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2017 JP Morgan Energy Equity Conference – Murphy Oil Corp

Murphy Oil Corp · Jun 28, 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. 2017 JP Morgan Energy Equity Conference – Murphy Oil Corp – slide 1
    J.P. MORGAN ENERGY EQUITY CONFERENCE JUNE 28, 2017 ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER
  2. 2017 JP Morgan Energy Equity Conference – Murphy Oil Corp – slide 2
    Agenda 01 Overview 02 Portfolio Review 03 Looking Ahead MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 3
  3. 2017 JP Morgan Energy Equity 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. 2017 JP Morgan Energy Equity Conference – Murphy Oil Corp – slide 4
    Murphys Unique Strategy 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. 2017 JP Morgan Energy Equity Conference – Murphy Oil Corp – slide 5
    Executing on Our Strategy Financial Strategies Targeting Cash Flow Neutrality Preserving Financial Strength & Liquidity While Maintaining Dividend Continuing to Focus on Cost Structure Improvements Stabilizing Production to Prepare…
  6. 2017 JP Morgan Energy Equity Conference – Murphy Oil Corp – slide 6
    1Q 2017 At a Glance Balanced Onshore & Offshore Oil-Weighted Production Maintaining Balance Sheet Strength Through Capital Discipline 1Q 17 Net Production 169 MBOEPD Spent 214 MM Capital Expenditures, In Line with Annual Capital…
  7. 2017 JP Morgan Energy Equity Conference – Murphy Oil Corp – slide 7
    ONSHORE OFFSHORE PORTFOLIO REVIEW MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 8
  8. 2017 JP Morgan Energy Equity Conference – Murphy Oil Corp – slide 8
    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…
  9. 2017 JP Morgan Energy Equity Conference – Murphy Oil Corp – slide 9
    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…
  10. 2017 JP Morgan Energy Equity Conference – Murphy Oil Corp – slide 10
    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 Cuu Long Basin LDN Discovery…
  11. 2017 JP Morgan Energy Equity Conference – Murphy Oil Corp – slide 11
    Australia Exploration Australia Vulcan Sub-Basin Identifying 100+ MMBOE Gross Prospects Murphy Lease Vulcan AC/P-58 Evaluating 3D Seismic Data & Reprocessing AC/P-59 AC/P-57 2D Seismic Data No Well Commitment New…
  12. 2017 JP Morgan Energy Equity Conference – Murphy Oil Corp – slide 12
    North America Offshore Overview 2016 Proved Reserves Canada Gulf of Mexico Offshore 1Q 17 Net Production: 15.5 MBOEPD Hibernia & Terra Nova Medusa: 60% WI 34% Front Runner: 62.5% WI 68 MMBOE Dalmatian: 70% WI, Subsea Pump…
  13. 2017 JP Morgan Energy Equity Conference – Murphy Oil Corp – slide 13
    Gulf of Mexico Exploration Update Gulf of Mexico Hoffe Park Murphy 25% WI (Non-Op), Chevron 75% WI High Quality, Mid-Miocene Sands with Sub-Salt Hoffe Park 3-Way Trap Discovery Delineation Plan Being Developed Expected F&D Range…
  14. 2017 JP Morgan Energy Equity Conference – Murphy Oil Corp – slide 14
    ONSHORE PORTFOLIO REVIEW MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 15
  15. 2017 JP Morgan Energy Equity Conference – Murphy Oil Corp – slide 15
    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%…
  16. 2017 JP Morgan Energy Equity Conference – Murphy Oil Corp – slide 16
    Eagle Ford Shale Overview Stable Production in 2017 with 370 MM Capex 2016 Proved Reserves Remaining Resource Potential 800+ MMBOE with Over 2,000 14% Remaining Locations 11% Oil 243 Over 560 Locations at 40/BBL Break-Even, Over…
  17. 2017 JP Morgan Energy Equity Conference – Murphy Oil Corp – slide 17
    Eagle Ford Shale Highlights EUR Improvements from New High Intensity, Slick Water Completion Designs Karnes, Catarina & Tilden Optimizing Flow-back Procedures to Match New Completion Designs Karnes, Catarina & Tilden Evaluating…
  18. 2017 JP Morgan Energy Equity Conference – Murphy Oil Corp – slide 18
    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…
  19. 2017 JP Morgan Energy Equity Conference – Murphy Oil Corp – slide 19
    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…
  20. 2017 JP Morgan Energy Equity Conference – Murphy Oil Corp – slide 20
    Recent Austin Chalk Results Progressing Delineation & Optimization in Karnes Recent Austin Chalk Results Perform In Line with Atascosa 880 MBOE Type Curve Dimmit Drilled 3 Austin Chalk Wells in 1Q 17 & 5 Additional La Salle Wells…
  21. 2017 JP Morgan Energy Equity Conference – Murphy Oil Corp – slide 21
    Eagle Ford Shale Stacked Pay Potential Upside Stacked Potential Exists on Majority of Acreage Significant Future Locations TILDEN Austin Chalk 900+ Locations in Lower EFS 600 700+ Locations in Upper EFS CATARINA Upper EFS…
  22. 2017 JP Morgan Energy Equity Conference – Murphy Oil Corp – slide 22
    Tupper Montney Overview Tupper Montney 2016 Proved Reserves 100,000 Net Acres 320 MMCFD Plant Capacity (Gross) 230 Total Wells Online* 157 Natural 20 Year Processing Arrangement with Enbridge MMBOE Gas Over 1,450 High Return…
  23. 2017 JP Morgan Energy Equity 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 3.10 HH 2016 Reserves 943 BCF (157 MMBOE) 30% Reduction in D&C Costs While Increasing Lateral Lengths 25% from 2014 to 2016…
  24. 2017 JP Morgan Energy Equity 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 2,500 Drilled 5 Well Pad in 1Q 17 Being Completed 2Q 17 Drilled Longest Lateral to…
  25. 2017 JP Morgan Energy Equity 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. 2017 JP Morgan Energy Equity 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. 2017 JP Morgan Energy Equity 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. 2017 JP Morgan Energy Equity 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 Online 2Q 17 E A 01-18, 2 Wells D&C, Condensate, Online 1Q 17 C BG B 05-29, 1 Well, Oil, Online 1Q 17 D F A 11-18 Prep C…
  29. 2017 JP Morgan Energy Equity 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. 2017 JP Morgan Energy Equity 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 175 1,400 Net…
  31. 2017 JP Morgan Energy Equity Conference – Murphy Oil Corp – slide 31
    Takeaways Executing 2017 Plan Maintaining Oil-Weighted & Diversified Production Achieving Top Quartile EBITDA/BOE Evaluating Offshore & Onshore Growth Opportunities Expanding Offshore Exploration Portfolio at Bottom of Cycle…
  32. 2017 JP Morgan Energy Equity 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. 2017 JP Morgan Energy Equity 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. 2017 JP Morgan Energy Equity Conference – Murphy Oil Corp – slide 34
    2017 Hedging Positions as of March 31, 2017 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…
  35. 2017 JP Morgan Energy Equity Conference – Murphy Oil Corp – slide 35
    Financial Position as of March 31, 2017 Total Liquidity 2.0 BN at March 2017 Debt Maturity Profile MM 1.1 BN of Cash & Liquid Invested Cash Maturity Profile 1.1 BN Senior Unsecured Guaranteed Revolving 1,500 Total Bonds Outstanding…
  36. 2017 JP Morgan Energy Equity 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. 2017 JP Morgan Energy Equity Conference – Murphy Oil Corp – slide 37
    Oil Peer Group Benchmarking 2016 YE Lifting Costs Change Y/Y Production Netback (/BOE) 5% 25 0% 20 -5% Mean 16 MM -10% 15 -15% Mean 18% -20% 10 -25% 5 -30% -35% 0 MUR MUR Production Netback = E&P Revenues/BOE - Lifting…
  38. 2017 JP Morgan Energy Equity Conference – Murphy Oil Corp – slide 38
    Oil Peer Group Benchmarking 2016 YE Recycle Ratio 3-Year Organic Reserve Replacement 5 225% 200% 4 175% 150% 3 125% 100% Mean 90% 2 Mean 1.3 75% 1 50% 25% 0 0% MUR MUR Reserve Life Index (Years) 3-Year Total Reserve…
  39. 2017 JP Morgan Energy Equity 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. 2017 JP Morgan Energy Equity 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. 2017 JP Morgan Energy Equity 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. 2017 JP Morgan Energy Equity 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. 2017 JP Morgan Energy Equity 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. 2017 JP Morgan Energy Equity 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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