BERNSTEINS 31ST ANNUAL STRATEGIC DECISIONS CONFERENCE MAY 29, 2015 ROGER JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 1
Agenda Strategy Adding Balance with NA Onshore Developing Projects in the Global Offshore Refocusing Exploration Investing in Murphy MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 3
Key Segments of Our Strategy PREFERRED SAFETY EXPLORATION EXECUTION VALUE BALANCE FINANCIAL PARTNER Continuous Sharpen Focus Offshore & Efficient & Diverse & Price De-Risked NA Capability & Emphasis & Areas & Onshore Commercially…
Eagle Ford Shale Running Room NEW 631 Operated Wells Drilled LEGACY 2,000 Potential Locations Downspacing & Staggered ASSET 700+ MMBOE Net Recoverable Resource 2,055 per Acre: Early Entrant 145,000 Net Acres Price Advantaged…
Karnes Core EFS Economics Robust at Flat 60 Oil* 2012-15 Improvements Well IRR 40% 400 Potential Locations Drilling & First 6 Months Decline Rate (Post Peak Production Month) *Oil 60/bbl, Gas 3/MCF, NGL 20/bbl EUR/Section…
Tilden Developing Lower EFS and Appraising Upper Economics Robust at Flat 60 Oil* 2012-15 Improvements Well IRR = 20% 900 Potential Locations *Oil 60/bbl, Gas 3/MCF, NGL 20/bbl Drilling & EUR/Section First 6 Months Decline Rate…
Successfully Exploiting Catarina Economics Robust at Flat 60 Oil* 2012-15 Improvements Well IRR = 29% 700 Potential Locations *Oil 60/bbl, Gas 3/MCF, NGL 20/bbl Drilling & EUR/Section Completion First 6 Months Decline Rate (Post…
Montney New Well Performance 1,000 Well Inventory 2015 Capex Reduced EUR UPSIDE No Rigs Post Feb 3rd Party Gas Processing 8 New Wells Completed NEW COMPLETION 2015 Hedge New Completions Working STRATEGY 65 MMCFD at C 4.13/MCF…
Global Offshore - Malaysia SARAWAK DRILLING RESULTS Completed 30% Sell-Down Marks Value of Long Term Business EXCEED PLAN Kakap-Gumusut Production Avg. 150 MBOEPD Gross in March Sarawak Completed 1st Phase South Acis Drilling…
Global Offshore Gulf of Mexico Medusa Two Well Expansion 60% W.I. (Operator) Thunder Wells Drilled to Plan Medusa Hawk Achieved First Oil in May 2015 Ahead of Plan Front Runner EXECUTING DEEP WATER Kodiak Two Well Tieback…
Exploration Strategy People & Processes Focus Regions New Exploration Leadership Team HISTORY OF Focus on Technical Excellence EXPLORATION CULTURE Rules of Road No 100% Wildcat Wells Partners Required East Coast Canada Lower…
2015 Drilling Program 2015 Area Block Q2 Q3 Q4 Sea Eagle Dalmatian South 2 Thunder Bird GOM Well Opal 110 MMBOE 10 MMBOE Sidetrack 400 MMBOE GULF OF MEXICO 20 MMBOE Merapuh 5 Marakas MALAYSIA SK-314A 12 MMBOE 11 MMBOE Paus…
Shareholder Focus Continues Regular Dividends* (/share) 1.60 4.3 Billion 1.40 1.40 RETURNED TO 1.20 SHAREHOLDERS 1.00 SINCE 2012 0.80 Dividend Growth 0.60 12% CAGR Last 10 Years 0.40 Current Dividend 1.40/share Annualized…
Price Diversity- Brent Price Spread Back in Form Full Year 2014 Production Basis Price Brent WTI Widening /BBL 70 * 21% 65 LLS** 30% 60 Brent 55 9% Oil-Indexed Gas 50 45 WTI 12% 40 Other 1/1/15 2/1/15 3/1/15 4/1/15…
Well-Positioned Balance Sheet Flexibility 2015 E Net Debt/EBITDA (Mean Consensus Est.) Sources of Liquidity Cash Flow 7x 2.0 Billion Revolver 6x 1 Billion Cash Abroad 5x Investment Grade Maintained 4x MURPHY Positioned to Take…
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