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BAML Leverage Finance Conference – Murphy Oil Corp

Murphy Oil Corp · Nov 29, 2017 · 36 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. BAML Leverage Finance Conference – Murphy Oil Corp – slide 1
    BANK OF AMERICA MERRILL LYNCH LEVERAGED FINANCE CONFERENCE NOVEMBER 29, 2017 ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER
  2. BAML Leverage Finance Conference – Murphy Oil Corp – slide 2
    Agenda 01 Overview 02 3Q 17 Results & Full Year Outlook 03 Financial Overview 04 Offshore Portfolio 3Q 17 Highlights 05 Onshore Portfolio 3Q 17 Highlights 06 Takeaways MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om…
  3. BAML Leverage Finance Conference – Murphy Oil Corp – slide 3
    Murphy Overview Where We Work Global, Diversified Portfolio Providing Long-Term Growth while Generating Free Cash Flow Duvernay Montney Growing North American Onshore Calgary Unconventional Assets Hibernia Terra Nova…
  4. BAML Leverage Finance Conference – Murphy Oil Corp – slide 4
    Strengthening Our Business Through the Commodity Cycle Acquired Kaybob Initiated Tupper Duvernay & Liquids Montney Expansion Rich Montney 30% Malaysia Sell-Down for Farm-In Announced Application Block H 2.0 BN Announced Midland to…
  5. BAML Leverage Finance Conference – Murphy Oil Corp – slide 5
    The Proven Unique Murphy Strategy Develop DIFFERENTIATED PERSPECTIVES In Midland Basin Entry via Grass Roots Leasing Underexplored Basins & Plays Success in Mexico Bid Round & Vietnam Block 15-01 Farm-In Low Cost Entry Vulcan, Ceduna &…
  6. BAML Leverage Finance Conference – Murphy Oil Corp – slide 6
    3Q 17 RESULTS & FULL YEAR OUTLOOK MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 7
  7. BAML Leverage Finance Conference – Murphy Oil Corp – slide 7
    3Q 17 Financial Overview Adjustments to 3Q 17 Earnings 3Q 3Q Foreign Exchange Losses (44 MM) MM (Except per Share) 2017 2016 Mark-to-Market Loss on Crude Oil Contract (12 MM) Consolidated Results Deferred Tax on Undistributed Foreign…
  8. BAML Leverage Finance Conference – Murphy Oil Corp – slide 8
    3Q 17 Overview Maintaining Price 3Q 17 Production Averaged 154 MBOEPD Onshore Production Averaged 86 MBOEPD (51% Liquids) Advantaged Offshore Production Averaged 68 MBOEPD (73% Liquids) Production from Offshore Assets Generated…
  9. BAML Leverage Finance Conference – Murphy Oil Corp – slide 9
    Production & Guidance Update 3Q 17 Production Impacts 2017 Annual Capex Spend at 940 MM Reductions Increased from Original Guidance of 890 MM Eagle Ford Shale Partial Field Shut-In, Delayed Completions, 37 MM Midland Basin Acreage,…
  10. BAML Leverage Finance Conference – Murphy Oil Corp – slide 10
    Diversified Portfolio Yields Premium Netbacks 3Q 17 Sales Basis Price Premium Oil Margins Widening to WTI 70 37% 57% Natural Gas Oil 65 Brent/MCO 28% 29% (Malaysian Crude Oil)* LLS** 60 Dollar per Barrel WTI 55…
  11. BAML Leverage Finance Conference – Murphy Oil Corp – slide 11
    Diversified Production Achieving High Margin Barrels Production Netback (/BOE) Price Advantaged Production from Diversified 30 MUR Portfolio 25 Oil-Weighted Production Yields Brent & LLS Premium 20 Mean 18/BOE Top Quartile Netbacks &…
  12. BAML Leverage Finance Conference – Murphy Oil Corp – slide 12
    FINANCIAL OVERVIEW MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 13
  13. BAML Leverage Finance Conference – Murphy Oil Corp – slide 13
    Executing On Our Financial Strategy Disciplined Capital Allocation Planning to Achieve Free Cash Flow Over 5-Years while Growing Production Renewing Offshore Portfolio at Bottom of Cycle with Low Capital Commitment Projects…
  14. BAML Leverage Finance Conference – Murphy Oil Corp – slide 14
    Credit Metrics vs E&P Peers Net Debt* / LTM Adj EBITDAX* Net Debt* / Proved Reserves (/BOE)** 6x 7 4.8x 5.79 5.99 5x 6 5.06 5 4.74 4.86 3.8x 3.8x 4x 4.21 3.91 3.94 2.9x 4 3.70 3.78 3x 2.5x 2.3x 2.3x 2.82 2.0x 2.1x 3 2.58…
  15. BAML Leverage Finance Conference – Murphy Oil Corp – slide 15
    ONSHORE OFFSHORE PORTFOLIO 3Q 17 HIGHLIGHTS MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 16
  16. BAML Leverage Finance Conference – Murphy Oil Corp – slide 16
    Global Offshore 3Q 17 Offshore Operations 3Q 17 Highlights Total Production (BOEPD) 68,000 Total Percent Liquids 73% Malaysia Gulf of Mexico (Operated) Generated 140 MM Free Cash Flow 99% Uptime of Operated Facilities Medusa…
  17. BAML Leverage Finance Conference – Murphy Oil Corp – slide 17
    Concentrated Focus Areas in Exploration What We Have Done Significantly Narrowed Focus Lower Working Interest Entries Lower Cost High-Value Prospects Developed In-House Specific Basin Expertise Houston Gulf of Mexico Western &…
  18. BAML Leverage Finance Conference – Murphy Oil Corp – slide 18
    Gulf of Mexico Exploration Update LOUISIANA Dalmatian Renewed Exploration Portfolio with Leibniz Low-Cost Entry & Near to Mid-Term Medusa Opportunities Kodiak Clipper Awarded Block MC 556 Leibniz Prospect Front Runner Thunder Hawk…
  19. BAML Leverage Finance Conference – Murphy Oil Corp – slide 19
    Vietnam Exploration Update Cuu Long Basin Block 15-1/05 Murphy 35% WI, Non-Op Significant Discovered Resource and Potential Upside 15-1/05 in Lac Da Vang (LDV) Field LDN DRO Progressing Development Plan 15-2/17 On Track for…
  20. BAML Leverage Finance Conference – Murphy Oil Corp – slide 20
    New Exploration Entry Brazil Renewed Exploration Portfolio with Low-Cost Entry & Long-Term Opportunities Farm-In to QGEPs Sergipe-Alagoas Blocks Secured Blocks 351 & 428 Murphy 20%, ExxonMobil 50% (Op), QGEP 30% 11 MM Net Murphy…
  21. BAML Leverage Finance Conference – Murphy Oil Corp – slide 21
    ONSHORE PORTFOLIO 3Q 17 HIGHLIGHTS MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 22
  22. BAML Leverage Finance Conference – Murphy Oil Corp – slide 22
    Eagle Ford Shale 3Q 17 4Q 17 E Eagle Ford Shale 3Q 17 Highlights Total Production (BOEPD) 45,000 52,000 New Wells Online 27 15 On Time Well Delivery Despite Harvey Disruptions Total Percent Liquids 89% 27 New Wells Online Wilson 14…
  23. BAML Leverage Finance Conference – Murphy Oil Corp – slide 23
    New Entry Midland Basin Gaines Dawson Growing Onshore Portfolio with Grass Roots Leasing Midland Basin Murphy Additional 275 Locations with Break-Even < 40/BBL 1 WCB, 1 LSPB Initial Test Wells 2 Wells Drilled 3Q 17, Online 4Q 17…
  24. BAML Leverage Finance Conference – Murphy Oil Corp – slide 24
    Tupper Montney 3Q 17 4Q 17 E Tupper Montney 3Q 17 Highlights Total Production (MMCFD) 208 223 New Wells Online - 5 Recent Activity A-23 Pad (5 Wells) 4Q 17 Drilled & Online Expansion Project Progressing FEED for 2018 Sanction…
  25. BAML Leverage Finance Conference – Murphy Oil Corp – slide 25
    Kaybob Duvernay 3Q 17 Kaybob Duvernay 3Q 17 Highlights Total Production (BOEPD) 3,750 New Wells Online 3 Increased Production 32% from 1Q 17 to 3Q 17 Appraisal Wells Update 11-18 Pad (3 Wells) Oil Online 3Q 17 Average 9,100 ft…
  26. BAML Leverage Finance Conference – Murphy Oil Corp – slide 26
    2017 Kaybob Duvernay Appraisal Plan 2017 Appraisal Plan Drill 16 Wells Complete 12 Wells Online 11 Wells E 2017 2018 Appraisal Plans BF C J Highly Scientific & Deliberate D Designed to Appraise Data for Full-Scale A…
  27. BAML Leverage Finance Conference – Murphy Oil Corp – slide 27
    ONSHORE TAKEAWAYS MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 28
  28. BAML Leverage Finance Conference – Murphy Oil Corp – slide 28
    Catalysts Driving Future Value Executing Disciplined Appraisal Program, Significant Activity in 2018 Kaybob Duvernay Shifting to Development Program with Defined & Funded Growth Accelerating Value in Low Cost, Long Life Asset via…
  29. BAML Leverage Finance Conference – Murphy Oil Corp – slide 29
    Takeaways Achieving Free Cash Flow Over 5 Years while Growing Production Maintaining Cash Balances While Funding Capital Program Continuing Cost Focus, with New Decade-Low LOE/BOE Increasing Portfolio of Low Break-Even Onshore…
  30. BAML Leverage Finance Conference – Murphy Oil Corp – slide 30
    APPENDIX MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 31
  31. BAML Leverage Finance Conference – Murphy Oil Corp – slide 31
    Historical Financials ( Millions) 2014 2015 2016 WTI (/bbl) 93.00 48.80 43.32 HHUB (/MMbtu) 4.34 2.61 2.48 Oil Production (Mbbld) 142,408 126,400 103,400 Gas Production (MMcfd) 445,956 427,614 378,163 NGL Production (Mbbld) 9,239…
  32. BAML Leverage Finance Conference – Murphy Oil Corp – slide 32
    Revolving Credit Facility Amendment Key Terms 2016 Revolving Credit Facility 2017 Revolving Credit Facility Amendment Type Senior Unsecured Guaranteed Revolving Credit Facility Senior Unsecured Guaranteed Revolving Credit Facility No…
  33. BAML Leverage Finance Conference – Murphy Oil Corp – slide 33
    Hedging Summary Volumes Area Commodity Type (BOPD) Price (USD/BBL) Start Date End Date United States WTI Fixed Price Derivative Swap 22,000 50.41 10/1/2017 12/31/2017 United States WTI Fixed Price Derivative Swap 15,000 53.57 1/1/2018…
  34. BAML Leverage Finance Conference – Murphy Oil Corp – slide 34
    Guidance 4Q 2017 4Q 2017 4Q 2017 Guidance 4Q Liquids (BOPD) Gas (MCFD) 4Q Production: US - Eagle Ford Shale 46,750 33,500 Gulf of Mexico 13,500 12,500 Canada Tupper Montney - 223,000 Kaybob Duvernay & Placid Montney 4,600 19,500…
  35. BAML Leverage Finance Conference – Murphy Oil Corp – slide 35
    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…
  36. BAML Leverage Finance Conference – Murphy Oil Corp – slide 36
    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…

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