORTFOLIO
Slide 17: Concentrated Onshore Portfolio With Multi-Year Inventories
16 www.murphyoilcorp.com NYSE: MUR 16 Concentrated Onshore Portfolio With Multi - Year Inventories Tupper Montney Kaybob Duvernay Eagle Ford Shale Oil - Weighted PRICE - ADVANTAGED EAGLE FORD SHALE Natural Gas WELL - POSITIONED FOR IN TUPPER MONTNEY Over 3,300 FUTURE LOCATIONS ~520 MMBOE PROVED RESE
Slide 18: Well-Established Gulf of Mexico Portfolio
17 www.murphyoilcorp.com NYSE: MUR 17 Well - Established Gulf of Mexico Portfolio Gulf of Mexico Assets GC WR EW KC GB MC DC LU AT LL HE VK DD Miles 50 0 Lucius Cascade St. Malo Chinook Front Runner Medusa Dalmatian S. Delta House Rushmore Guilder Silver Dollar West Ninja Silver Dollar Blanco Creek
Slide 19: High-Impact Exploration Portfolio
18 www.murphyoilcorp.com NYSE: MUR 18 High - Impact Exploration Portfolio Company - Making Potential BRAZIL & MEXICO Reduced Risk APPROPRIATE WORKING INTEREST Focused Targeting 3 TO 5 WELLS PER YEAR < $12 BOE F&D TARGET GULF OF MEXICO BRAZIL VIETNAM Exploration Focus Areas
Slide 20: 2022 Exploration Plan: Sergipe-Alagoas Basin, Brazil
19 www.murphyoilcorp.com NYSE: MUR 19 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 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 • Targeting exploration
Slide 22: Looking Ahead
21 www.murphyoilcorp.com NYSE: MUR 21 LOOKING AHEAD
Slide 23: Disciplined Strategy Leads to Long-Term Value
22 www.murphyoilcorp.com NYSE: MUR 22 Disciplined Strategy Leads to Long - Term Value at Conservative Prices 2022 2023 2024 2025 2026 2027 2028 • Achieving < $1.4 BN debt by 2024* • Reinvesting ~40% of operating cash flow* to maintain average 52% oil - weighting • Maintaining offshore production ave
Slide 24: Focused on Targeted Priorities
23 www.murphyoilcorp.com NYSE: MUR 23 Focused on Targeted Priorities • Establishing FY 2022 goal of $300 MM long - term debt reduction • Plan allows for long - term debt reduction to ~$1.4 BN by YE 2024*, with potential for further reductions long - term or at higher oil prices DELEVER • Progress ma
Slide 25: Why Murphy Oil?
24 www.murphyoilcorp.com NYSE: MUR 24 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 26: Appendix
25 www.murphyoilcorp.com NYSE: MUR 25 MARCH INVESTOR PRESENTATION MARCH 2022
Slide 27: Appendix contents
26 www.murphyoilcorp.com NYSE: MUR 26 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 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: 2021 Proved Reserves
32 www.murphyoilcorp.com NYSE: MUR 32 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 34: 1Q 2022 Guidance
33 www.murphyoilcorp.com NYSE: MUR 33 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 35: Current Hedging Positions – Oil
34 www.murphyoilcorp.com NYSE: MUR 34 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 36: Current Hedging Positions – Natural Gas
35 www.murphyoilcorp.com NYSE: MUR 35 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 37: Strengthening Balance Sheet
36 www.murphyoilcorp.com NYSE: MUR 36 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 38: North America Onshore Well Locations
37 www.murphyoilcorp.com NYSE: MUR 37 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 39: Eagle Ford Shale
38 www.murphyoilcorp.com NYSE: MUR 38 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 Murphy Acreage Eagle Ford Shale Drilling and Completions $MM per well 4Q
Slide 40: Eagle Ford Shale: Catarina Well Performance
39 www.murphyoilcorp.com NYSE: MUR 39 Eagle Ford Shale Strong Catarina Well Performance Offers Potential to De - Risk Portfolio Achieving Strong Catarina Results • 4 wells online in Catarina in 4Q 2021, 84% oil weighting • 2 Upper EFS wells, 1 Austin Chalk well in - line with type curves • 1 Lower E
Slide 41: Tupper Montney
40 www.murphyoilcorp.com NYSE: MUR 40 Murphy Acreage Facility 5 0 Miles BC Alberta Tupper Montney Acreage Tupper Montney Continual Improvement Drives Stronger Well Performance 4Q 2021 263 MMCFD, 100% Natural Gas FY 2021 259 MMCFD, 100% Natural Gas • Total 14 operated wells online Record - High IP30
Slide 42: Gulf of Mexico
41 www.murphyoilcorp.com NYSE: MUR 41 Gulf of Mexico Major Projects Drive Future Free Cash Flow 4Q 2021 61 MBOEPD, 80% Oil, 86% Liquids • Calliope #1 (Mississippi Canyon 609) back online after hurricane in 3Q 2021 • Completed operated hurricane repairs early in quarter • 1.5 MBOEPD offline through m
Slide 43: Offshore Canada: Terra Nova Asset Life Extension
42 www.murphyoilcorp.com NYSE: MUR 42 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 44: Eagle Ford Shale Peer Acreage
43 www.murphyoilcorp.com NYSE: MUR 43 Eagle Ford Shale Peer Acreage
Slide 45: Kaybob Duvernay Peer Acreage
44 www.murphyoilcorp.com NYSE: MUR 44 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 46: Tupper Montney Peer Acreage
45 www.murphyoilcorp.com NYSE: MUR 45 Tupper Montney Peer Acreage ARC Montney Shell Montney Advantage Montney Other Competitor Montney Open Crown - Montney Tourmaline Montney Ovintiv Montney Birchcliff Montney Dry Gas Limit TCPL Pipeline Murphy Montney Facility Battery Murphy Pipeline 0 10 Miles Daw
Slide 47: Placid Montney Peer Acreage
46 www.murphyoilcorp.com NYSE: MUR 46 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 48: Producing Assets
47 www.murphyoilcorp.com NYSE: MUR 47 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 49: Exploration Update: Gulf of Mexico
48 www.murphyoilcorp.com NYSE: MUR 48 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 50: Exploration Update: Potiguar Basin, Brazil
49 www.murphyoilcorp.com NYSE: MUR 49 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 51: Cuu Long Basin, Vietnam: Block 15-1/05
50 www.murphyoilcorp.com NYSE: MUR 50 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 government for approval • LDT - 1X discovery in 2019
Slide 52: Exploration Update: Cuu Long Basin, Vietnam Block 15-2/17
51 www.murphyoilcorp.com NYSE: MUR 51 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 identified • Seismic reprocessing, geological /
Slide 53: March
52 www.murphyoilcorp.com NYSE: MUR 52 MARCH INVESTOR PRESENTATION MARCH 2022