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Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp

Murphy Oil Corp · Mar 26, 2018 · 49 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. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 1
    SCOTIA HOWARD WEIL 2018 ENERGY CONFERENCE MARCH 26, 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. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 2
    Agenda 01 Murphy Overview 02 Creating Value 03 Portfolio Review 04 Exploration Review 05 Takeaways MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 3
  3. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 3
    MURPHY OVERVIEW MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 4
  4. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 4
    Murphy At A Glance 2017 Proved Reserves 46% Gas 47% Oil Long Corporate History, IPO in 1956 19% US Onshore Global Offshore & Onshore Portfolio 7% 698 37% Canada Onshore MMBOE Canada Offshore 3% Diverse Portfolio Drives High…
  5. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 5
    Committed to Returning Cash to Shareholders Dividend + Buyback Payout % of Adj CFO, 2015 2017 Long History of Paying Dividend 35% MUR 30% 25% Returned 4.3 BN to Shareholders, Since 1961 20% 15% Sustained High Dividend Yield…
  6. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 6
    Diversified Oil-Weighted Production US 2017 Production 12% Gas 75% 13% 23% Oil NGL 61 Eagle Ford Shale MBOEPD Gulf of Mexico 77% Canada Malaysia 2017 Production 63% United States Oil 36% Gas 41% 53 Sarawak MBOEPD 59%…
  7. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 7
    Diversified Production Drives High Cash Margins High Margin, Premium Priced Oil Production Oil-Weighted Cash Margins 4Q 17 2017 Offshore Production 72% Liquids Canada Offshore Hibernia & Terra Nova Lower Operating & Corporate…
  8. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 8
    Focused Exploration Gulf of Mexico Vietnam Brazil Australia 3 BBOE Net Unrisked Resources MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 9
  9. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 9
    2018 Plan 2018 Total CAPEX Exploration Total CAPEX 106 MM Samurai & King Cake US Onshore Mexico Deepwater Block 5 Total CAPEX 350 MM 41 Wells Drilled Offshore 38% 38 Wells Online 4% 90 MM Facilities 10% 33% NA Offshore 9%…
  10. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 10
    CREATING VALUE MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 11
  11. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 11
    Committed to Our Strategy DIFFERENTIATED PREFERRED DEVELOP & ACHIEVE & BALANCE PERSPECTIVES PARTNER PRODUCE MAINTAIN Achieve & Maintain Balance Free Cash Develop Differentiated Continue to be Preferred Develop & Produce…
  12. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 12
    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 Measured, Oil-Weighted Production Growth 300 3,000 Within Cash Flow while…
  13. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 13
    Price 2018 2019 2020 2021 2022 Drives EBITDA Growth 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 2,600 Measured, Oil-Weighted Production Growth 2,435 Within Cash Flow while…
  14. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 14
    PORTFOLIO REVIEW MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 15
  15. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 15
    Offshore Operations Highlights Malaysia Gulf of Mexico Sabah 99.5% Uptime of Operated Facilities 4Q 17 Kikeh ESP Pilot Start Up 4Q 17, DTU Gas Lift Project Ongoing Medusa Subsea Well Workover 1Q 18 Block H Front Runner Preparing for Rig…
  16. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 16
    Vietnam Operations Update Block 15-01/05 LDV Field Progressing LDV Field Development Plan LDV Field On Track for Declaration of Commerciality in 2018 Up to 250 MMBOE Gross Recoverable Field Will Deliver Meaningful Free Cash Flow…
  17. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 17
    Accretive Offshore Projects Drive Economic Production Low-Cost Offshore Projects Maintaining Production at Existing Fields with 25 160 Low-Cost, Innovative Projects 20 140 125 MM CAPEX in 2018 for Long-Term Offshore 120…
  18. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 18
    Eagle Ford Shale Highlights Currently Completing Karnes 10 Well Pad, Expected Online 2Q 18 Atascosa IP30 Substantial Improvement in Catarina Karnes Enhanced Spacing & Frac Designs Tilden Karnes Catarina Cluster Spacing Optimized…
  19. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 19
    Tupper Montney Highlights Top Tier North American Dry Natural Gas Play Henry Hub Dry Natural Gas Break-Even Prices, /MCF Wells Continue to Trend to 18 BCF Type Curve 5.50 4Q 17 Netback C2.49/MCF vs AECO Spot C1.96/MCF 5.00 YTD 2018…
  20. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 20
    Kaybob Duvernay 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 17…
  21. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 21
    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 Move Kaybob West & Saxon into…
  22. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 22
    Lowering Cost & Growing Production in Kaybob Duvernay Kaybob Duvernay / Placid Montney Production Performance at Plan 14 12 Increased ROP (Feet per Day) by 60% Since 2016 Net Production, MBOEPD 10 Reduced /ft (Cost per Foot)…
  23. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 23
    Growing Onshore Production While Increasing Low Break-Even Locations Net Production, MBOEPD 100 1,800 Eagle Ford Shale 90 1,600 1,000 Economic Locations* Below 40 WTI 80 1,400 Production, MBOEPD 70 1,200 More than 500…
  24. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 24
    EXPLORATION REVIEW MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 25
  25. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 25
    Its Not Your Dads Exploration Program New Exploration Leadership Team Exploration Focus Areas Updated Rules of the Road Focused in Four Areas Target 35% Working Interest No 100% New Entry Blocks Partner with Proven Explorers NOCs,…
  26. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 26
    Gulf of Mexico Exploration Update Planning for Samurai (GC 432) Appraisal Finalized King Cake Prospect Farm-In (AT 23) Murphy 50% WI, Operator Murphy 31.5% WI, Operator Expected Spud 2Q 18 Expected Spud 3Q 18 15 Miles from…
  27. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 27
    Offshore Mexico Exploration Update Block 10 Block 21 Mexico Deepwater Block 5 30.5 MM Repsol, PETRONAS, Ophir 110.2 MM Shell Block 20 Murphy 30% WI, Operator, Partners 90.2 MM Block Name Cash Bonus Shell PETRONAS, Ophir & Sierra…
  28. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 28
    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 400 MMBOE 50 MMBOE 400 MMBOE Murphy 20%,…
  29. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 29
    Vietnam Exploration Update Cuu Long Basin Block 15-1/05 Murphy 35% WI, Non-Op Working to LDV Field Up to 250 MMBOE Become Operator & Increase to 40% WI Gross Recoverable LDT Prospect Expected Spud 2Q 18 Block 15-01/05 Mean Gross…
  30. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 30
    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 Fairway Expected Spud 2019 & 2021 Identifying Multiple Prospects, Up to…
  31. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 31
    Multi-Year Global Exploration Plan Global Exploration Production & CAPEX, Net Risked 45 300 Renewed Exploration Portfolio with Low-Cost 40 35 250 Entries & Near, Mid & Long-Term Opportunities Production, MBOEPD 30 200…
  32. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 32
    TAKEAWAYS MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 33
  33. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 33
    Takeaways Financial Takeaways Continuing to Return Cash to Shareholders with Current Dividend Policy Maintaining Strong Balance Sheet & Low Leverage Focusing on Continued Cost Reductions Positioning Company for Long-Term Value…
  34. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 34
    APPENDIX MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 35
  35. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 35
    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…
  36. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 36
    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…
  37. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 37
    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…
  38. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 38
    NA Onshore Running Room Spacing Inter-Well Spacing Area Net Acres PDP Wells Reservoir Remaining Wells Total Well Count* (Acres) (ft) NA Onshore Total 413,156 1,222 5,176 6,398 Lower EFS 60 40 350 Karnes 10,918 274 Upper EFS 158 80…
  39. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 39
    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 46
  40. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 40
    Tupper Montney Peer Acreage MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 47
  41. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 41
    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…
  42. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 42
    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…
  43. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 43
    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…
  44. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 44
    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…
  45. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 45
    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 F&D Costs of 13.09/BOE 15 3…
  46. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 46
    BAL YR 2018 Montney Gas Alberta Sales Prices Tupper Montney AECO Hedge Emerson 2.19 2.40 AECO Spot 0.81 1.02 1.59 MARKET Dawn 2.53 PRICE US/MMBTU 0.89 TOTAL TRANSPORT 1.64 ALBERTA PRICE US/MM Malin Chicago 2.17 2.49…
  47. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 47
    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…
  48. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 48
    Credit Metrics vs E&P Peers 2017 Net Debt / Adj EBITDAX 2017 Net Debt / Proved Reserves (/BOE)* 5x 4.6x 9 5x 7.74 8 4x 3.6x 7 4x 3.3x 5.80 2.9x 6 5.21 3x 2.3x 2.4x 5 4.48 4.60 3x 2.1x 2.1x 2x 1.7x 1.8x 1.8x 4 3.40 3.59 1.5x…
  49. Scotia Howard Weil 2018 Energy Conference – Murphy Oil Corp – slide 49
    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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