Slide 1: Murphy Continues Transformation with Strategic Deep Water, Oil-Weighted Gulf of Mexico Acquisition
MURPHY OIL CORPORATION MURPHY CONTINUES TRANSFORMATION WITH STRATEGIC DEEP WATER, OIL - WEIGHTED GULF OF MEXICO ACQUISITION APRIL 23, 2019 ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER
Slide 2: Cautionary Statement & Investor Relations Contacts
Cautionary Statement & Investor Relations Contacts MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 2 Cautionary Note to U.S. Investors – The United States Securities and Exchange Commission (SEC) requires oil and natural gas companies, in their filings with the SEC, to disclose proved reserve
Slide 3: Transaction Overview
Transaction Overview Gulf of Mexico Deep Water Acquisition • Producing Assets from LLOG Exploration Offshore, L.L.C. and LLOG Bluewater Holdings, L.L.C., (“LLOG”) • 26 Gulf of Mexico Blocks • 7 Producing Fields • 4 Development Projects in 5 Fields • Effective Date Jan 1 2019, Expected Closing 2Q 201
Slide 4: Strengthening Position: Murphy's Key US Assets Post-Transaction
Strengthening Gulf of Mexico Position Murphy’s Key US Gulf of Mexico Assets Post - Transaction 1 Includes 23.2% WI as part of MP GOM (Excluding Non - Controlling Interest) Producing Assets Asset Operator Murphy WI Marmalard Murphy 26.8% Marmalard East Murphy 69.6% Neidermeyer Murphy 52.8% Kodiak 1 K
Slide 5: Increasing Oil-Weighting of Operated Production & Reserves
Increasing Oil - Weighting of Operated Production & Reserves • Adds 32 – 35 MBOEPD on Annualized Basis for FY 2019, Increasing Murphy’s Production in Gulf of Mexico to > 85 MBOEPD • Adds 46 MMBO of Estimated Proven Oil Reserves, Increasing Total Corporate Oil Reserves by 13 % • Increases Estimated T
Slide 6: Continuing to Execute on Our Strategy
Continuing to Execute on Our Strategy x Strengthening Offshore Portfolio at Attractive Acquisition Costs x Acquiring Repeatable Low - Cost Tiebacks x Producing From Well Defined, High Quality Sands x Building Partnerships with Proven Gulf of Mexico Operators Continue to be a PREFERRED PARTNER to NOC
Slide 7: Strategic Plan for Sources & Uses of Cash
Strategic Plan For Sources & Uses of Cash Dec 31 2018 Cash Balance MAL Divestiture Proceeds Use of P ro c e ed s P o s t - Tr a n s a c tio n s Cash Balance Free Cash Flow Generated Free Cash Flow Used Dec 31 2023 Cash Balance LLOG A c qui s i t io n $1.375 BN 2019 Transactions & Use of Proceeds P o
Slide 8: Transformation Through Strategic Acquisitions & Divestitures
Transformation Through Strategic Acquisitions & Divestitures • MP GOM: • LLOG: $961 MM (1) $1.375 BN • Supports Portfolio Shift to Oil - Weighted, Lower Cost Western Hemisphere Basins • ~$675 MM Average per Year of Gulf of Mexico Free Cash Flow from 2019 – 2023 • Increases Net Oil Production • Accre
Slide 9: Acquisitions Unlocking Value With Multiple Transactions
Malaysia D i v e s t i t u r e Combined A c qui s i t ions 2019E EBITDA Multiple (1) 4.4x 2.6x 2019E Free Cash Flow Multiple (1) 6.8x 4.2x $ / Flowing BOE ~$45k ~$28k $ / BOE (1P) $16.49 $16.22 $ / BOE (2P) $11.13 $10.59 2019E Production - Oil % 58% 77% 1P Oil % 39% 82% 2P Oil % 40% 82% $2,127 MM $9
Slide 10: Repositioning Murphy's Portfolio
Repositioning Murphy’s Portfolio Increasing Margins with Oil - Weighted, Gulf of Mexico Production & Reserves 2019E Production, MBOEPD SCALE QUALITY GOM EBITDA / BOE vs Oil Reserves (2P) Acquisition & Divestiture of Assets 2019E Prod MBOEPD 2019 - 2023 Avg Prod M BO E PD 2019 - 2023 Avg Oil Prod MBO
Slide 11: Murphy's Revitalized Assets Delivering Free Cash Flow
Murphy’s Revitalized Gulf of Mexico Assets Delivering Free Cash Flow with Efficient Capital Spending • Provides Annualized Average Production of ~85 MBOEPD • Generates ~$1.0 BN Annual Average EBITDA Per Year • Requires ~$325 MM of Annual Average CAPEX • Results in Annual Average Free Cash Flow ~$675
Slide 12: Long-Term Strategy for Cash Flow Generation & Production Growth
Long - Term Strategy For Cash Flow Generation & Production Growth Providing Solid Five - Year Production Growth • Total Production CAGR ~8% • Oil Production CAGR ~12% Balancing Onshore / Offshore Portfolio • Increases US Onshore Production by 15% CAGR Through Organic Growth • Multiple Offshore Devel
Slide 13: Transforming Portfolio with Focus on Western Hemisphere Assets
Transforming Portfolio with Focus on Western Hemisphere Assets Acquiring 2P Reserves at Attractive Price Accelerating CAGR on Long Term Oil - Weighted Production Continuing the Legacy of Rewarding Shareholders Maintaining Financial Flexibility & Balance Sheet Positioning Company for Long - Term Valu
Slide 14: Appendix
MURPHY OIL CORPORATION A PPE NDIX
Slide 15: Non-GAAP Financial Measure Definitions & Reconciliations
Non - GAAP Financial Measure Definitions & Reconciliations MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 15 The following list of Non - GAAP financial measure definitions and related reconciliations is intended to satisfy the requirements of Regulation G of the Securities Exchange Act of 19
Slide 16: Non-GAAP Reconciliation: EBITDA and EBITDAX
Non - GAAP Reconciliation MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 16 EBITDA and EBITDAX Murphy defines EBITDA as income from continuing operations attributable to Murphy before interest, taxes, depreciation and amortization (DD&A). Murphy defines EBITDAX as income from continuing oper
Slide 17: Murphy Continues Transformation with Strategic Deep Water, Oil-Weighted Gulf of Mexico Acquisition
MURPHY OIL CORPORATION MURPHY CONTINUES TRANSFORMATION WITH STRATEGIC DEEP WATER, OIL - WEIGHTED GULF OF MEXICO ACQUISITION APRIL 23, 2019 ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER