BERNSTEIN 32ND ANNUAL STRATEGIC DECISIONS CONFERENCE JUNE 2, 2016 ROGER JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER
Agenda 01 Business Update 02 Asset Review 03 Financial Outlook 04 Takeaways MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 3
Diversified Global Operations MONTNEY EFS MALAYSIA MURPHY 14 Net TCF Remaining Resource +2,000 Remaining Locations Successful Deepwater & Shallow Water Proven Safety Track Future Growth of 1,000+ Potential Austin Chalk Upside Oil…
Lower for Longer Perspective While Maintaining Strategy LOWER FOR LONGER STRATEGY MINIMAL CAPITAL Spend Develop DIFFERENTIATED PERSPECTIVES in Underexplored Basins and Plays Focus on COST REDUCTIONS Continue to be a PREFERRED…
Exercising Capital Discipline Capex Reduction Aligns Activity Levels with Lower Price Environment 2016 Total Capex, 620 Million 620 MM 2016 Capital Including JV Kaybob Duvernay & Placid Montney EFS 19% Montney 73% Reduction in EFS…
Continued Focus on Cost Reductions Cash Costs*, /boe 21.63 20.00 33% Reduction in FY Cash Costs from 2013 17.75 Reduced 1Q 16 Cash Costs by 15.00 Over 17% Y-O-Y 15.42 14.59 12.73 10.00 1Q 15 1Q 16 2013 2014 2015 *…
2015 An Outstanding Year in Reserve Replacement Proved Reserves YE 2015 774 MMboe EFS Total Replacement 123% 21% Resource (Other) Offshore 35% 10th Consecutive Year 100% 31% Syncrude/Heavy 10% 62% PD 5 Year Reserve Life Increase…
Repositioning the Portfolio DIVESTED MONETIZED MONTNEY MIDSTREAM l Closed 2Q 16 C1.4 BN C539 MM Proceeds Proceeds Allocated to Portfolio Enhancements and Cash on Balance Sheet 20 Year Customary Fee Structure SIGNED PSA TO SELL…
ASSET REVIEW MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 12
Global Offshore Operations 2015 Proved Reserves Price Diversity Block K & SK Premium to Brent 28% SK Gas Oil Indexed Natural Gas 31% 166 MMboe Partnered with PETRONAS 41% Block H Sarawak 9 Producing Fields Sarawak Block K…
North America Offshore Operations East Coast Canada 2015 Proved Reserves Gulf of Mexico 4 Operated Producing Fields 37% 72 HIBERNIA Medusa MMboe Gulf of Mexico Front Runner 63% Thunder Hawk Dalmatian Canada Offshore 3 Non-Op…
North America Onshore Operations 2015 Proved Reserves US Onshore 33% Eagle Ford Shale (Operated) Gas 21% MONTNEY Karnes 536 EFS SYNCRUDE 50% Canada Onshore SEAL Tilden/N. Tilden MMboe Syncrude DUVERNAY Catarina 29% 67% Oil…
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 231 Wells Drilled* 416 Wells Drilled* 600 Mboe Estimated per Well EUR 360-435…
Eagle Ford Shale Austin Chalk Upside Karnes Catarina JOG Unit A 1H on Production 4Q 15 Test Well Planned to Drill 2Q 16 183 Mboe Cumulative Production to Date 25 MMboe Preliminary Net Resources JOG Well Preliminary EUR Type Curve 570…
NA Onshore Operations Tupper Montney Natural Gas Gathering System Tupper Main TCPL Main Transmission Line 30,000 Net Acres 110 MMcfd Plant Capacity (Gross) 114 Wells Drilled* 1Q 16 Net Production: 78 Mmcfepd Tupper West…
NA Onshore Operations Kaybob Duvernay & Placid Montney Strategically Complements NA Onshore Black Oil Unconventional Portfolio Light Oil T64 Infrastructure in Place Gas Condensate 220,000+ Prospective Net Acres Established…
NA Onshore Kaybob Duvernay 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…
NA Onshore Placid Montney Montney Most Drilled Canadian Play in 2015 Condensate Limit CIOC Significant Liquids Component (30%) 7 Gens Improved Results Provide Economic Upside Velvet Omers Increasing Well EURs Across the Play…
FINANCIAL OUTLOOK MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 22
Murphy Financial Position as of March 31st 550 MM in Debt Maturities within Next Five Years 1.1 BN Liquidity Available Under Revolver 2.6 BN 2Q 16 Midstream Monetization Proceeds C539 MM Cash on Balance Sheet Expected 2Q 16 Close of…
Focus During the Down Cycle PRESERVING LIQUIDITY 2016 Capex 620 MM, 72% Reduction from 2015 Levels Securing Longer Tenor on Revolver Non Core Asset Sales Continue to Review Portfolio OPERATIONAL ENHANCEMENTS Continue to…
TAKEAWAYS MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 25
Takeaways Recalibrate the Company to be Successful in Low Prices Aggressive Reductions on Capital and Cash Costs Entered Year with Strong & Diversified Reserve Base Significant Changes in Portfolio Maintain Balance Sheet to…
Loading...
