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Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp

Murphy Oil Corp · Mar 2, 2017 · 43 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. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 1
    SIMMONS & COMPANY 17th ANNUAL ENERGY CONFERENCE MARCH 2, 2017 Roger W. Jenkins PRESIDENT & CHIEF EXECUTIVE OFFICER
  2. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 2
    Agenda 01 Business Update 02 2017 Budget Strategy 03 Portfolio Review 04 Looking Ahead MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 3
  3. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 3
    Murphy Overview Balanced Oil-Weighted Production Base KEY AREAS OF PRODUCTION FY 2016 Production 176 Mboepd, 167 Mboepd Excluding Divestitures Balanced, Low Risk Growing Onshore and Cash Generating Offshore Production Duvernay…
  4. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 4
    Full Year 2016 Highlights Stabilizing FY 16 Production Averaged 176 Mboepd, 167 Mboepd Excluding Divestitures Production with 2016 Capital Spend 605 MM* Balanced, Low Risk Growing Onshore and Cash Generating Offshore Production Lower…
  5. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 5
    2016 Production & Capex 2016 Total Capex, 605 Million* FY 2016 Net Production Field Development & Development Drilling 80% FY 16 Production Averaged 176 Mboepd FY 16 Production Averaged 167 Mboepd Excluding Divestitures NA Onshore…
  6. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 6
    2016 Reserves 2016 Proved Reserves 2016 Reserves 685 MMboe 800 23% Eagle Ford Shale 750 Proved Reserves, MMboe 35% Canada Onshore 700 52 50% PDP Canada Offshore 7% 50% PUD GOM 650 Offshore 774 - 121 49 33% 3% Malaysia 600…
  7. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 7
    2017 BUDGET STRATEGY MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 8
  8. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 8
    2017 Capital Budget Strategy Financial Strategies Targeting Cash Flow Neutrality Preserving Financial Strength & Liquidity While Maintaining Dividend Continuing to Focus on Cost Structure & Efficiency Improvements Stabilizing…
  9. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 9
    2017 Production & Capex Guidance 2017 Annual Capex Guidance at 890 MM 2017 Total Capex, 890 Million* 590 MM Allocated to NA Onshore Unconventional Onshore Production Growth 9%** Guidance Assumes 52/bbl WTI and 3.10/Mcf HH NA…
  10. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 10
    PORTFOLIO REVIEW MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 11
  11. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 11
    North America Onshore Operations Significant Operated Positions in Three 2016 Proved Reserves Growing, Premier Unconventional Basins 9% 2 Developed Plays and 1 Emerging Play NGL Transfer Learnings & Technical Expertise from EFS &…
  12. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 12
    Eagle Ford Shale Overview Remaining Resource Potential 800+ MMboe with Over 2,000 2016 Proved Reserves Remaining Locations 14% Karnes Catarina 11% 243 Oil MMboe Natural Gas 11,200 Net Acres at 40 to 80 48,000 Net Acres at 70 to…
  13. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 13
    Eagle Ford Shale Highlights Stable Asset at Current Capex Levels (370 MM) 2017 Estimates Delivers 500 MM Cash Flow at 52 WTI, 3.10 HH Well Plan 72 Wells Drilled , 71 Wells Online EUR 385 600 Mboe 2016 Reserves 243 MMboe (88%…
  14. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 14
    Recent Eagle Ford Shale Results Austin Chalk Well Results Karnes 200 Four Well Pad Brought Online 1Q 17 Outperforming Each Type Curve Increased Sand Concentration, Reduced Cluster Spacing Cum Gross MBOE 150 Continue to Make…
  15. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 15
    Catarina Comparison to Karnes Catarina vs Karnes Cumulative Cash Flow Improving Well Productivity and Efficiencies in D&C 4 Cumulative Undiscounted AFIT CF & 50/BBL Leading to Similar Cash Flows with Karnes 3 2 Over 940…
  16. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 16
    Tupper Montney Overview 2016 Proved Reserves Tupper Montney 100,000 Net Acres 320 MMcfd Plant Capacity (Gross) 157 Natural MMboe 230 Total Wells Online* Gas 20 Year Processing Arrangement with 100% Enbridge Over 1,450 High…
  17. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 17
    Tupper Montney Highlights Stable Production with Low Capital Spend (35 MM) 2017 Estimates Delivers 85 MM Cash Flow at 52 WTI, 3.10 HH Well Plan 6 Wells Drilled , 5 Wells Online EUR 14 17 BCFE 2016 Reserves 943 Bcf (157 MMboe) D&C…
  18. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 18
    Recent Tupper Montney Results Completed 2 Wells During 4Q 16 Tupper Completions 2,500 9,300 Laterals (1,000 lb/ft) 300 4Q16 Completions 19 BCF EUR Expected 250 200 Outperforming Cumulative Gas Produced, MMSCF 150 2,000…
  19. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 19
    Kaybob Duvernay Overview Kaybob Duvernay 2016 Proved Reserves 70% WI, Operatorship 8% 140,000 Net Acres First Production: May 2016 Oil 54 54 Total Wells Online* 49% MMboe Natural Gas 500 700 Mboe Estimated Per Well EUR (55 80%…
  20. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 20
    Kaybob Duvernay Highlights 4 Well Pad (4-36) Kaybob North Kaybob East 4,100 ft Wells Performing to Plan at 470 MBOE Type Curve First Murphy 2 Well Pad (1-18) Spud 4Q 16 Simonette Anticipated EUR 500 Gross Mboe (59% Liquids)…
  21. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 21
    Kaybob Duvernay Appraisal Strategy 2017 2018 Appraisal Plans Short-Term Strategic Objectives Highly Scientific & Deliberate Geographic & Stratigraphic Delineation Designed to Appraise Data for Full-Scale Development Plans Plan…
  22. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 22
    2017 Kaybob Duvernay Appraisal Plan 2017 Total Wells Drilled: 16 2017 Total Wells Completed: 11 6 Target Avg Lateral Length: 9,800 ft 4 1 2 Well Pad, Condensate, Online 1Q 17 11 8 2 3 5 2 2 Well Pad, Oil, Online 2Q 17 1 3 3 Well…
  23. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 23
    NA Onshore Remaining Locations Break-Evens Liquids Liquids 1000 Over 2,400 Locations Break-Even Less Than 50 WTI 864 795 Limited Data on Upper EFS, Austin Chalk, Kaybob 800 759 Duvernay 2017 2018 Plan Includes Appraisal Wells…
  24. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 24
    Global Offshore Operations 2016 Proved Reserves 2% NGL 10% 45% 20% 225 Gas 53% Hibernia MMboe Oil Terra Nova 70% Gulf of Mexico Malaysia SE Asia US Offshore CA Offshore FY 16 Production 2% NGL 27% 11% Gas 19% 83 US…
  25. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 25
    Southeast Asia Offshore Overview 2016 Proved Reserves Extensive Operating Experience in the Area Over 15 Years 27% Long Life, Shallow Decline Assets Provide 37% Steady Cash Flow 156 MMboe Murphy Lease Brent Linked Pricing…
  26. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 26
    Malaysia Highlights Kikeh Net Production First Production: 2007 Subsea Tieback to FPSO or Spar 100 1.6 Surface Jet Pump Installation Complete 90 1.4 Capital Expenditures (BN) FY 16 Net Production: 12,500 boepd 80…
  27. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 27
    North America Offshore Highlights Murphy Lease Gulf of Mexico (Operated) 2016 Proved Reserves Oil Field Medusa 60% WI Canada Gas Field First Production: November 2003 Offshore FY 16 Net Production: 4,700 boepd HIBERNIA Field…
  28. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 28
    Offshore Production Provides Strong Cash Margins Gulf of Mexico, /boe High Cash Margins 100 2016 Offshore Production 73% Liquids 80 Oil-Weighted Portfolio 60 Long-Term Stable Offshore Production 40 Lease Operating Expense 20…
  29. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 29
    Global Exploration Focusing on Concentrated Areas Complementary to our Existing Operations Targeting Offshore Gulf of Mexico Opportunities That Meet Our Mexico Vietnam Goal of Top Quartile F&D Costs Malaysia Vulcan…
  30. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 30
    Southeast Asia Exploration Overview Vietnam Cuu Long Basin Vietnam Murphy Lease Vietnam Oil Field Multi-Basin Opportunities Gas Field Forming Field Development Plan for Block 15-1/05 in the Cuu Long Basin 15-1/05 Focusing…
  31. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 31
    Gulf of Mexico Exploration Overview Murphy Lease Murphy HBP Gulf of Mexico Hoffe Park Oil Field Murphy 25% WI (Non-Op), Chevron 75% WI Gas Field HOFFE PARK Discovery Delineation Plan Being Developed Final Well Cost Under Budget (16…
  32. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 32
    LOOKING AHEAD MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 33
  33. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 33
    Advantages of a Balanced Portfolio Driving Long-Term Plan Net Production EBITDA 2017 2020 Plan 250 2,000 225 1,800 Long Term Oil-Weighted Production Growth Within Cash Flow from Existing 200 1,600 Assets Net Production, mboepd…
  34. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 34
    Takeaways Preserved the Company in the Downturn High-Graded Portfolio Achieving High Oil-Weighted Cash Flow per BOE Production Growing Unconventional Onshore Assets Stable Cash Flow Providing Offshore Assets Delineating New…
  35. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 35
    Guidance 1Q 2017 1Q 2017 1Q 2017 Guidance 1Q 2016 Liquids (bopd) Gas (mcfd) Q Production: 103,500 387,000 US - Eagle Ford Shale 41,500 31,000 Gulf of Mexico 13,000 15,500 Canada Tupper Montney - 211,500 Kaybob Duvernay & Placid…
  36. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 36
    Financial Position as of December 31, 2016 Debt Maturity Profile MM Total Liquidity 2.1 BN at YE 2016 1.0 BN of Cash and Liquid Invested Cash 1,500 Maturity Profile Total Bonds Outstanding MM 2,800.0 1.1 BN Senior Unsecured…
  37. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 37
    2017 Hedging Positions Volumes Field Commodity Type (bbl/d) Price (USD/bbl) Start Date End Date United Stated WTI Fixed Price Derivative Swap 22,000 50.41 1/1/2017 12/31/2017 Volumes Field Commodity Type (MMcf/d) Price…
  38. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 38
    Asset Overview At December 31, 2016 Crude Oil NGLs Natural Gas Total Proved Developed Reserves: (Millions of Barrels) (Billions of Cubic Feet) (Millions of Barrels Equivalent) United States 113.9 20.8 138.7 157.8 Canada 19.2 0.9 498.9…
  39. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 39
    NA Onshore Running Room Three Main Unconventional Plays: Eagle Ford Shale, Duvernay, and Montney Significant Multi-Year Inventory with Stacked Pay Potential Upside Area Net Acres PDP Wells Reservoir Remaining Wells Spacing (Acres)…
  40. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 40
    Eagle Ford Shale 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
  41. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 41
    Kaybob Duvernay Peer Acreage Volatile Oil KAYBOB EAST SHELL TRILOGY Black Oil Gas Condensate KAYBOB WEST Fox Creek SAXON ENCANA Wet Gas CHEVRON DVRN Rights 70/30 MUR/ATH TRILOGY XTO REPSOL PLACID XTO SHELL REPSOL…
  42. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 42
    2017 Kaybob Duvernay Appraisal Plan AOC/MUR 2017 Total Wells Drilled: 16 IP30 625 BOED 684 BPM, 80% Liq 2017 Total Wells Completed: 11 SHELL IP30 577 BOED 6 Average Lateral Length: 9,800 ft 605 BPM, 78% Liq 4 1 2 Well Pad,…
  43. Simmons and Co 17th Annual Energy Conference – Murphy Oil Corp – slide 43
    Placid Montney Peer Acreage Condensate Limit CIOC 7 Gens Velvet Omers Chevron Cequence EnCana Conoco Trilogy Athabasca Delphi Exxon Apache CNRL 6 miles Dry Gas Limit MURPHY OIL CORPORATION www.m urp h yo i lc…

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