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Simmons Annual Energy conference – Murphy Oil Corp

Murphy Oil Corp · Mar 1, 2018 · 41 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 Annual Energy conference – Murphy Oil Corp – slide 1
    SIMMONS 18TH ANNUAL ENERGY CONFERENCE MARCH 1, 2018 ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 1
  2. Simmons Annual Energy conference – Murphy Oil Corp – slide 2
    Agenda 01 Business Review 02 Exploration Review 03 Portfolio Review 04 Looking Ahead 05 Takeaways MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 3
  3. Simmons Annual Energy conference – Murphy Oil Corp – slide 3
    Strengthening Our Business Through the Commodity Cycle 30% Malaysia Acquired Kaybob Drill LDT Well Duvernay & Liquids Entered Brazil Cuu Long Basin, Sell-Down for Move Kaybob Drill Ceduna Basin Rich Montney via Farm-In & Vietnam 2.0…
  4. Simmons Annual Energy conference – Murphy Oil Corp – slide 4
    Full Year 2017 Highlights Achieving High-Margin Driving Valuable EBITDA Maintaining Shareholder- Production from Margins by Lowering Costs Focused Strategy Diversified Portfolio FY 17 Production Averaged 164 MBOEPD Achieved LOE of…
  5. Simmons Annual Energy conference – Murphy Oil Corp – slide 5
    Increasing Reserves & Lowering F&D Costs 3 Year F&D Costs Maintaining High-Margin, Oil-Weighted Portfolio 30 Organic Reserves Replacement 113% 25 Total Reserves Replacement 123% /BOE 20 1 Year Cumulative F&D Costs of…
  6. Simmons Annual Energy conference – Murphy Oil Corp – slide 6
    4Q 17 Financial Overview 4Q 4Q Adjustments to 4Q 17 Earnings MM (Except per Share) 2017 2016 Impact of Tax Cuts & Jobs Act (274 MM) Consolidated Results Foreign Exchange Gains (22 MM) Income (Loss) (287) (64) Mark-to-Market Loss on…
  7. Simmons Annual Energy conference – Murphy Oil Corp – slide 7
    2018 Plan 2018 Annual Capex Guidance 1.056 BN 2018 Total Capex 650 MM Allocated to NA Onshore Unconventional Offshore 38% 88% Allocated to Field Development & Development Drilling US Onshore 4% Includes 125 MM CAPEX for Long-Term…
  8. Simmons Annual Energy conference – Murphy Oil Corp – slide 8
    2018 Capital Drives Future Offshore Production Low-Cost Offshore Projects Maintaining Production at Existing Fields with 25 160 140 Low-Cost, Innovative Projects 20 Kikeh DTU Gas Lift Online 3Q 18 120 Production, MBOEPD 15 100…
  9. Simmons Annual Energy conference – Murphy Oil Corp – slide 9
    Onshore Oil-Weighted Production Growth Net Production, MBOEPD 100 1,800 Eagle Ford Shale Reached Peak Production in 90 1,600 2015, Will Surpass this Volume in 2019 from 80 1,400 Production, MBOEPD Eagle Ford Shale & Kaybob Duvernay…
  10. Simmons Annual Energy conference – Murphy Oil Corp – slide 10
    Lowering Cost & Growing Production in Kaybob Duvernay Kaybob Duvernay/Placid Montney EURs Exceeding Plan 14 Increased Rate of Feet per Day (ROP) by 56% Since 2016 12 Net Production, MBOEPD 10 Reduced Cost per Foot by 21% Since…
  11. Simmons Annual Energy conference – Murphy Oil Corp – slide 11
    EXPLORATION REVIEW MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 12
  12. Simmons Annual Energy conference – Murphy Oil Corp – slide 12
    Focused Exploration United States Gulf of Mexico Vietnam Cuu Long Basin Mexico Salina Basin Australia Vulcan Basin Brazil Australia Sergipe-Alagoas Basin Ceduna Basin MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c…
  13. Simmons Annual Energy conference – Murphy Oil Corp – slide 13
    Gulf of Mexico Exploration Update Planning for Samurai (GC 432) Appraisal Finalized King Cake Farm-In (AT 23) Murphy Operator, Leverages Existing Infrastructure Murphy 31.5% WI, Operator Expected Spud 1Q 18 Expected Spud 3Q 18 15 Miles…
  14. Simmons Annual Energy conference – Murphy Oil Corp – slide 14
    Offshore Mexico Exploration Update Block 10 Block 21 30.5 MM 110.2 MM Mexico Deepwater Block 5 Repsol, PETRONAS, Ophir Block 20 Shell Block Name Murphy 30% WI, Operator, Partners 90.2 MM Shell Cash Bonus Company PETRONAS, Ophir &…
  15. Simmons Annual Energy conference – Murphy Oil Corp – slide 15
    Vietnam Exploration Update Cuu Long Basin Block 15-1/05 LDV Field Up to 250 MMBOE Murphy 35% WI, Non-Op Working to Become Gross Recoverable Operator & Increase to 40% WI Block 15-01/05 LDT Prospect Expected Spud 2Q 18 Murphy &…
  16. Simmons Annual Energy conference – Murphy Oil Corp – slide 16
    Brazil Exploration Update Renewed Exploration Portfolio with Low-Cost Entry & Long-Term Opportunities Farm-In to QGEPs Sergipe-Alagoas Blocks Secured Blocks 351 & 428 Barra Cumbe Farfan Murphy 20%, ExxonMobil 50% (Op), QGEP 30%…
  17. Simmons Annual Energy conference – Murphy Oil Corp – slide 17
    Vulcan Basin Australia Exploration Update Murphy Block Blocks Vulcan Basin Oil Field AC/P-58 Murphy 60% WI, Operator Gas Field Jurassic Play Ceduna Basin Expected Spud 2019 & 2021 Fairway Identifying Multiple Prospects, Up…
  18. Simmons Annual Energy conference – Murphy Oil Corp – slide 18
    PORTFOLIO REVIEW MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 19
  19. Simmons Annual Energy conference – Murphy Oil Corp – slide 19
    Offshore Operations 4Q 17 Highlights Malaysia Gulf of Mexico Generated Over 100 MM Free Cash Flow 99.5% Uptime of Operated Facilities 4Q 17 Sabah Medusa Preparing for Subsea Well Workover 1Q 18 Kikeh ESP Pilot Start Up 4Q 17, DTU Gas…
  20. Simmons Annual Energy conference – Murphy Oil Corp – slide 20
    US Onshore Operations 4Q 17 Highlights Eagle Ford Shale Atascosa Eagle Ford Shale Karnes Well Delivery 78 Wells Online FY 17 Tilden 18 New Wells Online 4Q 17 Karnes Dimmit La Salle 3 Karnes 1 Upper EFS, 2 Austin Chalk, Average…
  21. Simmons Annual Energy conference – Murphy Oil Corp – slide 21
    Eagle Ford Shale 4Q 17 Highlights Drilled Murphy Record Lateral Length Well in Catarina, 12,000 ft Atascosa IP30 Substantial Improvement in Catarina Karnes Enhanced Spacing and Frac Designs, Catarina Cluster Spacing Optimized by…
  22. Simmons Annual Energy conference – Murphy Oil Corp – slide 22
    Tupper Montney 4Q 17 Highlights Top Tier North American Dry Natural Gas Play Henry Hub Dry Natural Gas Break-Even Prices, /MCF Recent Activity a-23 Pad (5 Wells) 4Q 17 Online, Avg Lateral Length 10,000 ft, 5.50 Facility-Constrained…
  23. Simmons Annual Energy conference – Murphy Oil Corp – slide 23
    Kaybob Duvernay 4Q 17 Highlights Increased Production 31% from 4Q 16 to 4Q 17 Drilling Pacesetter Wells Increased Feet per Day by 56% from 2016 to 2017 Lowered Cost per Foot by 21% from 2016 to 2017 Appraisal Wells Update Online 4Q…
  24. Simmons Annual Energy conference – Murphy Oil Corp – slide 24
    Kaybob Duvernay 2018 Plan 2018 Appraisal & Development Plan Kaybob North 150 Locations Kaybob East Drill 17 Wells, Online 23 Wells 20% De-Risked 295 Locations Contingent Drill 7 Wells, Online 2 Wells H J 03-33 Move Kaybob West &…
  25. Simmons Annual Energy conference – Murphy Oil Corp – slide 25
    LOOKING AHEAD MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 26
  26. Simmons Annual Energy conference – Murphy Oil Corp – slide 26
    Paying Our Way & Living Within Cash Flow Peer Adjusted Free Cash Flow & Equity Issuance Comparison 2014 3Q 2017 Protected Our Shareholders by Not Issuing 4 Equity During Downturn 3 Maintained Strong Balance Sheet with Measured…
  27. Simmons Annual Energy conference – Murphy Oil Corp – slide 27
    Price 2018 2019 2020 2021 2022 Our Strategy in Action WTI 52.00 54.60 57.33 60.20 63.21 Brent 55.50 58.10 60.83 63.70 66.71 HH 3.00 2.81 2.86 2.92 2.98 300 3,000 Measured, Oil-Weighted Production Growth Within Cash Flow while…
  28. Simmons Annual Energy conference – Murphy Oil Corp – slide 28
    Takeaways Growing Production with Disciplined Capital Allocation Focusing on Continued Cost Reductions Achieving High Cash Margins from Diverse, Oil-Weighted Portfolio Replenishing Exploration Portfolio with Measured Approach…
  29. Simmons Annual Energy conference – Murphy Oil Corp – slide 29
    APPENDIX MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 30
  30. Simmons Annual Energy conference – Murphy Oil Corp – slide 30
    2018 Hedging Positions Volumes Area Commodity Type (BOPD) Price (USD/BBL) Start Date End Date United States WTI Fixed Price Derivative Swap 21,000 54.88 1/1/2018 12/31/2018 Volumes Area Commodity Type (MMCFD) Price (MCF) Start…
  31. Simmons Annual Energy conference – Murphy Oil Corp – slide 31
    Guidance 1Q 2018 1Q 18 1Q 18 Guidance 1Q Liquids (BOPD) Gas (MCFD) 1Q Production: US Onshore 40,500 30,500 Gulf of Mexico 11,750 11,000 Canada Tupper Montney - 235,000 Kaybob Duvernay & Placid Montney 4,750 25,500 Offshore 8,250…
  32. Simmons Annual Energy conference – Murphy Oil Corp – slide 32
    The Proven Unique Murphy Strategy Develop Differentiated Perspectives in Underexplored Basins & Plays Continue to be a Preferred Partner to NOCs & Regional Independents Balance Our Offshore Business by Acquiring & Developing…
  33. Simmons Annual Energy conference – Murphy Oil Corp – slide 33
    Asset Overview At December 31, 2017 Crude Oil NGLs Natural Gas Total Proved Developed Reserves: (Millions of Barrels) (Billions of Cubic Feet) (Millions of Barrels Equivalent) United States 126.3 23.3 127.7 170.9 Canada 21.9 1.0 547.0…
  34. Simmons Annual Energy conference – Murphy Oil Corp – slide 34
    NA Onshore Running Room Area Net Acres PDP Wells Reservoir Remaining Wells Spacing (Acres) Total Well Count* Three Main Unconventional Plays: Eagle Ford Shale, Duvernay & NA Onshore Total 413,156 1,222 5,176 6,398 Lower EFS 60 40…
  35. Simmons Annual Energy conference – Murphy Oil Corp – slide 35
    Eagle Ford Shale Peer Acreage OIL Murphy EOG Lewis/BP ConocoPhillips CONDENSATE Marathon Pioneer EP Energy Pioneer Encana Carrizo GAS Chesapeake Sanchez MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 42
  36. Simmons Annual Energy conference – Murphy Oil Corp – slide 36
    Tupper Montney Peer Acreage MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 43
  37. Simmons Annual Energy conference – Murphy Oil Corp – slide 37
    Kaybob Duvernay Peer Acreage Volatile Oil KAYBOB EAST SHELL Gas Condensate PARAMOUNT ENCANA CENOVUS KAYBOB WEST SIMONETTE SAXON Fox Creek CHEVRON Wet Gas XTO PLACID REPSOL 6 Miles MURPHY OIL CORPORATION…
  38. Simmons Annual Energy conference – Murphy Oil Corp – slide 38
    Placid Montney Peer Acreage Condensate Limit KAYBOB EAST CIOC PARAMOUNT CNRL CENOVUS RMP ENCANA KAYBOB WEST SIMONETTE Fox Creek SAXON CHEVRON DELPHI XTO PLACID Dry Gas Limit 6 Miles MURPHY OIL CORPORATION…
  39. Simmons Annual Energy conference – Murphy Oil Corp – slide 39
    Multi-Year Global Exploration Plan Offshore Exploration Drilling Plan 2018 2019 2020 2021 2022 United States Mexico Brazil Australia Vietnam Malaysia MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR…
  40. Simmons Annual Energy conference – Murphy Oil Corp – slide 40
    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…
  41. Simmons Annual Energy conference – Murphy Oil Corp – slide 41
    Bloomberg Definitions Net Income/BOE = Net Income (Loss) as Reported / Total Annual Production EBITDA = Loss from Continuing Operations - Interest & Other Income + Income Tax Expense (Benefit) + Interest Expense - Interest Capitalized…

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