Murphy Oil Corporation · NYSE:MUR
Murphy Oil — Investor Presentation (September 2024)
40 slides from Murphy Oil's investor presentation, September 2024
Slide 1: Investor Update September 2024
INVESTOR UPDATE SEPTEMBER 2024 www.murphyoilcorp.com NYSE: MUR 1
Slide 2: Cautionary Statement
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 or conclusive formation tests to b
Slide 3: Agenda
Agenda 01 04 Murphy at a Glance Murphy Exploration 02 05 3Q 2024 Update Looking Ahead 03 06 Murphy 2024 Plan Appendix www.murphyoilcorp.com NYSE: MUR 3
Slide 4: Murphy at a Glance
Murphy at a Glance Murphy is an independent exploration and production company, with a diverse portfolio that provides exploration upside Multi-Basin Production 2Q 2024 Production1 Gulf of Mexico Offshore Canada Onshore United States Onshore Canada 15% Deepwater execution Non-operated partner in Eag
Slide 5: Allocate Capital to Maximize Free Cash Flow
Allocate Capital to Maximize Free Cash Flow 85% of capital is for development1 Execute accretive Gulf of Mexico projects • Current portfolio provides multi-year inventory of high-return projects Maintain onshore production • Eagle Ford Shale 30 – 35 MBOEPD • Tupper Montney 500 MMCFPD gross, at maxim
Slide 6: Advancing Strategic Priorities
Advancing Strategic Priorities DELEVER EXECUTE EXPLORE RETURN • Lowered debt by $50 MM • Produced 181 MBOEPD with • Drilled discovery at non-op Accelerated Shareholder through open market 91 MBOPD, or 50 percent, oil Ocotillo #1 well in Gulf of Mexico repurchases of senior notes in volumes in 2Q 202
Slide 7: Targeting Lower Debt with Ample Liquidity
Financial Results Targeting Lower Debt with Ample Liquidity Solid Foundation to Withstand Commodity Price Debt Maturity Profile1 $MM Cycles $1,250 • $1.1 BN of liquidity on June 30, 2024 $1,000 $750 • Includes $800 MM senior unsecured credit facility due $500 Nov 2027 with no borrowings as of June 3
Slide 8: Accelerating Shareholder Returns With Revised Capital Allocation Framework
Accelerating Shareholder Returns With Revised Capital Allocation Framework1 Adjusted Free Cash Murphy 3.0 – Flow Formula Murphy 2.0 – Long-term debt Murphy 1.0 – ≤ $1.3 BN Long-term debt Long-term debt of $1.3 BN – $1.8 BN Cash Flow From Operations > $1.8 BN Minimum of 50% of Before WC Change ~75% o
Slide 9: 2024 Sustainability Report Highlights
2024 Sustainability Report Highlights CONTINUED POSITIVELY IMPACTING OUR STRONG ENVIRONMENTAL STEWARDSHIP PEOPLE AND COMMUNITIES GOVERNANCE OVERSIGHT ADVANCING OUR CLIMATE GOALS Well-defined CONSISTENTLY BOARD AND MANAGERIAL GHG OUTPERFORMING OVERSIGHT US Bureau of Labor Statistics for industry TRIR
Slide 10: 3Q 2024 Update
3Q 2024 UPDATE www.murphyoilcorp.com NYSE: MUR 10
Slide 11: What's New in 3Q 2024
What’s New in 3Q 2024 Gulf of Mexico Operations Update Share Repurchase1 • Brought online the following as planned: • Repurchased $94 MM of stock, or 2.5 MM shares, at • Operated Mormont #3 well an average price of $37.93 / share • Operated Neidermeyer #1 sidetrack • Previously disclosed $44 MM of s
Slide 12: Murphy 2024 Plan
MURPHY 2024 PLAN www.murphyoilcorp.com NYSE: MUR 12
Slide 13: 3Q 2024 Guidance Maintaining FY 2024 Guidance
2024 Capital and Production Plan Prioritizing Capital To Maximize Production and Adjusted Free Cash Flow1 3Q 2024 Guidance FY 2024E Production By Area • 181.5 – 189.5 MBOEPD production, 91.5 MBOPD or ~50% oil, 54% liquids volumes 16% • Includes the following: Offshore 184 47% • 3.9 MBOEPD of Gulf of
Slide 14: 2024 North America Onshore Plan
2024 North America Onshore Plan Balancing Investments for Free Cash Flow Generation 98 MBOEPD Forecast for FY 2024 FY 2024E Wells Online 30 • 25% oil volumes, 30% liquids volumes 25 Eagle Ford Shale 20 • 20 operated wells online 15 • 15 Catarina wells 10 • 5 Tilden wells 5 • 23 gross non-operated Ti
Slide 15: Offshore Update
Offshore Update Focusing on Executing Highly-Accretive Development Projects Total Offshore 2Q 2024 81 MBOEPD, 83% Oil Highly-Accretive Development and Tieback Projects Gulf of Mexico 2Q 2024 74 MBOEPD, 82% Oil Field Drilling Completions Online • Operated Khaleesi #4 (Green Canyon 389) well online Kh
Slide 16: 2024 Gulf of Mexico Offshore Workovers and Projects
2024 Gulf of Mexico Offshore Workovers and Projects Workovers and Projects Update 2024 Plan Complete Operated Workovers and Projects • $68 MM 2Q 2024 total workover expense Net Field Location Project Online Production Status • $35 MM 3Q 2024 total workover expense Mississippi Zone Marmalard 1Q 2024
Slide 17: Lac Da Vang Field Development Overview
Lac Da Vang Field Development Project Cuu Long Basin, Vietnam Cuu Long Basin Lac Da Vang Field Development Overview BLOCK 15-01/05 LAC DA TRANG NORTH WEST SU TU VANG • Murphy 40% (Op), PetroVietnam Exploration LAC DA TRANG Production 35%, SK Earthon 25% WEST • 100 MMBOE estimated gross recoverable L
Slide 18: Murphy Exploration
MURPHY EXPLORATION www.murphyoilcorp.com NYSE: MUR 18
Slide 19: FY 2024 Exploration
Exploration Update Gulf of Mexico FY 2024 Exploration Gulf of Mexico Exploration Area • Sebastian #1 (Mississippi Canyon 387) Ocotillo VK DD • Murphy 33% (Op) Silver Dollar • New exploration opportunity near existing Silver Dollar West Medusa Delta House infrastructure Powerball Dalmatian S. • $15 M
Slide 20: Cuu Long Basin, Vietnam Asset Overview
Exploration Update Cuu Long Basin, Vietnam Asset Overview Cuu Long Basin BLOCK 15-01/05 LAC DA TRANG • Murphy 40% (Op), PetroVietnam Exploration NORTH WEST SU TU VANG Production 35%, SK Earthon 25% LAC DA TRANG WEST • $30 MM total net well cost LAC DA VANG Block 15-2/17 LAC DA TRANG DISCOVERY • Adva
Slide 21: Tano Basin, Côte d'Ivoire Asset Overview
Development and Exploration Update Tano Basin, Côte d’Ivoire Asset Overview Tano Basin • ~1.5 MM gross acres, equivalent to 256 Gulf of Mexico blocks CÔTE D’IVOIRE GHANA CI-102 • Seismic reprocessing ongoing; final data expected 4Q 2024 Baleine CI-531 Diverse Opportunities Adjacent to Oil Discoverie
Slide 22: Looking Ahead
LOOKING AHEAD www.murphyoilcorp.com NYSE: MUR 22
Slide 23: Disciplined Strategy Leads to Long-Term Value With Current Assets
Disciplined Strategy Leads to Long-Term Value With Current Assets DELEVER EXECUTE EXPLORE RETURN NEAR-TERM LONG-TERM • Reducing debt to reach $1.0 BN debt target in mid-20251 with no debt • Realizing average annual production of 210-220 MBOEPD with maturities until Dec 2027 > 50% average oil weighti
Slide 24: Delivering On 2024 Goals
Delivering On 2024 Goals Accelerating shareholder returns by revising capital allocation framework Exceeding production guidance across onshore assets Advancing Gulf of Mexico well program Expanding Gulf of Mexico portfolio with a discovery Preparing for Vietnam exploration program www.murphyoilcorp
Slide 25: Investor Update
INVESTOR UPDATE SEPTEMBER 2024 www.murphyoilcorp.com NYSE: MUR 25
Slide 26: Appendix
Appendix 1 Glossary of Abbreviations 2 3Q 2024 Guidance 3 Current Fixed Price Contracts 4 Supplemental Information 5 Acreage Maps www.murphyoilcorp.com NYSE: MUR 26
Slide 27: Glossary of Abbreviations
Glossary of Abbreviations AECO: Alberta Energy Company, the Canadian EBITDAX: Income from continuing operations MCF: Thousands of cubic feet benchmark price for natural gas before taxes, depreciation, depletion and amortization, net interest expense, and MCFD: Thousands of cubic feet per day BBL: Ba
Slide 28: 3Q 2024 Guidance
3Q 2024 Guidance Oil NGLs Gas Total Producing Asset (BOPD) (BOPD) (MCFD) (BOEPD) US – Eagle Ford Shale 23,800 4,400 25,200 32,400 – Gulf of Mexico excluding NCI1 54,900 4,300 55,400 68,400 Canada – Tupper Montney 400 – 417,500 70,000 – Kaybob Duvernay 2,700 600 9,600 4,900 – Offshore 9,600 – – 9,600
Slide 29: Current Fixed Price Contracts – Natural Gas
Current Fixed Price Contracts – Natural Gas Tupper Montney, Canada Volumes Price Commodity Type (MMCF/D) (MCF) Start Date End Date Natural Gas Fixed Price Forward Sales at AECO 162 C$2.39 7/1/2024 12/31/2024 Natural Gas Fixed Price Forward Sales at AECO 28 C$2.76 1/1/2025 12/31/2025 Natural Gas Fixe
Slide 30: Maintaining Proved Reserves and Reserve Life
2023 Proved Reserves Maintaining Proved Reserves and Reserve Life • Total proved reserves 724 MMBOE at YE 2023 vs 697 MMBOE at YE 2022 2023E Proved Reserves By Area • Achieved 139% total reserve replacement • Added ~13 MMBOE of proved reserves for Lac Da Vang field in Vietnam 22% • Maintained proved
Slide 31: North America Onshore Well Locations
North America Onshore Well Locations Eagle Ford Shale Operated Well Locations Tupper Montney Well Locations Inter-Well Gross Remaining Inter-Well Gross Remaining Area Net Acres Spacing (ft) Locations Area Net Acres Reservoir Spacing (ft) Locations Tupper Montney 118,235 984 - 1,323 976 Lower EFS 300
Slide 32: Diversified, Low Breakeven Portfolio
North America Onshore Locations More Than 50 Years of Robust Inventory with Low Breakeven Rates Diversified, Low Breakeven Portfolio Eagle Ford Shale and Kaybob Duvernay • Multi-basin portfolio provides optionality in > 25 years of inventory < $50 / BBL all price environments ~ 55 years of total inv
Slide 33: Offshore Development Opportunities
Offshore Development Opportunities Multi-Year Inventory of High-Return Projects Diversified, Low Breakeven Opportunities in Offshore Portfolio • Multi-year inventory of identified offshore projects in current portfolio • Maintaining annual offshore production of 90 – 100 MBOEPD with average annual C
Slide 34: Peer Acreage – Eagle Ford Shale
Eagle Ford Shale Peer Acreage Acreage as of August 6, 2024 www.murphyoilcorp.com NYSE: MUR 34
Slide 35: Peer Acreage – Kaybob Duvernay
Kaybob Duvernay Peer Acreage Murphy Paramount Whitecap Crescent Point Chevron Kiwetinohk PCC Cenovus GMT Hitic Halo Cygnet Duvernay Energy Open Crown Other Leased Battery Facility 6 Miles Acreage as of August 6, 2024 www.murphyoilcorp.com NYSE: MUR 35
Slide 36: Peer Acreage – Tupper Montney
Tupper Montney Peer Acreage Advantage Montney ARC Montney Birchcliff Montney Ovintiv Montney Peyto Montney Shell Montney Tourmaline Montney Other Competitors Open Crown Murphy TCPL Pipeline Murphy Pipeline Battery Facility 0 Miles 10 Acreage as of August 6, 2024 www.murphyoilcorp.com NYSE: MUR 36
Slide 37: Murphy Blocks – Gulf of Mexico
Gulf of Mexico Murphy Blocks PRODUCING ASSETS Gulf of Mexico Exploration Area Asset Operator Murphy WI1 Ocotillo Cascade Murphy 80% VK DD Chinook Murphy 86% Silver Dollar Clipper Murphy 80% Silver Dollar West Dalmatian Murphy 56% Medusa Delta House Powerball Dalmatian S. Front Runner Murphy 50% Haba
Slide 38: Sergipe-Alagoas Basin, Brazil Asset Overview
Exploration Update Sergipe-Alagoas Basin, Brazil Sergipe-Alagoas Basin Asset Overview • ExxonMobil 50% (Op), Enauta Energia S.A. 30%, Murphy 20% BRAZIL • Hold WI in 9 blocks, spanning >1.6 MM gross acres • >2.8 BN BOE discovered in basin • >1.2 BN BOE in deepwater since 2007 351 • Evaluating next st
Slide 39: Potiguar Basin, Brazil Asset Overview
Exploration Update Potiguar Basin, Brazil Asset Overview Potiguar Basin • Murphy 100% (Op) Murphy WI Block Other Block • Hold WI in 3 blocks, spanning ~775 M Discovered Field gross acres Kilometers • Proven oil basin in proximity to Pitu 0 50 oil discovery Petrobras Extending the Play Into the Deepw
Slide 40: Investor Update
INVESTOR UPDATE SEPTEMBER 2024 www.murphyoilcorp.com NYSE: MUR 40