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June 2018 JP Morgan Energy Conference – Murphy Oil Corp

Murphy Oil Corp · Jun 20, 2018 · 43 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. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 1
    J.P. MORGAN ENERGY CONFERENCE JUNE 20, 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. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 2
    Agenda 01 COMPANY UPDATE 02 PORTFOLIO REVIEW 03 EXPLORATION REVIEW 04 TAKEAWAYS MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 3
  3. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 3
    Murphy At A Glance 2017 Proved Reserves 46% Gas 47% Oil Long Corporate History, IPO 1956 19% US Onshore 37% Canada Onshore Global Offshore & North American Onshore Portfolio 7% 698 Canada Offshore 3% MMBOE Diverse Portfolio…
  4. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 4
    Enriching Shareholders with Long-Term Dividend Policy Dividend + Buyback Payout % of Adj CFO, 2015 2017 Returned 4.3 BN to Shareholders, Since 1961 35% MUR 30% Returned 2.5 BN to Shareholders in Last 10 Years 25% 20% Sustained…
  5. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 5
    2018 Plan Production 167 170 2018 Production Guidance 167 170 MBOEPD, 170 166 169 60% Liquids 168 167.5 2018 Annual CAPEX Spend 1.11 BN 166 MBOEPD 670 MM Onshore 164 270 MM Offshore 162 130 MM Exploration 160 1Q 2018 2Q…
  6. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 6
    1Q 2018 Highlights Achieving High-Margin Returning Cash to Generating Strong Returns & Production from Shareholders & Building Maintaining Healthy Liquidity Diversified Assets Long-Term Portfolio 1Q 18 Total Production 168…
  7. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 7
    Diversified Production Yields Premium Netbacks to WTI 88 93 MBOPD Produced Globally Murphy Oil Corporation is Not a WTI-Weighted Company MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 8
  8. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 8
    Executing on Our Strategy in 1Q 2018 Returning to Offshore Exploration at Bottom of Cycle Develop DIFFERENTIATED PERSPECTIVES In Gulf of Mexico & Brazil Acreage Acquisitions Underexplored Basins & Plays Drilled First Appraisal Wells at…
  9. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 9
    Price 2018 2019 2020 2021 2022 Our Strategy Drives Profitable 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 Measured, Oil-Weighted Production Growth 300 Value-Adding…
  10. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 10
    PORTFOLIO REVIEW MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 11
  11. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 11
    Eagle Ford Shale Highlights Operated Well Delivery 45 Wells Online FY 2018 Atascosa 6 Tilden Wells Online 1Q 18 Avg IP30 775 BOEPD Karnes 22 Wells Online 2Q 18 10 Well Pad in Karnes, 10 Wells in Tilden Karnes Catarina & 2 Wells in…
  12. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 12
    Tupper Montney Highlights Top Tier North American Dry Natural Gas Play Henry Hub Dry Natural Gas Break-Even Prices, /MCF 6.00 Operated Well Delivery 5 Wells Online FY 2018 3 Upper Montney, 2 Middle 5.00 Montney, Avg EUR 18 BCF…
  13. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 13
    Kaybob Duvernay 2018 Well Delivery Plan Operated Well Delivery FY 18 Budget: Drill 17 Wells, Online 23 Wells Contingent: Drill +7 Wells, Online +7 Wells Pad Wells Window Online A 01-12 1 Oil 1Q 2018 B 15-16 2 Oil 1Q 2018 C…
  14. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 14
    Kaybob Duvernay & Placid Montney Highlights Increased Kaybob Production 92% from 1Q 2017 to 1Q 2018 Drilling Pacesetter Wells 1Q 18 Drilling Cost per Foot 110 1Q 18 /CLAT 600 Appraisal Wells Update Online 1Q 2018 01-12 Pad (1 Well)…
  15. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 15
    Lowering Cost & Growing Production in Kaybob Duvernay Production Performance at Plan Kaybob Duvernay Drilling & Completion Cost Improvements* 10 Increased ROP (Feet per Day) by 60% Since 2016 9 8 Reduced /ft (Cost per Foot) by…
  16. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 16
    Offshore Operations Highlights Gulf of Mexico Malaysia Operated Sabah Medusa Subsea Well Workover Complete Kikeh DTU Gas Lift Project 80% Complete, Online 3Q 18 Clipper Comingled Wells Outperforming, Kakap Phase 2 Drilling to Start 4Q…
  17. June 2018 JP Morgan 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 20 140 120 125 MM CAPEX in 2018 for Long-Term Offshore…
  18. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 18
    EXPLORATION REVIEW MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 19
  19. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 19
    Global Exploration Strategy New Exploration Team Focus Exploration Focus Areas Target 35% Working Interest No 100% New Entry Blocks Partner with Proven Explorers 30% Full Cycle Return at Mean Risked Volumes F&D < 15 Near Existing…
  20. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 20
    Gulf of Mexico Exploration Update Samurai (GC 432 2) Appraisal Planning for King Cake (AT 23 1) Exploration Murphy 50% WI, Operator Murphy 31.5% WI, Operator Spud 2Q 18 Expected Spud 3Q 18 Mean Gross Resource Potential 75 MMBOE,…
  21. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 21
    Mexico Exploration Update Mexico Deepwater Block 5 Block 10 Block 21 Murphy 30% WI, Operator, Partners 30.5 MM Repsol, PETRONAS, Ophir 110.2 MM Shell Block 20 PETRONAS, Ophir & Sierra Oil & Gas 90.2 MM Block Name Cash Bonus…
  22. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 22
    Brazil Exploration Update Renewed Exploration Portfolio with Low-Cost Entry & Long-Term Opportunities in 6 Blocks Farfan 400 MMBOE Barra Cumbe Farm-In to QGEPs Sergipe-Alagoas Blocks 400 MMBOE 50 MMBOE Secured Blocks 351 & 428…
  23. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 23
    Vietnam Exploration Update Cuu Long Basin Block 15-1/05 LDV Field Murphy 35% WI, Non-Op Working to Up to 250 MMBOE Become Operator & Increase to 40% WI Gross Recoverable LDT Prospect Expected Spud 3Q 18, Block 15-01/05 Commitment…
  24. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 24
    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…
  25. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 25
    2018 Exploration Details Working Gross Mean Net Mean Gross Resource Net Resource Net Well Prospect Block Interest Resource Potential Resource Potential Upside Potential Upside Potential Cost 50% GOM Samurai GC 432 75 MMBOE 35 MMBOE…
  26. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 26
    Takeaways Executing 2018 Plan Doubling EBITDA by 2022 Positioning Company for Long-Term Value Creation Achieving High Cash Margin from Diverse, Oil-Weighted Portfolio Renewing Exploration Portfolio Drilling 4 Wells in 2018…
  27. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 27
    APPENDIX MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 28
  28. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 28
    Guidance 2Q 2018 2Q 2018 2Q 2018 Guidance 2Q Liquids (BOPD) Gas (MCFD) 2Q Production: US Eagle Ford Shale 38,600 31,000 Gulf of Mexico 15,350 12,600 Canada Tupper Montney 233,800 Kaybob Duvernay & Placid Montney 5,500 23,500…
  29. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 29
    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 4/1/2018 12/31/2018 Volumes Area Commodity Type (MMCFD) Price (MCF) Start…
  30. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 30
    2017 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…
  31. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 31
    Diversified Portfolio Drives High Cash Margins Premium Oil Margins Widening to WTI 85 1Q 2018 Sales Basis Price MCO = 19% Higher than WTI 80 Brent = 14% Higher than WTI LLS = 13% Higher than WTI 42% Natural Gas 52% Oil 75…
  32. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 32
    Increasing Reserves & Lowering F&D Costs in 2017 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…
  33. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 33
    Price 2018 2019 2020 2021 2022 Long-Term Production by Asset WTI 52.00 54.60 57.33 60.20 63.21 Brent 55.50 58.10 60.83 63.70 66.71 300 3,000 HH 3.00 2.81 2.86 2.92 2.98 250 2,500 200 2,000 Production, MBOEPD CAPEX, MM…
  34. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 34
    1Q 18 Financial Overview 1Q 1Q MM (Except per Share) 2018 2017 Adjustments to 1Q 18 Earnings Impact of 2017 Tax Cuts & Jobs Act 120 MM Continuing Operations Foreign Exchange Gains 12 MM Income (Loss) 169 57 /Diluted Share 0.97 0.33…
  35. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 35
    1Q 18 Financial Details Operating Expenses (OPEX) 1Q 18 9.07/BOE 0.70/BOE Higher Due to Workover Expenses at Kodiak 0.42/BOE Higher Due to Offset Frac Impacts at Eagle Ford Shale Impacted by Additional Sand & Water Disposal Costs as…
  36. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 36
    Credit Metrics vs E&P Peers 1Q 2018 1Q 2018 Net Debt / Adj EBITDAX 1Q 2018 Net Debt / 2017 Proved Reserves (/BOE) * 4.5x 10 9.06 4.0x 4.0x 9 3.4x 8 3.5x 3.0x 2.7x 2.8x 7 6.18 2.2x 6 2.5x 2.2x 2.2x 4.90 2.0x 2.0x 5 4.58 4.81…
  37. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 37
    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…
  38. June 2018 JP Morgan 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. June 2018 JP Morgan 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. June 2018 JP Morgan 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. June 2018 JP Morgan 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. June 2018 JP Morgan 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. June 2018 JP Morgan Energy Conference – Murphy Oil Corp – slide 43
    BAL YR 2018 Montney Gas Alberta Sales Prices Tupper Montney AECO Hedge Emerson 2.19 2.53 AECO Spot 0.81 1.33 1.72 MARKET Dawn 2.74 PRICE US/MMBTU 0.89 TOTAL TRANSPORT 1.85 ALBERTA PRICE US/MM Malin Chicago 2.45 2.68…

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