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Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp

Murphy Oil Corp · Mar 22, 2016 · 36 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. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 1
    SCOTIA HOWARD WEIL 44TH ANNUAL ENERGY CONFERENCE MARCH 22, 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. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 2
    Diversified Global Operations Montney 17 TCF Remaining EFS +2,000 Remaining Malaysia Brent Weighted Murphy Proven Safety Resource Locations Production Base Track Record Duvernay 200 to 350 MMboe GOM 20% Reduction in Malaysia/Brunei…
  3. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 3
    Murphy Strategy Lower for Longer 2016 Capex Reduced to 580 MM 73% Below 2015 Levels 0.6 BN Drawn on 2.0 BN Revolver Preserving the 0.4 BN Cash & Liquid Invested Securities Balance Sheet Midstream Asset Sale Proceeds Duvernay JV…
  4. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 4
    2016 Guidance 2016 Total Capex, 580 Million 2016 Capex to 580 MM NA Onshore 73% Reduction from 2015, Including a 75% 47% Reduction in EFS 76% Allocated to Development 20% EFS Offshore 35% Montney 2016 Production 53% 7%…
  5. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 5
    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…
  6. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 6
    2015 An Outstanding Year in Reserve Replacement Proved Reserves YE 2015 774 MMboe EFS Total Replacement 123% 21% Resource (Other) R/P Increased to 10.2 years Offshore 31% 35% Syncrude/Heavy 10th Consecutive Year 100% 62% PD 10% 38%…
  7. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 7
    Global Offshore Operations Price Diversity Block K & SK Premium to Brent 2015 Proved Reserves SK Gas Oil Indexed Natural Gas Partnered with PETRONAS 31% 28% Sarawak 166 MMboe Block K Block H Sarawak Block H 9 Producing Fields…
  8. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 8
    South Acis Field Drilling Results Oil Producer Well Completed 3rd Phase of Program Non-Associated Natural Gas Well Deeper Oil-water Contacts and More Net Pay Water Injector Well Gas / Oil Contact Potential Near-field Exploration…
  9. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 9
    Offshore Vietnam Su Tu Den Blk. Ruby / Topaz Blk. 400 MMBOE 130 MMBOE Lac Da Vang Blk. 15-1/05 Cuu Long Basin Rang Dong Blk. 260 MMBOE New Focus Area Thailand Laos 144 Bach Ho / Rong Blk. Te Giac 145Trang Blk. 1,900 MMBOE…
  10. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 10
    North America Offshore Operations East Coast Canada HIBERNIA Gulf of Mexico 2015 Proved Reserves 4 Operated Producing Fields Medusa Front Runner 37% 72 Gulf of Mexico TERRA NOVA Thunder Hawk MMboe Canada Offshore Dalmatian 63%…
  11. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 11
    Gulf of Mexico Dalmatian South 2 70% W.I. (Operator) Kodiak 29% W.I. (Non-Op.) Expanded Dalmatian Infrastructure Tieback to Devils Tower Spud 3Q 15; First Oil 4Q 15 First Well Drilled & Completed to Plan Producing 4,000 bopd…
  12. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 12
    North America Onshore Operations 2015 Proved Reserves Price Diversity US Onshore LLS 33% Gas 21% CA Onshore WTI EFS MONTNEY 536 50% Canada Onshore SYNCRUDE MMboe Syncrude SEAL US Onshore 29% Eagle Ford Shale (Operated) 67%…
  13. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 13
    NA Onshore Operations - Montney Natural Gas Processing Plant 22 New Wells Online in 2015 Natural Gas Gathering Future Growth of 1000+ Potential Locations System TCPL Main Transmission Line 17 TCF Gross Resource (14 TCF Net)…
  14. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 14
    Onshore Canada - Montney Tupper West New Well Completions AECO Hedges 50 t 100 t 2016: 59 MMcfd C 3.19/mcf (AECO) 150 t Midstream Monetization 2Q 16 Expected Close Targeting 15 BCF Wells in 2016 Longer Laterals: Shift from 5,200…
  15. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 15
    US Eagle Ford Shale Oil Weighted & Ground Floor Entry Karnes Tilden/N. Tilden 11,200 net acres at 40 Acre Spacing 77,400 net acres at 40/80 Acre Spacing 228 Wells Drilled* 410 Wells Drilled* 600 Mboe Estimated per Well EUR 360-435…
  16. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 16
    Onshore - Eagle Ford Shale EFS Average Type Curve - Cumulative BOE Production 80 70 2015 2014 Running Room 60 2013 50 2012 648 Operated Online Wells at YE15 (90% Liquids) 2011 MBOE 40 30 Austin Chalk 20 JOG Unit A 1H - 140…
  17. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 17
    EFS PV-10 Break-Even Oil Price by Area 90% of Remaining Locations Have WTI Break-Even Cost of 40.50/bbl or Less 40.50 40.50 Catarina - Kone - 38% Central Tilden - 21% 35.50 36.50 Karnes - 16% Catarina - KBS - 10% 32.00 East…
  18. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 18
    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…
  19. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 19
    Athabasca Oil Joint Venture Transaction C475 MM Joint Venture Agreement in Kaybob Duvernay and Liquids Rich Montney Area C250 MM Cash; C225 MM Up to Five Year Carry Net Risked Recoverable Resource of 200 - 350 MMboe 1. Kaybob…
  20. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 20
    Joint Venture Highlights Strategically Complements NA Onshore Unconventional Portfolio Utilizing Established In-House Expertise Black Oil Capital Flexibility in Volatile Price Environment Light Oil Up to Five Year Ability to Pay…
  21. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 21
    Kaybob Duvernay Overview Emerging as Premier Play Gas Condensate Delivering High Liquid Yields Early Stages of Light Oil Development Analogous Results to EFS Light Oil Results Continue to Improve Increasing Well EURs Optimizing…
  22. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 22
    Comparative Rock Properties in Premier NA Shales Kaybob MONTNEY DUVERNAY Montney Eagle Ford Wolfcamp Duvernay Depth (ft) 9,350 10,800 5,400 11,000 6,600 14,000 5,500 9,500 Thickness up to 165 660 1,150 75 250 200 600 Gradient…
  23. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 23
    Liquids Rich Montney Overview Montney Most Drilled Canadian Play in 2015 Condensate Limit CIOC Significant Liquids Component (30%) 7 Gens Velvet Omers Improved Results Provide Economic Upside Increasing Well EURs Across the Play…
  24. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 24
    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…
  25. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 25
    Learning Curve Will Bring Costs Down Proven Track Record of Lowering Costs While EFS D&C Optimizing Drilling & Completion Techniques 10 8,000 Cost per well (MM) Lateral Length (ft) Utilize Internal Expertise and Partner…
  26. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 26
    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…
  27. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 27
    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…
  28. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 28
    Murphy Unconventional Single Well Economics Area Type Curve ROR EFS Catarina KBS 25% Catarina Kone 18% Karnes Lower 29% Montney Tupper Main 42% Tupper West 40% Athabasca Joint Venture Duvernay Condensate 21% Duvernay Light…
  29. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 29
    Murphy Current Profile Financial Position 550 MM in Debt Maturities Within Next Five Years 2.4 BN* 1.4 BN* Liquidity Available Under Revolver Midstream Monetization Partial Proceeds - Cash on Balance Sheet 36% Total Debt / Total…
  30. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 30
    Focus During the Down Cycle 2016 Capex 580 MM, 73% Reduction from 2015 Levels Securing Longer Tenor on Revolver Preserving Dividend Review if Commodity Prices Remain at Current Levels Liquidity Non Core Asset Sales Continue to…
  31. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 31
    Murphys Future is Abundant with Resource 16,000 Brunei Resource EFS Vietnam Resource +800 Mmboe Net Remaining Resource 1,400 14,000 2,000 Remaining Locations Additional Upside From Down-spacing and Austin Chalk 1,200 Duvernay…
  32. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 32
    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…
  33. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 33
    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)…
  34. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 34
    Eagle Ford Shale - Running Room 20 Wells Planned for 2016 800+ MMBOE Proved & Net Recoverable Resource 2,055 per Acre Early Entrant Lower EFS Op & Lower EFS Spacing Proved Offset EFS Probable/Unrisked Total Well Count Area…
  35. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 35
    Duvernay Condensate Improving Performance By Completion Type Cumulative (Normalized for Downtime) 2 ATH 1 2 ATH ATH ATH Proppant (/ft) 250 500 6 mi. 750 1000 1 1250 33,000 Gross Acres (Gas Condensate) 1500 1750…
  36. Scotia Howard Weil 44th Annual Energy Conference – Murphy Oil Corp – slide 36
    Duvernay Light Oil Improving Performance By Completion Type Cumulative (Normalized for Downtime) 1 ATH 2 ATH ATH 2 ATH* Proppant (/ft) 6 mi. 1 500 750 1000 67,000 Gross Acres (Light Oil) 1250 110,000 Gross Acres…

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