Murphy Oil Corporation · NYSE:MUR
Murphy Oil — Investor Presentation (February 2024)
46 slides from Murphy Oil's investor presentation, Feb 26, 2024
Slide 1: Investor Update March 2024
0 www.murphyoilcorp.com NYSE: MUR 0 INVESTOR UPDATE MARCH 2024
Slide 2: Cautionary Statement
1 www.murphyoilcorp.com NYSE: MUR 1 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 productio
Slide 3: Agenda
2 www.murphyoilcorp.com NYSE: MUR 2 Agenda 01 04 Murphy at a Glance Murphy Exploration 02 05 Murphy Priorities Looking Ahead 03 06 Murphy 2024 Plan Appendix
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 ~1,200 future locations on ~120,000 net acres • Produced 33 MBOEPD in FY 2023, comprised of 73% oil and 87% liquids Onshore Canada • Tupper Montney ~1,000 future locations o
Slide 5: Who Is Murphy?
4 www.murphyoilcorp.com NYSE: MUR Who Is Murphy? Sustainable, multi - basin oil and natural gas assets that are safely operated with low carbon emissions intensity across North America High - potential exploration portfolio with industry - leading offshore capabilities Strong generator of free cash
Slide 6: Murphy Priorities
5 www.murphyoilcorp.com NYSE: MUR 5 MURPHY PRIORITIES
Slide 7: What's New in 1Q 2024
6 www.murphyoilcorp.com NYSE: MUR 6 What’s New in 1Q 2024 Tupper Montney Update • Progressing drilling program • 13 wells to come online in 2Q 2024 as planned Kaybob Duvernay Update • Progressing drilling program • 3 wells to come online in 2Q 2024 as planned Eagle Ford Shale Update • Progressing dr
Slide 8: Advancing Strategic Priorities
7 www.murphyoilcorp.com NYSE: MUR 7 Advancing Strategic Priorities Progressed Murphy 2.0 of Capital Allocation Framework 1 RETURN • Repurchased $150 MM, or 3.4 MM shares, at an average price of $43.96 / share in FY 2023 • $450 MM remaining under share repurchase authorization as of Dec 31, 2023 • An
Slide 9: Long History of Benefitting Shareholders
8 www.murphyoilcorp.com NYSE: MUR 8 Long History of Benefitting Shareholders $3.6 Billion Returned to Shareholders Since 2012 > $1.7 Billion in Share Repurchases Since 2012 > $7.0 Billion Returned to Shareholders Since 1961 > Peer Cumulative Shareholder Returns vs Market Cap < $10 BN Since January 1
Slide 10: Strengthening Balance Sheet
9 www.murphyoilcorp.com NYSE: MUR 9 Financial Results Strengthening Balance Sheet Solid Foundation to Withstand Commodity Price Cycles • $1.1 BN of liquidity on Dec 31, 2023 • Includes $800 MM senior unsecured credit facility due Nov 2027 with no borrowings as of Dec 31, 2023 • Reduced annual long -
Slide 11: Capital Allocation Priorities
10 www.murphyoilcorp.com NYSE: MUR 10 Capital Allocation Priorities Reducing Long - Term Debt, Increasing Shareholder Returns Beyond Quarterly Dividend With Framework 1 1 The timing and magnitude of debt reductions and share repurchases will largely depend on oil and natural gas prices, developm ent
Slide 12: Sustainability Highlights
11 www.murphyoilcorp.com NYSE: MUR 11 Sustainability Highlights Taking Action to Benefit All Stakeholders CONTINUED ENVIRONMENTAL STEWARDSHIP STRONG GOVERNANCE OVERSIGHT POSITIVELY IMPACTING OUR PEOPLE AND COMMUNITIES ADVANCING OUR CLIMATE GOALS 15 - 20% REDUCTION IN GHG EMISSIONS INTENSITY by 2030
Slide 13: Murphy 2024 Plan
12 www.murphyoilcorp.com NYSE: MUR 12 MURPHY 2024 PLAN
Slide 14: 2024 Capital Plan
13 www.murphyoilcorp.com NYSE: MUR 13 2024 Capital Plan Prioritizing Capital To Maximize Production and Adjusted Free Cash Flow 1 Further Delevering, Enhancing Shareholder Returns • FY 2024 guidance $920 MM – $1.02 BN CAPEX • ~60% of spend is in 1H 2024 • ~85% of capital is for development • 80% of
Slide 15: 2024 Production Plan
14 www.murphyoilcorp.com NYSE: MUR 14 2024 Production Plan 1Q 2024 Production Guidance 163 – 171 MBOEPD • 89 MBOPD or 53% oil, 59% liquids volumes • Includes planned downtime of: • 13 MBOEPD of total Gulf of Mexico downtime, comprised of: • 6 MBOEPD for workovers; will return to production 1H 2024 •
Slide 16: 2024 North America Onshore Plan
15 www.murphyoilcorp.com NYSE: MUR 15 2024 North America Onshore Plan Balancing Investments for Free Cash Flow Generation Note: Non - op well cadence subject to change per operator plans Eagle Ford Shale non - operated wells adjusted for 41% average working interest FY 2024E Wells Online 0 5 10 15 2
Slide 17: Eagle Ford Shale
16 www.murphyoilcorp.com NYSE: MUR 16 Eagle Ford Shale Enhancing Portfolio and Production Through Strong Execution, Improved Completions $320 MM 2024 Capital Budget, ~30 MBOEPD • 71% oil volumes, 86% liquids volumes • 19 operated wells online – 15 Catarina wells, 4 Karnes wells • 18 gross non - oper
Slide 18: Tupper Montney
17 www.murphyoilcorp.com NYSE: MUR 17 Tupper Montney New Completions Design Drives Strong Well Performance $90 MM 2024 Capital Budget, ~370 MMCFD • 100% dry gas • 13 operated wells online in 2Q 2024 • Assumes C$2.46 / MMBTU AECO New Completions Design Enhancing Well Performance • Producing 2 of top
Slide 19: Kaybob Duvernay
18 www.murphyoilcorp.com NYSE: MUR 18 Kaybob Duvernay Future Oil - Weighted Optionality Preserved $40 MM 2024 Capital Budget, ~4 MBOEPD • 55% oil volumes, 67% liquids volumes • 3 operated wells online in 2Q 2024 • Drilling 4 - well operated pad in 4Q 2024 for early 2025 completion Robust Remaining W
Slide 20: 2024 Offshore Plan
19 www.murphyoilcorp.com NYSE: MUR 19 2024 Offshore Plan Focusing on Executing Highly - Accretive Development Projects 2024 Offshore Capital Budget $370 MM 88 MBOEPD Forecast for FY 2024 $300 MM for Gulf of Mexico, ~79 MBOEPD • 80% oil volumes • Primarily for operated and non - operated subsea tieba
Slide 21: 2024 Offshore Workover Projects
20 www.murphyoilcorp.com NYSE: MUR 20 2024 Offshore Workover Projects Execution Update Well Workover Projects • Operated Marmalard #1 and #2 zone changes completed in 1Q 2024 • $8 MM net workover expense • Operated Neidermeyer #1 well workover in progress, online 2Q 2024 • $31 MM net workover expens
Slide 22: Lac Da Vang Field Development Project
21 www.murphyoilcorp.com NYSE: MUR 21 Lac Da Vang Field Development Project Cuu Long Basin, Vietnam Lac Da Vang Field Development Overview • Murphy 40% (Op), PetroVietnam Exploration Production 35%, SK Earthon 25% • 100 MMBOE estimated gross recoverable resource • 13 MMBOE of preliminary net proved
Slide 23: Murphy Exploration
22 www.murphyoilcorp.com NYSE: MUR 22 MURPHY EXPLORATION
Slide 24: 2024 Exploration Plan
23 www.murphyoilcorp.com NYSE: MUR 23 2024 Exploration Plan Gulf of Mexico Assets Offshore Platform FPSO Murphy WI Block Planned Well Discovery Key Exploration Project Dec 2023 Lease Sale Blocks Lucius St. Malo Chinook Cascade Powerball Ninja Front Runner King’s Quay Rushmore Guilder Kodiak Whydah /
Slide 25: Exploration Update Cuu Long Basin, Vietnam
24 www.murphyoilcorp.com NYSE: MUR 24 Exploration Update Cuu Long Basin, Vietnam Asset Overview • Murphy 40% (Op), PetroVietnam Exploration Production 35%, SK Earthon 25% Block 15 - 1/05 • Advancing plans for Lac Da Hong exploration well • Targeting spud 4Q 2024 • Mean to upward gross resource poten
Slide 26: Development and Exploration Update Tano Basin, Côte d'Ivoire
25 www.murphyoilcorp.com NYSE: MUR 25 Acreage as of January 23, 2024 1 Société Nationale d’Opérations Pétrolières de la Côte d’Ivoire Development and Exploration Update Tano Basin, Côte d’Ivoire Asset Overview • ~1.5 MM gross acres, equivalent to 256 Gulf of Mexico blocks • Initiated seismic reproce
Slide 27: Looking Ahead
26 www.murphyoilcorp.com NYSE: MUR 26 LOOKING AHEAD
Slide 28: North America Onshore Locations
27 www.murphyoilcorp.com NYSE: MUR 27 North America Onshore Locations More Than 50 Years of Robust Inventory with Low Breakeven Rates Diversified, Low Breakeven Portfolio • Multi - basin portfolio provides optionality in all price environments • Focus on capital efficiency • Culture of continuous im
Slide 29: Offshore Development Opportunities
28 www.murphyoilcorp.com NYSE: MUR 28 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 product
Slide 30: Disciplined Strategy Leads to Long-Term Value
29 www.murphyoilcorp.com NYSE: MUR 29 Disciplined Strategy Leads to Long - Term Value With Current Assets 1 Assumes $75 WTI oil price, $3.50 HH natural gas price in FY 2024 and no exploration success 2024 2025 2026 2027 2028 • Realizing average annual production of 210 - 220 MBOEPD with > 50% averag
Slide 31: Consistent Focus for Future Success
30 www.murphyoilcorp.com NYSE: MUR 30 Consistent Focus for Future Success DELEVER EXECUTE EXPLORE RETURN • Enduring focus on stakeholder protection and further emission improvements • Continuing focus on shareholder returns • Increasing quarterly dividend • Enhancing balance sheet for financial resi
Slide 32: 31 www.murphyoilcorp.com NYSE: MUR 31 INVESTOR UPDATE MARCH 2024
31 www.murphyoilcorp.com NYSE: MUR 31 INVESTOR UPDATE MARCH 2024
Slide 33: Appendix
32 www.murphyoilcorp.com NYSE: MUR 32 Appendix 1 Glossary of Abbreviations 2 1 Q 2024 Guidance 3 Current Fixed Price Contracts 5 Acreage Maps 4 Supplemental Information
Slide 34: Glossary of Abbreviations
33 www.murphyoilcorp.com NYSE: MUR 33 AECO: Alberta Energy Company, the Canadian benchmark price for natural gas 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 natur
Slide 35: 1Q 2024 Guidance
34 www.murphyoilcorp.com NYSE: MUR 34 1Q 2024 Guidance Producing Asset Oil (BOPD) NGLs (BOPD) Gas (MCFD) Total (BOEPD) US – Eagle Ford Shale 19,400 4,400 24,400 27,900 – Gulf of Mexico excluding NCI 1 59,500 4,700 56,500 73,600 Canada – Tupper Montney – – 327,100 54,500 – Kaybob Duvernay and Placid
Slide 36: Current Fixed Price Contracts – Natural Gas
35 www.murphyoilcorp.com NYSE: MUR 35 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 162 C$2.39 1/1/2024 12/31/2024 Natural Gas Fixed Price Forward Sales at AECO 25 US$1.
Slide 37: Strengthening Balance Sheet
36 www.murphyoilcorp.com NYSE: MUR 36 Financial Results Strengthening Balance Sheet Solid Foundation to Withstand Commodity Price Cycles • $1.1 BN of liquidity on Dec 31, 2023 • Includes $800 MM senior unsecured credit facility due Nov 2027 with no borrowings as of Dec 31, 2023 • Achieved FY 2023 de
Slide 38: Maintaining Proved Reserves and Reserve Life
37 www.murphyoilcorp.com NYSE: MUR 37 22% 24% 54% 2023 Proved Reserves Maintaining Proved Reserves and Reserve Life • Total proved reserves 724 MMBOE at YE 2023 vs 697 MMBOE at YE 2022 • Achieved 139% total reserve replacement • Added ~13 MMBOE of proved reserves for Lac Da Vang field in Vietnam • M
Slide 39: North America Onshore Well Locations
38 www.murphyoilcorp.com NYSE: MUR 38 North America Onshore Well Locations Area Net Acres Reservoir Inter - Well Spacing (ft) Gross Remaining Locations Karnes 10,155 Lower EFS 300 91 Upper EFS 850 150 Austin Chalk 1,100 104 Tilden 61,611 Lower EFS 600 202 Upper EFS 1,200 51 Austin Chalk 1,200 86 Cat
Slide 40: Eagle Ford Shale Peer Acreage
39 www.murphyoilcorp.com NYSE: MUR 39 Eagle Ford Shale Peer Acreage Acreage as of January 23, 2024
Slide 41: Kaybob Duvernay Peer Acreage
40 www.murphyoilcorp.com NYSE: MUR 40 Kaybob Duvernay Peer Acreage 6 Miles Paramount Chevron Murphy Kiwetinohk Cenovus Crescent Point Whitecap Other Leased Open Crown Facility Battery PCC GMT Hitic Halo Acreage as of January 23, 2024 Cygnet Duvernay Energy
Slide 42: Tupper Montney Peer Acreage
41 www.murphyoilcorp.com NYSE: MUR 41 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 Acreage as of January 23, 2024
Slide 43: Gulf of Mexico Murphy Blocks
42 www.murphyoilcorp.com NYSE: MUR 42 Gulf of Mexico Murphy Blocks Gulf of Mexico Assets Offshore Platform FPSO Murphy WI Block Planned Well Discovery Key Exploration Project Dec 2023 Lease Sale Blocks Lucius St. Malo Chinook Cascade Powerball Ninja Front Runner King’s Quay Rushmore Guilder Kodiak W
Slide 44: Exploration Update Sergipe-Alagoas Basin, Brazil
43 www.murphyoilcorp.com NYSE: MUR 43 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 gross acres • >2.8 BN BOE discovered in basin • >1.2 BN BOE in deepwater since 2007 • Evaluating
Slide 45: Exploration Update Potiguar Basin, Brazil
44 www.murphyoilcorp.com NYSE: MUR 44 Exploration Update Potiguar Basin, Brazil Asset Overview • Murphy 100% (Op) • 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 in basin • Onshore a
Slide 46: 45 www.murphyoilcorp.com NYSE: MUR 45 INVESTOR UPDATE MARCH 2024
45 www.murphyoilcorp.com NYSE: MUR 45 INVESTOR UPDATE MARCH 2024