BARCLAYS CEO ENERGY-POWER CONFERENCE SEPTEMBER 8, 2016 Roger W. Jenkins PRESIDENT & CHIEF EXECUTIVE OFFICER
Agenda 01 Business Update 02 Portfolio Review 03 Takeaways MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 3
Murphy At a Glance KEY AREAS OF PRODUCTION Seal Long Corporate History, IPO in 1956 Duvernay/ Montney Hibernia / Terra Nova Global, Diversified Asset Base Provides Balance Eagle Ford Shale Gulf of Mexico Stable Cash Flows from…
Recalibrating the Company Portfolio Repositioning Stabilize Production Cost Reductions Shareholder Focus Preserve Balance Streamlining NA Onshore at Lower Capex 14% LOE Reductions Adjusted Dividend Sheet Portfolio Significant…
Portfolio Repositioning Divested Non-Core Assets Entered ADDED Into Strategic JV NET RISKED RECOVERABLE MONTNEY MIDSTREAM TOP OF CYCLE KAYBOB DUVERNAY & PLACID MONTNEY C539 MM Proceeds from Sale Before Closing BOTTOM OF CYCLE…
Stabilize Production at Lower Capex 2016 Total Capex, 620 Million NA Onshore 53% 620 MM 2016 Capex 14% Excluding 207 MM Associated with Offshore 32% Eagle Ford Shale Acquisition of Kaybob Duvernay & 47% Placid Montney JV Canada…
Cost Reductions Lease Operating Expense* /boe 11.00 9.00 Focusing on Cost Reductions 2Q 16 7.00 Reduced LOE Costs 23% Q-O-Q 5.00 2Q 15 FY 15 2Q 16 Reduced Recurring G&A Costs by *Excludes both Syncrude and Severance & Ad…
Shareholder Focus Dividend Yield MUR 3.7% Committed to the Dividend APA 2.0% Top Quartile Yield Among Peer Group HES 2.0% Recalibrated Dividend in 3Q 16 MRO 1.3% NBL 1.2% 9% CAGR Over the Last 11 Years EOG 0.7% Current Annualized…
Preserve Balance Sheet Debt Maturity Profile MM New 1.2 BN Credit Facility with 3 Year Maturity Senior Notes Undrawn RCF 1,500 630 MM of Existing Non-Extending Commitments Expire June 2017 1,000 Zero Drawn on Credit…
PORTFOLIO REVIEW MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 12
North America Onshore Operations 2015 Proved Reserves* 8% NGL 42% Gas 36% 421 Eagle Ford Shale MONTNEY MMboe Canada Onshore 64% Canada Onshore SEAL DUVERNAY Kaybob Duvernay (Operated) Placid Montney (Non-Op) 50% Oil Tupper…
US Eagle Ford Shale Oil Weighted & Ground Floor Entry Remaining Resource Potential 800+ MMboe Karnes Tilden/N. Tilden 11,200 Net Acres at 40 Acre Spacing 77,400 Net Acres at 40/80 Acre Spacing 240 Wells Drilled* 415 Wells Drilled*…
Eagle Ford Shale Highlights D&C 2016 YTD 10 8,000 Cost per well ( MM) Lateral Length (ft) 8 6,000 EUR 385 600 Mboe 6 D&C Cost 4.2 MM 4,000 4 D&C Cost Per Lateral ft 102 (Drilling); 480 (Completions) 2,000 2 Lateral…
Eagle Ford Shale Break-Even Oil Price by Area 10% 90% of Remaining Locations Have WTI Break-Even Cost of 41/bbl or Less 45 32 Focused on Higher Returning Locations 41 33 Catarina - KBS - 10% Karnes - 16% 41 Catarina - Kone -…
Eagle Ford Shale High Concentration Sand Fracs Successful High Concentration Sand Fracs in Karnes IP Rates 20% Higher than Recent Super Slickwater IP Rates 30% Higher than Early Offset Wells Upper EFS Well Outperforming 600 Mboe…
Austin Chalk Update Future Plans Karnes Karnes Janysek A 1H Online September 2016 Plan to Drill 3 Austin Chalk Wells in 4Q 16 (Online 1Q 17) Plan to Drill 4 Austin Chalk Wells in 2017 Catarina Lopez Unit A 1H Online September 2016…
Recent Austin Chalk and Upper EFS Results Austin Chalk Well Exceeding EFS Type Curve Upper EFS Wells Initial Results Promising JOG Unit A 1H On Production 4Q 15 Evaluating & Defining Areas for Potential Gross IP 1,648 boepd, Cum 261…
Eagle Ford Shale Running Room Oil Significant Multi-Year Inventory with Stacked Pay Potential Upside 800+ MMboe Proved & Net Recoverable Resource Condensate 2,055 per Acre Early Entrant & Liquids Dry Gas Lower EFS Upper EFS…
Tupper Montney Overview Tupper Main 30,000 Net Acres 110 MMcfd Plant Capacity (Gross) Natural Gas Gathering System 20 Year Processing Arrangement with Enbridge 118 Wells Drilled* TCPL Main Transmission Line 2Q 16 Net Production: 79…
Tupper Montney Highlights D&C 8 8,000 Cost per well ( MM) 2016 YTD Lateral Length (ft) 6 6,000 EUR 10 14 BCFE D&C Cost 3.8 4.2 MM 4 4,000 D&C Cost Per Lateral ft 97 (Drilling); 350 (Completions) 2 2,000 Lateral Length…
Kaybob Duvernay & Placid Montney Kaybob Duvernay 70% WI, Operatorship 232,000 Gross Acres (200,000 Currently Prospective) 3Q 16 Estimated Production: 2,800 boepd 500 700 Mboe Estimated Per Well EUR (55 80% Liquids) Area Includes…
Kaybob Duvernay Activity Update 2H 2016 Plans 2 Wells Drilled; 4 Wells On-Line Long Term Growth 500 600 Gross Locations Condensate 160 Acre Spacing ATH 01-05 PAD Light Oil 160 Acre Spacing 4-32 PAD (3Wells) 500+ Potential…
Placid Montney Activity Update 2H 2016 Plans 12 Wells Drilled; 4 Wells On-Line PLACID PLACID Long Term Growth Delphi 02/14-27 100 200 Gross Locations ATH 8-20 Well IP 30: 1169 boepd (152 BMP, 48% Liq) 210 Acre spacing…
Unconventional Single Well Economics Area Type Curve ROR EFS Catarina KBS 42% Catarina Kone 29% Karnes Lower 34% Kaybob Duvernay Duvernay Condensate 24% Duvernay Light Oil 36% Montney Tupper Main 32% Tupper West 44% Placid…
Southeast Asia Offshore Operations Extensive Operating Experience in the Area Developed Through 15+ Year Presence in the Region Long Life, Shallow Decline Assets Provide Steady Cash Flow Block H Brent Linked Assets Serving Asian…
Australia Ceduna & Vulcan Basins Ceduna Basin EPP43 Murphy 50% WI, Operator Murphy & Santos Term: 2013 2019 AUSTRALIA 6,600km2 3D Seismic Entered with Seismic Only Commitments EPP43 EPP37 Numerous Structures Have Been Identified…
Malaysia Overview Kikeh Production First Production: 2007 30% Sell 100.0 2015 Proved Reserves Subsea Tieback to FPSO or Spar 84.8 88.8 88.2 88.6 Down 90.0 Current Net Production: 13,200 boepd 80.0 Production (Mboepd) 1% 70.0…
North America Offshore Operations East Coast Canada 2015 Proved Reserves East Coast Canada 2 Non-Op Producing Fields HIBERNIA Hibernia 37% Canada Offshore 72 Gulf of Mexico Terra Nova MMboe GOM 63% Gulf of Mexico 4 Operated…
Gulf of Mexico Overview Operated Murphy Leasehold Murphy HBP Murphy Facility Medusa 60% WI First Production: November 2003 Current Net Production: 4,800 boepd Field Expansion: 2015 Front Runner 62.5% WI First Production: December…
Murphys Future is Abundant with Resources 16,000 Eagle Ford Shale Vietnam Resource Brunei Resource +800 MMboe Net Remaining Resource 1,200 2,000 Remaining Locations Kaybob Duvernay/ 14,000 Additional Upside from Down-spacing and…
Takeaways Repositioned Company Recalibrated Dividend Maintain Shareholder Focus New Capital Structure Unsecured Credit Facility Three Significant NA Unconventional Assets Cash Flow Providing Offshore Business MURPHY OIL…
Guidance 3Q 2016 3Q 2016 3Q 2016 Guidance 3Q 2016 Liquids (bopd) Gas (mcfd) 3Q Production: 103,500 390,000 US - Eagle Ford Shale 41,000 35,000 Gulf of Mexico 12,000 14,000 Canada Heavy 3,000 2,000 Montney and Duvernay 2,000…
2016 Hedging Positions Volumes Field Commodity Type (bbl/d) Price (USD/bbl) Start Date End Date United States WTI Fixed Price Derivative Swap 25,000 50.67 7/1/2016 12/31/2016 United Stated WTI Fixed Price Derivative Swap 12,000…
Asset Overview At December 31, 2015 (Excluding Syncrude) Crude Oil NGLs Natural Gas Total Proved Developed Reserves: (Millions of Barrels) (Billions of Cubic Feet) (Millions of Barrels Equivalent) United States 125.9 20.7 148.3 171.3…
Eagle Ford Shale Stacked Pay Potential Upside Stacked Potential in Majority of TILDEN Acreage Austin Chalk 500 CATARINA Austin Chalk 500 Upper EFS Down-spacing Testing Ongoing in 800 Upper and Lower EFS Lower EFS 600 Upper…
Eagle Ford Peer Acreage Oil Condensate & Liquids Dry Gas Matador Resources MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 49
Austin Chalk Well Comparison No Major Differences in Geology/Fracturing in Peer Acreage vs MUR Primary Differences Are in Completions & Production Murphy JOG A 1H Completions Leading Austin Murphy Avg 30-day IP = 1,096 (Bopd)…
Vietnam Cuu Long Entry Su Tu Den Blk. Ruby / Topaz Blk. 400 MMBOE 130 MMBOE Lac Da Vang Blk. 15-1/05 Signed Farm-in Agreement for Block 15-1/05 Material Discovered Resource Rang Dong Blk. 260 MMBOE with Exploration Running…
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