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CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp

Murphy Oil Corp · Feb 9, 2011 · 37 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 1
    Credit Suisse Energy Summit 2011 David Wood President & Chief Executive Officer February 9, 2011 MURPHY OIL CORPORATION 1
  2. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 2
    Murphy Global Growth Strong Production Growth Target 300,000 boepd by 2015 Impactful Exploration Program Premium N. Am Resource Position Advantaged US Retail Financial Strength MURPHY OIL CORPORATION 2
  3. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 3
    UPSTREAM MURPHY OIL CORPORATION 3
  4. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 4
    Reserves & Production Replacement 600 250% 500 200% Reserves (MMBOE) 400 150% 300 100% 200 100 50% 0 0% 2006 2007 2008 2009 2006 2007 2008 2009 Developed Undeveloped Total Replacement Organic Replacement 70% PDP in…
  5. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 5
    EXPLORATION MURPHY OIL CORPORATION 5
  6. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 6
    2011 Exploration Program Focus on Oil Oil 2011 14 Wells (gross) Gas Testing 1 Billion BOE (Net Unrisked) Oil & Gas MURPHY OIL CORPORATION 6
  7. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 7
    2011 Exploration Drilling Q1 Q2 Q3 Q4 INDONESIA Semai II South Barito SURINAME Aracari CONGO MPN MPS AUSTRALIA BRUNEI CA-1 KURDISTAN GOM Deep Blue Gold Oil Prospect Oil/Gas Prospect Gas Prospect MURPHY OIL…
  8. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 8
    Tangguh LNG Indonesia Semai II Semai II Wokam II Murphy W.I. 28.33% First Well Spud Dec. 2010 100 Km Primary Play: Jurassic Water Depth: 1095m TD: 6500m Resource Range: 330-660 Lengkuas MMBOE Wokam II Added New Acreage…
  9. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 9
    Suriname Block 37 Venezuela Guyana Paramaribo Suriname French Guiana Murphy 100% W.I. Water Depth: 200 ft. 2 Well Program Spud Nov 2010 Aracari Caracara Well Developed Reservoirs; Oil Shows Above Caracara MURPHY…
  10. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 10
    Congo Forward Plan TRQM No.4 Well Developed Reservoir Oil in Deeper Section New 3D in MPN Titane Multiple Play Types; Large Prospect Inventory TRQM & Titane Tie Backs Being Worked MURPHY OIL CORPORATION 10
  11. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 11
    Australia AC/P36 BROWSE GAS FIELDS ICHTHYS FIELD WA-423-P LEGEND Murphys Operated Permit Exploration Permit Oil Field Gas Field MURPHY OIL CORPORATION 11
  12. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 12
    Kurdistan TURKEY SYRIA IRAN Central Dohuk Block IRAQ Murphy Central Dohuk 50% W.I.; Operator New Office in Erbil Seismic in 2011 MURPHY OIL CORPORATION 12
  13. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 13
    Global Exploration 2011 Program 14 Wells; 7 Countries 2012 Program 14+ Wells; 6 Countries Congo; Australia; Malaysia; Kurdistan; Brunei; US GOM Growing Exploration Acreage Positions Globally Oil Weighted Portfolio Includes…
  14. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 14
    North American Resource Portfolio MURPHY OIL CORPORATION 14
  15. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 15
    N.A. Resource Exposure 700k Net Acres 2011 Plans Montney 4 Rigs; 63 Wells Seal 2 Expl. / 61 Dev. Montney Eagle Ford Shale Exshaw/Bakken 3-6 Rigs; 40 Wells 18 Expl. / 22 Dev. Eagle Ford Shale Seal Lake 2-3 Rigs; 47 Dev.…
  16. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 16
    BRITISH Canada - Montney COLUMBIA Tupper Main ALBERTA Recent Plant Expansion to 105 MMCFPD All in Costs 3.75 /MCF Tupper West 2 Rigs Drilling 29 Hz Wells Completed Infrastructure On Track MURPHY OIL CORPORATION…
  17. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 17
    Tupper West Phase I Sanctioned August 2009 Capex C1.97 Billion Wells 275 Net Reserves 900 BCF First Gas: 1Q 2011 Phase II Planned Sanction 4Q 2011 Capex C1.4 Billion Additional Wells 244 Net Reserves 725 BCF MURPHY OIL…
  18. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 18
    Eagle Ford Shale TEXAS Well Activity To Date: Drilled 18 Producing 10; Awaiting Frac 8 Producing 1,400 BOPD & 4 MMCFPD (gross) 3 Rigs Working: 2 - Karnes 1 - McMullen Scheduled Frac Operations - 6 Wells in Q1: 4 - Karnes Co. /…
  19. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 19
    Eagle Ford Shale KARNES IP Rate 7.5MMCFEPD IP Rate 500 BOEPD IP Rate 7.5 MMCFPD TILDEN and 500 BOPD Murphy Location Murphy Gas Well Murphy Oil Well CATARINA 18 Horizontal Wells Drilled 10 Producing 8 Cased / Waiting…
  20. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 20
    BRITISH Canada Seal Lake COLUMBIA ALBERTA Large Resource 5+ Billion BBL of Oil in Place Current Net Production: 6,500 BOPD New Field Development Plan EOR Pilots - Began Sept. 2010 Polymer Flood 60 MMBBL Prize Thermal…
  21. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 21
    Southern Alberta ALBERTA Three Objectives SWS Rierdon Exshaw Spud First Well Feb 2011 6 wells in 2011 Evaluation Phase MURPHY OIL CORPORATION 21
  22. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 22
    N. A. Resource Plays Four Play Exposure Three For Oil Lease; Drill and Produce all the Time Drives Performance Attractive Entry Costs 10 TCFE Target Opportunity Captured 2/3 Oil Compliments Global Exploration MURPHY OIL…
  23. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 23
    FIELD DEVELOPMENT MURPHY OIL CORPORATION 23
  24. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 24
    Blk. H Blk. P Blk. K Kikeh Operations CA-1 SABAH CA-2 SK Area SARAWAK Production (gross) Oil = 85,000 BOPD Gas = 113 MMCFPD Workover Program Underway Replacing Sand Screens 2 Wells completed MURPHY OIL…
  25. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 25
    Congo AZURITE Production (gross) 20,000 BOPD One Additional Producer & Two Injectors to be Drilled Improved Fiscal Terms MURPHY OIL CORPORATION 25
  26. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 26
    Blk. H Blk. P Sarawak Development Blk. K CA-1 LEGEND SABAH CA-2 Oil / Gas Field Oil / Gas Discoveries Prospect SK Area Gas Holding Ring Fence Oil / Gas Pipeline SARAWAK 0 25 KILOMETERS SAPIH TIRAM Production…
  27. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 27
    Malaysia Fields to Sanction - 2011 Field Block 1st Production * Patricia SK 309 2012 * Serendah SK 309 2013 South Acis SK 311 2013 Siakap North K 2013 Rotan H 2014 (* Sanctioned) MURPHY OIL CORPORATION 27
  28. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 28
    DOWNSTREAM MURPHY OIL CORPORATION 28
  29. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 29
    Why Divest Refining Business Lack Competitive Scale; Requires Significant CAPEX Upstream & Retail Drive Value Creation Marginal Business Declining EBITDA Contribution: 25% to 8% over 20 years Eliminates disproportionate management…
  30. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 30
    Key Aspects of the Transaction Realign Murphy as Oil-Weighted Growth E&P plus Best in Class U.S. Retail Network Announced July 2010 Working Capital Reduction 500 800MM (pretax) Redeploy Proceeds Debt Repayment Growth…
  31. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 31
    US Retail 1105 Stations in 23 States Small Kiosk Format (1,003) Located in Wal-Mart Parking Lots MURPHY OIL CORPORATION 31
  32. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 32
    Murphy USA 2010 YTD Market Share
  33. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 33
    U.S. Retail Financial Performance 6 Year Avg ROI 24% Return on Investment 1,600 40% 38% 1,400 35% 1,147 1,239 30% 1,200 1,082 30% 1,000 24% 25% 837 21% 800 20% 641 544 600 15% 17% 400 10% 11% 200 5% 0 0% 2005 2006…
  34. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 34
    Biofuels - Ethanol Hankinson Renewable Energy 120 MMGY 2010 Net Income 18 Million 2010 Cash Flow 26 Million Hereford Renewable Energy Partially Built Plant 110 MMGY WDGS Sold to Nearby Feed Lots High Storage…
  35. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 35
    US Retail Strengths Providing Quality Low Cost Fuel where the Customers want it Wal-Mart High Operating Cost Efficiencies High Fuel Volume per Site Tailor Future Sites to Market High Traffic Count Scale Currently 3% US Market…
  36. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 36
    Murphy Premium Business Global Footprint Upstream Production Growth Exploration Key Contribution; Oil Focus North American Resources Compliment US Retail Top Quartile Business Low Cost When Price Matters; Room for Growth…
  37. CREDIT SUISSE ENERGY SUMMIT 2011 – Murphy Oil Corp – slide 37
    Credit Suisse Energy Summit 2011 David Wood President & Chief Executive Officer February 9, 2011 MURPHY OIL CORPORATION 37

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