INVESTOR UPDATE SEPTEMBER 2019 ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER www. m u r p h yo i l c o r p . c o m September 2019 N YS E : MU R 0
Agenda 01 COMPANY UPDATE 02 ONSHORE PORTFOLIO UPDATE 03 OFFSHORE PORTFOLIO UPDATE 04 EXPLORATION UPDATE 05 LOOKING AHEAD www. m u r p h yo i l c o r p . c o m September 2019 N YS E : MU R 2
Murphy at a Glance Post-Transaction Reserves* 27% 37% 38% 760 62% Liquids- 54% MMBOE Weighted 36% 8% US Onshore Canada Onshore NA Offshore Crude oil NGLs Natural gas 3Q 2019 Production Guidance 26% 34% 44% 194…
Value-Adding Transformation 2016 2018 2019 Acquired Kaybob Transaction Acquired LLOG Duvernay & with Petrobras Gulf of Mexico Assets Placid Montney Gulf of Mexico 1.375 BN 206 MM 795 MM 2014 2015 2016 2017 2018 2019…
Achieving Premium Oil-Weighted Realizations 94,000 94 BBLS/Day %SOLD SOLD 2Q 2019 At Premium to 59.82 WTI Sales Volumes & Differentials Eagle Ford North America 2Q 2019 Total Company Shale Offshore Other 6% Mars LLS…
Eagle Ford Shale and Gulf of Mexico Deliver Strong Operating Cash Flows 1H 2019 Operating Margins /BBL Achieving High Operating Margins 70 60.95 Generating 50/BBL margins 60 58.84 Allocating 75% of capital to Eagle Ford Shale…
Long History of Benefitting Shareholders Free Cash Flow Yield 2016 - 2019E 5% 6.3 Billion 0% Returned to Shareholders < -5% < -5% < -5% < -5% -5% Since 1961 Note: FCF Yield = CFO Less Property Additions & Dry Hole Costs…
Positioned for Investor Value Creation /BOE 1P Total Reserves 25 20 4% Dividend Yield 15 10 4.97 Median 8.72 Longstanding & Competitive 5 0 Note: Calculated based on Market Cap (9/17/2019, in Millions) Divided by Total…
Executing Our 2019 Plan PRODUCING GENERATING INCREASING TRANSFORMING BUILDING Oil-Weighted High Margin Financial with Accretive Profitable Assets Realizations Strength Acquisitions Production 159 MBOEPD, 60% Oil 94% oil volumes…
Onshore Portfolio Update www. m u r p h yo i l c o r p . c o m September 2019 N YS E : MU R 10
Concentrated Onshore Assets with Repeatable Results Oil-Weighted Platform Across North America Well-Positioned Kaybob Duvernay for Natural Gas 9,300 BOEPD at 2Q 2019, 52% oil, 61% liquids 80 total producing wells online Tupper…
Significant Running Room in the Eagle Ford Shale Significant Development Across 125,000 Net Acres Eagle Ford Shale Acreage 500+ MMBOE total resource potential KARNES Atascosa Conservative inter-well spacing, type curves account for…
Eagle Ford Shale Well Delivery Update 2019 Well Delivery Plan Eagle Ford Shale Acreage KARNES 91 wells online Atascosa 2Q 2019 44 MBOEPD, 74% Oil, 88% Liquids Karnes La Salle 23% increase in volumes from 1Q 2019 Dimmit TILDEN 35…
Eagle Ford Shale Record Performing Tilden Wells Eagle Ford Shale Acreage Increasing Returns From New Wells KARNES Improved well targeting Atascosa Karnes Optimized completion design La Salle Dimmit Applicable to 350 more…
Kaybob Duvernay Scalable Assets For Future Growth Oil-Weighted Production from Low Cost Kaybob Duvernay Acreage Assets Kaybob North Approaching completion of retention drilling Kaybob East Two Creeks Optimizing development plan and…
Kaybob Duvernay Well Delivery Update 2019 Well Delivery Plan Complete Kaybob Duvernay Acreage 10 wells online 2Q 2019 9,300 BOEPD, 61% liquids Kaybob North Kaybob East 25% increase in volumes from 2Q 2018 B E Two Creeks 6 wells…
Kaybob Duvernay New Two Creeks Wells Exceeding Expectations Results From De-Risking Improve Returns Kaybob Duvernay Acreage Increased oil content from appraisal wells Kaybob North Improved completion design Kaybob East 16-29 Pad B…
Canada Onshore Tupper Montney Update 2019 Well Delivery Plan Complete Successful AECO Price Mitigation 8 wells online Realized 2Q 2019 C1.82/MCF* vs AECO realized average of C1.03/MCF 2Q 2019 37 MBOEPD, 100% Natural Gas Projected FY…
Offshore Portfolio Update www. m u r p h yo i l c o r p . c o m September 2019 N YS E : MU R 19
Gulf of Mexico Free Cash Flow Generating Assets Revitalized Portfolio Gulf of Mexico Assets Top 5 Gulf of Mexico operator by production Achieves high margin EBITDA/BOE Neidermeyer Dalmatian Generating ongoing synergies from…
Gulf of Mexico 2Q 2019 Operations Update 2019E Production 85 MBOEPD, 90% Liquids Closed Gulf of Mexico acquisition 2Q 2019 Exceeded 2Q 2019 production guidance from new assets by 1,200 BOEPD and legacy assets by 1,600 BOEPD Dalmatian…
Gulf of Mexico Short Cycle Capital Projects Deliver Accelerated Returns Gulf of Mexico Short Cycle Projects Development Timeline Completions New Wells & Tie-Backs Workovers 2019 2020 Dalmatian DC4 2 Nearly Headless Nick Cottonwood…
Gulf of Mexico Investing in Long Term High-Margin Projects Khaleesi/Mormont Gross resource 165 MMBOE, 90% liquids Development Timeline 7 development wells planned 4 previously drilled IRR 30%, NPV 300 MM 2019 2020 2021 2022 Samurai…
Gulf of Mexico Generating Long Term Free Cash Flow Capital Commitments Support Long Term Growth 2019 2023 Estimated Gulf of Mexico Production MBOEPD Sanctioning St. Malo waterflood project 3Q 2019 Maintaining 325 MM average CAPEX 2019…
Exploration Update www. m u r p h yo i l c o r p . c o m September 2019 N YS E : MU R 25
Exploration Strategy Overview Focused & Meaningful Exploration Core Focus Areas Four primary exploration areas 3 to 5 exploration wells per year 100 MM/year Reduced Risk Proven oil provinces Targeting appropriate working interest…
Brazil Exploration Update Sergipe-Alagoas Basin Sergipe-Alagoas Basin Overview Murphy 20% (Non-Op), ExxonMobil 50% (Op), Enauta Energia S/A 30% 1.2 BN BOE reserves discovered inboard Working interests in 6 blocks, 1,100 M acres…
Offshore Mexico Discovery at Cholula Block 5 Overview Block 5 Prospects Murphy 40% (Op), Petronas 30%, Wintershall Alamos DEA 30% Morelia Salvatierra 34 leads / prospects TzinTzunTzan Mean to upward gross resource potential: Orizaba…
Vietnam Cuu Long Basin Update Cuu Long Basin Cuu Long Basin Overview Murphy 40% (Op), PVEP 35%, SKI 25% 400 MMBOE remaining resource potential on Block 15-1/05 Block 15-2/17 PSC Resource potential adds value to core area Adjacent to…
Looking Ahead www. m u r p h yo i l c o r p . c o m September 2019 N YS E : MU R 30
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 2019 Increasing oil-weighted production through several major…
Executing on Long-Term Plan Maintaining 65% Liquids Production Weighting Annual Average Capital Spend 2019 - 2023 Plan flexible to maintain cash flow / CAPEX parity including dividend Exploration US Onshore Focusing on Oil-Weighted…
Positioning Company for Long-Term Value Creation TRANSFORMING PRODUCING RAMPING Portfolio by adding oil-weighted, Oil-weighted assets that High value Eagle Ford Shale high-margin assets realize premium pricing production…
Appendix www. m u r p h yo i l c o r p . c o m September 2019 N YS E : MU R 34
Eagle Ford shale Peer Acreage Murphy OIL EOG Lewis/BP ConocoPhillips Marathon EP Energy Pioneer CONDENSATE Encana Carrizo Chesapeake Sanchez GAS www. m u r p h yo i l c o r p . c o m September 2019 N YS E : MU R 40
Eagle Ford Shale Murphy Spacing vs Peers Karnes Typical Murphy Spacing LEFS 250-500 DVN Offset Spacing EOG Offset Spacing LEFS 250 to 500 LEFS 250 to 500 COP Offset Spacing LEFS 250 to 600 Murphy BP CHK Offset Spacing…
Kaybob Duvernay Peer Acreage SHELL KAYBOB EAST PARAMOUNT ENCANA CENOVUS KAYBOB WEST KEYERA SIMONETTE Fox Creek SAXON CHEVRON SEMCAMS KAYBOB XTO PLACID REPSOL 6 Miles www. m u r p h yo i l c o r p . c…
Tupper Montney Peer Acreage Dawson Creek Other Competitor Montney Land Open Crown - Montney Murphy Montney Land 0 Miles 10 www. m u r p h yo i l c o r p . c o m September 2019 N YS E : MU R 43
Placid Montney Peer Acreage KAYBOB EAST HAMMERHEAD TANGLE PARAMOUNT CREEK CNRL CENOVUS ENCANA KAYBOB WEST KEYERA SIMONETTE Fox Creek HAMMERHEAD SAXON CHEVRON Condensate SEMCAMS KAYBOB Limit MONT MONT XTO…
Loading...
