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Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp

Murphy Oil Corp · Feb 24, 2016 · 35 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. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 1
    CREDIT SUISSE 21ST ANNUAL ENERGY SUMMIT FEBRUARY 24, 2016 ROGER JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 1
  2. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 2
    Agenda Business Update Progressing the Portfolio Takeaways MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 3
  3. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 3
    Murphy Overview 2015 Proved Reserves Balanced Reserve Portfolio Onshore North American Shale and Offshore Reserves 22% EFS Outstanding Reserve Replacement History 35% Canada Onshore with F&D Cost Improvements 774 6% Canada…
  4. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 4
    Business Update Financial Well-Positioned Spent 2.19 BN Capital Expenditures, 5% Under 2015 Budget CAPITAL DISCIPLINE Reduced LOE /boe by 17% Y-O-Y Reduced G&A by 16% Y-O-Y Reserve Replacement Adding Resource Total Organic…
  5. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 5
    Revised 2016 Guidance 2016 Total Capex, 580 Million 2016 Revised Capex to 580 MM NA Onshore 30% Reduction from Jan 2016 Guidance 47% 73% Reduction from 2015 76% Allocated to Development 20% EFS Offshore 35% Montney 2016…
  6. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 6
    Continued Cost Focus Lease Operating Expense* /boe 15 14.61 13 Focusing on Cost Reductions 11 11.04 Reduced LOE by 19% Q-O-Q 10.14 Reduced LOE by over 17% Y-O-Y 9 9.21 EFS 4Q 15 LOE of 8.46/boe 8.25 7 5 4Q 14 4Q 15…
  7. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 7
    2015 An Outstanding Year in Corporate 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%…
  8. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 8
    GLOBAL OFFSHORE
  9. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 9
    Malaysia Sarawak Block H FLNG SK Gas Reached Record Gross Production De-Risked with Drilling of 2 Wells Volumes of 272 MMcfd in 2015 South Acis Development Drilling Positive Results Brunei CA-2 Keratau Success Working Field…
  10. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 10
    South Acis Field Drilling Results Oil Producer Well Completed 3rd Phase of Program Non Associated Gas Well Deeper Oil-water Contacts and More Net Pay Water Injector Well Gas / Oil Contact Potential Near-field Exploration Well to…
  11. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 11
    Offshore Vietnam Su Tu Den Blk. Ruby / Topaz Blk. 400 MMBOE 130 MMBOE Lac Da Vang Blk. 15-1/05 Rang Dong Blk. 260 MMBOE Cuu Long Basin Thailand New Focus Area Laos Te Giac 144 145Trang Blk. Bach Ho / Rong Blk. 1,900 MMBOE…
  12. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 12
    Gulf of Mexico Dalmatian South 2 70% W.I. (Operator) Kodiak 29% W.I. (Non-Op.) Expanding Dalmatian Infrastructure Tieback to Devils Tower Spud 3Q 15; 1st Oil Dec 2015 First Well Drilled & Completed to Plan Producing 4,000 bopd…
  13. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 13
    NORTH AMERICA ONSHORE
  14. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 14
    Onshore Canada - Montney Tupper West New Well Completions 22 New Wells Online in 2015 50 t 100 t Future Growth of 1000+ Potential Locations 150 t AECO Hedges 2016: 59 MMcfd C 3.19/mcf (AECO) Midstream Monetization 1Q 16…
  15. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 15
    Onshore - Eagle Ford Shale Running Room 648 Operated Online Wells to Date Remaining Resource Potential 800+ MMboe Austin Chalk JOG Unit A 1H - 140 Mboe Cumulative Production in 5 Months Preliminary Net Risked Resource &…
  16. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 16
    PROGRESSING THE PORTFOLIO
  17. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 17
    Montney Midstream Monetization C538 MM Divestiture of Montney Midstream Assets in British Columbia, Canada 100% Cash Proceeds 20 year Customary Fee Structure Assets Include Natural Gas Processing Plants and Sales Pipelines for…
  18. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 18
    Athabasca Oil Joint Venture Transaction C475 MM Joint Venture Agreement in Kaybob Duvernay and Liquids Rich Montney Area C250 MM Cash; C225 MM Flexible Carry Risked Recoverable Resource of 200 - 350 MMboe Net 1. Kaybob Duvernay…
  19. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 19
    Joint Venture Highlights Strategically Complements NA Onshore Unconventional Portfolio Utilizing In-House Expertise Black Oil Capital Flexibility in Volatile Price Environment Light Oil Up to Five Year Ability to Pay Carry Based on…
  20. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 20
    Kaybob Duvernay Overview Emerging as Premier Play Gas Condensate Delivering High Liquid Yields Early Stages of Light Oil Development 67K acres 110K acres Analogous Results to EFS Light Oil Results Continue to Improve Increasing…
  21. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 21
    Comparative Rock Properties in Premier NA Shales MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 22
  22. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 22
    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…
  23. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 23
    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…
  24. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 24
    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…
  25. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 25
    Drilling & Completions Recent Performance Early Stage of Learning Curve Will Benefit from Experience in EFS and Montney Black Oil Industry Driving Well Costs Down as Play is Developed Light Oil A A Reduced Drilling Days…
  26. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 26
    Learning Curve Will Bring Costs Down Proven Track Record of Lowering Costs While EFS D&C Optimizing Drilling & Completion Techniques 12 8,000 Cost per well (MM) Lateral Length (ft) 10 Utilize Internal Expertise and…
  27. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 27
    Growing Heavy Oil and Diluent Demand Alberta Oil Sands Region Production Outlook, Base Case 2014 to 2018: 800 Mbblpd Growth 3500 3000 Alberta Oil Sands Production 2500 From Projects Currently Under mbbl/d 2000 1500…
  28. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 28
    Existing Strategic Infrastructure Battery Capacity (Gross) Gas Pipelines (Gross) Alberta Oil 36,000 bb/d Up to 180 Mmcf/d Gas 84 Mmcf/d, expandable to 130Mmcf/d Source: Athabasca Oil Flexible Takeaway Options With Future…
  29. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 29
    US Unconventional Single Well Economics Current Area Type Curve ROR Catarina KBS 24% Catarina Kone 16% Karnes Lower EFS 20% Tupper Main 48% Tupper West 52% Athabasca Joint Venture Area Type Curve ROR Duvernay Condensate 22%…
  30. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 30
    FINANCIAL OUTLOOK MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 31
  31. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 31
    Murphy Current Profile Debt Balance MM 1,500 Current Maturity Profile* Total Bonds Outstanding MM 2,250.0 Weighted Avg Fixed Coupon 4.07% 1,250 Current Sources of Liquidity Weighted Avg Maturity Date May 2025 Weighted Avg Years…
  32. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 32
    Managing the Balance Sheet Reduced Capital to 580 MM, 73% from 2015 Including a 75% Reduction in the EFS Securing Longer Tenor on Revolver Dividend Review if Commodity Prices Remain at Current Levels Non Core Asset Sales…
  33. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 33
    Takeaways 1 Reducing Capital While Maintaining Production 2 Outstanding Year in Reserves Replacement 3 Balanced Production Between Onshore/Offshore 4 Focusing on NA Unconventional Resources 5 Preserving the Balance…
  34. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 34
    Guidance - 1Q 2016 1Q 2016 1Q 2016 Guidance 1Q 2016 Liquids (bopd) Gas (mcfd) 1Q Production: 126,000 396,000 US - Eagle Ford Shale 49,000 34,000 Gulf of Mexico 16,000 26,000 Canada - Heavy 3,000 2,000 Montney - 203,500 Offshore…
  35. Credit Suisse 21st Annual Energy Summit – Murphy Oil Corp – slide 35
    2016 Hedging Positions Volumes Price Area Commodity Type (bbl/d) (USD/bbl) Start Date End Date United States WTI Fixed price derivative swap 20,000 52.01 01/01/2016 12/31/2016 Volumes Price Area Commodity Type (MMcf/d)…

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