Murphy Oil Corporation · NYSE:MUR
Murphy Oil — Investor Presentation (January 2023)
45 slides from Murphy Oil's investor presentation, Jan 6, 2023
Slide 1: Investor Update January 2023
0 www.murphyoilcorp.com NYSE: MUR 0 INVESTOR UPDATE JANUARY 2023
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 39.3 MBOEPD in 3Q 2022, comprised of 73% oil and 87% 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: Positive Response to Sustainability Reporting Approach
6 www.murphyoilcorp.com NYSE: MUR 6 by the Institutional Shareholder Services Group of Companies (ISS) Positive Response to Sustainability Reporting Approach Source: ISS Corporate Solutions, as of January 3, 2022 Increased Disclosures in Sustainability Report to Align With Internationally Recognized
Slide 8: Murphy Priorities
7 www.murphyoilcorp.com NYSE: MUR 7 MURPHY PRIORITIES
Slide 9: What's New in 4Q 2022
8 www.murphyoilcorp.com NYSE: MUR 8 What’s New in 4Q 2022 Offshore Well Delivery Update • All 7 wells online at Khaleesi / Mormont / Samurai in Gulf of Mexico • Initial phase of development complete • Drilling Samurai #5 development well Launching 2023 Onshore Well Program • 2 rigs drilling in Eagle
Slide 10: Khaleesi, Mormont, Samurai Field Development Details
9 www.murphyoilcorp.com NYSE: MUR 9 Khaleesi, Mormont, Samurai Field Development Details Completed Initial Phase 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
Slide 11: 2022 Production Plan
10 www.murphyoilcorp.com NYSE: MUR 10 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 expectat
Slide 12: 2022 CAPEX Plan
11 www.murphyoilcorp.com NYSE: MUR 11 2022 CAPEX Plan Prioritizing Capital To Support Free Cash Flow $301 $266 $209 $224 $1,000 0 200 400 600 800 1,000 1Q 2022A 2Q 2022A 3Q 2022A 4Q 2022E FY 2022E Accrued CAPEX by Quarter $MM Note: Accrued CAPEX, based on midpoint of guidance range and excluding acq
Slide 13: Progressing Strategic Priorities
12 www.murphyoilcorp.com NYSE: MUR 12 Progressing Strategic Priorities • Achieved $650 MM debt reduction goal in 2022 through senior notes redemptions, partial tender and open market transactions • Positioned to begin second stage of capital allocation framework in 2023 with 25% of adjusted FCF* all
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 3Q 2022 39 MBOEPD, 87% Liquids • 4 operated wells online in Catarina • 3 non - operated wells online in Tilden 4Q 2022 Well Delivery Schedule • 4 non - operated we
Slide 18: Tupper Montney
17 www.murphyoilcorp.com NYSE: MUR 17 Tupper Montney 2022 Wells Achieved Fast Payout 3Q 2022 376 MMCFD Net, 395 MMCFD Gross • 5 wells online • Activity complete for FY 2022 Realizing Record - High Production Results • Achieved record - high gross production peak of 415 MMCFD • Fast well payouts, res
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 3Q 2022 76 MBOEPD, 80% Oil Development and Tieback Projects • Drilled successful Dalmatian #1 (Desoto Canyon 90) development well, online FY 2023 • Completing non - op subsea tiebacks at Lucius
Slide 20: 2022 Exploration Plan Gulf of Mexico
19 www.murphyoilcorp.com NYSE: MUR 19 2022 Exploration Plan Gulf of Mexico Oso - 1EXP (Atwater Valley 138) • Murphy 33% (Op), Anadarko* 33%, Ridgewood 33% • Executed partnership agreement in 3Q 2022 • Spud in 4Q 2022 with drilling through 1Q 2023 • ~$22 MM net cost • Mean to upward gross resource po
Slide 21: Looking Ahead
20 www.murphyoilcorp.com NYSE: MUR 20 LOOKING AHEAD
Slide 22: Today's Strategic Plan Drives Tomorrow's Durable Returns
21 www.murphyoilcorp.com NYSE: MUR 21 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 Achieving Industry - Leading W
Slide 23: Looking Forward
22 www.murphyoilcorp.com NYSE: MUR 22 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 24: 23 www.murphyoilcorp.com NYSE: MUR 23 INVESTOR UPDATE JANUARY 2023
23 www.murphyoilcorp.com NYSE: MUR 23 INVESTOR UPDATE JANUARY 2023
Slide 25: Appendix
24 www.murphyoilcorp.com NYSE: MUR 24 Appendix 1 Glossary of Abbreviations 2 4 Q 2022 Guidance 3 Current Hedging Positions 4 Supplemental Information 5 Acreage Maps
Slide 26: Glossary of Abbreviations
25 www.murphyoilcorp.com NYSE: MUR 25 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 27: 4Q 2022 Guidance
26 www.murphyoilcorp.com NYSE: MUR 26 4Q 2022 Guidance Producing Asset Oil (BOPD) NGLs (BOPD) Gas (MCFD) Total (BOEPD) US – Eagle Ford Shale 23,500 5,100 27,800 33,200 – Gulf of Mexico excluding NCI 1 68,000 5,600 70,500 85,400 Canada – Tupper Montney – – 296,100 49,400 – Kaybob Duvernay and Placid
Slide 28: Current Hedging Positions – Oil
27 www.murphyoilcorp.com NYSE: MUR 27 Current Hedging Positions – Oil * As of November 2, 2022 United States Commodity Type Volumes (BBL/D) Price (BBL) Start Date End Date WTI Fixed Price Derivative Swap 20,000 $44.88 10/1/2022 12/31/2022 Commodity Type Volumes (BBL/D) Put Price (BBL) Call Price (BB
Slide 29: Current Fixed Price Contracts – Natural Gas
28 www.murphyoilcorp.com NYSE: MUR 28 Current Fixed Price Contracts – Natural Gas Tupper 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 10/1/2022 10/31/2022 Natural Gas Fixed Price Forward Sales at AECO 266 C$2
Slide 30: Strengthening Balance Sheet
29 www.murphyoilcorp.com NYSE: MUR 29 Financial Results Strengthening Balance Sheet Solid Foundation for Commodity Price Cycles • $466 MM of cash and cash equivalents at Sept 30, 2022 • Achieved $248 MM of long - term debt reduction in 3Q 2022: • Tendered $198 MM of senior notes in Aug 2022, compris
Slide 31: North America Onshore Well Locations
30 www.murphyoilcorp.com NYSE: MUR 30 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 32: Eagle Ford Shale Peer Acreage
31 www.murphyoilcorp.com NYSE: MUR 31 Eagle Ford Shale Peer Acreage
Slide 33: Kaybob Duvernay Peer Acreage
32 www.murphyoilcorp.com NYSE: MUR 32 Kaybob Duvernay Peer Acreage SAXON KAYBOB WEST KAYBOB EAST KIWENTINOHK Crescent Point CHEVRON PARAMOUNT Whitecap PLACID CENOVUS 6 Miles KEYERA SIMONETTE PGI PROCESSING KAYBOB PCC GMT HITIC HALO Paramount Chevron Murphy Kiwetinohk Cenovus Crescent Point Whitecap
Slide 34: Tupper Montney Peer Acreage
33 www.murphyoilcorp.com NYSE: MUR 33 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 35: Placid Montney Peer Acreage
34 www.murphyoilcorp.com NYSE: MUR 34 Placid Montney Peer Acreage ARC Open Crown Other Leased Paramount Kiwetinohk CNRL Whitecap Non - Operated Area HWN Energy Facility Battery Ridgeback Murphy Cenovus KIWETINOHK ARC PARAMOUNT WHITECAP CENOVUS HWN ENERGY CNRL SAXON KAYBOB WEST KAYBOB EAST PLACID KEY
Slide 36: Kaybob Duvernay
35 www.murphyoilcorp.com NYSE: MUR 35 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 3Q 2022 6 MBOEPD, 78% Liquids FY 2022 Capital Pl
Slide 37: Producing Assets – Gulf of Mexico
36 www.murphyoilcorp.com NYSE: MUR 36 PRODUCING ASSETS Asset Operator Murphy WI 1 Calliope Murphy 29% Cascade Murphy 80% Chinook Murphy 86% Clipper Murphy 80% Dalmatian Murphy 56% Front Runner Murphy 50% Habanero Shell 27% Khaleesi Murphy 34% Kodiak Kosmos 59% Lucius Anadarko 16% Marmalard Murphy 24
Slide 38: Offshore Canada Terra Nova Asset Life Extension
37 www.murphyoilcorp.com NYSE: MUR 37 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 39: Exploration Update Gulf of Mexico
38 www.murphyoilcorp.com NYSE: MUR 38 Exploration Update Gulf of Mexico Interests in 116 Gulf of Mexico OCS Blocks • ~650,000 total gross acres • 70 exploration blocks • ~1 BBOE gross unrisked mean resource potential • 20 key prospects • Targeting two - well exploration program in FY 2023 • Oso - 1E
Slide 40: Exploration Update Salina Basin, Mexico
39 www.murphyoilcorp.com NYSE: MUR 39 Block 5 Overview • Murphy 40% (Op), Petronas 30%, Wintershall Dea 30% • Proven oil basin in proximity to multiple oil discoveries in Miocene section • First additional exploration period approved by CNH • Integrating recent Tulum - 1EXP well results Exploration
Slide 41: Exploration Update Sergipe-Alagoas Basin, Brazil
40 www.murphyoilcorp.com NYSE: MUR 40 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 42: Exploration Update Potiguar Basin, Brazil
41 www.murphyoilcorp.com NYSE: MUR 41 Exploration Update Potiguar Basin, Brazil Asset Overview • Murphy 100% (Op) • Assumed Wintershall DEA’s 70% WI position at no cost • Hold WI in 3 blocks, spanning ~775 M gross acres • Proven oil basin in proximity to Pitu oil discovery Extending the Play Into th
Slide 43: Development Update Cuu Long Basin, Vietnam
42 www.murphyoilcorp.com NYSE: MUR 42 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 44: Exploration Update Cuu Long Basin, Vietnam
43 www.murphyoilcorp.com NYSE: MUR 43 Exploration Update Cuu Long Basin, Vietnam Asset Overview • Murphy 40% (Op), PVEP 35%, SKI 25% Block 15 - 2/17 • 2 - year exploration extension to 4Q 2024 • 1 well commitment • 2 drill - worthy prospects identified • Seismic reprocessing, geological / geophysica
Slide 45: 44 www.murphyoilcorp.com NYSE: MUR 44 INVESTOR UPDATE JANUARY 2023
44 www.murphyoilcorp.com NYSE: MUR 44 INVESTOR UPDATE JANUARY 2023