Murphy Oil Corporation · NYSE:MUR
Murphy Oil — Investor Presentation (January 2025)
45 slides from Murphy Oil's investor presentation, January 2025
Slide 1: Investor Update January 2025
INVESTOR UPDATE JANUARY 2025 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: Agenda
Agenda 01 04 Murphy at a Glance Murphy Exploration 02 05 Murphy Priorities Looking Ahead 03 06 Murphy Portfolio Appendix www.murphyoilcorp.com NYSE: MUR 3
Slide 4: Murphy at a Glance
Murphy at a Glance Murphy is an independent exploration and production company, with a diverse portfolio that provides exploration upside Multi-Basin Production 3Q 2024 Production1 Gulf of Mexico Offshore Canada Onshore United States Onshore Canada 18% Deepwater execution Non-operated partner in Eag
Slide 5: Murphy Priorities
MURPHY PRIORITIES www.murphyoilcorp.com NYSE: MUR 5
Slide 6: Advancing Strategic Priorities
Advancing Strategic Priorities DELEVER EXECUTE EXPLORE RETURN • Reduced debt by $50 MM in • Produced 185 MBOEPD in 3Q 2024 • Drilled discovery at operated Hai Progressed Murphy 3.0 of YTD 3Q 20241 Su Vang-1X well in Vietnam • Completed offshore workovers as Capital Allocation • Called $79 MM of seni
Slide 7: Strong Balance Sheet Positioned to Withstand Commodity Price Cycles
Strong Balance Sheet Positioned to Withstand Commodity Price Cycles Enhancing Financial Position Through Capital Markets Transactions in 4Q 2024 Issued Tendered Called $600 MM of 6.000% Senior + $521 MM + $79 MM of senior notes in of long-term debt Notes due 2032 4Q 2024 Represents October Entered N
Slide 8: Consistent Discipline Drives Strong Financial Performance
Consistent Discipline Drives Strong Financial Performance Peer-Leading Total Cash Return per Share1 $ per share $3 Debt / TTM EBITDAX2 4.0x Performance in 3Q 2024 3.5x 3.0x • Share buybacks are $2 2.5x meaningful with low share 2.0x count $1 1.5x Peer Average = 1.3x 1.0x • Financial strength provide
Slide 9: Delivering Shareholder Returns Within Capital Allocation Framework
Delivering Shareholder Returns Within Capital Allocation Framework1 Adjusted Free Cash Murphy 3.0 – Flow Formula Murphy 2.0 – Long-term debt Murphy 1.0 – ≤ $1.3 BN Long-term debt Long-term debt of $1.3 BN – $1.8 BN Cash Flow From Operations > $1.8 BN Minimum of 50% of Before WC Change ~75% of adjust
Slide 10: Reducing Debt While Generating Shareholder Returns
Reducing Debt While Generating Shareholder Returns Total Debt Reduction $ MM Consistent Focus on Balance Sheet and Increasing Shareholder Returns $3,000 $2,500 • Reduced debt by ~60% since YE 2020 $2,000 • Returned 110% of adjusted free cash flow to $1,500 shareholders in YTD 20241 through buybacks
Slide 11: Long History of Benefitting Shareholders
Long History of Benefitting Shareholders • Paying dividends for > 60-year history > $7.4 Billion • Maintaining balance sheet integrity with no equity issuances Returned to Shareholders Since 1961 Peer Cumulative Shareholder Returns vs Market Cap < $7 BN Since January 1, 2013 $4,000 Cumulative Shareh
Slide 12: Acting to Support All Stakeholders
Ongoing Commitment to Sustainability Goals Acting to Support All Stakeholders CONTINUED POSITIVELY IMPACTING OUR STRONG ENVIRONMENTAL STEWARDSHIP PEOPLE AND COMMUNITIES GOVERNANCE OVERSIGHT ADVANCING OUR CLIMATE GOALS Well-defined CONSISTENTLY BOARD AND MANAGERIAL GHG OUTPERFORMING OVERSIGHT US Bure
Slide 13: Murphy Portfolio
MURPHY PORTFOLIO www.murphyoilcorp.com NYSE: MUR 13
Slide 14: Eagle Ford Shale Update
Eagle Ford Shale Update Enhancing Portfolio Through Strong Execution Eagle Ford Shale Acreage 3Q 2024 32 MBOEPD, 72% Oil, 86% Liquids • 5 operated wells online in Tilden • 3 new wells and 2 refracs KARNES • 3 gross non-operated wells online in Karnes TILDEN • 9 gross non-operated wells online in Til
Slide 15: Tupper Montney Update
Tupper Montney Update Consistent Well Outperformance While Managing Price Risk 3Q 2024 429 MMCFD Net, 100% Natural Gas Tupper Montney Acreage • 2024 well delivery program completed in 2Q 2024 TUPPER WEST 4Q 2024 Plan • Initiate drilling for 2025 completion Mitigated AECO Exposure • Achieved realized
Slide 16: Offshore Update
Offshore Update Focusing on Executing Highly-Accretive Development Projects Total Offshore 3Q 2024 75 MBOEPD, 81% Oil Highly-Accretive Development and Tieback Projects • Gulf of Mexico 67 MBOEPD, 79% Oil Field Drilling Completions Online • Canada 8 MBOEPD, 100% Oil Khaleesi 2Q 2024 Gulf of Mexico Wo
Slide 17: Lac Da Vang Field Development Project Update
Lac Da Vang Field Development Project Update Cuu Long Basin, Vietnam Cuu Long Basin Lac Da Vang Field Development Overview BLOCK 15-01/05 LAC DA TRANG NORTH WEST • Murphy 40% (Op), PetroVietnam Exploration Production 35%, SK Earthon 25% LAC DA TRANG WEST • 100 MMBOE estimated gross recoverable resou
Slide 18: Murphy Exploration
MURPHY EXPLORATION www.murphyoilcorp.com NYSE: MUR 18
Slide 19: Hai Su Vang-1X Exploration Update
Hai Su Vang-1X Exploration Update Cuu Long Basin, Vietnam Cuu Long Basin Hai Su Vang-1X, Block 15-2/17 BLOCK 15-01/05 LAC DA TRANG SU TU VANG • Murphy 40% (Op), PetroVietnam Exploration NORTH WEST Production 35%, SK Earthon 25% LAC DA TRANG WEST • Discovery well, spud in 3Q 2024 LAC DA VANG • Drille
Slide 20: Lac Da Hong-1X Exploration Update
Lac Da Hong-1X Exploration Update Cuu Long Basin, Vietnam Lac Da Hong-1X, Block 15-1/05 Cuu Long Basin BLOCK 15-01/05 LAC DA TRANG • Murphy 40% (Op), PetroVietnam Exploration NORTH WEST Production 35%, SK Earthon 25% LAC DA TRANG WEST • Targeting spud in 1Q 2025 • $10 MM net well cost • Mean to upwa
Slide 21: Development and Exploration Update, 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 • Completed seismic reprocessing in 4Q 2024 CI-102 Baleine Diverse Opportunities Adjacent to Oil Discoveries CI-502 CI-531 • Borde
Slide 22: Looking Ahead
LOOKING AHEAD www.murphyoilcorp.com NYSE: MUR 22
Slide 23: 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 in > 25 years of inventory < $50 / BBL all price environments ~ 55 years of total inv
Slide 24: Offshore Development Opportunities
Offshore Development Opportunities Multi-Year Inventory of High-Return Projects Diversified, Low Breakeven Opportunities in Offshore Portfolio Resources To Be Developed By Year Percent MMBOE by Year • Multi-year inventory of identified offshore projects in current portfolio 22% • Maintaining annual
Slide 25: Disciplined Strategy Leads to Long-Term Value With Current Assets
Disciplined Strategy Leads to Long-Term Value With Current Assets DELEVER EXECUTE EXPLORE RETURN NEAR-TERM LONG-TERM • Reducing debt to reach $1.0 BN debt target in mid-20251 with no debt • Realizing average annual production of 210-220 MBOEPD with maturities until Dec 2027 > 50% average oil weighti
Slide 26: Progressing On 2024 Goals
Progressing On 2024 Goals Delivering shareholder returns through capital allocation framework Enhancing financial position through capital markets Exceeding production guidance across onshore assets Executing Gulf of Mexico well program Advancing Vietnam development and exploration Expanding portfol
Slide 27: Investor Update
INVESTOR UPDATE JANUARY 2025 www.murphyoilcorp.com NYSE: MUR 27
Slide 28: Appendix
Appendix 1 Non-GAAP Definitions, Reconciliations and Measures 2 Glossary of Abbreviations 3 Current Fixed Price Contracts 4 Supplemental Information 5 Acreage Maps www.murphyoilcorp.com NYSE: MUR 28
Slide 29: 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 30: 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 31: Non-GAAP Reconciliation: Free Cash Flow
Non-GAAP Reconciliation Free Cash Flow Presented below is free cash flow (a non-GAAP financial measure calculated as net cash provided by continuing operations activities, less non-cash working capital changes, property additions and dry hole costs). Management believes free cash flow is important i
Slide 32: Non-GAAP Reconciliation: Free Cash Flow
Non-GAAP Reconciliation Free Cash Flow Presented below is free cash flow (a non-GAAP financial measure calculated as net cash provided by continuing operations activities, less non-cash working capital changes, property additions and dry hole costs). Management believes free cash flow is important i
Slide 33: Non-GAAP Financial Measure: Enterprise Value
Non-GAAP Financial Measure Enterprise Value Presented below is enterprise value (EV), defined as market capitalization plus outstanding indebtedness less cash and cash equivalents. Enterprise value is a non-GAAP financial measure and should not be considered a substitute for other financial measures
Slide 34: 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 of cubic feet per day BBL: Ba
Slide 35: Current Fixed Price Contracts
Current Fixed Price Contracts AECO Price Risk Mitigation – Tupper Montney, Canada Volumes Price Commodity Type (MMCF/D) (MCF) Start Date End Date Natural Gas Fixed Price Forward Sales at AECO1 162 C$2.39 10/1/2024 12/31/2024 Natural Gas Fixed Price Forward Sales at AECO1 40 C$2.75 1/1/2025 12/31/202
Slide 36: 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 2023 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 37: North America Onshore Well Locations
North America Onshore Well Locations Eagle Ford Shale Operated Well Locations Tupper Montney Well Locations Inter-Well Gross Remaining Inter-Well Gross Remaining Area Net Acres Reservoir Spacing (ft) Locations Area Net Acres Spacing (ft) Locations Lower EFS 300 91 Tupper Montney 118,235 984 - 1,323
Slide 38: Benefits of Multi-Basin Portfolio
Benefits of Multi-Basin Portfolio Oil-Weighted Offshore Assets Generate High-Margin Barrels World-Class Offshore Operating Capabilities Create Time from FID to First Production Years Competitive Advantage 10 8 • Offshore projects are among the highest-returning 6 investments in portfolio 4 • Oil-wei
Slide 39: Peer Acreage: Eagle Ford Shale
Eagle Ford Shale Peer Acreage Acreage as of November 5, 2024 www.murphyoilcorp.com NYSE: MUR 39
Slide 40: Peer Acreage: Kaybob Duvernay
Kaybob Duvernay Peer Acreage Murphy Paramount Whitecap Veren Chevron Kiwetinohk PCC Cenovus GMT Hitic Halo Cygnet Duvernay Energy Open Crown Other Leased Battery Facility 6 Miles Acreage as of November 5, 2024 www.murphyoilcorp.com NYSE: MUR 40
Slide 41: Peer Acreage: Tupper Montney
Tupper Montney Peer Acreage Advantage Montney ARC Montney Birchcliff Montney Ovintiv Montney Peyto Montney Shell Montney Tourmaline Montney Other Competitors Open Crown Murphy TCPL Pipeline Murphy Pipeline Battery Facility 0 Miles 10 Acreage as of November 5, 2024 www.murphyoilcorp.com NYSE: MUR 41
Slide 42: Gulf of Mexico Murphy Blocks
Gulf of Mexico Murphy Blocks PRODUCING ASSETS Gulf of Mexico Exploration Area Asset Operator Murphy WI1 Ocotillo Cascade Murphy 80% Chinook Murphy 86% Silver Dollar Clipper Murphy 80% Silver Dollar West Dalmatian Murphy 56% Medusa Delta House Powerball Dalmatian S. Front Runner Murphy 50% Habanero S
Slide 43: Exploration Update: Sergipe-Alagoas Basin, Brazil
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
Slide 44: Exploration Update: Potiguar Basin, Brazil
Exploration Update Potiguar Basin, Brazil Asset Overview Potiguar Basin • Murphy 100% (Op) Murphy WI Block Other Block • Hold WI in 3 blocks, spanning ~775 M Discovered Field gross acres Kilometers • Proven oil basin in proximity to Pitu 0 50 oil discovery Petrobras Extending the Play Into the Deepw
Slide 45: Investor Update
INVESTOR UPDATE JANUARY 2025 www.murphyoilcorp.com NYSE: MUR 45