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MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp

Murphy Oil Corp · May 9, 2012 · 54 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. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 1
    Annual Meeting of Shareholders El Dorado, Arkansas May 9, 2012 M U R P H Y O I L C O R P O R AT I O N
  2. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 2
    A Growing Value Business David M. Wood President and Chief Executive Officer May 9, 2012 MURPHY OIL CORPORATION 2
  3. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 3
    Agenda External Environment Murphy Portfolio Upstream Downstream Conclusions MURPHY OIL CORPORATION 3
  4. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 4
    Growing Population Needs Energy World Population World Gross Domestic Product Millions Billions 2005 US 10,000 180,000 Annual Percentage Change 2010-2035 9,000 OECD: 0.42% Non-OECD: 0.91% 160,000 8,000 140,000 7,000 120,000…
  5. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 5
    World Energy Use by Fuel Type Quadrillion btu 900 History Projection 800 Renewables 700 Nuclear 600 500 27% Coal 400 28% 300 Natural Gas 200 52% 55% 100 Liquids 0 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035…
  6. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 6
    Global Crude Oil Supply/Demand World Liquids Consumption World Liquids Production MMBOEPD Oil Price (/bbl) MMBOEPD 120 240 120 100 200 100 80 160 80 Non-OPEC 60 120 60 40 80 40 OPEC 20 40 20 0 0 0 2010 2015 2020 2025 2030…
  7. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 7
    Global LNG Outlook BCFPD Global LNG Supply/Demand BCFPD LNG Demand in Asia 60 60 50 50 Probable 40 40 Under Construction 30 30 S. Korea 20 20 Operational Capacity Japan 10 10 India China - - 2011 2013 2015 2017 2019 2021…
  8. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 8
    Historical Prices Global demand continues to drives oil prices Gas remains a regional game /bbl US over-supplied with gas price de-linked to oil /mmbtu 150 25.00 Brent Brent WTI 120 20.00 HH Asian LNG 90 WTI 15.00 60…
  9. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 9
    Historical Commodity Prices WTI Oil Prices & Gold Prices U.S. Dollar Index /bbl or /10oz 200 150 WTI, /bbl Gold, /10oz 120 150 USD Index (Jan 1997 = 100) 90 100 60 50 30 0 0 1985 1990 1995 2000 2005 2010…
  10. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 10
    US Transportation VMT have declined 140 billion miles from 2007 to 2011 Gasoline consumption declined 6% over same period Fleet efficiency improving Billion miles mmbpd 2,800 10 Light Duty Vehicle Miles Travelled 2,750 9.5…
  11. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 11
    US Retail Prices v. WTI /barrel /gallon 4.50 180 4.00 160 3.50 140 3.00 120 2.50 100 80 2.00 60 1.50 40 1.00 20 0.50 0 0.00 WTI US Retail Gasoline Sources: EIA MURPHY OIL CORPORATION 11
  12. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 12
    Global Retail Prices UK /gal Gasoline Cost 3.71 Fuel Taxes 5.00 US /gal Retail Price 8.71 China /gal Gasoline Cost 3.29 Gasoline Cost 5.39 Fuel Taxes 0.50 Fuel Taxes 0.60 Retail Price 3.79 Retail Price 5.99 /gal Gasoline…
  13. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 13
    Observations for 2012 What has not changed: Oil, Natural Gas and Coal the key energy supplies OPEC role Non OECD demand key driver Climate debate US as world currency Europe What has changed: Global LNG N America gas US…
  14. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 14
    UPSTREAM MURPHY OIL CORPORATION 14
  15. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 15
    Upstream Global Footprint Produce in 5 countries; explore in 10 countries Oil weighted production (73 %); exploration focus (75%) Value gas sought Making the hard call on N Am dry gas choke back Expansion in Malaysia gas 300…
  16. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 16
    Oil Weighted Long Range Plan 300 260 250 250 193 200 200 Oil-Indexed SK Gas NA Dry Gas MBOEPD 150 80% Oil-Weighted 100 73% Oil-Weighted 50 Oil - 2012 2013 2014 2015 MURPHY OIL CORPORATION 16
  17. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 17
    Montney Quality Gas Resource Facilities- On Time- On Budget R21 R20 R19 R18 R17 R16 R15 R14 R13 T79 First Quartile Well Costs British Columbia Alberta T78 Groundbirch Tupper West Opex = 0.65/MCF T77 DD&A =…
  18. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 18
    Eagle Ford Premier Resource KARNES 216,000 Net Acres N TILDEN 60 % Oil 61 Producing Wells 10 Drilling Rigs 13 Facilities 2 Dedicated Frac Crews 42 MMBOE Booked TILDEN NUECES CATARINA Murphy Acreage Murphy Gas…
  19. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 19
    EFS Production 12 2012 Production Mix 11 Production 50 6% Net MBOEPD 10 40 30 13% 9 20 10 8 Net MBOEPD 0 7 2011 2012 2013 2014 2015 81% 6 5 Oil Associated Gas Dry Gas 4 3 2012 Guidance: 2 15,450 BOEPD 1 0…
  20. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 20
    EFS Oil & Gas Marketing Current EFS Net Back Prices (4/27/12) KARNES Oil /Bbl Rich Gas /Mcf Karnes 113.49 5.55 Tilden 115.33 5.55 Catarina 116.04 5.25 CATARINA TILDEN Valero Energy Transfer Pipeline Harbor Island…
  21. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 21
    Eagle Ford Summary 2.0 Billion Business, High Production MBOEPD Returns 50 Other 40 EURs Increasing Catarina 30 D&C Costs Improving 20 Tilden 10 Moving from 10 to 12 Rigs Karnes - Early Days for Technology 2012 2013 2014…
  22. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 22
    Canada Seal Lake Murphy 100% Lands Polymer Murphy 50% W.I. Lands Thermal 70 HZ Wells in 2012 Successful Strat Wells CSS Pilot VSD Pilot Increase Production by 20% CADOTTE NORTH to 8,500 BOPD Successful Polymer Pilot CLIFFDALE…
  23. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 23
    Well Pad Producer Seal Polymer Update Injector Injection Started Oct 2010 Response July 2011 600 Start of Polymer Injection Incremental Production - 500 400 Targeted range of response 380 BOPD from 4 Wells 300 200…
  24. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 24
    Seal Resources 5,850 STOIIP MMSTB Polymer / Thermal Type of Recovery Primary Polymer Thermal Total TBD 2,555 500-700 1,000-1300 1,295 1,795 5,850 Identified STOIIP MMSTB MMSTB MMSTB MMSTB MMSTB 200-300 45-75 190-370…
  25. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 25
    Southern Alberta - New Play 150,000 Acres Low Entry Costs Testing Current Focus Kanai - 3 Forks 350 BOPD IP Cum Prod: 2012 Plan 24,000 BBLs Lower Costs Enhanced Fracs Longer Laterals MURPHY OIL CORPORATION 25
  26. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 26
    Muskwa - New Area Murphy Lands Murphy Well Targeting the Muskwa Competitor Well Shale Equivalent to Duvernay Fm Total Acres to Date: 168,000 Low Entry Cost Murphy 4-1-109 Well IP = 150 BOPD Put Well on Pump Evaluation 4 -…
  27. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 27
    International and Offshore MURPHY OIL CORPORATION 27
  28. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 28
    International/Offshore Pillar for Growth Production MBOEPD 175 1.7 Billion Spend Per 150 Other Year 125 GoM 100 Srwk Malaysia Attractive for 75 Continued Investment 50 Sabah 25 - Back to Work in GOM 2012 2013 2014 2015 Oil…
  29. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 29
    Sarawak Oil Projects Moving Forward 30 Future Fields 25 Existing Utilizes Existing Infrastructure Net MBOPD 20 15 10 Progressing on 5 Schedule 0 2003 2006 2009 2012 2015 2018 2021 2024 2027 Sanctioned Oil Projects…
  30. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 30
    Long Term Oil Indexed Growth Malaysia FLNG Block H Gross Risked Resources: 2,200 BCF 300 250 Discovered Drill Ready Prospects Leads Discovered 910 BCF 635 BCF 260 BCF 425 BCF 200 MMCFD 150 100 Murphy Net Entitlement =…
  31. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 31
    Dalmatian Development 3 Well Subsea Development to Petronius Dalmatian Gross, MBOEPD 55 MMBOE Recoverable Resource 20 15 40% Oil Mix 10 5 Robust Economics 0 2015 2017 2019 2021 2023 2025 2027 2029 Path Forward DOCD Approval…
  32. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 32
    Medusa Subsea Development Murphy 60% W.I. Existing Completions Exceeding Expectations 3 Well Subsea Development 16-27 MMBOE Recoverable Spud 1st Well Q2 2013 Net MBOEPD 1st Oil Q2 2015 18 16 14 12 10 8 6 4 2 0 2015 2016…
  33. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 33
    2012-13 Exploration Program Iraq 2-4 Wells GOM 2-4 Wells Malaysia 5-7 Wells Cameroon Brunei 1-2 Wells 2-5 Wells Congo 1-3 Wells Technically Grounded, Value Driven Indonesia 2 Wells Up to 30 Wells; Oil / LNG-Scale Gas…
  34. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 34
    Exploration Program 2012 2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Block H Buluh-1 MALAYSIA Block H/P Bunga Lili-1 Block H Block P Julong BRUNEI CA-1 East-1 Jagus East-1 CA-2 C. Dohuk & Linnava-1 Gali IRAQ Baranan Baranan-1 CAMEROON…
  35. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 35
    Reserves Continue to Grow & Replace Total Proved 534 MMBOE 65% Oil 65% North America Resource Play Deepwater 67% Developed 28% 27% 220% Replacement Conventional Syncrude 24% 17% 3.4 BBOE 3.3 BBOE 2.8 BBOE Heavy Oil…
  36. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 36
    Low Risk Non-Proved Resource Total Non-Proved 2.9 BBOE 75% Oil Weighted Seal Syncrude 54% Low Risk Existing EFS Oil 12% 11% Development Areas & Assoc Gas Msia Oil 11% 15% 38% NA Onshore Oil North America Msia Gas 10% Dry Gas…
  37. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 37
    DOWNSTREAM MURPHY OIL CORPORATION 37
  38. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 38
    Refining MURPHY OIL CORPORATION 38
  39. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 39
    Ethanol Plants HANKINSON, ND Running at 120+ mmgpy Rates Best-in-Class Production Increasing to 135+ mmgpy Co-product Development Advantaged by Corn Supply HEREFORD, TX Running at 104+ mmgpy Rates 115+ mmgpy Target in 2013…
  40. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 40
    US Marketing MURPHY OIL CORPORATION 40
  41. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 41
    Murphy USA Overview Opened First Retail Store in 1996 Operating Sites 1,400 Operate 1,137 sites in 23 states 1,175* 1,200 998 Murphy USAs on Walmart Lots 139 Murphy Express Stores 1,000 Provide 3% of Total US Retail 800…
  42. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 42
    Murphy USA Low Price, High Volume Fuel Seller Low Cost Fuel Supplier Low Cost Operator Low Price Niche Merchandising Relationship with 1 Retailer Walmart Attractive Business MURPHY OIL CORPORATION 42
  43. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 43
    Murphy USAs Model Crude Refineries/ Product Supply Oil Fields Marketing Secondary Pipeline/ Commodity & Primary Customer Vessel Terminal Distribution Markets Distribution / Trucking Wholesale MURPHY OIL CORPORATION Booz &…
  44. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 44
    2011 Gasoline Market Share 0% - 2% US Market Share 3% 3% - 6% (5% Mkt Area) 7% - 14% TN OK MURPHY OIL CORPORATION Source: EIA, Internal Calculations 44
  45. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 45
    High Revenue Business Billion 18 16 14 12 10 8 6 4 2 0 Barnes & Nordstrom Starbucks Murphy USA Southwest Noble 2011 MURPHY OIL CORPORATION Source: Company Reports 45
  46. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 46
    Fuel Volume vs. Publicly-Traded Peers 2011 Fuel Sales/Store/Month (000 Gallons) 300 250 200 150 100 50 0 Murphy Casey's Delek Couche Pantry Susser Sunoco Valero Tesoro Marathon USA Tard MURPHY OIL CORPORATION…
  47. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 47
    Low Operating Expenses 2011 Murphy USA vs. NACS Top Quartile Operating Expenses Per Store Month (000) 60 51.8 50 40 30.2 30 26.7 20 12.6 8.6 8.5 7.5 10 3.7 3.6 4.8 2.0 1.0 1.0 1.8 0 Wages Maintenance Supplies Total…
  48. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 48
    2011 Competitor Comps Operating statistics (LTM) of Retail Locations 1,128 5,715 1,677 1,649 541 Fuel Volumes (MM Gallons) 3,715 3,672 1,416 1,889 768 Retail Fuel Volume/Store 3,333 894 858 1,157 1,430 (000 Gallons) Average Fuel…
  49. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 49
    US Retail Merchandise Contribution Merchandise Sales Merchandise Margin Billion Per Year Million Per Year 2.2 2.2 300 2.0 270 2.0 259 1.8 1.8 250 1.6 214 1.3 200 1.4 178 1.2 1.2 152 150 1.0 0.9 120 0.8 100 0.6 0.4…
  50. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 50
    Connecting with our Customers Murphy USA Mobile App Re-launched in March Expecting 250,000+ Downloads This Year Provides Real-time Pricing and Location Information for Murphy USA & Competitors Innovative GPS Technology to Match to…
  51. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 51
    US Retail Financial Performance 2006-2011 Key Financial Indicators (Millions) 2006 2007 2008 2009 2010 2011 Total Margin 454 511 812 535 707 849 Operating Expense 270 306 339 340 384 404 Admin and G&A 27 30 54 61 66 76 Total…
  52. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 52
    Growth Avenues Walmart Cross Promotion & New Site Growth Opportunities with Third parties Growth Outside the Walmart Pad MURPHY OIL CORPORATION 52
  53. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 53
    Murphy Value Platform Global Upstream business Operator organization skills and excellence Solid existing projects with new growth opportunities Exploration 12 +/- wells per year program Oil weighting Repositioning in Downstream…
  54. MAY 2012 ANNUAL MEETING OF SHAREHOLDERS – Murphy Oil Corp – slide 54
    Annual Meeting of Shareholders El Dorado, Arkansas May 9, 2012 M U R P H Y O I L C O R P O R AT I O N

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