Murphy Oil Corporation · NYSE:MUR
Murphy Oil — Investor Presentation (June 2022)
47 slides from Murphy Oil's investor presentation, Jun 1, 2022
Slide 1: Investor Update June 2022
0 www.murphyoilcorp.com NYSE: MUR 0 INVESTOR UPDATE JUNE 2022
Slide 2: Cautionary Note to US Investors
1 www.murphyoilcorp.com NYSE: MUR 1 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 forma
Slide 3: Agenda
2 www.murphyoilcorp.com NYSE: MUR 2 Agenda 01 Murphy at a Glance 02 Murphy Priorities 03 Murphy Portfolio 04 Looking Ahead
Slide 4: Murphy at a Glance
3 www.murphyoilcorp.com NYSE: MUR 3 Murphy at a Glance Onshore United States • Eagle Ford Shale on private lands in Texas with ~1,300 future locations on ~122,000 net acres • Produced 29.7 MBOEPD in 1Q 2022, comprised of 68% oil and 85% liquids Onshore Canada • Tupper Montney ~1,400 future locations
Slide 5: Why Murphy Oil?
4 www.murphyoilcorp.com NYSE: MUR 4 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
Slide 6: Ongoing Sustainability Initiatives
5 www.murphyoilcorp.com NYSE: MUR 5 Ongoing Sustainability Initiatives Reducing Greenhouse Gas Emissions • Displaced 1.4 MM gallons of diesel with natural gas in drilling and completions • Reduced flaring locations, eliminating ~20% of FY 2022 emissions in Kaybob Duvernay Increasing Water Recycling
Slide 7: Murphy Priorities
6 www.murphyoilcorp.com NYSE: MUR 6 MURPHY PRIORITIES
Slide 8: What's New in 2Q 2022
7 www.murphyoilcorp.com NYSE: MUR 7 What’s New in 2Q 2022 Well Delivery Update • Third well online at Khaleesi / Mormont / Samurai in Gulf of Mexico • 2Q 2022 onshore operated well schedule progressing as planned • 23 Eagle Ford Shale wells • 10 Tupper Montney wells Increasing Returns to Shareholder
Slide 9: Khaleesi, Mormont, Samurai Field Development Details
8 www.murphyoilcorp.com NYSE: MUR 8 Khaleesi, Mormont, Samurai Field Development Details Samurai GC - 432 Mormont West GC - 478 Mormont East GC - 478 Khaleesi GC - 389 Export Laterals King’s Quay FPS Field Development Project • Achieved first oil at King’s Quay FPS April 2022, ahead of schedule and
Slide 10: 2022 Capital Allocation Plan
9 www.murphyoilcorp.com NYSE: MUR 9 2022 Capital Allocation Plan Prioritizing Capital To Support Free Cash Flow Capital Plan Supports Further Delevering, Enhanced Shareholder Returns • FY 2022 CAPEX guidance of $900 – $950 MM • Impacted by inflation, scope changes and additional rig standby costs fo
Slide 11: Strong Execution Strengthens Production Profile
10 www.murphyoilcorp.com NYSE: MUR 10 Strong Execution Strengthens Production Profile • 2Q 2022 production 156 – 164 MBOEPD • 54% oil, 60% liquids volumes • Includes planned downtime of: • 5.5 MBOEPD of operated downtime, primarily onshore • 3.4 MBOEPD of non - operated offshore downtime • FY 2022 p
Slide 12: Financial Priorities
11 www.murphyoilcorp.com NYSE: MUR 11 Financial Priorities FY 2022 • Reduce debt by $600 – $650 MM* • Redeemed $200 MM of 6.875% Notes due 2024 in June 2022 • Achieves ~$1.8 BN of tota l debt outstanding by YE 2022 • Quarterly dividend reviews • Raised to $0.175 / share in 2Q 2022, or $0.70 / share
Slide 13: 2022 Exploration Update
12 www.murphyoilcorp.com NYSE: MUR 12 2022 Exploration Update Progressing Plans in Targeted Basins Mexico – Operated, 40% WI • First additional exploration period approved by regulator in Block 5 • Targeting drilling Tulum - 1EXP well in 2H 2022 • Progressing permitting and regulatory approvals Gulf
Slide 14: Murphy Portfolio
13 www.murphyoilcorp.com NYSE: MUR 13 MURPHY PORTFOLIO
Slide 15: Eagle Ford Shale
14 www.murphyoilcorp.com NYSE: MUR 14 Eagle Ford Shale Delivering Stable Base Production Through Targeted Program Eagle Ford Shale Acreage CATARINA TILDEN KARNES Zavala Atascosa Karnes McMullen Frio Dimmit La Salle Live Oak Bee Wilson 1Q 2022 30 MBOEPD, 85% Liquids • 9 gross non - operated wells onl
Slide 16: Tupper Montney
15 www.murphyoilcorp.com NYSE: MUR 15 5 0 Miles BC Alberta Tupper Montney Acreage Tupper Montney Adapting Development Plans to Maintain Well Delivery Schedule 1Q 2022 242 MMCFD 2Q 2022 Well Delivery Schedule • 10 wells online FY 2022 Capital Plan • 20 operated wells online • CAPEX impact due to adju
Slide 17: Kaybob Duvernay
16 www.murphyoilcorp.com NYSE: MUR 16 Kaybob Duvernay Maintaining Production With New Well Deliveries Kaybob Duvernay Acreage 7 0 Miles Kaybob East Simonette Kaybob North Kaybob West Saxon Two Creeks Murphy Acreage Pipeline Facility Battery 2022 Wells 1Q 2022 7 MBOEPD, 70% Liquids • 3 operated wells
Slide 18: Gulf of Mexico Development and Tiebacks
17 www.murphyoilcorp.com NYSE: MUR 17 Gulf of Mexico Development and Tiebacks Drive Future Free Cash Flow 1Q 2022 59 MBOEPD, 80% Oil • $1 MM net workover at Marmalard 300 #1 (Mississippi Canyon 300) FY 2022 Capital Plan • ~80% of spend for major projects in Gulf of Mexico • Remainder for development
Slide 19: Salina Basin, Mexico Block Overview
18 www.murphyoilcorp.com NYSE: MUR 18 Block 5 Overview • Murphy 40% (Op), Petronas 30%, Wintershall Dea 30% • 34 leads / prospects • Mean to upward gross resource potential • 800 MMBO – 2,000 MMBO • Proven oil basin in proximity to multiple oil discoveries in Miocene section • First additional explo
Slide 20: Looking Ahead
19 www.murphyoilcorp.com NYSE: MUR 19 LOOKING AHEAD
Slide 21: Disciplined Strategy Leads to Long-Term Value at Conservative Prices
20 www.murphyoilcorp.com NYSE: MUR 20 Disciplined Strategy Leads to Long - Term Value at Conservative Prices 2022 2023 2024 2025 2026 2027 2028 • Accelerating debt reduction goal to $600 MM – $650 MM in FY 2022* • Optionality for $900 MM – $1 BN debt reduction in FY 2023* • Enhancing payouts to shar
Slide 22: Focused on FY 2022 Targeted Priorities
21 www.murphyoilcorp.com NYSE: MUR 21 Support shareholders with long - standing dividend policy Focused on FY 2022 Targeted Priorities • Increased debt reduction goal to $600 – 650 MM in FY 2022*, with $200 MM redeemed in June 2022 • Received credit rating upgrades to Ba2 by Moody’s and positive out
Slide 23: Why Murphy Oil?
22 www.murphyoilcorp.com NYSE: MUR 22 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 generato
Slide 24: 23 www.murphyoilcorp.com NYSE: MUR 23 INVESTOR UPDATE JUNE 2022
23 www.murphyoilcorp.com NYSE: MUR 23 INVESTOR UPDATE JUNE 2022
Slide 25: Appendix
24 www.murphyoilcorp.com NYSE: MUR 24 Appendix 1 Non - GAAP Definitions and Reconciliations 2 Glossary of Abbreviations 3 2 Q 2022 Guidance 4 Current Hedging Positions 6 Acreage Maps 5 Supplemental Information
Slide 26: Non-GAAP Financial Measure Definitions and Reconciliations
25 www.murphyoilcorp.com NYSE: MUR 25 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 1934, as amended. This information is historical in nature. Murphy undertakes no
Slide 27: EBITDA and EBITDAX
26 www.murphyoilcorp.com NYSE: MUR 26 EBITDA and EBITDAX Murphy defines EBITDA as net income (loss) attributable to Murphy 1 before interest, taxes, depreciation, depletion and amortization (DD&A). Murphy defines EBITDAX as net income (loss) attributable to Murphy before interest, taxes, DD&A and ex
Slide 28: Adjusted EBITDA
27 www.murphyoilcorp.com NYSE: MUR 27 ADJUSTED EBITDA Murphy defines Adjusted EBITDA as net income (loss) attributable to Murphy 1 before interest, taxes, depreciation, depletion and amortization (DD&A), impairment expense, discontinued operations, foreign exchange gains and losses, mark - to - mark
Slide 29: Adjusted EBITDAX
28 www.murphyoilcorp.com NYSE: MUR 28 ADJUSTED EBITDAX Murphy defines Adjusted EBITDAX as net income (loss) attributable to Murphy 1 before interest, taxes, depreciation, depletion and amortization (DD&A), exploration expense, impairment expense, discontinued operations, foreign exchange gains and l
Slide 30: Glossary of Abbreviations
29 www.murphyoilcorp.com NYSE: MUR 29 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 d
Slide 31: 2Q 2022 Guidance
30 www.murphyoilcorp.com NYSE: MUR 30 2Q 2022 Guidance Producing Asset Oil (BOPD) NGLs (BOPD) Gas (MCFD) Total (BOEPD) US – Eagle Ford Shale 26,000 4,100 29,500 35,000 – Gulf of Mexico excluding NCI 1 53,300 4,300 61,800 67,900 Canada – Tupper Montney – – 281,200 46,900 – Kaybob Duvernay and Placid
Slide 32: Current Hedging Positions – Oil
31 www.murphyoilcorp.com NYSE: MUR 31 Current Hedging Positions – Oil * As of May 3, 2022 United States Commodity Type Volumes (BBL/D) Price (BBL) Start Date End Date WTI Fixed Price Derivative Swap 20,000 $44.88 4/1/2022 12/31/2022 Commodity Type Volumes (BBL/D) Put Price (BBL) Call Price (BBL) Sta
Slide 33: Current Hedging Positions – Natural Gas
32 www.murphyoilcorp.com NYSE: MUR 32 Current Hedging Positions – Natural Gas Montney, Canada Commodity Type Volumes (MMCF/D) Price (MCF) Start Date End Date Natural Gas Fixed Price Forward Sales at AECO 176 C$2.34 4/1/2022 4/30/2022 Natural Gas Fixed Price Forward Sales at AECO 205 C$2.34 5/1/2022
Slide 34: Strengthening Balance Sheet
33 www.murphyoilcorp.com NYSE: MUR 33 Financial Results Strengthening Balance Sheet Solid Foundation for Commodity Price Cycles • $481 MM of cash and cash equivalents at Mar 31, 2022 • Redeemed $200 MM of 6.875% Notes due 2024 in June 2022 • ~$42 MM remaining balance of 2024 senior notes • $1.6 BN s
Slide 35: North America Onshore Well Locations
34 www.murphyoilcorp.com NYSE: MUR 34 North America Onshore Area Net Acres Reservoir Inter - Well Spacing (ft) Remaining Wells Karnes 10,092 Lower EFS 300 108 Upper EFS 1,000 151 Austin Chalk 1,100 106 Tilden 64,770 Lower EFS 630 231 Upper EFS 1,200 51 Austin Chalk 1,200 86 Catarina 48,375 Lower EFS
Slide 36: Eagle Ford Shale Peer Acreage
35 www.murphyoilcorp.com NYSE: MUR 35 Eagle Ford Shale Peer Acreage
Slide 37: Kaybob Duvernay Peer Acreage
36 www.murphyoilcorp.com NYSE: MUR 36 Kaybob Duvernay Peer Acreage T59 T60 T61 T62 T63 T64 T65 T66 T67 T59 T60 T61 T62 T63 T64 T65 T66 T67 R13W5R14R15R16R17R18R19R20R21R22R23R24R25R26R27 R14W5R15R16R17R18R19R20R21R22R23R24R25R26R27 Fox Creek SAXON KAYBOB WEST KAYBOB EAST KIWENTINOHK Crescent Point C
Slide 38: Tupper Montney Peer Acreage
37 www.murphyoilcorp.com NYSE: MUR 37 Tupper Montney Peer Acreage ARC Montney Shell Montney Advantage Montney Other Competitors Open Crown Tourmaline Montney Ovintiv Montney Birchcliff Montney Dry Gas Limit TCPL Pipeline Murphy Facility Battery Murphy Pipeline 0 10 Miles Dawson Creek
Slide 39: Placid Montney Peer Acreage
38 www.murphyoilcorp.com NYSE: MUR 38 Placid Montney Peer Acreage T59 T60 T61 T62 T63 T64 T65 T66 T59 T60 T61 T62 T63 T64 T65 T66 R15W5R16R17R18R19R20R21R22R23R24R25R26R27 R15W5R16R17R18R19R20R21R22R23R24R25R26R27 ARC Open Crown Other Leased Paramount Kiwetinohk CNRL XTO Non - Operated Area Hawthorn
Slide 40: Producing Assets
39 www.murphyoilcorp.com NYSE: MUR 39 PRODUCING ASSETS Asset Operator Murphy WI 1 Calliope Murphy 29% Cascade Murphy 80% Chinook Murphy 86% Clipper Murphy 80% Cottonwood Murphy 80% Dalmatian Murphy 56% Front Runner Murphy 50% Habanero Shell 27% Khaleesi Murphy 34% Kodiak Kosmos 48% Lucius Anadarko 1
Slide 41: Offshore Canada Terra Nova Asset Life Extension Project
40 www.murphyoilcorp.com NYSE: MUR 40 Offshore Canada Advancing Terra Nova Asset Life Extension Project FPSO – Floating production storage and offloading vessel Terra Nova FPSO • Suncor 48% (Op), Cenovus 34%, Murphy 18% • Partner group advancing asset life extension (ALE) project • Will extend produ
Slide 42: 2022 Exploration Plan Sergipe-Alagoas Basin, Brazil
41 www.murphyoilcorp.com NYSE: MUR 41 2022 Exploration Plan 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 oppor
Slide 43: Exploration Update Gulf of Mexico
42 www.murphyoilcorp.com NYSE: MUR 42 Exploration Update Gulf of Mexico Interests in 113 Gulf of Mexico OCS Blocks • ~650,000 total gross acres • 69 exploration blocks • ~1 BBOE gross resource potential • 20 key prospects Oso #1 (Atwater Valley 137 / 138) • Murphy 50% (Op), Ridgewood 50% • Mean to u
Slide 44: Exploration Update Potiguar Basin, Brazil
43 www.murphyoilcorp.com NYSE: MUR 43 Exploration Update Potiguar Basin, Brazil Asset Overview • Wintershall Dea 70% (Op), Murphy 30% • 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
Slide 45: Development Update Cuu Long Basin, Vietnam
44 www.murphyoilcorp.com NYSE: MUR 44 Development Update Cuu Long Basin, Vietnam Asset Overview • Murphy 40% (Op), PVEP 35%, SKI 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
Slide 46: Exploration Update Cuu Long Basin, Vietnam
45 www.murphyoilcorp.com NYSE: MUR 45 Exploration Update Cuu Long Basin, Vietnam Asset Overview • Murphy 40% (Op), PVEP 35%, SKI 25% Block 15 - 2/17 • 3 - year primary exploration period ends 4Q 2022 • Seeking extension due to COVID - 19 related delays • 1 well commitment • 2 initial prospects ident
Slide 47: 46 www.murphyoilcorp.com NYSE: MUR 46 INVESTOR UPDATE JUNE 2022
46 www.murphyoilcorp.com NYSE: MUR 46 INVESTOR UPDATE JUNE 2022