Murphy Oil Corporation · NYSE:MUR
Murphy Oil — Investor Presentation (May 2023)
43 slides from Murphy Oil's investor presentation, May 22, 2023
Slide 1: Investor Update
0 www.murphyoilcorp.com NYSE: MUR INVESTOR UPDATE ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER MAY 2023
Slide 2: Cautionary Statement and Investor Relations Contacts
1 www.murphyoilcorp.com NYSE: MUR Cautionary Statement and Investor Relations Contacts 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 d
Slide 3: Agenda
2 www.murphyoilcorp.com NYSE: MUR Agenda 01 04 Murphy at a Glance Murphy Portfolio 02 05 Murphy Priorities Murphy Looking Ahead 03 Murphy 2023 Plan
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 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 of
Slide 6: Murphy Priorities
5 www.murphyoilcorp.com NYSE: MUR MURPHY PRIORITIES
Slide 7: Advancing Strategic Priorities
6 www.murphyoilcorp.com NYSE: MUR Advancing Strategic Priorities • Announced $500 MM debt reduction goal for FY 2023 1 • Positioned to begin executing Murphy 2.0 of capital allocation framework with 25% of adjusted FCF 2 allocated to shareholder returns • Received credit rating upgrade to BB+ with a
Slide 8: Strengthening The Balance Sheet
7 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 outstan
Slide 9: Long History of Benefitting Shareholders
8 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 issue
Slide 10: Capital Allocation Priorities
9 www.murphyoilcorp.com NYSE: MUR 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 cos
Slide 11: Ongoing Sustainability Initiatives
10 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 12: Murphy 2023 Plan
11 www.murphyoilcorp.com NYSE: MUR MURPHY 2023 PLAN
Slide 13: 2023 Capital and Production Plan
12 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 14: Portfolio Update
13 www.murphyoilcorp.com NYSE: MUR PORTFOLIO UPDATE
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 Acreage as of May 1, 2023 Murphy Acreage Facility Active Rigs 1Q 2023 292 MMCFD Net • 5 operated wells online 2 Q 2023 Well Delivery Schedule • 3 operated wells online Mitigat
Slide 17: Offshore: Executing Highly-Accretive Development Projects
16 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 18: Exploration Update
17 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 19: Looking Ahead
18 www.murphyoilcorp.com NYSE: MUR LOOKING AHEAD
Slide 20: North America Onshore Locations
19 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 21: Offshore Development Opportunities
20 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 22: Disciplined Strategy Leads to Long-Term Value
21 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 23: Focused on Strategic Priorities
22 www.murphyoilcorp.com NYSE: MUR Focused on Strategic Priorities • Targeting $500 MM debt reduction in 2023, resulting in ~$1.3 BN of total debt outstanding at YE 2023 1 • Positioned to begin executing Murphy 2.0 of capital allocation framework with 25% of adjusted FCF 2 allocated to shareholder r
Slide 24: ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER MAY 2023
23 www.murphyoilcorp.com NYSE: MUR INVESTOR UPDATE ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER MAY 2023
Slide 25: Appendix
24 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 26: Glossary of Abbreviations
25 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 27: 2Q 2023 Guidance
26 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 28: Current Fixed Price Contracts – Natural Gas
27 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 29: North America Onshore Well Locations
28 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 30: Eagle Ford Shale Peer Acreage
29 www.murphyoilcorp.com NYSE: MUR Eagle Ford Shale Peer Acreage Acreage as of May 1, 2023
Slide 31: Kaybob Duvernay
30 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 Acreage as of May 1, 2023 1Q 2023 5 MBOEPD, 72% Liquids Robust Wel
Slide 32: Kaybob Duvernay Peer Acreage
31 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 33: Tupper Montney Peer Acreage
32 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 34: Placid Montney Peer Acreage
33 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 35: Producing Assets
34 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 36: Offshore Canada: Terra Nova Asset Life Extension
35 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 37: Exploration Update: Gulf of Mexico
36 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 38: Exploration Update: Salina Basin, Mexico
37 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 39: Exploration Update: Sergipe-Alagoas Basin, Brazil
38 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 40: Exploration Update: Potiguar Basin, Brazil
39 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 41: Exploration Update: Cuu Long Basin, Vietnam
40 www.murphyoilcorp.com NYSE: MUR Exploration Update Cuu Long Basin, Vietnam Cuu Long Basin Murphy WI Block Murphy Prospect Discovered Field BLOCK 15 - 02/17 15 - 2 15 - 2 16 - 1 15 - 1 09 - 2 - 10 BLOCK 15 - 01/05 SU TU VANG LAC DA VANG TE GIAC TRANG RANG DONG JVPC PHUONG DONG LAC DA NAU HAI SU DE
Slide 42: Development Update: Cuu Long Basin, Vietnam
41 www.murphyoilcorp.com NYSE: MUR Development Update Cuu Long Basin, Vietnam Cuu Long Basin Murphy WI Block Murphy Prospect Discovered Field BLOCK 15 - 02/17 15 - 2 15 - 2 16 - 1 15 - 1 09 - 2 - 10 BLOCK 15 - 01/05 SU TU VANG LAC DA VANG TE GIAC TRANG RANG DONG JVPC PHOUNG DONG LAC DA NAU HAI SU DE
Slide 43: ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER MAY 2023
42 www.murphyoilcorp.com NYSE: MUR INVESTOR UPDATE ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER MAY 2023