Murphy Oil Corporation · NYSE:MUR
Murphy Oil — Investor Presentation (September 2023)
45 slides from Murphy Oil's investor presentation, Sep 5, 2023
Slide 1: Investor Update September 2023
0 www.murphyoilcorp.com NYSE: MUR INVESTOR UPDATE SEPTEMBER 2023
Slide 2: Cautionary Statement
1 www.murphyoilcorp.com NYSE: MUR 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
Slide 3: Agenda
2 www.murphyoilcorp.com NYSE: MUR Agenda 01 04 Murphy at a Glance Murphy Exploration 02 05 Murphy Priorities Looking Ahead 03 Murphy Portfolio
Slide 4: Murphy at a Glance
3 www.murphyoilcorp.com NYSE: MUR 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 35.2 MBOEPD in 2Q 2023, comprised of 76% oil and 89% liquids Onshore Canada • Tupper Montney ~1,000 future locations o
Slide 5: Why Murphy Oil?
4 www.murphyoilcorp.com NYSE: MUR Why Murphy Oil? 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: Highlights From Fifth Sustainability Report
5 www.murphyoilcorp.com NYSE: MUR CONTINUED ENVIRONMENTAL STEWARDSHIP Highlights From Fifth Sustainability Report Taking Action to Drive Benefit for All Stakeholders STRONG GOVERNANCE OVERSIGHT POSITIVELY IMPACTING OUR PEOPLE AND COMMUNITIES ADVANCING OUR CLIMATE GOALS 15 - 20% REDUCTION IN GHG EMIS
Slide 7: Murphy Priorities
6 www.murphyoilcorp.com NYSE: MUR MURPHY PRIORITIES
Slide 8: Advancing Strategic Priorities
7 www.murphyoilcorp.com NYSE: MUR Advancing Strategic Priorities • Prioritize capital allocation framework to achieve targeted $500 MM debt reduction goal for FY 2023 1 • Advance Murphy 2.0 of capital allocation framework with 25% of adjusted FCF 2 allocated to shareholder returns primarily through
Slide 9: Long History of Benefitting Shareholders
8 www.murphyoilcorp.com NYSE: MUR $- $1,000 $2,000 $3,000 $4,000 $- $2,500 $5,000 $7,500 $10,000 Cumulative Shareholder Returns ($MM) Market Cap ($MM) Long History of Benefitting Shareholders • Over a 60 - year history of paying dividends • One of three companies with market cap < $10 BN that did no
Slide 10: Capital Allocation Framework
9 www.murphyoilcorp.com NYSE: MUR Capital Allocation Framework 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 cost
Slide 11: Murphy Portfolio
10 www.murphyoilcorp.com NYSE: MUR MURPHY PORTFOLIO
Slide 12: Eagle Ford Shale
11 www.murphyoilcorp.com NYSE: MUR Eagle Ford Shale Enhancing Portfolio and Production Through Strong Execution, Improved Completions Acreage as of August 1, 2023 Eagle Ford Shale Acreage CATARINA TILDEN KARNES 2Q 2023 35 MBOEPD, 89% Liquids • 17 operated wells online – 9 Catarina, 8 Tilden Strong P
Slide 13: Tupper Montney New Completions Design Drives Strong Well Performance
12 www.murphyoilcorp.com NYSE: MUR 0 200 400 600 800 1,000 1,200 0 30 60 90 Days Online Tupper Montney New Completions Design Drives Strong Well Performance Tupper Montney Acreage Murphy Acreage Facility Acreage as of August 1, 2023 5 0 Miles 2Q 2023 341 MMCFD Net • 10 operated wells online New Comp
Slide 14: Kaybob Duvernay and Placid Montney
13 www.murphyoilcorp.com NYSE: MUR Kaybob Duvernay and Placid Montney Acreage Map acreage as of August 1, 2023 Kaybob North Kaybob East Simonette Kaybob West Saxon Two Creeks Placid Murphy Acreage Facility Battery 6 0 Miles Pipeline Wells Divestment Area Net Acres Inter - Well Spacing (ft) Gross Rem
Slide 15: Offshore Update
14 www.murphyoilcorp.com NYSE: MUR Offshore Update Executing Highly - Accretive Development Projects 2Q 2023 87 MBOEPD, 80% Oil Total Offshore • Well performance continuing to exceed expectations Development and Tieback Projects • Completing operated Dalmatian #1 (DeSoto Canyon 90) well in 3Q 2023 •
Slide 16: Vietnam Development Update
15 www.murphyoilcorp.com NYSE: MUR Vietnam Development Update Cuu Long Basin, Vietnam Acreage as of August 1, 2023 Asset Overview • Murphy 40% (Op), PetroVietnam Exploration Production 35%, SK Earthon 25% Block 15 - 1/05, Lac Da Vang (LDV) • Received government approval for field development plan •
Slide 17: Murphy Exploration
16 www.murphyoilcorp.com NYSE: MUR MURPHY EXPLORATION
Slide 18: Expanding Exploration Focus to Côte d'Ivoire
17 www.murphyoilcorp.com NYSE: MUR Acreage as of August 1, 2023 1 Société Nationale d’Opérations Pétrolières de la Côte d’Ivoire New Country Entry Expanding Exploration Focus to Côte d’Ivoire Tano Basin Murphy WI Block Other Block Discovery Discovered Field CÔTE D’IVOIRE GHANA CI - 102 CI - 531 CI -
Slide 19: Exploration Update: Gulf of Mexico Operated Exploration Plans
18 www.murphyoilcorp.com NYSE: MUR Exploration Update Advancing Gulf of Mexico Operated Exploration Plans Longclaw #1, Green Canyon 433 • Murphy 14.5% (Op) • Progressing development of discovery Oso #1, Atwater Valley 138 • Murphy 33.34% (Op) • Temporarily suspended drilling prior to reaching object
Slide 20: Looking Ahead
19 www.murphyoilcorp.com NYSE: MUR LOOKING AHEAD
Slide 21: 3Q and FY 2023 Guidance
20 www.murphyoilcorp.com NYSE: MUR 3Q 2023 Guidance • 188 – 196 MBOEPD 1 • 99 MBOPD or 52% oil, 58% liquids volumes • Includes: • 4.6 MBOEPD for assumed Gulf of Mexico storm downtime • 2.9 MBOEPD for operated downtime, primarily onshore • $215 MM accrued CAPEX, excluding acquisition - related costs
Slide 22: North America Onshore Locations
21 www.murphyoilcorp.com NYSE: MUR 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 impro
Slide 23: Offshore Development Opportunities
22 www.murphyoilcorp.com NYSE: MUR Offshore Development Opportunities Multi - Year Inventory of High - Return Projects 0 5 10 15 20 25 30 < $35 $35 - $40 $40 - $45 $45 - $50 > $50 Breakeven Oil Price ($ / BBL WTI) Identified Offshore Project Portfolio Percent MMBOE by Area Identified Offshore Projec
Slide 24: Disciplined Strategy Leads to Long-Term Value
23 www.murphyoilcorp.com NYSE: MUR Disciplined Strategy Leads to Long - Term Value With Current Assets 1 Assumes $75 WTI oil price, $5.00 HH natural gas price in FY 2023 and no exploration success 2023 2024 2025 2026 2027 • Realizing average annual production of ~210 MBOEPD with ~53% average oil wei
Slide 25: Positioned for Long-Term Value Creation
24 www.murphyoilcorp.com NYSE: MUR Positioned for Long - Term Value Creation Diverse, multi - basin portfolio with significant inventory of low - breakeven wells and projects Targeted low - cost exploration optionality provides upside and longevity Ongoing operational excellence from high - performi
Slide 26: 25 www.murphyoilcorp.com NYSE: MUR INVESTOR UPDATE SEPTEMBER 2023
25 www.murphyoilcorp.com NYSE: MUR INVESTOR UPDATE SEPTEMBER 2023
Slide 27: Appendix
26 www.murphyoilcorp.com NYSE: MUR Appendix 1 Glossary of Abbreviations 2 3 Q 2023 Guidance 3 Current Fixed Price Contracts 5 Acreage Maps 4 Supplemental Information
Slide 28: Glossary of Abbreviations
27 www.murphyoilcorp.com NYSE: MUR 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 natural
Slide 29: 3Q 2023 Guidance
28 www.murphyoilcorp.com NYSE: MUR 3Q 2023 Guidance Producing Asset Oil (BOPD) NGLs (BOPD) Gas (MCFD) Total (BOEPD) US – Eagle Ford Shale 27,000 4,900 27,900 36,600 – Gulf of Mexico excluding NCI 1 65,900 6,200 66,200 83,100 Canada – Tupper Montney – – 380,400 63,400 – Kaybob Duvernay and Placid Mon
Slide 30: Current Fixed Price Contracts – Natural Gas
29 www.murphyoilcorp.com NYSE: MUR 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 250 C$2.35 7/1/2023 12/31/2023 Natural Gas Fixed Price Forward Sales at AECO 162 C$2.39
Slide 31: Strengthening Balance Sheet
30 www.murphyoilcorp.com NYSE: MUR Financial Results Strengthening Balance Sheet Solid Foundation to Weather Commodity Price Cycles • Targeting $500 MM debt reduction goal in FY 2023 1 • $1.1 BN of liquidity on Jun 30, 2023 Long - Term Debt Profile • Total bonds outstanding: $1.82 BN • Weighted avg
Slide 32: Murphy Ranked Best for 2021 ESG Performance
31 www.murphyoilcorp.com NYSE: MUR Murphy Ranked Best for 2021 ESG Performance Independent Benchmarking of North American Upstream Companies, July 2023 Source: Rystad Energy Research and Analysis 2023 Peers include AR, ARX.TO, BP, COP, CPK, CTRA, CVE, CVX, EOG, EQT, FANG, HES, MRO, OVV, PXD, RRC, SM
Slide 33: North America Onshore Well Locations
32 www.murphyoilcorp.com NYSE: MUR North America Onshore Well Locations Area Net Acres Reservoir Inter - Well Spacing (ft) Gross Remaining Locations Karnes 10,155 Lower EFS 300 92 Upper EFS 1,000 150 Austin Chalk 1,100 106 Tilden 61,611 Lower EFS 630 215 Upper EFS 1,200 51 Austin Chalk 1,200 86 Cata
Slide 34: Eagle Ford Shale Peer Acreage
33 www.murphyoilcorp.com NYSE: MUR Eagle Ford Shale Peer Acreage Acreage as of August 1, 2023
Slide 35: Kaybob Duvernay Peer Acreage
34 www.murphyoilcorp.com NYSE: MUR 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 Oth
Slide 36: Tupper Montney Peer Acreage
35 www.murphyoilcorp.com NYSE: MUR 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 August 1, 2023
Slide 37: Placid Montney Peer Acreage
36 www.murphyoilcorp.com NYSE: MUR Placid Montney Peer Acreage Acreage as of August 1, 2023, including acreage associated with onshore Canada transaction KIWETINOHK ARC PARAMOUNT WHITECAP CENOVUS HWN ENERGY CNRL SAXON KAYBOB WEST KAYBOB EAST PLACID KEYERA SIMONETTE 6 Miles HALO PGI PROCESSING KAYBOB
Slide 38: Producing Assets: Gulf of Mexico
37 www.murphyoilcorp.com NYSE: MUR 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 2 16% Marmalard Murphy 24%
Slide 39: Offshore Canada Terra Nova Asset Life Extension
38 www.murphyoilcorp.com NYSE: MUR Offshore Canada Advancing Terra Nova Asset Life Extension Project Acreage as of August 1, 2023 Note: FPSO – Floating production storage and offloading vessel Terra Nova Field, Offshore Canada LABRADOR QUEBEC Kilometers 0 200 NEWFOUNDLAND Terra Nova Murphy WI Block
Slide 40: Gulf of Mexico Exploration Update
39 www.murphyoilcorp.com NYSE: MUR Gulf of Mexico Exploration Area Offshore Platform FPSO Murphy WI Block Planned Well Discovery Key Exploration Project March 2023 Lease Sale Blocks Exploration Update Gulf of Mexico Acreage as of August 1, 2023 Interests in 109 Gulf of Mexico OCS Blocks • ~610,000 t
Slide 41: Exploration Update: Salina Basin, Mexico
40 www.murphyoilcorp.com NYSE: MUR Exploration Update Salina Basin, Mexico Salina Basin 0 30 Kilometers MEXICO Block 5 Saasken Zama Polok Chinwol Sayulita Yoti Oeste Tulum - 1EXP Acreage as of August 1, 2023 Note: Ownership is comprised of the following subsidiaries: Murphy Sur, S. de R.L. de C.V.;
Slide 42: Exploration Update: Sergipe-Alagoas Basin, Brazil
41 www.murphyoilcorp.com NYSE: MUR Exploration Update Sergipe - Alagoas Basin, Brazil Sergipe - Alagoas Basin All blocks begin with SEAL - M 0 50 Kilometers 351 428 430 503 505 501 575 573 637 Murphy WI Block Other Block Discovered Field BRAZIL Drilled Well Cutthroat - 1 Acreage as of August 1, 2023
Slide 43: Exploration Update: Potiguar Basin, Brazil
42 www.murphyoilcorp.com NYSE: MUR Exploration Update Potiguar Basin, Brazil Potiguar Basin Petrobras/ Shell Shell Petrobras/ Shell Petrobras Petrobras Petrobras POT - M - 857 POT - M - 863 POT - M - 865 Pitu BRAZIL 0 50 Kilometers Murphy WI Block Other Block Discovered Field Acreage as of August 1,
Slide 44: Exploration Update: Cuu Long Basin, Vietnam
43 www.murphyoilcorp.com NYSE: MUR Exploration Update Cuu Long Basin, Vietnam Acreage as of August 1, 2023 Asset Overview • Murphy 40% (Op), PetroVietnam Exploration Production 35%, SK Earthon 25% Block 15 - 1/05 • LDT - 1X discovery in 2019 • Maturing remaining exploration upside, has bolt - on res
Slide 45: 44 www.murphyoilcorp.com NYSE: MUR INVESTOR UPDATE SEPTEMBER 2023
44 www.murphyoilcorp.com NYSE: MUR INVESTOR UPDATE SEPTEMBER 2023