Annual Meeting of Shareholders El Dorado, Arkansas May 8, 2013 M U R P H Y O I L C O R P O R AT I O N MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 1
Key Initiatives to Enhance Value for Shareholders Special Dividend of 2.50 per Share Approximately 500 Million Authorized Share Repurchase up to 1 Billion First 250 Million Regular Dividend Consistent Growth; Well Positioned in Peer…
Spin-off Creating Two Distinct Companies Pure E&P US Retail Each Focused on Their Own Strategic Plans Able to Allocate Resources & Capital Consistent with Priorities Compete Within Their Respective Industries NYSE Listing…
Independent E&P Global E&P Business 600+ MMBOE Proved Reserves 70+% Oil or Oil-Indexed Continued Production Growth High Impact Exploration Portfolio Complementary Onshore Business MURPHY OIL CORPORATION…
US Retail US Retail Gasoline Business Leading Fuel Provider Low Cost Supplier / Operator Niche Merchandising Wal-Mart Relationship MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 6
Agenda Roger Jenkins EVP & COO, MOC Global Upstream Business Andrew Clyde Pres. & CEO, MUSA US Retail Business MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 7
EXPLORATION & PRODUCTION Roger Jenkins Executive Vice President & COO MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 8
Murphy Exploration & Production A Strong, Long Term Industry Working Safely Protecting the Environment Clear Strategy with Execution Ability Track Record Sustainable Growth Needle Moving Stock Price Ability Exploration…
Energy Business Long Term Industry 2% 10% Murphy Oil 3% 1980 43% 7,218 MTOE 77% Oil Weighted Production 25% Oil Weighted: Production Growth 17% Reserve Base Exploration Program Other Renewables Global LNG Biomass 1% North…
Working Safely Protecting Environment 12 Month Rolling Average TRIR Total Recordable Incident Rate 0.95 0.90 0.84 0.86 0.89 0.87 April YTD Safety TRIR = 0.48 0.85 0.81 0.80 0.78 0.78 0.80 0.76 0.74 (TRIR) 0.75 0.72…
E&P Business Model Global Find Oil and Gas in Be a Preferred Underexplored Offshore Offshore Basins Partner Global Exploration First Offshore Execution Ability Demonstrate Superior Project Execution and Field Operation…
Sustainable Growth Record Net, MBOEPD 250 Top Tier Production Growth 200 202 Continued Growth to 2016 & Beyond 150 5 YR Average Reserve Replacement = 160% 100 50 78% Reserve/Production Ratio Improving 2012 = 8.5 0 2007 2008…
Murphys Total Resource Base Reserves: Resources: 604 MMBOE 3.3 MMBOE 70% - Liquids 70% Within Existing Development 70% in North America 51% Oil in Contingent Resources Proved Reserves Contingent Resources, BOE EFS Syncrude 19%…
Long Term Growth With Upside Note: Risked Exploration Success Not Included Net, MBOEPD 400 350 SK Gas Upside 300 5 Henry Hub Eagle Ford Upside 250 200 150 100 Global Offshore 50 North America Onshore - 2007 2008 2009 2010…
Exploration Focus Regions Play Type Focus: Large Structures in New Areas or Plays Oil-Prone Deepwater Stratigraphic Plays 1 Multiple Structures - Cluster Development 2 3 Program Goal: 4 Consistent 10 Well per Year Program…
Long History - Exploration Success History Future Consistent Global Exploration Exploration Efficiency - Value Creation per Dollar Invested 2002 2011 (Excludes Resource Plays) Process 12 7,800 MMBOE Total P50 Gross 10 Success Rate:…
Exploring in SE Asia Australia for LNG Asia-Pacific LNG Supply & Demand, BCFD 40 Exploration Potential: 35 16 - 34 TCF Gross Resource 30 25 20 Oil-Linked Prices LNG Supply 15 LNG Demand LNG Demand LNG Demand 10…
Cameroon Impactful Prospects Multiple Prospects and Leads Stacked Fan Play Late Cretaceous Early Tertiary 2,600 MMBOE Total Gross P50 600 MMBO 300 MMBO Drill Q1 14 Drill Q3 13 MURPHY OIL CORPORATION…
Back to Work in GOM Long History of Success Known Terms and Titan Regulator Whydah 3 Play Types Medusa Thunder Hawk 1,600 MMBOE Total Front Runner Gross Resource P50 Multiple Prospects Seville and Leads Murphy Leasehold…
Malaysia Long Term Value Provider Block K Gross Oil Rate, MBOPD 140 Kakap Production Block K 120 New Development (Gravel Pack) Kikeh Completions Working Gravel Pack Repairs 100 Original Completion Kakap and Siakap North Petai 80…
Eagle Ford Shale New Legacy Asset N TILDEN KARNES Ground Floor Entry High Value 268 Wells Drilling Pearsall 300 MMBO Net Focus 222 Producing Wells Area Largest in Company History 16 Facilities Pipeline Projects in Place 87 MMBOE…
Strategy is Working 2012 ROACE Benchmark 15% 10% 5% MUR Returns Back to Top 0% Quartile -5% -10% Oil Weighted Advantage -15% -20% High Margin Crudes in Upstream Income * (/boe) Advantaged Locations 18 16 14 Lowering Supply…
Financial Stability Returning to Free Cash Flow Capex & Cash Flow, MM 6,000 Recent Debt Downstream Corporate EFS Exploration (ex. EFS) Recapitalization Development (ex. EFS) Cash flow EFS Development 5,000 Integrated E&P…
The Murphy Value Proposition Consistent Production and Reserves Growth Needle Moving Exploration Program Complementary Onshore Business with New Legacy Asset - Eagle Ford Shale Development Capability Strong Balance Sheet…
MUSA Retail Strategy Andrew Clyde President and CEO MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 26
Todays Discussion Why Spin Now Strengths and Strategy MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 27
Established Advantaged Network Growth of Murphy Retail Sites 1997-2013 0% 2% On Walmart and Off Walmart Locations 2011 US Market 3% 6% MN 7% 14% Share 3% 1997 12 MI 1998 27 IA 1999 137 IL OH IN CO 2000 259 KS MO VA KY 2001…
Strong Financial Base Years Ended December 31, (Millions of dollars) 2012 2011 2010 Fuel and ethanol sales* 17,511 17,158 13,623 Fuel and ethanol cost of goods sold* 16,871 16,408 13,053 Fuel and Ethanol Contribution 640 750 570…
Significant Growth Opportunities Single Site Growth with Walmart Growth by Region1 Total = 200 sites Number of sites (Percentage of sites) Murphy USA (200) and Murphy Express (40) locations 1,408 Mid-Continent 29 2 (2%) Northeast…
Five Reinforcing Strengths = Advantage 1. Strategic and Complementary Relationship with Walmart 2. Winning 5. Resilient Proposition with Financial Profile Value Oriented Strengths Consumers 4. Advantaged Fuel 3. Low Cost…
Strategy = Coherent Choices That Build on 1. Grow Organically Distinctive Strengths with Walmart 2. Enhance Kiosk 5. Focus on Economics to Long-Term Diversify Investment Non-Fuel Sales Mix Strategy 3. Improve 4.…
Annual Meeting of Shareholders El Dorado, Arkansas May 8, 2013 M U R P H Y O I L C O R P O R AT I O N MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 33
Non-GAAP Financial Measure Definitions & Reconciliations 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…
Non-GAAP Reconciliation CASH FLOW Murphy defines Cash Flow as net cash provided by operating activities before changes in noncash operating working capital, geological and geophysical expenses and other exploration expenses, proceeds…
Non GAAP Reconciliation Adjusted EBIT and EBITDA The Company defines Adjusted EBIT as income from continuing operations plus income taxes, net interest expense, impairment of assets, and accretion expense. The Company also defines…
Non GAAP Reconciliation The Company considers the metric Adjusted EBIT divided by Capital Employed to be an important measure of the use of the Companys fixed assets and liquidity to maximize investment returns for shareholders. This…
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