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Peters and Co Annual energy Conference – Murphy Oil Corp

Murphy Oil Corp · Sep 13, 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. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 1
    PETERS & CO. LIMITED 21ST ANNUAL ENERGY CONFERENCE SEPTEMBER 13, 2017 ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER
  2. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 2
    Agenda 01 Overview 02 Portfolio Review 03 Catalysts Driving Future Value 04 Takeaways MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 3
  3. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 3
    Murphy Overview Where We Work Long Corporate History, IPO in 1956 Global, Diversified Portfolio Providing Long Term Growth Within Cash Flows Growing North American Onshore Duvernay Montney Unconventional Assets Calgary Hibernia…
  4. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 4
    Strengthening Our Business Through the Commodity Cycle Acquired Kaybob Duvernay & Liquids Initiated Tupper 30% Malaysia Rich Montney Sell-Down for Montney Expansion Block H FLNG Independent 2.0 BN Online Exploration & Production…
  5. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 5
    Preserving Balance Sheet & Shareholder Value Equity Issuances 2015 2017 Preserving Strong Liquidity While Conservatively Managing Balance 22 BN Equity Issuances Sheet & Targeting Cash Flow Neutrality 4.0 Issued Equity 1Q 16 3.5…
  6. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 6
    Murphys Unique Strategy Develop DIFFERENTIATED PERSPECTIVES In Kaybob Duvernay Entry Underexplored Basins & Plays Success in Mexico Bid Round & Vietnam Block 15-01 Farm-in Low Cost Entry Vulcan & Ceduna Basins Continue to be a…
  7. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 7
    Rapid Rise to Data-Centric Company Murphys Employees Information Technology Culture of Collaboration Cloud First Strategy Cross-Functional Teams Large Data Repository Grass Roots Innovation One Linked System for Budgeting, Planning,…
  8. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 8
    ONSHORE PORTFOLIO REVIEW MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 9
  9. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 9
    Established Cash Flow Providing Offshore Business 2016 Proved Reserves Foundation Assets Providing Steady Production & Generating 2% Free Cash Flow Oil 10% Natural Gas Gulf of Mexico Hibernia 20% NGL 225 2Q 17 Net Production 14…
  10. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 10
    Growing North America Onshore Business 2016 Proved Reserves 9% Significant Operated Positions in Three Long Life & Low Cost Entry Plays Oil Onshore Production & Reserve Life Natural Gas 460 45% 47% NGL 15% Y-O-Y Increase in…
  11. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 11
    ONSHORE CATALYSTS DRIVING FUTURE VALUE MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 12
  12. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 12
    Catalysts Driving Future Value Executing Disciplined Appraisal Program, Significant Activity in 2018 Kaybob Duvernay Delineating Oil & Condensate Windows with Deliberate & Funded Growth Strategy Accelerating Value in Low Cost, Long…
  13. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 13
    Kaybob Duvernay Appraisal Deliberate Delineation Strategy Appraise & Hold High Value Acreage Apply Reservoir Characterizations Learnings High-Grade Acreage for Full Development Keyera Continue to Optimize Completions…
  14. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 14
    Kaybob Duvernay Recent Results Oil Window Wells Online 2Q 17 Oil to Condensate Transition Wells Online 3Q 17 04-32C Well 11-18B Well 7,400 ft Lateral, Slick Water 3,000 lbs/ft 8,900 ft Lateral, Slick Water 3,000 lbs/ft Peak Rate…
  15. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 15
    Drilling Leading Wells in Kaybob Duvernay Kaybob Duvernay Competitor Wells 200 180 160 140 4-32C 04-32 Cumulative Production MBOE 120 11-18 100 80 60 4-32D 40 11-18A 11-18C 20 11-18B 0 1 2 3 4 5 6 7 8 9 10 11…
  16. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 16
    Strong Well Results in Simonette & Saxon Simonette Offset Wells Cumulative Production 350 300 250 Cumulative MBOE 200 150 100 50 0 1 2 3 4 5 6 7 8 9 10 11 12 Months on Production Saxon Offset Wells Cumulative…
  17. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 17
    Tupper Montney Update Recent Activity 15-08 Pad (5 Wells) Online 2Q 17 Drill to Fill in Existing Processing Facilities 20 MMCFD 4Q 17 & 3 Upper & 2 Middle Montney Wells 60 MMCFD 3Q 19 On Trend with 18 BCF EUR Initiated an Expansion…
  18. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 18
    Accelerating Value in Tupper Montney Tupper Montney Expansion Production Profiles Evaluating Expansion Options at Tupper Montney 1200 First 200 MMCFD of TCPL Transport Commitment 1000 Underway with First Gas in 2020 800 FEED with…
  19. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 19
    Eagle Ford Shale Efficient Cube Development Stacked Pay Potential Exists on Majority of Acreage Wilson Significant Future Locations 900+ Locations in Lower EFS Karnes 700+ Locations in Upper EFS 350+ Locations in Austin Chalk…
  20. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 20
    Innovative Offshore Growth Projects Malaysia Future Natural Gas Growth Opportunities from LNG Projects Block H FLNG with PETRONAS Targeting First Production in 2020 Brunei Natural Gas Discovery Adds Additional Resources Through…
  21. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 21
    Concentrated Focus Areas in Exploration What We Have Done Significantly Narrowed Focus Areas Lower Cost High-Value Prospects Developed In-House Specific Basin Expertise Western & Eastern Hemisphere Regional Offices Kuala Lumpur,…
  22. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 22
    Vietnam Exploration Cuu Long Basin Cuu Long Basin Block 15-1/05 Progressing Development Plan 15-1/05 Planning Exploration Well Nearby 15-1/05 Water Level Has Yet to be Drilled 15-2 LDT Prospect Significant Running Room LDN…
  23. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 23
    Australia Exploration Ceduna Murphy AUSTRALIA Santos Ceduna Basin EPP 43 BP 0 Wells 50 Leads Identified on New 3D Seismic EPP 37 1 Well Chevron EPP 44 2 Wells Maturing 5 Leads with 300+ MMBBL Recoverable BP EPP 38 Resource 2…
  24. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 24
    Gulf of Mexico Exploration LOUISIANA Gulf of Mexico Hoffe Park Multiple Tie-Back, Low Risk Prospects Hoffe Park Delineation Participate in Future GOM Lease Sales Evaluating DROs Mexico Deepwater Block 5 Murphy 30% WI, Operator 7…
  25. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 25
    Takeaways Strengthening Portfolio Through the Commodity Cycle Stabilizing Production with Low Maintenance Capital & Improving Cost Structure Focusing on Shareholders Competitive Dividend Yield, No Equity Issuance Preserving Strong…
  26. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 26
    Guidance 3Q 2017 3Q 2017 3Q 2017 Guidance 3Q Liquids (BOPD) Gas (MCFD) 3Q Production: US - Eagle Ford Shale 42,000 31,500 Gulf of Mexico 9,500 10,500 Canada Tupper Montney - 213,000 Kaybob Duvernay & Placid Montney 4,000 18,000…
  27. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 27
    2017 Plan 2017 Annual Capex Guidance at 890 MM 2017 Total Capex, 890 Million* 590 MM Allocated to NA Onshore Unconventional Guidance Assumes 52/BBL WTI & 3.10/MCF HH NA Onshore 2017 Production Guidance Offshore 3Q 17 Guidance 156…
  28. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 28
    2017 Hedging Positions Volumes Field Commodity Type (BOPD) Price (USD/BBL) Start Date End Date United States WTI Fixed Price Derivative Swap 22,000 50.41 7/1/2017 12/31/2017 Volumes Field Commodity Type (MMCFD) Price (MCF) Start…
  29. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 29
    Summary Term Sheet Summary of Terms and Conditions Issuer Murphy Oil Corporation (the Issuer) Security Senior Unsecured Notes Amount 550 MM Tenor 8 Years Use of Proceeds Refinance Existing 2.500% Senior Notes Due 2017 NC-3…
  30. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 30
    Credit Metrics vs E&P Peers Net Debt* / LTM Adj. EBITDAX* Net Debt* / Proved Reserves (/BOE)** 4.0x 3.8x 6.00 5.13 5.20 3.5x 4.86 5.00 4.63 3.0x 2.7x 2.8x 3.68 3.82 4.00 2.5x 2.1x 2.0x 2.1x 1.9x 2.68 2.0x 3.00 2.52 1.5x 1.6x…
  31. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 31
    Oil Peer Group Benchmarking 2Q 2017 Lifting Costs Change Q/Q Production Netback (/BOE) 30% 30 25% 25 Mean 22/BOE 20% 20 15% 15 10% Mean 5% 10 5% 0% 5 -5% 0 MUR MUR -10% Production Netback = E&P Revenues/BOE - Lifting Cost/BOE…
  32. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 32
    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…
  33. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 33
    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…
  34. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 34
    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…
  35. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 35
    Malaysia Offshore Overview 2016 Proved Reserves Foundation Asset Delivering Steady Production & Generating 27% Free Cash Flow 37% 156 Extensive Operating Experience in MMBOE the Area Over 15 Years Murphy Lease Block H 36% Oil…
  36. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 36
    North America Offshore Overview 2016 Proved Reserves Gulf of Mexico Canada Offshore 2Q 17 Net Production 14 MBOEPD Hibernia & Clipper: 100% WI, Acquired 3Q Terra Nova 34% 2017, Current Production 5,000 68 MMBOE BOEPD (Net) 66%…
  37. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 37
    Eagle Ford Shale Overview 2016 Proved Reserves Long Life Asset at Low End of Cost Curve 14% 2017 Well Program 11% Oil Drill 72 Wells & Online 72 Wells 243 Natural Gas MMBOE NGL Increasing EURs from Gen 5.0 Completions Slick…
  38. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 38
    Tupper Montney Overview 2016 Proved Reserves Long Life Asset at Low End of Cost Curve Lower Royalty Regime Lock in Returns & Cash Flow with Long Term Hedges Diversified Pricing Points Mitigate AECO Exposure 157 Natural MMBOE Gas…
  39. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 39
    Kaybob Duvernay Overview 2016 Proved Reserves Long Life Asset at Low Entry Cost Leading Field Life F&D 8% Low Royalty Regime 54 Oil Kaybob Duvernay MMBOE 49% Natural Gas 43% 70% WI, Operatorship, 140,000 Net Acres NGL 58 Total…
  40. Peters and Co 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. Peters and Co 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. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 42
    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…
  43. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 43
    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…
  44. Peters and Co Annual energy Conference – Murphy Oil Corp – slide 44
    PETERS & CO. LIMITED 21ST ANNUAL ENERGY CONFERENCE SEPTEMBER 13, 2017 ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 53

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