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Wells Fargo West Coast Energy Conference – Murphy Oil Corp

Murphy Oil Corp · Jun 12, 2019 · 42 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. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 1
    WELLS FARGO WEST COAST ENERGY CONFERENCE JUNE 12, 2019 DAVID R. LOONEY EXECUTIVE VICE PRESIDENT & CHIEF FINANCIAL OFFICER MURPHY OIL CORPORATION www.m ur p h yo i lc o r p.c om NYSE: MUR 0
  2. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 2
    Murphy at a Glance 2018 Proved Reserves 32% 57% 816 43% Liquids- 50% MMBOE Weighted 68% 7% Onshore Offshore Oil NGL Natural Gas NOTE: Includes 129 MMBOE from Malaysia; Excludes 73 MMBOE from LLOG Acquisition FY 18…
  3. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 3
    Deliberate Value-Adding Transformation 2016 2018 2019 Acquired Kaybob Transaction Acquired Duvernay & with Petrobras LLOG Placid Montney Gulf of Mexico 1.375 BN 206 MM 795 MM 2014 2015 2016 2017 2018 2019 Repositioning…
  4. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 4
    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:…
  5. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 5
    Repositioning Murphys Portfolio Increasing Margins with Oil-Weighted, Gulf of Mexico Production & Reserves QUALITY SCALE UPSIDE GOM EBITDA / BOE vs Oil Reserves (2P) 2019E Production, MBOEPD 2019 2023 FCF vs Oil Reserves (2P) 37 67…
  6. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 6
    Value-Adding Oil-Weighted Reserve Acquisitions FY 18 Reserves Increasing Liquid-Weighting by 5% 43% Natural 50% Oil Gas 16% Maintaining Total Oil Reserves Post-Transactions 35% US Onshore 400 MMBO 1P Reserves with GOM Asset…
  7. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 7
    Achieving Premium Oil-Weighted Realizations LOUISIANA 1Q 19 Sales Volumes of Total Company TEXAS HOUMA CLOVELLY HOUSTON 7% 8% 30% EAGLE FORD SHALE GULF OF MEXICO 29% CORPUS CHRISTI 26% Mars Brent MEH LLS Other Sales…
  8. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 8
    Long History of Rewarding Shareholders Dividend + Buyback Yield 2019E Returned 3.6 BN Cash Dividends to Shareholders, 12% Since 1999 10% 8% Maintained High Dividend Yield Without 6% Issuing Equity 4% Current Yield 4.0% 2%…
  9. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 9
    OFFSHORE PORTFOLIO UPDATE MURPHY OIL CORPORATION www.m ur p h yo i lc o r p.c om NYSE: MUR 9
  10. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 10
    Revitalizing Gulf of Mexico Portfolio Acquired 26 Gulf of Mexico Blocks, Key US Gulf of Mexico Assets Post-Transaction 7 Producing Fields, 4 Development Projects Over 82 MBOEPD in 2H 2019 Dalmatian Increases Liquids-Weighting to over…
  11. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 11
    Delivering Free Cash Flow From Gulf of Mexico Assets Efficient Capital Spending Driving Free 2019 2023 Estimated Gulf of Mexico Production Cash Flow 90 85 15 83 Generates 1.0 BN Annual Average EBITDA 80 Per Year 70 LLOG 14 Requires…
  12. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 12
    Executing in Global Offshore Gulf of Mexico Vietnam Obtained Regulatory Approval to Operate Assets Acquired from Block 15-01/05 Petrobras America Inc. Progressing LDV Field Development Plan, LDV Development Team in Place Dalmatian…
  13. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 13
    Expanding Significant Fields at Khaleesi / Mormont Khaleesi / Mormont Overview US Gulf of Mexico Select Fields Discovered 2017 2P 165 MMBOE (Gross) 90% Liquids 100 MMBOE at Khaleesi Neidermeyer Otis Dalmatian VK DD 65 MMBOE at…
  14. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 14
    Acquiring & Developing Low Cost De-Risked Tie-Backs Nearly Headless Nick Mississippi Canyon 387 US Gulf of Mexico Mississippi Canyon Area 3.5 Mile Subsea Tie-Back in to Existing Subsea Manifold 1 Well Drilled First Oil 4Q 19 Calliope…
  15. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 15
    Exploration Strategy Overview Focused & Meaningful Exploration Core Focus Areas Four Primary Exploration Areas 3 to 5 Exploration Wells per Year 10% of Capital Budget 100 125 MM/Year Reduced Risk Proven Oil Provinces Targeting 20…
  16. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 16
    Offshore Mexico Discovery at Cholula Block 5 Overview Block 5 Prospects Increased Working Interest to 40% at Low Cost Alamos Murphy 40% (Op), Petronas 30%, DEA 30% 34 Leads / Prospects Morelia TzinTzunTzan Salvatierra Mean to…
  17. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 17
    Offshore Vietnam Discovery at LDT-1X Cuu Long Basin Overview Additional LDV Near-Field Potential Murphy 40% (Op), PVEP 35%, SKI 25% LDT-1X LDC North LDT North 400 MMBOE Remaining Resource Potential on Block LDV Field 14 MMBOE 18…
  18. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 18
    Summary of Shareholder Support ONSHORE PORTFOLIO UPDATE MURPHY OIL CORPORATION www.m ur p h yo i lc o r p.c om NYSE: MUR 18
  19. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 19
    Eagle Ford Shale Update 2019 Well Delivery Plan 600 MM CAPEX Operated Well Delivery 92 Wells Online FY 2019 13 Wells Online 1Q 9 Karnes 4 Upper EFS, 5 Lower EFS (2 Days in 1Q), 4 Tilden 4 Lower EFS 23 Wells Online 2Q 23 Karnes 14…
  20. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 20
    Significant Running Room in the Eagle Ford Shale Significant Development Across 125,000 Net Acres 500+ MMBOE Total Resource Potential, 1,800 Remaining Locations Conservative Inter-Well Spacing, Type Curves Account for Parent/Child…
  21. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 21
    Kaybob Duvernay Update Kaybob Duvernay 2P EUR Wells 40% Oil 2019 Well Delivery Plan 7 Wells Online & 3 Wells Deferred B C Retention Plan in 2019 E 18 Wells Drilled Drill-to-Retain Strategy D A De-Risking of Asset De-Risked All…
  22. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 22
    Optimizing Kaybob Duvernay Kaybob Duvernay Acreage Swap Cashless Acreage Swap Acquired 19,840 Acres in Kaybob East and Two Creeks Adds 50 Well Locations High Rate, Oily Wells Optimized Development Plan and Lateral Lengths Divested…
  23. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 23
    Delivering Low Cost Production in Tupper Montney Mitigating AECO Exposure 1Q 19 Montney Natural Gas Sales 2019 Well Delivery Plan Operated Well Delivery 8 Wells Online FY 2019 4% 9% 55 MM CAPEX AECO Price Exposure Hedged 17% 44%…
  24. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 24
    LOOKING AHEAD MURPHY OIL CORPORATION www.m ur p h yo i lc o r p.c om NYSE: MUR 24
  25. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 25
    Executing Our Strategy In 2019 300 Transforming the Company for Long-Term Success Million Strengthening Balance Sheet by Lowering Debt Share Re-Purchase Completed by YE 19 Increasing Oil-Weighted Production Through Several Major…
  26. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 26
    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 NA Balancing Onshore /…
  27. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 27
    Positioning Company for Long-Term Value Creation Transforming Company Drives Further Profitable Oil-Weighted Growth Producing Oil-Weighted Assets that Realize Premium Pricing Focusing on Shareholder Priorities Ramping Eagle…
  28. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 28
    WELLS FARGO WEST COAST ENERGY CONFERENCE JUNE 12, 2019 DAVID R. LOONEY EXECUTIVE VICE PRESIDENT & CHIEF FINANCIAL OFFICER MURPHY OIL CORPORATION www.m ur p h yo i lc o r p.c om NYSE: MUR 28
  29. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 29
    APPENDIX MURPHY OIL CORPORATION www.m ur p h yo i lc o r p.c om NYSE: MUR 29
  30. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 30
    Guidance 2Q 19 2Q 2019 2Q 2019 2Q 2019 Guidance 2Q Liquids (BOPD) Gas (MCFD) Total (BOEPD) 1Q Production: US Eagle Ford Shale 38,800 35,000 44,600 Gulf of Mexico 1 44,700 19,300 47,900 Canada Tupper Montney 206,700 34,500 Kaybob…
  31. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 31
    2019 Hedging Positions Volumes Area Commodity Type (BBL/D) Price (BBL) Start Date End Date US WTI Fixed Price Derivative Swap 20,000 63.64 5/1/2019 12/31/2019 US WTI Fixed Price Derivative Swap 20,000 60.10 1/1/2020 12/31/2020…
  32. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 32
    Financial Position as of March 31, 2019 Note Maturity Profile 2,000 Maturity Profile* 2.8 BN Total Debt (Excluding Capital Lease) Total Bonds Outstanding BN 2.8 Weighted Avg Fixed Coupon 5.5% Total Liquidity 1.4 BN 1,500 Weighted…
  33. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 33
    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 ur p h yo i lc o r p.c om NYSE: MUR 37
  34. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 34
    Eagle Ford Shale Murphy Spacing vs Peers Karnes Typical Murphy Spacing LEFS 250-500 Murphy BP EOG Offset Spacing DVN Offset Spacing Chesapeake LEFS 250 to 500 LEFS 250 to 500 Conoco Devon COP Offset Spacing Encana LEFS 250 to…
  35. Wells Fargo West Coast Energy Conference – 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. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 36
    Tupper Montney Peer Acreage MURPHY OIL CORPORATION www.m ur p h yo i lc o r p.c om NYSE: MUR 40
  37. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 37
    Placid Montney Peer Acreage Condensate Limit KAYBOB EAST CIOC PARAMOUNT RMP CNRL CENOVUS ENCANA KAYBOB WEST SIMONETTE Fox Creek SAXON CHEVRON DELPHI XTO PLACID Dry Gas Limit 6 Miles MURPHY OIL CORPORATION…
  38. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 38
    Strengthening Gulf of Mexico Position Existing Assets Key US Gulf of Mexico Assets Asset Operator Murphy WI 1 Cascade Murphy 80% Chinook Murphy 53.336% Clipper Murphy 80% Cottonwood Murphy 80% Dalmatian Neidermeyer Otis…
  39. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 39
    US Gulf of Mexico Exploration Update Hoffe Park Prospect Hoffe Park MC 122 Hoffe Park 2 Murphy 60% WI, Operator Niedermeyer Field 7 Miles Hoffe Park 1 Middle Miocene Expected Spud 3Q 19 Miocene Gross Resource Potential 75 MMBOE to…
  40. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 40
    Brazil Exploration Update Renewed Exploration Portfolio with Low-Cost Entry & Long-Term Opportunities in Sergipe-Alagoas Basin Farfan 400 MMBOE Murphy 20% (Non-Op), ExxonMobil 50% (Op), Barra 400 MMBOE Cumbe 50 MMBOE QGEP 30% 6…
  41. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 41
    Australia Exploration Update Vulcan Basin Murphy Block Blocks AC/P-58 Murphy 40% 60% WI, Operator Oil Field Gas Field Jurassic Play Target Spud 2020 Fairway Identifying Multiple Prospects, Up to 200 MMBOE Gross Recoverable…
  42. Wells Fargo West Coast Energy Conference – Murphy Oil Corp – slide 42
    Repositioning Murphys Portfolio Footnote Details Increasing Margins with Oil-Weighted, Gulf of Mexico Production & Reserves (1) Assuming Estimated Midpoint of Full Year Production of LLOG Acquisition (2) Net Annualized Production…

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