Credit Suisse Energy Summit 2011 David Wood President & Chief Executive Officer February 9, 2011 MURPHY OIL CORPORATION 1
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
2011 Exploration Program Focus on Oil Oil 2011 14 Wells (gross) Gas Testing 1 Billion BOE (Net Unrisked) Oil & Gas MURPHY OIL CORPORATION 6
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…
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…
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…
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
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
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
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…
North American Resource Portfolio MURPHY OIL CORPORATION 14
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.…
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…
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…
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…
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…
Southern Alberta ALBERTA Three Objectives SWS Rierdon Exshaw Spud First Well Feb 2011 6 wells in 2011 Evaluation Phase MURPHY OIL CORPORATION 21
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…
FIELD DEVELOPMENT MURPHY OIL CORPORATION 23
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…
Congo AZURITE Production (gross) 20,000 BOPD One Additional Producer & Two Injectors to be Drilled Improved Fiscal Terms MURPHY OIL CORPORATION 25
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…
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
DOWNSTREAM MURPHY OIL CORPORATION 28
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…
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…
US Retail 1105 Stations in 23 States Small Kiosk Format (1,003) Located in Wal-Mart Parking Lots MURPHY OIL CORPORATION 31
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…
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…
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…
Credit Suisse Energy Summit 2011 David Wood President & Chief Executive Officer February 9, 2011 MURPHY OIL CORPORATION 37