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Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp

Murphy Oil Corp · Mar 25, 2014 · 66 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. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 1
    EXPLORATION DRIVEN. DELIVERY FOCUSED. HOWARD WEIL 42ND ANNUAL ENERGY CONFERENCE ROGER JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER MARCH 25, 25 2014 MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 1
  2. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 2
    Agenda Strategy Why Invest in Murphy North America Onshore North America Onshore Global Offshore Exploration Takeaways Appendix MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 3
  3. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 3
    Our Strategy Exploration Driven Delivery Focused EXPLORATION EXECUTION Oil Weighted, Needle Moving Top Tier Capability on Prospects in Under Explored Basins Prospects in UnderExplored Basins Onshore & Offshore Projects Onshore &…
  4. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 4
    MUR - Compelling Investment Opportunity Transformation to Pure Play E&P Continues Double Digit Growth: Dividends, Production & Reserves Double Digit Growth: Dividends Production & Reserves TopTier EBITDAX/BOE OilWeighted…
  5. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 5
    Shareholder Focus Regular Dividends*, /sh 1.40 1.20 Share Repurchase Program 1.00 Completed 750 Million 0 80 0.80 0.60 250 Million ASR Ongoing 0.40 Retired 16 Million Shares 0.20 0.00 2004 2005 2006 2007 2008 2009 2010 2011 2012…
  6. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 6
    Leading Production Growth Production (20082013), MBOEPD 250 200 60% Increase Since 2008 150 80% Oil & OilIndexed Gas 2013 100 50 0 2008 2009 2010 2011 2012 2013 5Year Production CAGR (20082013), MBOEPD Production per…
  7. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 7
    Leading Reserves Growth Proved Reserves (20082013), MMBOE 700 5 Year Avg Replacement 183% 600 Strong 2013 500 243% Organic Replacement 400 R/P Improves to 9.2 years 300 OilWeighted Portfolio 200 63% Proved Developed 100 72% Oil &…
  8. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 8
    Top-Tier Cash Flow Average EBITDAX/BOE (20092013) 60 50 43.92 OilWeighted Portfolio 40 30 OilIndexed Gas MUR 20 10 0 EBITDAX/BOE (2013) Oil & Liquids Production Weighting (2013) 80 100% 70 80% 60 13% SK Gas OilIndexed 50…
  9. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 9
    Price Advantaged Oil Brent Weighted 100 per Barrel Company Price Diversity Price Diversity OilIndexed Gas 2013 Production Basis Price 2013 Realized Prices (/BBL) Block K (b) 92 (a) Brent SK Oil (b) 102 Other 21% 21% Brent East…
  10. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 10
    2014 Growth & Capital Allocation 280 MBOEPD 260 240.0 Investing in OilWeighted 240 Growth 235.0 220 Eagle Ford Shale 205.7 Malaysia Oil 200 GOM 180 2013 Eagle Ford SK Oil Dalmatian Siakap N. Kakap Other Montney Kikeh S.I. 2014…
  11. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 11
    Portfolio of Sustainable Growth 5.1 BBOE Transparent Progression Risked Exploration of Resource Pipeline of Resource Pipeline 3.9 BBOE 1.2 BBOE 3.6 BBOE Increasingg Uncertainty Risked Expanded Resource Risked Exploration…
  12. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 12
    Execution Ability - Our Calling Card Net Operated MBOEPD 200 Net Operated, MBOEPD 180 PERMAS CAGR: 29% 160 140 W. PATRICIA GOLOK PATRICIA 120 SEAL EAGLE FORD 100 SHALE S. ACIS DALMATIAN 80 THUNDERHAWK KIKEH 60 MEDUSA…
  13. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 13
    NORTH AMERICA ONSHORE MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 14
  14. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 14
    NA Onshore - Balancing the Portfolio Net, MBOEPD 200 150 NA O h NA Onshore Balance B l EFS Growth Leads the Way 100 Seal EOR Growth 2015 Forward Syncrude Long Term Stability 50 70% Oil Weighted 50% NA Onshore in 2019 0…
  15. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 15
    Eagle Ford Shale - 5 Years of Progress N t MBOEPD Net, MBOEPD O W ll C t Op Well Count 60 600 50 500 Continued Production Growth 40 400 30 300 Improving Margins Improving Margins 20 200 Leading EURs with Choke 10 100…
  16. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 16
    EFS - Continuous Improvement Total Operating Costs*, /BOE 40 35 Driving Operating Costs Down 30 25 20 Lower D&C Costs D&C Costs 15 10 50% Spud to TD Improvement 5 0 Since 2010 Since 2010 2011 2012 2013 2014E * All Field…
  17. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 17
    EFS - Running Room NORTH TILDEN Downspacing Working CATARINA KARNES 1,750+ Locations Remaining TILDEN 10+ Years at this Pace 0 10 mi Murphy Acreage Operated NonOperated Spacing Potential Wells Total Well Area Net Acres…
  18. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 18
    EFS - Staggered Downspacing Pilot Jog 1H Upper EFS Well Upper EFS Potential Two Year Production History Testing 20Acre Staggered T ti 20 A St d Downspacing in Karnes Janysek 10H 2014 Staggered Test 350 Eagle Ford Type Log…
  19. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 19
    EFS - Large Predictable Upside 690 MMBOE 700 Reserves Migration Unrisked Downspacing Opportunities 85 MMBOE Added to Proved in 2013 600 & & Performance Resource Base is Growing 190 Added 250 MMBOE for 500 Downspacing Potential…
  20. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 20
    Creating Value in U.S. Unconventional Plays FullCycle Value Created/Lease & Exploration Spend ( Created/ Spent) 4 Global Explorer Peer Group Global Explorer Peer Group 3 Successful Fast Follower 2 Low Exploration & MUR 1…
  21. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 21
    Montney Upside Offset Producers EUR: 6 11 BCF 2014 Focus Integrate New Completions T h i Technique Offset 3rd Party Gas Processing Producers EUR: 7 14 BCF. 2 Rigs with a Potential 3rd 10 Wells in Liq ids Rich Area 10 Wells…
  22. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 22
    Seal - Long-Term EOR Focus Cadotte Thermal 6 Billion BBL OilInPlace Seal 2014 Significant Reserve Upside Thermal CSS North Central Next Thermal Focus Focus Focus on Thermal EOR h l O A Area Harmon Central Valley Seal…
  23. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 23
    GLOBAL OFFSHORE MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 24
  24. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 24
    Global Offshore Without Exploration Upside Net, MBOEPD 250 High Margin Global Offshore 200 No Exploration Included No Exploration Included 150 Near Term Growth from Malaysia & GOM Oil y Developments 100 SK & Block H Gas:…
  25. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 25
    Long Term Oil-Indexed Gas Partnered with PETRONAS SK Gas Global Leader in LNG 1.5 TCF EUR Resource 1.1 TCF Proven & Certified Block H Block H Phase I Rotan & 3 Satellite Fields Brunei CA2 Project Sanctioned 3 Discoveries in…
  26. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 26
    Dalmatian Development ll b b k Twowell Subsea Tieback to Petronius 40 MMBOE Gross Resource Dalmatian North On Track for First Production end 1Q 2014 Dalmatian Third Well Planned for 2015 PETRONIUS Viosca Knoll 786 2014…
  27. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 27
    Siakap North-Petai SIAKAP NORTHPETAI Sanctioned October 2011 DEVELOPMENT WELL STATUS 77 MMBO Gross 8 Producers & 5 Water Injectors First Oil Production February 2014 4 Producers d MURPHY OIL CORPORATION…
  28. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 28
    Strong Project Execution Ability Discovery to First Production y Avgg 8.0 Years Industry Industry Avg FPSO 50% Faster MUR Avg MUR Avg 4 Years Semi, Industry Avg Industry Avg 8.3 Years Spar Spar & 46% Faster TLP MUR…
  29. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 29
    EXPLORATION MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 30
  30. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 30
    Exploration - Renewed Strategy Focus Regions Strong History of Exploration Culture Focus on High Impact Oil Prospects Focus on High Impact Oil Prospects 1 2 3 New Exploration Leadership Team 4 New Rules of Road 1 Gulf of Mexico…
  31. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 31
    Exploration Strategy in Action Experienced Holder in Focus Areas with Running Room Growth through FarmIns & Lease Sales Increased GOM Presence Awarded (50% WI Op) Large Acreage Position in Ceduna Basin, Australia Vietnam Entry with…
  32. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 32
    Exploration Portfolio & Acreage Position Net Risked PMEAN Resource, MMBOE Net Risked Exploration 1,400 1,150 MMBOE (PMEAN) 1,200 1,000 Gulf of Gulf of 800 Australia Mexico 28% 600 30% 400 200 S.E. Asia S E Asia Atlantic 0 18%…
  33. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 33
    2014 Exploration Program BLOCK Q1 14 Q1 14 Q2 14 Q2 14 Q3 14 Q3 14 Q4 14 Q4 14 Bamboo1 Bamboo CAMEROON Ntem 600 MMBOE Currently Drilling EQUATORIAL Block W 3D Seismic GUINEA NAMIBIA 2613 A/B 3D Seismic Whydah Titan1…
  34. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 34
    TAKEAWAYS MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 35
  35. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 35
    5-Year Production Outlook Without Exploration Net, MBOEPD 400 Modest Growth Continues 350 300 8% Production per Debt 250 Adjusted Share CAGR 200 Strong Foundation for 150 Future Growth 100 50 50% NA Onshore in 2019 0 2013…
  36. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 36
    5-Year Production Outlook With Exploration Net, MBOEPD 400 Risked Exploration Success 350 300 Needle Moving Impact 250 9% Production per Debt 200 Adjusted Share CAGR Adjusted Share CAGR 150 80% Oil & OilIndexed 100 GOM…
  37. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 37
    Projected Strong Free Cash Flow Cumulative Free Cash Flow (FCF), MM Cash Flow vs CapEx, MM 6,000 6,000 Risked Exploration App & Dev Share Repurchase Cum FCF w/Explor Success Cum FCF w/o Explor Success Dividends Exploration Wildcat…
  38. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 38
    Investing In Murphy Well Positioned as an E&P Player Profitability Will Continue Due to Diverse Oil Profitability Will Continue Due to Diverse OilWeighted Weighted Business Model p g g ExplorationFocused With Strong Acreage…
  39. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 39
    APPENDIX MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 40
  40. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 40
    Non-GAAP Financial Measure Definitions & Reconciliations The following list of NonGAAP financial measure definitions and related reconciliations is intended to satisfy the requirements of Regulation G of the Securities Exchange Act…
  41. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 41
    Non-GAAP Reconciliation EBITDAX Murphy defines EBITDAX as income from continuing operations before income taxes, exploration expenses, depreciation, depletion and amortization (DD&A), and net interest expense. Management believes…
  42. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 42
    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,…
  43. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 43
    Glossary of Terms DEBT ADJUSTED PER SHARE CALCULATIONS Murphy defines Debt Adjusted Per Share as converting the change in Net Debt into an equivalent amount of equity shares using an average stock price. The equivalent shares are…
  44. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 44
    APPENDIX - NORTH AMERICA ONSHORE MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 47
  45. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 45
    2014 Hedging Positions Volume Field Commodity Type Price* Start Date End Date MMCFPD or BOPD Montney Natural Gas fixed price forward sales 80 CAD3.98 1/1/2014 1/31/2014 Montney Natural Gas fixed price forward sales 110 CAD4.04…
  46. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 46
    EFS - Upside Opportunities 40 Acre Downspacing Pilot, Gross Cum., MBO 40 Acre Downspacing Pilot Gross Cum MBO 48 40 YBar Wells Offset Wells Downspacing Recovery 32 Avg rate: 350 BOPD/Well Comparable to Offset 80 Acre 24…
  47. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 47
    EFS - Overview NORTH TILDEN 15,349 Acres 7 Wells Drilled 168 Remaining Wells p 80Acre Spacing g TILDEN 42,131 Acres , KARNES 177 Wells Drilled 13,425 Acres 520 Remaining Wells 155 Wells Drilled 40Acre Spacing 200…
  48. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 48
    EFS - Karnes Type Curve Karnes Type Curve 80 Acres, Gross BOEPD 800 700 600 500 400 300 200 100 0 0 50 100 150 200 250 300 350 Days on Production y 2014 Planned Activity Karnes Type Well (75% WI, 56.25% NRI) Drill 39…
  49. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 49
    EFS - Tilden Type Curve Tilden Type Curve 80 Acres, Gross BOEPD 450 400 350 300 250 200 150 100 50 0 0 50 100 150 200 250 300 350 Days on Production y 2014 Planned Activity Tilden Type Well (100% WI, 75% NRI) Drill 60…
  50. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 50
    EFS - Catarina Type Curve Catarina Type Curve 80 Acres, Gross BOEPD 450 400 350 300 250 200 150 100 50 0 0 50 100 150 200 250 300 350 Days on Production y 2014 Planned Activity Catarina Type Well (100% WI, 75% NRI) Drill…
  51. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 51
    EFS - Upside Areas Pearsall / Buda Potential Pearsall / Buda Potential Well Down Well Downspacing & Optimization Pearsall Focus Area Evaluating Potential Staggered Well Design Buda Play Focus Area ChalkFord Focus…
  52. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 52
    EFS - Pearsall Shale Unrisked Mean Resource Potential = 74 MMBOE MURPHY Traugott Pearsall LSWT 1H Pearsall Shale Pearsall Shale 25,000 Acs 25,000 Acs Core Focus Area Pearsall Shale Pearsall Shale 45,000 Acs 45,000…
  53. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 53
    EFS - Buda Play Buda Fractured Lime Play Testing 2H 2014 Buda Play Focus Area Existing Buda Cumulative Production B d Pl Buda Play Verticals Horizontals Focus Area < 10,000 BBLS < 10,000 BBLS 10,001 50,000 BBLS…
  54. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 54
    EFS - Double K Area Chalk-Ford Pilot Double K 1H 4H Landing Point of Staggered Laterals: DK 1H - 4H PAD ChalkFord Staggered Pilot Pad Focus Area ChalkFord Pilot Focus Base Austin Chalk Top EFS 0 10 mi DK 4H LP PAD Staggered…
  55. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 55
    APPENDIX - GLOBAL OFFSHORE MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 58
  56. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 56
    Malaysia - Block K PSC Oil & Gas Revenues Treated Distinctly Liquid Hydrocarbons Contractors Share Royalty: 10% Production Cum. Prod < 300 MMBBL Cum. Prod. 300 MMBBL (MBOPD) (< Liquid THV*) (< Liquid THV*) ( Liquid THV*) (…
  57. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 57
    Malaysia - SK-309 & SK-311 PSC Oil & Gas Revenues Treated Distinctly Below THV* Total Cost Royalty: 10% R/C Index Tranche Contractor Contractor % Unused Cost, % Profit Share, % Cost Recovery Limit: Slidingscale Cost 0 1.0 70% 80%…
  58. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 58
    Long Term Oil-Indexed SK Gas SK Gas 1.5 TCF EUR Resource 1.1 TCF Proven & Certified Phase II Phase II Contracted 300 OilIndexed Gas Price G MMCFPD Gross, MMCFPD 250 200 Phase I Long Term Production Phase II 250 MMCFD 150…
  59. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 59
    Block H Floating LNG Feed Gas for 1.5 MMTPA PETRONAS FLNG Project Sanctioned Jan. 2014 Phase 1 Rotan & 3 Satellite Fields Phase 1 Rotan & 3 Satellite Fields 1 TCF Discovered Reserves 270 MMCFPD Peak Gross 10 Years FLNG…
  60. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 60
    APPENDIX - EXPLORATION MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 63
  61. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 61
    Australia Ceduna Basin EPP 43 EPP 44 EPP 37 Murphy (WI 50%, Operator) EPP 38 EPP 39 E i l t T 700+ GOM Bl k Equivalent To 700+ GOM Blocks EPP 40 EPP 45 Six Year Exploration Period Murphy / Santos Vast Unexplored…
  62. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 62
    S.E. Asia - Brunei Block CA-2 3 Gas Discoveries in 2013 Kelidang NE1 Keratau1 Keratau 1 Kempas1 Excellent Quality Pliocene Reservoirs Q y Gross Resource up to 2 TCF Kelidang NE Discovery & Follow g y Up Prospects WI 30%…
  63. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 63
    Atlantic Margin - Cameroon Ntem Multiple Prospects & Leads Bamboo1 Elombo Eboni1 Stacked Fan Play Early Tertiary Late Cretaceous WI 50% (Op) Bamboo1 Bamboo1 Currently Drilling y g Prospect Gross Resource: PMEAN 600…
  64. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 64
    Gulf of Mexico - Titan Prospect Dalmatian South Titan Jurassic Norphlet Area Murphy Leasehold Strong Norphlet Position High Impact Oil Play Jurassic Aoelian Reservoir Titan WI 50% (Op) Titan WI 50% (Op) Prospect Gross…
  65. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 65
    S.E. Asia - Vietnam B ildi A P iti Building Acreage Position Shallow Water: Block 13/03 WI 20% (NonOp) Hon Khoai Prospect 85 MMBO PMEAN Gross 85 MMBO P G Block 112/11 WI 60% (Op) Interpretation of 2013 3D Interpretation of…
  66. Howard Weil 42nd Annual Energy Conference – Murphy Oil Corp – slide 66
    Indonesia - Semai II Serai & Bawang Putih Gross Resource Potential PMEAN 3.4 TCF On Shelf in 6080m Water Depth 0 300 km WI 28.3% (Op) WI 28.3% (Op) Serai & Bawang Putih Prospects Spud Late March or Early May 2014 Tangguh LNG…

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