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UBS Global Oil & Gas Conference – Murphy Oil Corp

Murphy Oil Corp · May 24, 2017 · 44 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. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 1
    UBS GLOBAL OIL & GAS CONFERENCE MAY 24, 2017 ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER
  2. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 2
    Agenda 01 Overview 02 2017 Plan 03 Portfolio Review 04 Looking Ahead MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 3
  3. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 3
    Murphy Overview Where We Work Global, Diversified Portfolio with Long Term Growth Assets Within Cash Flows Growing North American Onshore Unconventional Assets Duvernay Montney Consistent Cash Flows from Long-Lived Calgary…
  4. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 4
    The Key to Our Success Kaybob Duvernay Entry Develop DIFFERENTIATED PERSPECTIVES In Underexplored Basins & Plays Success in Mexico Bid Round & Vietnam Block 15-01 Farm-in Low Cost Entry Vulcan & Ceduna Basins Continue to be a…
  5. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 5
    1Q 2017 At a Glance Balanced Onshore & Offshore Oil-Weighted Production Maintaining Balance Sheet Strength Through Capital Discipline Free Cash Generating Offshore Production 84 MBOEPD Spent 214 MM Capital Expenditures, In Line with…
  6. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 6
    ONSHORE 2017 PLAN MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 7
  7. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 7
    Executing the 2017 Strategy Financial Strategies Targeting Cash Flow Neutrality Preserving Financial Strength & Liquidity While Maintaining Dividend Continuing to Focus on Cost Structure Improvements Stabilizing Production to…
  8. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 8
    ONSHORE OFFSHORE PORTFOLIO REVIEW MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 9
  9. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 9
    Established Offshore Business 2016 Proved Reserves 2% NGL 10% 45% 20% Natural 225 MMBOE 53% Hibernia Gas Terra Nova Oil 70% Gulf of Mexico Vietnam Brunei Malaysia SE Asia US Offshore CA Offshore Vulcan 1Q 17…
  10. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 10
    Competitive Offshore Returns Tie-Back Example 90 WTI Case 60 WTI Case Competitive Project Economics at Significantly Lower Oil Price Reserves (MMBOE) 56 56 Reduced Competition Due to Fewer Active Players CAPEX (MM) 830 680 F&D…
  11. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 11
    Malaysia 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 Brent Linked Pricing Provides Price Murphy…
  12. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 12
    Vietnam Offshore Update Farm-In to Block 15-1/05 Murphy (35% Non-Op), PetroVietnam EP (40% Op) & SK Innovation (25% Non-Op) LDV DRO Cuu Long Basin 15-1/05 Prolific, World Class, Oil Prone Basin LDN Discovery Mature Naturally…
  13. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 13
    North America Offshore Overview 2016 Proved Reserves Canada Gulf of Mexico (Operated) Offshore Medusa 60% WI Hibernia & 1Q 17 Net Production: 2.5 MBOEPD Terra Nova 34% Front Runner 62.5% WI 1Q 17 Net Production: 2.8 MBOEPD 68…
  14. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 14
    Gulf of Mexico Exploration Update Gulf of Mexico Hoffe Park Murphy 25% WI (Non-Op), Chevron 75% WI High Quality, Mid-Miocene Sands with HOFFE PARK Sub-Salt 3-Way Trap Discovery Delineation Plan Being Developed Expected F&D Range…
  15. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 15
    ONSHORE PORTFOLIO REVIEW MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 16
  16. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 16
    North America Onshore Operations 9% 2016 Proved Reserves Significant Operated Positions in Three Growing, Premier NGL Unconventional Basins 2 Developed Plays & 1 Emerging Play 45% Eagle Ford Low Cost Entry 47% 460 Oil MMBOE 53%…
  17. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 17
    Eagle Ford Shale Overview Stable Production in 2017 with 370 MM Capex 2016 Proved Reserves Delivers 500 MM Cash Flow in 2017 at 52 WTI, 3.10 HH 14% Remaining Resource Potential 800+ MMBOE with Over 2,000 11% 243 Oil Remaining…
  18. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 18
    Eagle Ford Shale Highlights Achieving Strong Results from New High Intensity, Slick Water Completion Designs Karnes & Tilden Optimizing Flow-back Procedures to Match New Completion Designs Evaluating Stacked Pay & New Landing Zones in…
  19. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 19
    Eagle Ford Shale 1Q 17 2Q 17 E FY 17 E Recent Eagle Ford Shale Results Total Production (BOEPD) 46,170 46,800 50,000 New Wells Online 13 19 72 Stable Production Q-O-Q with Stable Spend Total Percent Liquids 88% 13 New Wells Online…
  20. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 20
    Recent Lower Eagle Ford Shale Well Results 4 New Jambers Lower EFS Wells Online 2Q 17 Testing Completion Style with No-Gel & 100 Mesh Sand, Rapid Choke Atascosa Progression in Early Flowback Faster Cleanup than Expected Dimmit…
  21. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 21
    Recent Austin Chalk Results Progressing Delineation in Karnes Recent Austin Chalk Results Perform In Line with Atascosa 880 MBOE Type Curve Dimmit Drilled 3 Austin Chalk Wells in 1Q 17 & Plan to Drill La Salle 5 Additional Wells…
  22. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 22
    Tupper Montney Overview 2016 Proved Reserves Tupper Montney 100,000 Net Acres 320 MMCFD Plant Capacity (Gross) 157 Natural MMBOE Gas 230 Total Wells Online* 20 Year Processing Arrangement with 100% Enbridge 1Q 17 Production Over…
  23. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 23
    Tupper Montney Highlights Stable Production in 2017 with 35 MM Capex Delivers 85 MM Cash Flow in 2017 at 52 WTI, 3.10 HH 2016 Reserves 943 BCF (157 MMBOE) 30% Reduction in D&C Costs While Increasing Lateral Lengths 25% from 2014 to…
  24. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 24
    Tupper Montney 1Q 17 2Q 17 E Recent Tupper Montney Results Total Production (MMCFD) 207 200 New Wells Online - 5 Tupper Montney Recent Completions Drilled 5 Well Pad in 1Q 17 Being Completed 2Q 17 2,500 Drilled Longest Lateral to…
  25. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 25
    Kaybob Duvernay Overview Kaybob Duvernay 2016 Proved Reserves 70% WI, Operatorship 8% 140,000 Net Acres Area Includes 145,000 Net Acres of Overlying 54 Oil Conventional Montney Rights MMBOE 49% Natural Gas 43% 56 Total Wells…
  26. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 26
    Kaybob Duvernay 1Q 17 2Q 17 E Kaybob Duvernay Update Total Production (BOEPD) 2,850 4,400 New Wells Online 3 5 Drilled 5 Wells & Brought 3 Online in 1Q 17 Ongoing Well Optimization Increasing Laterals, 9,000 FT Tighter Cluster…
  27. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 27
    Kaybob Duvernay 05-29 Pad Results Oil Window Well Online March 2017 Acquired Recently Completed Well in Land Swap 6,900 FT Lateral, Drilled on Optimal Azimuth Currently Trending Above 665 MBOE Type Curve, with 75% Liquids 2…
  28. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 28
    2017 Kaybob Duvernay Appraisal Plan 2017 Capital Budget 145 MM Drill 16 Wells Complete 13 Wells H 04-32 C Well Online D Well Online Late May E A 01-18, 2 Wells D&C, Condensate, Online 1Q 17 C BG B 05-29, 1 Well, Oil, Online 1Q 17…
  29. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 29
    ONSHORE LOOKING AHEAD MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 30
  30. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 30
    Advantages of a Balanced Portfolio Driving Long Term Plan Net Production EBITDA 2017 2020 Plan 250 2,000 Long Term Oil-Weighted Production 225 1,800 Growth Within Cash Flow from 200 1,600 Existing Assets Net Production, MBOEPD…
  31. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 31
    Takeaways Progressing Annual Execution Plan Achieving Top Quartile EBITDA/BOE Maintaining Oil-Weighted & Diversified Production Evaluating Offshore & Onshore Growth Opportunities Expanding Offshore Exploration Portfolio at…
  32. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 32
    Guidance 2Q 2017 2Q 2017 2Q 2017 Guidance 2Q 2016 Liquids (BOPD) Gas (MCFD) 2Q Production: 99,500 375,000 US - Eagle Ford Shale 41,500 32,000 Gulf of Mexico 12,000 11,000 Canada Tupper Montney - 200,000 Kaybob Duvernay & Placid…
  33. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 33
    2017 Plan 2017 Annual Capex Guidance at 890 MM 2017 Total Capex, 890 Million* 590 MM Allocated to NA Onshore Unconventional Onshore Production Growth 9% Y-O-Y** Guidance Assumes 52/BBL WTI & 3.10/MCF HH NA Onshore Offshore 2017…
  34. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 34
    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 4/1/2017 12/31/2017 Volumes Field Commodity Type (MMCF/D) Price…
  35. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 35
    Financial Position as of March 31, 2017 Debt Maturity Profile MM Total Liquidity 2.1 BN at YE 2016 1.0 BN of Cash & Liquid Invested Cash 1,500 Maturity Profile Total Bonds Outstanding MM 2,800.0 1.1 BN Senior Unsecured Guaranteed…
  36. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 36
    Credit Metrics vs E&P Peers Net Debt* / LTM Adj. EBITDAX* Net Debt* / Proved Reserves (/BOE)** 4.5x 6.00 5.30 3.8x 5.09 4.0x 5.00 4.71 3.5x 3.3x 4.37 4.00 3.70 3.78 3.0x 2.5x 2.5x 2.2x 2.0x 2.79 1.9x 1.9x 2.0x 3.00 2.0x…
  37. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 37
    Oil Peer Group Benchmarking 2016 YE 2016 TSR Net Income (/BOE) 50% 0 Mean 39% -10 40% -20 30% -30 20% -40 10% -50 0% -60 MUR MUR EBITDA (/BOE) Production Netback (/BOE) 20 25 15 20 Mean 16 MM 10 Mean 6/BOE 15 5 10 0…
  38. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 38
    Oil Peer Group Benchmarking 2016 YE Lifting Costs Change Y/Y 3-Year Organic Reserve Replacement 5% 225% 0% 200% -5% 175% -10% 150% 125% -15% Mean 18% 100% Mean 90% -20% 75% -25% 50% -30% 25% -35% 0% MUR MUR Reserve Life Index…
  39. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 39
    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…
  40. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 40
    NA Onshore Running Room Three Main Unconventional Plays: Eagle Ford Shale, Duvernay & Montney Significant Multi-Year Inventory with Stacked Pay Potential Upside Area Net Acres PDP Wells Reservoir Remaining Wells Spacing (Acres) Total…
  41. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 41
    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 50
  42. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 42
    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…
  43. UBS Global Oil & Gas 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…
  44. UBS Global Oil & Gas Conference – Murphy Oil Corp – slide 44
    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…

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