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CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp

Murphy Oil Corp · Sep 25, 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. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 1
    CREDIT SUISSE 4TH ANNUAL OIL & GAS NON-BUS TOUR SEPTEMBER 25, 2018 DAVID R. LOONEY EXECUTIVE VICE PRESIDENT & CHIEF FINANCIAL OFFICER MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 1
  2. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – 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. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – 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. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 4
    Executing Our Strategy in 2Q 2018 Returned to Offshore Exploration at Bottom of Cycle with Develop DIFFERENTIATED PERSPECTIVES In Successful Delineation & Discovery at Samurai-2 in Gulf of Mexico Underexplored Basins & Plays…
  5. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 5
    Affirming Production & CAPEX Guidance FY 18 Production Guidance 168.5 170.5 MBOEPD, 2018 Annual CAPEX Spend 1.18 BN 59% Liquids 730 MM Onshore 270 MM Offshore 3Q 18 Guidance 166.5 168.5 MBOEPD, 59% Liquids Planned 3Q 18 Downtime,…
  6. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 6
    Driving High Cash Margins With a Diversified Portfolio Premium Oil Margins Widening to WTI 85 Midland 23% Lower than WTI 2Q 2018 Sales Basis Price MCO 15% Higher than WTI 80 Brent 9% Higher than WTI LLS 7% Higher than WTI 41%…
  7. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 7
    Generating Robust EBITDA Allocating 70% of Capital to High EBITDA Assets, 70% of 3Q 18E Production Eagle Ford Shale 1H 2018 EBITDA Kikeh DTU Gas Lift Dalmatian Subsea Pump Samurai Success Evaluation Realized Prices & Volumes…
  8. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 8
    Enriching Shareholders with Long-Term Dividend Policy Dividend + Buyback Payout % of Adj CFO*, 2015 2018E 50% Returned 4.3 BN to Shareholders, Since 1961 = Implemented 2018 Share Repurchase 40% Returned 2.5 BN to Shareholders in…
  9. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 9
    PORTFOLIO REVIEW MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 10
  10. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 10
    Low-Cost North America Onshore Assets Eagle Ford Shale 2018 CAPEX 47% 125,000 Net Acres, 905 Wells Online* CA Onshore 2,000 Remaining Locations** 7% 3% 53% US Onshore Premium LLS Pricing Eagle Ford Shale 730 MM Kaybob Duvernay…
  11. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 11
    Producing Consistent Results in the Eagle Ford Shale Atascosa Operated Well Delivery 45 Wells Online FY 2018 Karnes 26 Wells Online 2Q 18 vs Guide of 22 Wells 10-Well Pad in Karnes Avg IP30 1,750 BOEPD Tilden Karnes Co-Development…
  12. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 12
    Growing the Kaybob Duvernay Operated Well Delivery Current Plan 25 Drill + 25 Complete + 27 Online Location Pad Wells Window Online A 01-12 1 Oil 1Q 2018 B 15-16 2 Oil 1Q 2018 C 12-29 2 Oil 1Q 2018 D 16-03 3 Condensate 1Q 2018…
  13. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 13
    Continuing Strong Execution in the Kaybob Duvernay Kaybob Duvernay Net Production, MBOEPD 8,000 Substantial Production Growth Increased Kaybob Production 35% from 1Q 18 to 2Q 18, 108% Y-O-Y 6,000 Drilled Longer Laterals, Nearly…
  14. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 14
    Delivering Low Cost Production in Tupper Montney Operated Well Delivery 1H 2018 Avg Realized Price 5 Wells Online 2Q 18, Avg EUR 18 BCF Successful AECO Price Mitigation AECO Daily Spot Down 43% vs MUR Realizations Down 16% (2Q 18 vs…
  15. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 15
    Generating Free Cash Flow from Long-Term Project AECO Gas Prices, C/MMBTU 3.50 Expansion Online Long-Term Expansion Project Approved 2Q 18 3.00 Additional 200 MMCFD, Online 2020 Up to 500 MMCFD 2.50 Adds Estimated 400+ BCF…
  16. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 16
    Executing in Global Offshore Malaysia Gulf of Mexico Sabah Kikeh Medusa SS 5 Well Online 2Q 18 DTU Gas Lift Project 95% Complete, Online 3Q 18 Beat 2Q 18 Production Guidance by 1,700 BOEPD Fields Outperformed Sarawak South Acis…
  17. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 17
    EXPLORATION REVIEW MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 18
  18. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 18
    Returning to Global Exploration New Exploration Team Focus Target 35% Working Interest Exploration Focus Areas No 100% New Entry Blocks Partner with Proven Explorers 30% Full Cycle Return at Mean Risked Volumes F&D < 15 Near…
  19. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 19
    Achieving Successful Exploration Gulf of Mexico Samurai Appraisal (GC432 2) Murphy 50% WI, Operator, BHP 50% WI Samurai-1 (MUR) 432 Khaleesi (LLOG) Pay in Multiple Miocene Horizons Upper Miocene Discovery Miocene 4-Way Closure…
  20. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 20
    Developing Gulf of Mexico Tie-Backs After-Tax Cash Flow & Production Profile Development Summary 400 40 Tie-Back to Host Facility within 20 Miles 300 30 18 Month to Complete Tie-Back After-Tax Cash Flow, MM Production,…
  21. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 21
    Gaining Momentum in Strategic Exploration GOM King Cake Prospect (AT23 1) GOM King Cake Murphy 31.5% WI, Operator Miocene Structural/Stratigraphic 3-Way Closure Expected Spud 3Q 18 Medusa Gross Resource Potential 50 MMBOE (Mean) to…
  22. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 22
    Positioning Company for Long-Term Value Creation Delivering the 2018 Plan Achieving Strong EBITDA Margins Returning to Successful Offshore Exploration Executing High-Return Offshore Projects Driving Costs Lower in North…
  23. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 23
    APPENDIX MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 24
  24. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 24
    Guidance 3Q 18 3Q 2018 3Q 2018 Guidance 3Q Liquids (BOPD) Gas (MCFD) 3Q Production: US Eagle Ford Shale 41,775 31,650 Gulf of Mexico 15,625 14,100 Canada Tupper Montney 234,500 Kaybob Duvernay & Placid Montney 7,200 32,000…
  25. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 25
    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 7/1/2018 12/31/2018 Volumes Area Commodity Type (MMCFD) Price (MCF) Start…
  26. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 26
    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…
  27. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 27
    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…
  28. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 28
    Maintaining Financial Discipline Adjustments to 2Q 18 Earnings MM (Except per Share) 2Q 18 2Q 17 Mark-to-Market Loss on Crude Oil Contracts 10 MM, After Tax Continuing Operations Foreign Exchange Loss 7 MM, After Tax Income (Loss) 46…
  29. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 29
    Expecting Cash Flow, CAPEX & Dividend Parity for FY 2018 1H 2018 Adversely Affected By: 35 MM One-Time Withholding Tax Payment on Funds Condensed Cash Flow Statement MM Repatriated from Canada Beginning Cash at December 31, 2017…
  30. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 30
    Long-Term Strategy Drives Profitable Growth Measured, Oil-Weighted Production Growth Value-Adding Production Growth Within Cash Flow 300 Plan Returns Over 800 MM to Shareholders 250 with Current Dividend Policy 200…
  31. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 31
    Credit Metrics vs E&P Peers 2Q 2018 2Q 2018 Net Debt / Adj EBITDAX (LTM) 2Q 2018 Net Debt / 2017 Proved Reserves* (/BOE) 4.5x 12 4.0x 4.0x 9.71 3.4x 10 3.5x 3.0x 2.7x 8 2.3x 2.4x 6.27 2.5x 2.1x 2.0x 6 4.91 5.06 2.0x 1.7x 1.7x…
  32. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 32
    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…
  33. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 33
    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…
  34. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 34
    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 41
  35. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 35
    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…
  36. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 36
    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…
  37. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 37
    Tupper Montney Peer Acreage MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 44
  38. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 38
    Mexico Exploration Update Mexico Deepwater Block 5 Block 10 Block 21 Murphy 30% WI, Operator, Partners 30.5 MM 110.2 MM Repsol, PETRONAS, Ophir Shell PETRONAS, Ophir & Sierra Oil & Gas Block 20 Block Name 90.2 MM Cash Bonus…
  39. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 39
    Brazil Exploration Update Renewed Exploration Portfolio with Low-Cost Entry & Long-Term Opportunities in 6 Blocks Farfan 400 MMBOE Progressing 2018 Seismic Program Barra Cumbe 400 MMBOE 50 MMBOE 351 Farm-In to QGEPs…
  40. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 40
    Vietnam Exploration Update Cuu Long Basin LDT Prospect (Block 15-1/05) LDV Field Murphy 40% WI, Operator Up to 250 MMBOE Gross Recoverable Oligocene Faulted 3-Way Fractured Reservoir Expected Spud 4Q 18, Commitment Well Block…
  41. CREDIT SUISSE 4TH ANNUAL OIL & GAS NON BUS TOUR – Murphy Oil Corp – slide 41
    Vulcan Basin Australia Exploration Update Murphy Block Blocks Vulcan Basin Oil Field AC/P-58 Murphy 40% 60% WI, Operator Gas Field Jurassic Play Ceduna Basin Fairway Expected Spud 2019 & 2021 Identifying Multiple Prospects,…

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