Murphy Oil Corporation · NYSE:MUR
Murphy Oil — Investor Presentation (June 2023)
45 slides from Murphy Oil's investor presentation, Jun 21, 2023
Slide 1: Investor Presentation June 2023
0 www.murphyoilcorp.com NYSE: MUR INVESTOR PRESENTATION ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER JUNE 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 compan ies, 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 Portfolio 02 05 2Q 2023 Update Looking Ahead 03 Murphy Priorities
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 27.5 MBOEPD in 1Q 2023, comprised of 70% oil and 85% 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: 2Q 2023 Update
5 www.murphyoilcorp.com NYSE: MUR 2Q 2023 UPDATE
Slide 7: What's New in 2Q 2023
6 www.murphyoilcorp.com NYSE: MUR What’s New in 2Q 2023 Advancing Exploration Program • Spud operated Chinook #7 well in Gulf of Mexico • New country entry – Côte d’Ivoire Progressing Offshore Field Development • Received government approval on Block 15 - 1/05 Lac Da Vang (LDV) field development pla
Slide 8: New Country Entry: Expanding Exploration Focus to Côte d'Ivoire
7 www.murphyoilcorp.com NYSE: MUR Acreage as of June 14, 2023 New Country Entry Expanding Exploration Focus to Côte d’Ivoire Asset Overview • Blocks CI - 102, CI - 502, CI - 531 and CI - 709 • Murphy 90% (Op), PETROCI 10% • Block CI - 103 • Murphy 85% (Op), PETROCI 15% • Includes Paon discovery from
Slide 9: Development Update Cuu Long Basin, Vietnam
8 www.murphyoilcorp.com NYSE: MUR Development Update Cuu Long Basin, Vietnam Acreage as of May 1, 2023 Asset Overview • Murphy 40% (Op), PVEP 35%, SKE 25% Block 15 - 1/05 • Received government approval for Lac Da Vang (LDV) field development plan • Maturing remaining exploration upside, has bolt - o
Slide 10: Murphy Priorities
9 www.murphyoilcorp.com NYSE: MUR MURPHY PRIORITIES
Slide 11: Advancing Strategic Priorities
10 www.murphyoilcorp.com NYSE: MUR Advancing Strategic Priorities • Prioritize disciplined spending 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 • Preserve strong credit
Slide 12: Long History of Benefitting Shareholders
11 www.murphyoilcorp.com NYSE: MUR $0 $1,000 $2,000 $3,000 $4,000 $0 $2,500 $5,000 $7,500 Cumulative Shareholder Returns ($MM) Market Cap ($MM) Long History of Benefitting Shareholders • Over a 60 - year history of paying dividends • One of three companies with market cap < $7.5 BN that did not issu
Slide 13: Capital Allocation Framework
12 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 cos
Slide 14: Murphy Portfolio
13 www.murphyoilcorp.com NYSE: MUR MURPHY PORTFOLIO
Slide 15: Eagle Ford Shale
14 www.murphyoilcorp.com NYSE: MUR Eagle Ford Shale Enhancing Portfolio and Production Through Strong Execution, Improved Completions Acreage as of May 1, 2023 Eagle Ford Shale Acreage CATARINA TILDEN KARNES Murphy Acreage Fracking Crew Active Rig 1Q 2023 27 MBOEPD, 85% Liquids • 10 operated wells o
Slide 16: Tupper Montney
15 www.murphyoilcorp.com NYSE: MUR Tupper Montney Ongoing Price Diversification Reduces AECO Exposure Tupper Montney Acreage Murphy Acreage Facility Fracking Crew 1Q 2023 292 MMCFD Net • 5 operated wells online 2Q 2023 Well Delivery Schedule • 3 operated wells online Mitigating AECO Exposure in 1Q 2
Slide 17: Kaybob Duvernay
16 www.murphyoilcorp.com NYSE: MUR Kaybob Duvernay Future Oil - Weighted Optionality Preserved Kaybob Duvernay Acreage Murphy Acreage Pipeline Facility Battery 7 0 Miles Kaybob East Simonette Kaybob North Kaybob West Saxon Two Creeks Area Net Acres Inter - Well Spacing (ft) Remaining Wells Two Creek
Slide 18: Offshore: Executing Highly-Accretive Development Projects
17 www.murphyoilcorp.com NYSE: MUR Offshore Executing Highly - Accretive Development Projects 1Q 2023 90 MBOEPD, 80% Oil Total Offshore Development and Tieback Projects • Operated Samurai #5 (Green Canyon 432) well online in 1Q 2023 • Non - op Lucius #4 ( Keathley Canyon 918) well online in 1Q 2023
Slide 19: Exploration Update: Advancing 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 10% (Op) • Discovery well, spud in 1Q 2023 • ~$6 MM net cost • ~62 feet of net oil pay • Currently evaluating results Oso #1, Atwater Valley 138 • Murphy 3
Slide 20: Looking Ahead
19 www.murphyoilcorp.com NYSE: MUR LOOKING AHEAD
Slide 21: North America Onshore Locations
20 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 22: Offshore Development Opportunities
21 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 23: Disciplined Strategy Leads to Long-Term Value With Current Assets
22 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 24: Positioned for Long-Term Value Creation
23 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 25: ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER JUNE 2023
24 www.murphyoilcorp.com NYSE: MUR INVESTOR PRESENTATION ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER JUNE 2023
Slide 26: Appendix
25 www.murphyoilcorp.com NYSE: MUR Appendix 1 Glossary of Abbreviations 2 2Q 2023 Guidance 3 Current Fixed Price Contracts 5 Acreage Maps 4 Supplemental Information
Slide 27: Glossary of Abbreviations
26 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 28: 2Q 2023 Guidance
27 www.murphyoilcorp.com NYSE: MUR 2Q 2023 Guidance • 173 – 181 MBOEPD 1 • ~95 MBOPD or 54% oil, 60% liquids volumes • Includes planned downtime of 9.7 MBOEPD • $320 MM accrued CAPEX Maintaining FY 2023 Guidance • 175.5 – 183.5 MBOEPD • 55% oil, 61% liquids volumes • Oil volumes 10% above FY 2022, t
Slide 29: 2Q 2023 Guidance by Producing Asset
28 www.murphyoilcorp.com NYSE: MUR 2Q 2023 Guidance Producing Asset Oil (BOPD) NGLs (BOPD) Gas (MCFD) Total (BOEPD) US – Eagle Ford Shale 25,000 4,300 26,700 33,800 – Gulf of Mexico excluding NCI 1 63,900 5,600 69,100 81,000 Canada – Tupper Montney – – 320,000 53,300 – 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 4/1/2023 12/31/2023 Natural Gas Fixed Price Forward Sales at AECO 162 C$2.39
Slide 31: Strengthening The Balance Sheet
30 www.murphyoilcorp.com NYSE: MUR Strengthening The Balance Sheet Upgrade to BB+, Stable Outlook by S&P Global Solid Foundation to Weather Commodity Price Cycles • Targeting $500 MM debt reduction goal in FY 2023 1 • $1.1 BN of liquidity on Mar 31, 2023 Long - Term Debt Profile • Total bonds outsta
Slide 32: Ongoing Sustainability Initiatives
31 www.murphyoilcorp.com NYSE: MUR Ongoing Sustainability Initiatives Focused on Reducing Greenhouse Gas Emissions • Displaced 1.125 MM gallons of diesel with natural gas in onshore drilling and completions in 1Q 2023 • Reduced flaring and methane emissions with more effective vapor recovery units i
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) Remaining Wells 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 Catarina 47,73
Slide 34: Eagle Ford Shale Peer Acreage
33 www.murphyoilcorp.com NYSE: MUR Eagle Ford Shale Peer Acreage Acreage as of May 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 May 1, 2023
Slide 37: Placid Montney Peer Acreage
36 www.murphyoilcorp.com NYSE: MUR Placid Montney Peer Acreage Acreage as of May 1, 2023 KIWETINOHK ARC PARAMOUNT WHITECAP CENOVUS HWN ENERGY CNRL SAXON KAYBOB WEST KAYBOB EAST PLACID KEYERA SIMONETTE 6 Miles HALO PGI PROCESSING KAYBOB SPARTAN DELTA I3 RIDGEBACK ARC Open Crown Other Leased Paramount
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 16% Marmalard Murphy 24% M
Slide 39: Offshore Canada: Advancing Terra Nova Asset Life Extension Project
38 www.murphyoilcorp.com NYSE: MUR Offshore Canada Advancing Terra Nova Asset Life Extension Project Acreage as of May 1, 2023 FPSO – Floating production storage and offloading vessel Terra Nova Field, Offshore Canada LABRADOR QUEBEC Kilometers 0 200 NEWFOUNDLAND Terra Nova Murphy WI Block Other Blo
Slide 40: Exploration Update Gulf of Mexico
39 www.murphyoilcorp.com NYSE: MUR Exploration Update Gulf of Mexico Interests in 108 Gulf of Mexico OCS Blocks 1 • ~622,000 total gross acres • 66 exploration blocks • Targeting three - well operated exploration program in FY 2023 • Longclaw #1 2Q 2023 discovery • Chinook #7 spud 2Q 2023 • Oso #1 r
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 Cholula Saasken Zama Polok Chinwol Sayulita Yoti Oeste Tulum - 1EXP Acreage as of May 1, 2023 Note: Ownership is comprised of the following subsidiaries: Murphy Sur, S. de R.L. de C
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 May 1, 2023 As
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 May 1, 20
Slide 44: Exploration Update Cuu Long Basin, Vietnam
43 www.murphyoilcorp.com NYSE: MUR Exploration Update Cuu Long Basin, Vietnam Acreage as of May 1, 2023 Asset Overview • Murphy 40% (Op), PVEP 35%, SKE 25% Block 15 - 1/05 • Received government approval for Lac da Vang (LDV) field development plan • LDT - 1X discovery in 2019 • Maturing remaining ex
Slide 45: ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER JUNE 2023
44 www.murphyoilcorp.com NYSE: MUR INVESTOR PRESENTATION ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER JUNE 2023