Murphy Oil Corporation · NYSE:MUR
Murphy Oil — Investor Presentation (March 2023)
48 slides from Murphy Oil's investor presentation, Mar 8, 2023
Slide 1: Investor Presentation
0 www.murphyoilcorp.com NYSE: MUR INVESTOR PRESENTATION PRESIDENT AND CHIEF EXECUTIVE OFFICER MARCH 2023 ROGER W. JENKINS
Slide 2: Cautionary Note to US Investors
1 www.murphyoilcorp.com NYSE: MUR 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 formati
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 32.3 MBOEPD in 4Q 2022, 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: Progressing Strategic Priorities
6 www.murphyoilcorp.com NYSE: MUR Progressing Strategic Priorities • Targeting $500 MM debt reduction in 2023, resulting in ~$1.3 BN of total debt outstanding at YE 2023* • Positioned to begin Murphy 2.0 of capital allocation framework with 25% of adjusted FCF 1 allocated to shareholder returns DELE
Slide 8: Long History of Benefitting Shareholders
7 www.murphyoilcorp.com NYSE: MUR $0 $1,000 $2,000 $3,000 $4,000 $5,000 $0 $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 • Returned $4.3 BN to shareholders vs peer average o
Slide 9: Capital Allocation Priorities
8 www.murphyoilcorp.com NYSE: MUR Capital Allocation Priorities Reducing Long - Term Debt, Increasing Shareholder Returns Beyond Quarterly Dividend With Framework 1 1 Based on current oil and natural gas prices and production remains at or slightly above the first quarter 2023 range of 161 – 16 9 MB
Slide 10: Enhanced Sustainability Reporting Drives High Rankings
9 www.murphyoilcorp.com NYSE: MUR by the Institutional Shareholder Services Group of Companies (ISS) Enhanced Sustainability Reporting Drives High Rankings Source: ISS Corporate Solutions, as of February 16, 2023 * Improvements in ISS scores are compared to scores prior to release of 2022 Sustainabi
Slide 11: Murphy 2023 Plan
10 www.murphyoilcorp.com NYSE: MUR MURPHY 2023 PLAN
Slide 12: 2023 Capital Allocation Plan
11 www.murphyoilcorp.com NYSE: MUR 2023 Capital Allocation Plan Prioritizing Capital To Maximize Production and Adjusted Free Cash Flow 1 Further Delevering , Enhancing Shareholder Returns • FY 2023 guidance $875 MM – $ 1.025 BN CAPEX • ~70% of spend is in 1H 2023 • ~70% of development capital is op
Slide 13: 2023 Production Plan
12 www.murphyoilcorp.com NYSE: MUR - 25 50 75 100 125 150 175 200 1Q 2023E 4Q 2023E US Onshore Canada Onshore Offshore 2023 Production Plan Increasing Oil - Weighted Production Though Strong Execution Ability • 1Q 2023 production guidance 161 – 169 MBOEPD • ~92 MBOPD or 56% oil, 62% liquids volumes
Slide 14: 2023 North America Onshore Plan
13 www.murphyoilcorp.com NYSE: MUR 2023 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 21% average working interest FY 2023E Wells Online 0 5 10 15 20 2
Slide 15: 2023 Offshore Plan
14 www.murphyoilcorp.com NYSE: MUR 2023 Offshore Plan Focusing on Executing Highly - Accretive Development Projects 2023 Offshore Capital Budget $365 MM • 89 MBOEPD, up ~20% from FY 2022 $335 MM for Gulf of Mexico • ~82 MBOEPD, 79% oil volumes • Drilling 3 operated wells and 3 non - op wells $30 MM
Slide 16: 2023 Exploration Plan Gulf of Mexico
15 www.murphyoilcorp.com NYSE: MUR 2023 Exploration Plan Gulf of Mexico Targeting ~195 MMBOE Net Mean Unrisked Resources in FY 2023 Program • $100 MM 2023 capital budget • Material opportunities identified on Murphy WI blocks Oso - 1 (Atwater Valley 138), Gulf of Mexico • Murphy 33% (Op), Anadarko*
Slide 17: Looking Ahead
16 www.murphyoilcorp.com NYSE: MUR LOOKING AHEAD
Slide 18: North America Onshore Locations
17 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 19: Offshore Development Opportunities
18 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 20: Disciplined Strategy Leads to Long-Term Value
19 www.murphyoilcorp.com NYSE: MUR Disciplined Strategy Leads to Long - Term Value With Current Assets * 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 21: Progressing Strategic Priorities
20 www.murphyoilcorp.com NYSE: MUR Progressing Strategic Priorities • Targeting $500 MM debt reduction in 2023, resulting in ~$1.3 BN of total debt outstanding at YE 2023* • Positioned to begin Murphy 2.0 of capital allocation framework with 25% of adjusted FCF 1 allocated to shareholder returns DEL
Slide 22: President and Chief Executive Officer
21 www.murphyoilcorp.com NYSE: MUR INVESTOR PRESENTATION PRESIDENT AND CHIEF EXECUTIVE OFFICER MARCH 2023 ROGER W. JENKINS
Slide 23: Appendix
22 www.murphyoilcorp.com NYSE: MUR Appendix 1 Glossary of Abbreviations 2 1Q 2023 Guidance 3 Current Fixed Price Contracts 5 Acreage Maps 4 Supplemental Information
Slide 24: Glossary of Abbreviations
23 www.murphyoilcorp.com NYSE: MUR 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 gas) BOEPD: Barrels of oil equivalent per day BOPD: Barrels of oil per day
Slide 25: 1Q 2023 Guidance
24 www.murphyoilcorp.com NYSE: MUR 1Q 2023 Guidance Producing Asset Oil (BOPD) NGLs (BOPD) Gas (MCFD) Total (BOEPD) US – Eagle Ford Shale 19,200 4,100 23,900 27,300 – Gulf of Mexico excluding NCI 1 66,000 5,700 70,900 83,500 Canada – Tupper Montney – – 265,200 44,200 – Kaybob Duvernay and Placid Mon
Slide 26: Current Fixed Price Contracts – Natural Gas
25 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 269 C$2.36 1/1/2023 3/31/2023 Natural Gas Fixed Price Forward Sales at AECO 250 C$2.35 4
Slide 27: 2022 Sustainability Report Highlights
26 www.murphyoilcorp.com NYSE: MUR STRONG GOVERNANCE OVERSIGHT CONTINUED ENVIRONMENTAL STEWARDSHIP POSITIVELY IMPACTING OUR PEOPLE AND COMMUNITIES 2022 Sustainability Report Highlights 46 % improvement in Total Recordable Incident Rate (TRIR) 50 % improvement in Lost Time Incident Rate (LTIR) from 2
Slide 28: 2022 Proved Reserves
27 www.murphyoilcorp.com NYSE: MUR 25% 27% 48% 2022 Proved Reserves Maintaining Proved Reserves and Reserve Life Note: Production volumes, sales volumes, reserves and financial amounts exclude noncontrolling interest, unless otherwise sta ted Reserves are based on preliminary SEC year - end 2022 aud
Slide 29: Strengthening the Balance Sheet
28 www.murphyoilcorp.com NYSE: MUR Strengthening the Balance Sheet Total Debt Outstanding $MM Long - Term Debt Profile* Total Bonds Outstanding $BN $1.82 Weighted Avg Fixed Coupon 6.19% Weighted Avg Years to Maturity 7.7 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 YE 2020 YE 2021 YE 2022 YE 20
Slide 30: North America Onshore Well Locations
29 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 31: Eagle Ford Shale
30 www.murphyoilcorp.com NYSE: MUR 0 20 40 60 2017 2018 2019 2020 2021 2022 2023 2011 - 2018 2019 2020 2021 2022 Eagle Ford Shale Enhancing Portfolio and Production Through Strong Execution, Improved Completions FY 2022 34 MBOEPD, 86% Liquids • 27 operated wells online • 15 gross non - operated well
Slide 32: Tupper Montney
31 www.murphyoilcorp.com NYSE: MUR Tupper Montney Ongoing Price Diversification Reduces AECO Exposure FY 2022 296 MMCFD Net • 20 operated wells online Mitigating AECO Exposure in 4Q 2022* • 293 MMCFD of fixed forward sales • 63 MMCFD, or 18% open to floating price • 46 MMCFD sold at diversified pric
Slide 33: Kaybob Duvernay
32 www.murphyoilcorp.com NYSE: MUR Kaybob Duvernay Maintaining Production With Well Optimization FY 2022 6 MBOEPD, 74% Liquids • 3 operated wells online Stable Operations • Continued base production management through optimization initiatives • Compressor uptime reliability of 98% in 4Q 2022 Kaybob
Slide 34: Gulf of Mexico
33 www.murphyoilcorp.com NYSE: MUR Gulf of Mexico Generating Future Free Cash Flow With Development and Tieback Opportunities FY 2022 72 MBOEPD, 80% Oil Development and Tieback Projects • Drilled successful Dalmatian #1 (Desoto Canyon 90) development well, online 3Q 2023 • Non - op subsea tiebacks a
Slide 35: Eagle Ford Shale Peer Acreage
34 www.murphyoilcorp.com NYSE: MUR Eagle Ford Shale Peer Acreage Acreage as of January 26, 2023
Slide 36: Kaybob Duvernay Peer Acreage
35 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 37: Tupper Montney Peer Acreage
36 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 January 26, 2023
Slide 38: Placid Montney Peer Acreage
37 www.murphyoilcorp.com NYSE: MUR Placid Montney Peer Acreage Acreage as of January 26, 2023 ARC Open Crown Other Leased Paramount Kiwetinohk CNRL Whitecap Non - Operated Area HWN Energy Facility Battery Ridgeback Murphy Cenovus Halo I3 Energy Spartan Delta KIWETINOHK ARC PARAMOUNT WHITECAP CENOVUS
Slide 39: Producing Assets Gulf of Mexico
38 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 40: Offshore Canada Terra Nova Asset Life Extension
39 www.murphyoilcorp.com NYSE: MUR Offshore Canada Advancing Terra Nova Asset Life Extension Project Acreage as of January 26, 2023 FPSO – Floating production storage and offloading vessel Terra Nova FPSO • Suncor 48% (Op), Cenovus 34%, Murphy 18% • Partner group advancing asset life extension (ALE)
Slide 41: Exploration Update Gulf of Mexico
40 www.murphyoilcorp.com NYSE: MUR Exploration Update Gulf of Mexico Oso - 1 (Atwater Valley 138) • Murphy 33% (Op), Anadarko* 33%, Ridgewood 33% • Temporarily suspended drilling 1Q 2023 prior to reaching objective • ~$26 MM net cost • Plan to return in 2H 2023 • Mean to upward gross resource potent
Slide 42: Exploration Update Gulf of Mexico
41 www.murphyoilcorp.com NYSE: MUR Exploration Update Gulf of Mexico Interests in 108 Gulf of Mexico OCS Blocks • ~650,000 total gross acres • 70 exploration blocks • Targeting three - well operated exploration program in FY 2023 • Oso - 1, Longclaw - 1, third well BOEM Lease Sale 257 • Nov 2021, re
Slide 43: Exploration Update Salina Basin, Mexico
42 www.murphyoilcorp.com NYSE: MUR Block 5 Overview • Murphy 40% (Op), Petronas 30%, Wintershall Dea 30% • Proven oil basin in proximity to multiple oil discoveries in Miocene section • First additional exploration period approved by CNH • Evaluating leads / prospects to incorporate recent Tulum - 1
Slide 44: Exploration Update Sergipe-Alagoas Basin, Brazil
43 www.murphyoilcorp.com NYSE: MUR 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 acres • >2.8 BN BOE discovered in basin • >1.2 BN BOE in deepwater since 2007 • Material opportuniti
Slide 45: Exploration Update Potiguar Basin, Brazil
44 www.murphyoilcorp.com NYSE: MUR 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 and
Slide 46: Development Update Cuu Long Basin, Vietnam
45 www.murphyoilcorp.com NYSE: MUR Development Update Cuu Long Basin, Vietnam Asset Overview • Murphy 40% (Op), PVEP 35%, SKE 25% Block 15 - 1/05 • Received approval of the Lac Da Vang (LDV) retainment / development area • LDV field development plan submitted to government for approval • LDT - 1X di
Slide 47: Exploration Update Cuu Long Basin, Vietnam
46 www.murphyoilcorp.com NYSE: MUR Exploration Update Cuu Long Basin, Vietnam Asset Overview • Murphy 40% (Op), PVEP 35%, SKE 25% Block 15 - 2/17 • 2 - year exploration extension to 4Q 2024 • 1 well commitment • 2 drill - worthy prospects identified • Seismic reprocessing, geological / geophysical s
Slide 48: President and Chief Executive Officer
47 www.murphyoilcorp.com NYSE: MUR INVESTOR PRESENTATION PRESIDENT AND CHIEF EXECUTIVE OFFICER MARCH 2023 ROGER W. JENKINS