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Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp

Murphy Oil Corp · May 7, 2019 · 60 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. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 1
    ANNUAL MEETING OF STOCKHOLDERS & SUPPLEMENTAL MATERIAL EL DORADO, ARKANSAS MAY 2019 ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER MURPHY OIL CORPORATION w w w .m u rphyoi l corp.com N YSE: M U R 1
  2. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 2
    Murphy Oil Corporation Continued Focus on Health, Safety & Environment Global Energy Needs Create a Long Runway for Oil & Natural Gas Portfolio Transformation for Long Term Value Long History of Rewarding Shareholders Strategy…
  3. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 3
    SUSTAINABILTY MURPHY OIL CORPORATION w w w .m u rphyoi l corp.com N YSE: M U R 4
  4. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 4
    Published Inaugural Sustainability Report Sculpted by Conducting Business in a Manner that Protects Third Party Health, Safety & Security of Our People Standards Committing to Minimize Environmental Impact Investing in & Engaging…
  5. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 5
    Safety & Environment Performance Spill Volumes Environment Highlights 2,500 Oil Spill 1 Bbl per MMBOE 225,000 barrels of oil & produced Continuous Improvement Reducing Oil Spill Events 2,000 water handled per day Focused on…
  6. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 6
    Green House Gas Performance GHG Emissions Portfolio & Operational Changes 5 50,000 Exiting High Green House Gas (GHG) 4 40,000 Intensity Assets Metric Tons CO2e/MMBOE Acquiring Lower GHG Intensity Assets 3 30,000 Million…
  7. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 7
    BUSINESS ENVIRONMENT MURPHY OIL CORPORATION w w w .m u rphyoi l corp.com N YSE: M U R 8
  8. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 8
    International Energy Agency New Policies Scenario International Energy Agency (IEA) Scenarios Energy Demand by Fuel in 2040, MMBOEPD Current Policies (CP): No Change in Current Policies & % Oil & Gas 54% 54% 53% 44% 53% 57% No…
  9. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 9
    Increasing Global Oil Supply & Demand Oil Production with No New Investment (MMBOPD) Supply & Demand Production Gap, IEA New Policies (MMBOPD) 100 88 120 80 80 70 60 53 100 40 20 80 0 2025 2030 2035 2040 Conventional Tight…
  10. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 10
    Oil & Natural Gas Vital Part of Long Term Energy Mix Murphy is Well Positioned to Help Supply the Worlds Energy Demand for Future Decades Focusing on Oil-Weighted, High Margin Western Hemisphere Assets With Low Carbon Footprint…
  11. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 11
    COMPANY OVERVIEW & RECENT TRANSFORMATION MURPHY OIL CORPORATION w w w .m u rphyoi l corp.com N YSE: M U R 12
  12. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 12
    Murphy at a Glance 2018 Proved Reserves 32% 43% 57% 816 Liquids- 50% MMBOE Weighted 68% 7% Onshore Offshore Oil NGL Natural Gas NOTE: Includes 129 MMBOE from Malaysia; Excludes 66 MMBOE from LLOG Acquisition FY 18…
  13. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 13
    Deliberate Transformation 2016 2018 Acquired Kaybob Transaction 2019 Duvernay & with Petrobras Acquired Placid Montney Gulf of Mexico LLOG 206 MM 795 MM 1.375 BN 2014 2015 2016 2017 2018 2019 Stabilizing & Rebuilding;…
  14. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 14
    Sharpening Focus on Eagle Ford Shale, Gulf of Mexico, Exploration Re-establishing Significant Footprint in Gulf of Mexico Becoming 5th Largest Operator Growing Low Cost & Price Advantaged Eagle Ford Shale Asset Continuing New Exploration…
  15. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 15
    Transformation Through Strategic Acquisitions & Divestitures ASSETS DIVESTED ASSETS ACQUIRED Divested Malaysia Assets for 2.1 BN(1) Acquired Gulf of Mexico Assets for 2.3 BN Strategic Exit from Malaysia Simplifies MP Gulf of Mexico:…
  16. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 16
    Unlocking Value With Multiple Transactions Accretive Transactions with Attractive Valuation Metrics Divestiture Proceeds Acquisitions Cost Malaysia Combined Divestiture Acquisitions 2.3 BN / Flowing BOE 45k 28k 2.1 BN / BOE Proven…
  17. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 17
    Gulf of Mexico Overview Key US Gulf of Mexico Assets Post-Transaction Over 50 Years of Successful Operations Breton Sound 25 Murphy LLOG Blocks 94 26 Neidermeyer Otis Dalmatian VK DD Producing Fields 12 7 Delta House Marmalard…
  18. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 18
    Revitalizing Gulf of Mexico Assets Delivering Free Cash Flow with Efficient 2019 2023 Estimated Gulf of Mexico Production Capital Spending 90 85 15 83 Generates 1.0 BN Annual Average EBITDA 80 Per Year 70 14 LLOG Requires 325 MM…
  19. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 19
    Exploration Strategy Overview Focused & Meaningful Four Primary Exploration Growth Areas Exploration Core Focus Areas 3 to 5 Exploration Wells per Year 10% of Capital Budget 100 125 MM/Year Reduced Risk Proven Oil Provinces…
  20. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 20
    US Gulf of Mexico Exploration Exploration Strategy Acreage & Key Miocene Inventory Proven/Highly Commercial Miocene Trend LOUISIANA High Value/Short-Cycle Production Interest in 100 Leases in Gulf of Mexico Hoffe Park Dalmatian…
  21. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 21
    Mexico Exploration Block28 (Shell) Exploration Strategy Block29 (Repsol) 43MM Bonus 150MM Bonus Oil-Prone Salina Basin; Under-Explored Deepwater Province Block 5 Contract Oil & Natural Gas Sector Closed to Foreign Ownership Until…
  22. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 22
    Vietnam Exploration Exploration Strategy Additional Near-Field Proven & Prolific Cuu Long Basin Potential in Other Plays Test New Play Type LDT-1X Murphy 40% WI Operator LDV Field LDT North Additional G Prospects 18 MMBOE Remaining…
  23. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 23
    Brazil Exploration Exploration Strategy Exposure to One of the Worlds Great Oil Provinces Potential for Legacy Scale Discoveries Farfan 400 MMBOE Low Cost Entry into Sergipe-Alagoas Basin Barra 400 MMBOE Cumbe 50 MMBOE Proven…
  24. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 24
    Eagle Ford Shale Overview Advantages Low Cost Entry Into World-Class Shale Play Premium Gulf Coast Pricing for Crude Oil Predictable Production & Scalable Completely De-Risked by Industry Annually Delivering Consistent Profitable…
  25. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 25
    NEW LONG RANGE PLAN MURPHY OIL CORPORATION w w w .m u rphyoi l corp.com N YSE: M U R 26
  26. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 26
    Long Term Plan For Sources & Uses of Cash 2019 Transactions & Use of Proceeds 2019 2023 Strategic Plan 2.3 BN 2.3 BN 2.1 BN 2.2 BN Share Repurchase Auth. Dividends 500 MM 780 MM RCF Payoff 325 MM Other Uses 1.7 BN Cash Free…
  27. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 27
    Long Term Strategy For Cash Flow Generation & Production Growth Providing Solid Five-Year Production Growth 2018A 2023E Production Growth Total Production Compound Annual Growth Rate (CAGR) 8% 250 Oil Production CAGR 12% Other SE…
  28. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 28
    REWARDING SHAREHOLDERS MURPHY OIL CORPORATION w w w .m u rphyoi l corp.com N YSE: M U R 29
  29. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 29
    Long History of Rewarding Shareholders MUR Dividend as % of CF from Operations Dividend as % of CF from Operations (2016-2019E) 40% 40% 35% 35% 30% 30% 2016 25% 25% 2017 20% 20% 15% 15% Dividend 2018 Discontinued 10% 10% 5% 5%…
  30. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 30
    Summary of Shareholder Support Value Returned to Shareholders 3.8 BN in Common & Special Dividends since 1997 1.375 BN in Share Repurchase, including Announced 2019 Plan 7.65 BN in Common & Special Dividends + Share Repurchase +…
  31. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 31
    SHARE PRICE PERFORMANCE MURPHY OIL CORPORATION w w w .m u rphyoi l corp.com N YSE: M U R 32
  32. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 32
    Total Shareholder Return Performance 2016 2018 2016 2017 ECA 113% COG 22% SWN 71% EOG 0% CHK 68% ECA -2% APA 50% MUR MUR -7% RRC 47% MRO -12% MUR MUR 46% PXD -13% DVN 40% DVN -16% PXD 39% XEC -16% XEC 39% HES -25% EOG 39% APC…
  33. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 33
    Executing Strategy for Share Price Appreciation US/BBL 90 Closing of Malaysia Divestiture 85 76.41 86.29 80 75 74.04 Closing of LLOG Acquisition 70 65 65.70 60 55 Continuing Exploration Success 50 45 45.52 42.53 40 42.53…
  34. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 34
    LOWER-CARBON FUTURE MURPHY OIL CORPORATION w w w .m u rphyoi l corp.com N YSE: M U R 35
  35. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 35
    Comparison of Energy Returns Annual Average Returns by Energy Type vs Murphy Companies 10% 9% 8% 7% 6% 5% 5% 5% 4% 5% 4% 4% 3% 2% 2% 2% 0% -1% -3% -3% -5% -8% -10% -9% -10% -11% -15% -16% -20% 5 Year 10 Year…
  36. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 36
    Monitoring Renewable Energy Upstream Oil & Natural Gas Investments Typically Offer Better Returns than Wind & Solar PV Lower Returns in Renewables also Come with Lower Risk, Similar to Utilities Global Integrated Companies Adding…
  37. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 37
    Preparing for Lower-Carbon Future Engaging with Consultancies, Researchers, Industry Groups & Policy Experts Current Plans Changing Portfolio Significantly to a Lower Carbon Footprint Reducing Portfolio Emissions by Continuously…
  38. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 38
    Positioning Company for Long Term Value Creation Continuing the Legacy of Rewarding Shareholders Spending Within Our Means & Maintaining Strong Free Cash Flow Yield Enhancing Financial Flexibility & Strengthening Balance Sheet…
  39. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 39
    Murphy Purpose, Mission, Vision & Values Purpose We Believe in Providing Energy that Empowers People Mission We Challenge the Norm, Tap into Our Strong Legacy & Use Our Foresight & Financial Discipline to Deliver Inspired Energy…
  40. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 40
    SUPPLEMENTAL MATERIAL FOR ANNUAL MEETING OF STOCKHOLDERS EL DORADO, ARKANSAS MAY 2019 ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER MURPHY OIL CORPORATION w w w .m u rphyoi l corp.com N YSE: M U R 41
  41. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 41
    Agenda Finance Offshore 01 COMPANY UPDATE Onshore 02 PORTFOLIO TRANSFORMATION LRP Net Asset Value Review 03 PORTFOLIO REVIEW 04 EXPLORATION REVIEW 05 LOOKING AHEAD MURPHY OIL CORPORATION w w w .m u rphyoi l corp.com N…
  42. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 42
    ONSHORE COMPANY UPDATE MURPHY OIL CORPORATION w w w .m u rphyoi l corp.com N YSE: M U R 44
  43. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 43
    Accomplishing Our Strategic Objectives in 2018 Develop DIFFERENTIATED PERSPECTIVES In Drilled Successful Samurai Well Increasing Resources Underexplored Basins & Plays Executed Successful Deep Water Offshore Projects Continue to be a…
  44. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 44
    Increasing Financial Strength Increasing Operating Income Increasing Net Income 500 750 500 250 Millions 250 Millions 0 0 (250) (250) (3200) (500) (500) (2300) 2015 2016 2017 2018 2015 2016 2017 2018 NOTE: 2015…
  45. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 45
    Growing Reserves & Lowering F&D Costs in 2018 2008 2018 Proved Oil Reserves Organic Reserves Replacement 166% (Pre-Transaction) 1,000 Total Reserves Replacement 287% With Petrobras 800 Transaction MMBOE 600 3 Year…
  46. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 46
    History of Benefitting Shareholders Peer Free Cash Flow Yield 2018 Returned 4.3 BN to Shareholders, Since 1961 5% Returned 2.5 BN to Shareholders in Last 10 Years 1.125 BN in Share Repurchases, 2013 2018 0% MUR Representing 10% of…
  47. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 47
    Safety & Environment Performance HSE Highlights 2018 Peer Safety Performance Continuous Improvement Reducing Oil Spill Events 1.20 Gulf of Mexico Spill-Free Since Start of Tracking 1.00 Total Incident Recordable Rate Exiting High…
  48. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 48
    ONSHORE PORTFOLIO TRANSFORMATION MURPHY OIL CORPORATION w w w .m u rphyoi l corp.com N YSE: M U R 50
  49. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 49
    Transformation Through Strategic Acquisitions & Divestitures Divested Malaysia Assets For 2.1 BN1 Acquired Gulf of Mexico Assets for 2.3 BN Strategic Exit from Malaysia Simplifies Portfolio MP GOM: 961 MM2 LLOG: 1.375 BN Gas-Weighted…
  50. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 50
    ONSHORE PORTFOLIO REVIEW MURPHY OIL CORPORATION w w w .m u rphyoi l corp.com N YSE: M U R 52
  51. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 51
    Murphys Revitalized Gulf of Mexico Assets 2019 2023 Estimated Gulf of Mexico Production Delivering Free Cash Flow with Efficient 90 Capital Spending 85 15 83 Provides Annualized Average Production 80 of 85 MBOEPD 70 LLOG 14…
  52. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 52
    Increasing Low Break-Even Locations for High Return Growth Kaybob Duvernay 140,000 Net Acres 27 Wells Online FY 2018 Drilled Longest Lateral to Date 11,476 ft Tupper Montney (16-14D) 1,400+ Remaining All Remaining Locations with…
  53. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 53
    Producing Consistent Results in the Eagle Ford Shale Operated Well Delivery 49 Wells Online FY 18 125,000 Net Acres, 900 Wells Online 1,800 Remaining Locations Premium LLS Pricing Improved Drilling & Completion Performance 2018…
  54. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 54
    EXPLORATION REVIEW MURPHY OIL CORPORATION w w w .m u rphyoi l corp.com N YSE: M U R 56
  55. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 55
    Exploration Strategy Overview Focused & Meaningful Four Primary Exploration Growth Areas Exploration Core Focus Areas 3 to 5 Exploration Wells per Year 10% of Capital Budget 100 125 MM/Year Reduced Risk Proven Oil Provinces…
  56. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 56
    LOOKING AHEAD MURPHY OIL CORPORATION w w w .m u rphyoi l corp.com N YSE: M U R 58
  57. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 57
    Long-Term Strategy For Cash Flow Generation & Production Growth Providing Solid Five-Year Production Growth 2018A 2023E Production Growth Total Production CAGR 8% 250 SE Asia Oil Production CAGR 12% Other US Balancing Onshore /…
  58. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 58
    Positioning Company for Long-Term Value Creation Executing Our Strategy for Future Value Creation Generating Free Cash Flow with a Competitive Dividend Yield Transforming Company Drives Further Profitable Oil-Weighted Growth…
  59. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 59
    APPENDIX MURPHY OIL CORPORATION w w w .m u rphyoi l corp.com N YSE: M U R 61
  60. Annual Meeting of Stockholders and Supplemental Material – Murphy Oil Corp – slide 60
    ANNUAL MEETING OF STOCKHOLDERS & SUPPLEMENTAL MATERIAL EL DORADO, ARKANSAS MAY 2019 ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER MURPHY OIL CORPORATION w w w .m u rphyoi l corp.com N YSE: M U R 69

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