FOURTH QUARTER 2015 EARNINGS CONFERENCE CALL & WEBCAST JANUARY 28, 2016 MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 1
Financial Overview Adjusted Earnings FY & 4Q 15 Contd Ops Deferred Tax on Foreign Distribution 4Q 4Q Full Year Full Year MM 2015 2014 2015 2014 Deepwater Rig Exit Costs Consolidated Non-cash Impairment of Assets Net Income (Loss)…
FY & 4Q 15 Highlights Financial Well-Positioned Spent 2.19 BN Capital Expenditures, 5% below 2015 Budget BALANCE SHEET FLEXIBILITY Reduced LOE /boe by 17% Y-O-Y CAPITAL DISCIPLINE Reduced G&A by 16% Y-O-Y Portfolio Monetization of…
Continued Cost Focus Lease Operating Expense* /boe 15 14.61 13 Focusing on Cost Reductions 11 Reduced LOE by 19% Q-O-Q 11.04 Reduced LOE by over 17% Y-O-Y 10.14 9 9.21 EFS 4Q 15 LOE /boe of 8.46 8.25 7 5 4Q 14 4Q…
2015 Production & Capex Mboepd Net Production BN 230 5.0 Production Capex Malaysia 4.5 Sell-Down 2015 Production 4.0 210 26 4% Ahead of Original Guidance 3.5 Offshore 3.0 SK Gas Higher Nominations 190 2.5 Onshore Additional…
2015 Reserves Proved Reserves YE 2015 774 MMBOE EFS Total Replacement 123% 21% Resource (Other) Offshore 35% R/P Increased to 10.2 years 31% Syncrude/Heavy 62% PD 10th Consecutive Year 100% 10% 38% PUD Conventional 5 Year Avg…
2016 Guidance *2016 Total Capex, 825 Million NA Onshore 2016 Capex* 55% Total Capex 825 MM 15% 62% Reduction from 2015 EFS 82% Development Offshore 6% 41% Montney 45% 5% Seal/Syncrude GOM/E Canada 2016 Production* Sarawak…
PROGRESSING THE PORTFOLIO
Athabasca Oil Joint Venture Transaction Details C475MM Joint Venture Agreement in Kaybob Duvernay and Liquids Rich Montney Area C250MM Cash; C225MM Flexible Carry Risked Recoverable Resource of 200-350 MMBOE Net 1. Kaybob Duvernay…
Transaction Highlights Strategically Complements NA Onshore Portfolio Existing In-House Expertise in Both Types of Plays Capital Flexibility in Volatile Price Environment Up to Five Year Ability to Pay Carry Based on Pricing…
Kaybob Duvernay Overview Emerging as Premier Play Three Segments: Lean Gas, Gas Condensate, Light Oil Gas Condensate Delivering High Liquid 67K acres 110K acres Yields Early Stages of Light Oil Development Analogous Results to EFS…
Kaybob Duvernay Recent Athabasca Performance Black Oil Light Oil T64 Athabasca Well Results Gas Condensate Recent IP(30) Results: Lean 1,380 boepd 62% Liquids Gas 780 boepd 73% Liquids 580 boepd 74% Liquids Athabasca…
Duvernay Condensate Improving Performance By Completion Type Duvernay Rights 1 ATH ATH ATH ATH 2 2 Cumulative, mboe ATH ATH Proppant (/ft) 250 500 750 1000 1 1250 33,000 Gross Acres (Gas Condensate) 1500 1750…
Duvernay Light Oil Improving Performance By Completion Type 21 ATH ATH Duvernay Rights ATH ATH ATH* Cumulative, mboe 2 ATH Proppant (/ft) 1 500 750 1000 67,000 Gross Acres (Light Oil) 1250 110,000 Gross Acres…
Liquids Rich Montney Overview Montney Most Actively Drilled Canadian Play Condensate Limit in 2015 CIOC 7 Gens Significant Liquids Component (30%) Omers Velvet Results Continue to Improve Providing Upside Chevron to Economics…
Drilling & Completions Recent Performance Early Stage Of Learning Curve Will Benefit From Experience in EFS and Montney Athabasca Industry Already Driving Well Costs Down As Play Is Developed Reduced Drilling Days Efficiencies…
Takeaways 1 Preserving the Balance Sheet 2 Continuing Cost Reduction Focus 3 Eagle Ford Shale Continues to Build Value 4 Minimal Exploration Spend 5 Driving Efficiencies Offshore & Onshore 6 Outstanding Year…
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