Murphy Oil Corporation · NYSE:MUR
Murphy Oil — Investor Presentation (December 2023)
46 slides from Murphy Oil's investor presentation, Dec 4, 2023
Slide 1: Investor Update December 2023
0 www.murphyoilcorp.com NYSE: MUR INVESTOR UPDATE DECEMBER 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 06 Murphy Portfolio Appendix
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 37.8 MBOEPD in 3Q 2023, comprised of 74% oil and 88% liquids Onshore Canada • Tupper Montney ~1,000 future locations o
Slide 5: Why Murphy Oil?
4 www.murphyoilcorp.com NYSE: MUR 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 flow with capit
Slide 6: Continued Environmental Stewardship: 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 • Advanced Murphy 2.0 capital allocation framework • Achieved FY 2023 debt reduction goal of ~$500 MM through senior notes redemption and partial tender DELEVER • Exceeded upper end of guidance range with production of 202 MBOEPD, incl
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 $10,000 Cumulative Shareholder Returns ($MM) Market Cap ($MM) Long History of Benefitting Shareholders • Paying dividends for > 60 - year history • Maintaining balance sheet integrity with no equity issuances $3
Slide 10: Executing Capital Allocation Framework
9 www.murphyoilcorp.com NYSE: MUR Executing Capital Allocation Framework 1 Increasing Shareholder Returns Beyond Quarterly Dividend 1 The timing and magnitude of debt reductions and share repurchases will largely depend on oil and natural gas prices, developm ent costs and operating expenses, as wel
Slide 11: Capital Allocation Priorities
10 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 co
Slide 12: Murphy Portfolio
11 www.murphyoilcorp.com NYSE: MUR MURPHY PORTFOLIO
Slide 13: Eagle Ford Shale
12 www.murphyoilcorp.com NYSE: MUR Eagle Ford Shale Enhancing Portfolio and Production Through Strong Execution, Improved Completions Acreage as of November 1, 2023 Eagle Ford Shale Acreage CATARINA TILDEN KARNES 3Q 2023 38 MBOEPD, 88% Liquids • 7 operated wells online – 4 Catarina, 3 Tilden • Opera
Slide 14: Tupper Montney
13 www.murphyoilcorp.com NYSE: MUR 0 500 1,000 1,500 2,000 0 20 40 60 80 100 120 Days Online Tupper Montney New Completions Design Drives Strong Well Performance Tupper Montney Acreage Murphy Acreage Facility Acreage as of November 1, 2023 5 0 Miles 3Q 2023 414 MMCFD Net • Activity complete for FY 2
Slide 15: Kaybob Duvernay
14 www.murphyoilcorp.com NYSE: MUR 5 0 Miles Kaybob Duvernay Future Oil - Weighted Optionality Preserved Kaybob Duvernay Acreage Murphy Acreage Pipeline Facility Battery 5 0 Miles Acreage as of November 1, 2023 3Q 2023 5 MBOEPD, 67% Liquids • Closed divestiture of non - core portion of assets • Prod
Slide 16: Offshore Update
15 www.murphyoilcorp.com NYSE: MUR Offshore Update Executing Accretive Development Projects 3Q 2023 89 MBOEPD, 81% Oil Total Offshore • Well performance continuing to exceed expectations Development and Tieback Projects • Operated Dalmatian #1 (DeSoto Canyon 90) well online in 4Q 2023 • Completing o
Slide 17: Offshore Workover Projects
16 www.murphyoilcorp.com NYSE: MUR Offshore Workover Projects Execution Update Well Workover Projects • Operated Neidermeyer #1 well workover scheduled for mid - 2024 • Operated Dalmatian #2 subsurface safety value repair scheduled for mid - 2024 • Non - op Lucius #9 well workover scheduled for 4Q 2
Slide 18: Lac Da Vang Field Development Project
17 www.murphyoilcorp.com NYSE: MUR Lac Da Vang Field Development Project Cuu Long Basin, Vietnam Lac Da Vang Field Development Overview • Murphy 40% (Op), PetroVietnam Exploration Production 35%, SK Earthon 25% • Nearfield exploration upside • Sanctioned 3Q 2023, targeting first oil in FY 2026 • Pha
Slide 19: Paon Field Development Project
18 www.murphyoilcorp.com NYSE: MUR Acreage as of November 1, 2023 1 Société Nationale d’Opérations Pétrolières de la Côte d’Ivoire Paon Field Development Project Tano Basin, Côte d’Ivoire Tano Basin Murphy WI Block Other Block Discovery Discovered Field CÔTE D’IVOIRE GHANA CI - 102 CI - 531 CI - 103
Slide 20: Murphy Exploration
19 www.murphyoilcorp.com NYSE: MUR MURPHY EXPLORATION
Slide 21: Exploration Update: Cuu Long Basin, Vietnam
20 www.murphyoilcorp.com NYSE: MUR Exploration Update Cuu Long Basin, Vietnam Acreage as of November 1, 2023 Asset Overview • Murphy 40% (Op), PetroVietnam Exploration Production 35%, SK Earthon 25% Block 15 - 1/05 • Advancing plans for Lac Da Hong exploration well in 2024 • Mean to upward gross res
Slide 22: Exploration Update: Tano Basin, Côte d'Ivoire
21 www.murphyoilcorp.com NYSE: MUR Acreage as of November 1, 2023 1 Société Nationale d’Opérations Pétrolières de la Côte d’Ivoire Exploration Update Tano Basin, Côte d’Ivoire Tano Basin Murphy WI Block Other Block Discovery Discovered Field CÔTE D’IVOIRE GHANA CI - 102 CI - 531 CI - 103 CI - 709 CI
Slide 23: Exploration Update: Gulf of Mexico
22 www.murphyoilcorp.com NYSE: MUR Exploration Update Advancing Gulf of Mexico Operated Exploration Plans Oso #1, Atwater Valley 138 • Murphy 33.34% (Op) • Resumed drilling in 4Q 2023 • Mean to upward gross resource potential • 155 – 320 MMBOE Interests in 106 Gulf of Mexico OCS Blocks • ~600,000 to
Slide 24: Looking Ahead
23 www.murphyoilcorp.com NYSE: MUR LOOKING AHEAD
Slide 25: 4Q and FY 2023 Guidance
24 www.murphyoilcorp.com NYSE: MUR 4Q 2023 Guidance • 181.5 – 189.5 MBOEPD 1 • 95 MBOPD or 51% oil, 57% liquids volumes • Includes: • 1.5 MBOEPD planned downtime onshore • 500 BOEPD total planned downtime in the Gulf of Mexico FY 2023 Guidance • Raising FY 2023 production guidance • 185 – 187 MBOEPD
Slide 26: North America Onshore Locations
25 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 27: Offshore Development Opportunities
26 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 28: Disciplined Strategy Leads to Long-Term Value
27 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 29: Positioned for Long-Term Value Creation
28 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 30: 29 www.murphyoilcorp.com NYSE: MUR INVESTOR UPDATE DECEMBER 2023
29 www.murphyoilcorp.com NYSE: MUR INVESTOR UPDATE DECEMBER 2023
Slide 31: Appendix
30 www.murphyoilcorp.com NYSE: MUR Appendix 1 Glossary of Abbreviations 2 4Q 2023 Guidance 3 Current Fixed Price Contracts 5 Acreage Maps 4 Supplemental Information
Slide 32: Glossary of Abbreviations
31 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 33: 4Q 2023 Guidance
32 www.murphyoilcorp.com NYSE: MUR 4Q 2023 Guidance Producing Asset Oil (BOPD) NGLs (BOPD) Gas (MCFD) Total (BOEPD) US – Eagle Ford Shale 22,800 5,000 27,300 32,400 – Gulf of Mexico excluding NCI 1 66,300 4,800 64,000 81,800 Canada – Tupper Montney – – 380,300 63,400 – Kaybob Duvernay and Placid Mon
Slide 34: Current Fixed Price Contracts – Natural Gas
33 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 10/1/2023 12/31/2023 Natural Gas Fixed Price Forward Sales at AECO 162 C$2.39
Slide 35: Strengthening Balance Sheet
34 www.murphyoilcorp.com NYSE: MUR Financial Results Strengthening Balance Sheet Solid Foundation to Weather Commodity Price Cycles • $1.1 BN of liquidity on Sept 30, 2023 • Includes $800 MM senior unsecured credit facility due Nov 2027 • Repurchased $75 MM, or 1.7 MM of shares outstanding, at avg p
Slide 36: Murphy Ranked Best for 2021 ESG Performance
35 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 37: North America Onshore Well Locations
36 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 38: Eagle Ford Shale Peer Acreage
37 www.murphyoilcorp.com NYSE: MUR Eagle Ford Shale Peer Acreage Acreage as of November 1, 2023
Slide 39: Kaybob Duvernay Peer Acreage
38 www.murphyoilcorp.com NYSE: MUR Kaybob Duvernay Peer Acreage 6 Miles Paramount Chevron Murphy Kiwetinohk Cenovus Crescent Point Whitecap Other Leased Open Crown Facility Battery PCC GMT Hitic Halo Acreage as of November 1, 2023 Cygnet
Slide 40: Tupper Montney Peer Acreage
39 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 November 1, 2023
Slide 41: Gulf of Mexico Exploration Area and Producing Assets
40 www.murphyoilcorp.com NYSE: MUR GC WR EW KC GB MC DC LU AT LL HE VK DD Miles 50 0 Offshore Platform FPSO Murphy WI Block Planned Well Discovery Key Exploration Project Kodiak Miles 50 0 Front Runner Medusa Delta House King’s Quay Dalmatian S. Eden Park Calliope Nearly Headless Nick Rushmore Guild
Slide 42: Offshore Canada: Terra Nova Asset Life Extension Project
41 www.murphyoilcorp.com NYSE: MUR Offshore Canada Completing Terra Nova Asset Life Extension Project Acreage as of November 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 Blo
Slide 43: Exploration Update: Salina Basin, Mexico
42 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 Acreage as of November 1, 2023 Note: Ownership is comprised of the following subsidiaries: Murphy Sur, S. de R.L. de C.V.; PC Carigali
Slide 44: Exploration Update: Sergipe-Alagoas Basin, Brazil
43 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 Acreage as of November 1, 2023 Asset Overview • ExxonMo
Slide 45: Exploration Update: Potiguar Basin, Brazil
44 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 November
Slide 46: 45 www.murphyoilcorp.com NYSE: MUR INVESTOR UPDATE DECEMBER 2023
45 www.murphyoilcorp.com NYSE: MUR INVESTOR UPDATE DECEMBER 2023