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Goldman Sachs Global Energy Conference – Murphy Oil Corp

Murphy Oil Corp · Jan 7, 2020 · 49 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. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 1
    GOLDMAN SACHS GLOBAL ENERGY CONFERENCE JANUARY 2020 ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER www. m u r p h yo i l c o r p . c o m January 2020 N YS E : MU R 0
  2. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 2
    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 January 2020 N YS E : MU R 2
  3. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 3
    Murphy Overview A History of Excellence Long corporate history, IPO 1956 Global offshore and North American onshore portfolio Oil-weighted assets drive high margins Exploration renaissance in focus areas Consistent cash flows from…
  4. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 4
    Murphy at a Glance Post-Transaction Reserves* By Area By Product Mix 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 By Area…
  5. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 5
    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…
  6. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 6
    Achieving Premium Oil-Weighted Realizations %SOLD 112,000 94 BBLS/Day At Premium SOLD 3Q 2019 to 56.45 WTI Sales Volumes & Differentials 3Q 2019 Total Company Eagle Ford North America Shale Offshore Other 32% Mars Brent…
  7. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 7
    Eagle Ford Shale and Gulf of Mexico Deliver Strong Operating Cash Flows 3Q 2019 Operating Margins /BBL Achieving High Operating Margins Eagle Ford Shale Gulf of Mexico 70 Generating 50/BBL margins 62 60 Allocating 75% of capital…
  8. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 8
    Long History of Benefitting Shareholders Free Cash Flow MM 2019E 500 6.3 Billion -500 0 Returned to Shareholders -1,000 Since 1961 Note: FCF = 2019E Median Consensus Cash Flow from Operations less Annual CAPEX (12/31/2019)…
  9. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 9
    Executing Our 2019 Plan PRODUCING GENERATING INCREASING TRANSFORMING BUILDING Oil-Weighted High Margin Capital Returns Portfolio for Profitable Assets Realizations to Shareholders Future Value Production Produced 192 MBOEPD, 94%…
  10. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 10
    Onshore Portfolio Update www. m u r p h yo i l c o r p . c o m January 2020 N YS E : MU R 10
  11. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 11
    Concentrated Onshore Assets with Repeatable Results Oil-Weighted Platform Across North America Well-Positioned Kaybob Duvernay for Natural Gas 11 MBOEPD at 3Q 2019, 58% oil, 69% liquids 80 total producing wells online Tupper…
  12. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 12
    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 Karnes…
  13. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 13
    Eagle Ford Shale Well Delivery Update 2019 Well Delivery Plan Eagle Ford Shale Acreage 91 wells online Wilson KARNES Atascosa 3Q 2019 51 MBOEPD, 80% Oil, 91% Liquids Karnes Frio 15% increase in volumes from 2Q 2019 Zavala TILDEN…
  14. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 14
    Eagle Ford Shale Well Outperformance in Tilden and Catarina Tilden 10 Tyler Ranch Wells Online Tilden New Well Performance Cum MBOE 10 Lower EFS wells with avg 7,100 lateral 80 500 well spacing 60 Average IP30 of 1,300 BOEPD 40…
  15. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 15
    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…
  16. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 16
    Kaybob Duvernay Well Delivery Update 2019 Well Delivery Plan Complete Strong Results in Kaybob Duvernay 10 wells online in Kaybob Duvernay Recent well performance mirrors Tilden Lower EFS 3Q 2019 Results Leveraged learnings to optimize…
  17. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 17
    Canada Onshore Tupper Montney Update 2019 Well Delivery Plan Complete Successful AECO Price Mitigation 8 wells online Realized 3Q 2019 C1.61/MCF* vs AECO realized average of C0.99/MCF 3Q 2019 45 MBOEPD, 100% Natural Gas 20% increase…
  18. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 18
    Offshore Portfolio Update www. m u r p h yo i l c o r p . c o m January 2020 N YS E : MU R 18
  19. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 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…
  20. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 20
    Gulf of Mexico 3Q 2019 Update 3Q 2019 Production 78 MBOEPD, 85% Liquids Operated production exceeded guidance Dalmatian DC4 2 Well Well drilled and completed, online 3Q 2019 Online rate 5,400 BOEPD gross Nearly Headless Nick…
  21. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 21
    Gulf of Mexico Project Execution Update Short Term Project Update Short Term Projects Working through planning and engineering Planning & Drilling & 3 tie-back projects Project Engineering Completions Subsea Tie-In First Oil Dalmatian…
  22. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 22
    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…
  23. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 23
    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…
  24. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 24
    Gulf of Mexico Generating Long Term Free Cash Flow Capital Commitments Support Long Term Growth 2019 2023 Estimated Gulf of Mexico Production MBOEPD Sanctioned St. Malo waterflood project 3Q 2019 Maintaining 325 MM average CAPEX 2019…
  25. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 25
    Exploration Update www. m u r p h yo i l c o r p . c o m January 2020 N YS E : MU R 25
  26. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 26
    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…
  27. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 27
    Exploration Update Increasing Position in Sergipe-Alagoas Basin, Brazil Asset Overview Sergipe-Alagoas Basin Murphy 20%, ExxonMobil 50% (Op), Enauta Energia S.A. 30% BRAZIL Hold WI in 6 blocks, spanning 1.1 MM acres 1.2 BN BOE…
  28. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 28
    Exploration Update Entering Potiguar Basin, Brazil Asset Overview Potiguar Basin Murphy 30% WI, Wintershall Dea 70% (Op) Murphy WI Block Other Block Farm-in agreement to 3 blocks signed 3Q 2019 Discovered Field Blocks POT-W-857,…
  29. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 29
    Exploration Update Salinas-Sureste Basin, Mexico Block 5 Overview Salinas-Sureste Basin Increased working interest to 40% at low cost Murphy 40% (Op), Petronas 30%, DEA 30% 34 leads / prospects Mean to upward gross resource…
  30. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 30
    Vietnam Update Cuu Long Basin, Vietnam Asset Overview Cuu Long Basin Murphy 40% (Op), PVEP 35%, SKI 25% VIETNAM 400 MMBOE remaining resource potential on initial block (15-1/05) Block 15-1/05 Lac Da Vang (LDV) Field Received Prime…
  31. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 31
    Looking Ahead www. m u r p h yo i l c o r p . c o m January 2020 N YS E : MU R 31
  32. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 32
    Executing 2019 Goals POST-MALAYSIA TARGETS ACHIEVING GOALS 300 500 ACCOMPLISHING Completed SHARE Oct. 2019 REPURCHASE MILLION MILLION 200 MBOEPD DELIVERING 4Q 2019 PRODUCTION RATE 202 MBOEPD On Track 4Q 2019…
  33. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 33
    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…
  34. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 34
    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…
  35. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 35
    GOLDMAN SACHS GLOBAL ENERGY CONFERENCE JANUARY 2020 ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER www. m u r p h yo i l c o r p . c o m January 2020 N YS E : MU R 35
  36. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 36
    Appendix www. m u r p h yo i l c o r p . c o m January 2020 N YS E : MU R 36
  37. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 37
    4Q 2019 Guidance Liquids Gas Total Producing Asset (BOPD) (MCFD) (BOEPD) US Eagle Ford Shale 48,300 31,300 53,500 Gulf of Mexico excluding NCI1 72,700 73,600 85,000 Gulf of Mexico including NCI 84,800 78,700 98,000 Canada Tupper…
  38. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 38
    2019 Hedging Positions United States Volumes Price Commodity Type (BBL/D) (BBL) Start Date End Date WTI Fixed Price Derivative Swap 35,000 60.51 10/1/2019 12/31/2019 WTI Fixed Price Derivative Swap 45,000 56.42 1/1/2020…
  39. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 39
    Current Financial Position As of September 30, 2019 2.8 BN total debt, excluding capital leases Note Maturity Profile MM Total liquidity 2.0 BN 2,000 Approximately 435 MM of cash and cash equivalents Undrawn 1.6 BN unsecured senior…
  40. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 40
    Effective Governance Underpins Long-Term Financial Strength Expert and Independent Board ESG Oversight 75% ISS Governance Score vs peer average Long-term industry, operating, and HSE Health, Safety and Environmental expertise…
  41. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 41
    Mitigating Risk Through Sustainable Environmental Operations Safe Operations Spills Management GHG Emissions Reduction 0.32 average TRIR over past 4 years (vs Zero International Oil and Gas Producers 28% reduction from 2015 to…
  42. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 42
    Employee and Community Investments Support Stable Operations Everywhere We Work North America International Competitive employee benefits El Dorado Promise Process for new country entry Comprehensive health care coverage Tuition…
  43. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 43
    Positioned for Investor Value Creation /BOE 1P Total Reserves 25 20 4.3% Dividend Yield 15 10 Median 8.76 5.54 5 Longstanding & Competitive 0 Note: Calculated based on Market Cap (12/31/2019, in Millions) Divided by Total Proved…
  44. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 44
    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 January 2020 N YS E : MU R 49
  45. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 45
    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…
  46. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 46
    Kaybob Duvernay Peer Acreage KAYBOB EAST SHELL 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 o…
  47. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 47
    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 January 2020 N YS E : MU R 52
  48. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 48
    Placid Montney Peer Acreage KAYBOB EAST HAMMERHEAD TANGLE PARAMOUNT CREEK CNRL CENOVUS ENCANA KAYBOB WEST KEYERA SIMONETTE Fox Creek SAXON HAMMERHEAD CHEVRON Condensate SEMCAMS KAYBOB Limit MONT MONT XTO…
  49. Goldman Sachs Global Energy Conference – Murphy Oil Corp – slide 49
    GOLDMAN SACHS GLOBAL ENERGY CONFERENCE JANUARY 2020 ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER www. m u r p h yo i l c o r p . c o m January 2020 N YS E : MU R 54

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