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SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp

Murphy Oil Corp · Mar 24, 2015 · 40 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. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 1
    SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE MARCH 24, 2015 MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 1
  2. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 2
    Agenda Strategy and Business Update Well-Positioned for the Oil Price Pullback Adding Balance and Value with Our NA Portfolio Developing High Value Projects in the Global Offshore Exploration Refocusing MURPHY OIL…
  3. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 3
    Key Segments of Our Strategy We are an Explorer: A Key Part of Our Business New Rules of the Road FINANCIAL EXPLORATION Upgrading to Lower Risk Program Adding Acreage Onshore 750+ Horizontal Wells 50% of Total Production VALUE…
  4. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 4
    Portfolio Optimization Continues Malaysia Sale Completed 30% Malaysia Sell-Down Timely Closing Marked Value of Malaysia at 6.7 Billion U.K. Downstream Exit Closed on Retail Sale September 30, 2014 Signed Agreement to Sell…
  5. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 5
    Continued Shareholder Focus Regular Dividends*, /sh Dividend Growth 1.60 1.40 12% CAGR Last 10 Years 1.20 1.40 Aug 6, 2014 Increased Dividend 0.15/sh 1.00 (1.25/sh to 1.40/sh) 0.80 0.60 0.40 Share Repurchase Program 0.20…
  6. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 6
    Operational Performance Net Production, MBOEPD 250 225 Guidance Production 26 226 195 - 207 Malaysia 10% Growth 2013 to 2014 200 Sell-Down 201 206 200 Predictable EFS 175 New Offshore Projects Malaysia & GOM 150 Balanced NA…
  7. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 7
    2014 An Outstanding Year in Corporate Reserves Proved Reserves YE 2014 757 MMBOE EFS Total Replacement 183% 26% 29% Resource (Other) R/P is 9.2 years Global Offshore 9th Consecutive Year 100% Syncrude/Heavy 37% 63% PD 37% PUD…
  8. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 8
    2015 Capital Budget Assumptions: 2015 Total Capex, 2.3 Billion WTI = 52.50 Brent = 57.50 HH = 3.00 Capex 2.3 Billion 17% **12 mo. WTI Strip = 52.11 33% Lower than 2014 Pro forma* of 3.5 Billion Exploration 52% Exploration…
  9. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 9
    WELL-POSITIONED MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 10
  10. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 10
    Financial Flexibility Balance Sheet & Liquidity 2015 Assumptions: Sources of Liquidity 52.50 WTI 2015E Net Debt/EBITDA (Mean Consensus Est.) Cash Flow 57.50 Brent 6x 3.00 HH 5.7x 2.0 Billion Revolver 5.0x 5.1x 1 Billion Cash…
  11. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 11
    Entered Price Collapse with Strong Cash Flow Metrics EBITDA/BOE, /BOE EBITDAX/BOE, /BOE 50 50 45 45 40 40 47.95 35 45.93 35 42.43 41.26 39.70 37.96 37.49 37.07 30 30 35.61 34.77 34.41 32.37 25 25 2012 2013…
  12. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 12
    Realized Prices- Brent Price Spread Back in Form Brent WTI Widening Full Year 2014 Production Basis Price 1Q 2015 Production Mix 33% LLS 26% Brent 8% Oil-Indexed Gas * /bbl 21% 65.00 30% 60.00 9% 55.00 LLS** Brent 50.00…
  13. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 13
    Advantaged Netback Prices-Continues 4Q 2014 Actual Prices 1Q 2015 Estimated Prices 80 80 75 75 70 70 65 65 60 60 55 55 50 50 45 45 40 40 35 35 30 30 MUR Industry MUR Industry MUR GOM EFS MUR GOM EFS MUR EFS Midland Basin* MUR EFS…
  14. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 14
    2015 Investment Projects Can Go Low /boe 10% Return Breakeven Price Range 60 50 40 Capital Allocated to Projects with Low 30 Price Threshold 20 84% of 2015 Development Capex 10 1.6 B of 1.9 B Development Capex - EFS SK…
  15. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 15
    NORTH AMERICA ONSHORE ADDS BALANCE MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 16
  16. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 16
    Eagle Ford Shale - Running Room N TILDEN 118 Wells Planned for 2015 TILDEN 750 MMBOE KARNES Proved & Net CATARINA Recoverable Resource 2,055 per Acre 0 10 mi Early Entrant Lower EFS Op & Lower EFS Spacing Proved Offset…
  17. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 17
    EFS Continuous Improvement Net, MBOEPD Oper. Wells Production Growth 60 700 600 46% 2013 to 2014 50 57 57 500 40 Lease Operating Expense 400 30 42% Reduction 2012-14 39 300 20 200 Continued D&C Improvement 10 100 15 0 4 -…
  18. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 18
    EFS Capital Discipline in 2015 2015 Reduce Capex 46% from 2014 Price Advantaged Near GOM 4 Rigs by Mid-March LLS Benchmark 118 New Wells Online 80% Oil; 10% NGL 45 API Gravity (Avg.) 2013 Capex: 1,550 MM 2014 Capex: 1,582 MM…
  19. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 19
    EFS Karnes Co. Productivity vs. Decline First 6 Months Decline Rate (Post Peak Production Month) -30% MURPHY -40% Decreasing Decline -50% Median -60% -70% Median -80% 0 10 20 30 40 50 60 70 80 90 100 Average…
  20. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 20
    EFS McMullen Co. Productivity vs. Decline First 6 Months Decline Rate (Post Peak Production Month) -30% Sample Wells 70% Oil -40% Decreasing Decline MURPHY -50% -60% Median -70% Median -80% 0 5 10 15 20 25 30…
  21. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 21
    EFS Dimmit Co. Productivity vs. Decline First 6 Months Decline Rate (Post Peak Production Month) -30% Sample Wells 70% Oil MURPHY -40% Decreasing Decline -50% Median -60% -70% Median -80% 0 5 10 15 20 25 30 35 40…
  22. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 22
    Montney New Well Performance 2015 Reduce Capex No Rigs Post Feb 8 New Wells Online New Completions Working 8-11 BCF Upside EUR 10% IRR at USD2.50/MCF (AECO) 1,000 Well Inventory 3rd Party Gas Processing 2015 Hedge 65 MMCFD…
  23. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 23
    DELIVERING PROJECTS IN GLOBAL OFFSHORE MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 24
  24. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 24
    Global Offshore High Cash Margin Business Assumptions: Global Offshore 2015E (MBOEPD) Malaysia, /BOE WTI = 52.50 80 Brent = 57.50 60 8 Revenue 40 72.04 64.13 LOE 20 41.78 Malaysia 12.15 11.02 12.84 25 97 MBOEPD 0 49% Total…
  25. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 25
    Global Offshore - Operational Performance Net Production, MBOEPD 150 123 125 115 113 26 35 97 97 100 27 75 35 34 Production Growth 50 89 86 89 9% Growth 2013 to 2014 25 62 63 New Offshore Projects Malaysia & GOM 0 2012 2013…
  26. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 26
    Gulf of Mexico Medusa Expansion Phase 1 0 2,000 4,000 FEET SS 6 Murphy Leasehold Well Drilled to Plan Batch Completion Mid-Lwr Subsalt Play 220 Net Pay MEDUSA Murphy HBP Upper Miocene Amp. Play 6 Murphy Facility SS 7…
  27. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 27
    Gulf of Mexico Kodiak Murphy Leasehold Mid-Lwr Subsalt Play KODIAK Murphy HBP Upper Miocene Amp. Play Murphy Facility Top of Q Sands Jurassic Norphlet Play BP 771 1 Oct 07 Kodiak Project ST Nov 08 DGE 771 2 29%…
  28. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 28
    Gulf of Mexico Thunder Bird Murphy Leasehold Mid-Lwr Subsalt Play Murphy HBP Upper Miocene Amp. Play Murphy Facility THUNDER BIRD Jurassic Norphlet Play Thunder Bird Development Thunder Bird Development Murphy…
  29. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 29
    Kakap-Gumusut: A New Legacy Field Kakap-Gumusut Gross Oil GK Net BOE MBOEPD Murphy 8.624% W.I. (Shell Operator) 180 16 160 14 Malaysia (88%) & Brunei (12%) Unitization Impact Jan 1, 2015 140 12 120 Early Production Tie-Back to…
  30. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 30
    Long Term Oil-Indexed Gas Partnered with PETRONAS Global Leader in LNG MMCFD SK Gas 800 1.5 TCF EUR Resource 700 1.1 TCF Proven & Certified 600 Gas Price a Factor of Landed LNG 500 Block H 400 Phase I Rotan & 3 Satellite…
  31. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 31
    REFOCUSED EXPLORATION MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 32
  32. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 32
    Exploration Strategy People & Processes A Key Component Executive Vice President Global Exploration VP North VP Sr VP America Onshore Asia Pacific W Hemisphere VP Geoscience New Exploration Leadership Team Exploration &…
  33. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 33
    Exploration Strategy Focus Regions New Rules of Road No 100% Wildcat Wells Partner Required for New Country Entry & Well Commitments East Coast Lower W.I. % & Participate in More Wells Canada Gulf of Mexico Southeast Asia Play…
  34. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 34
    Gulf of Mexico Focus Area Long Term Player in GOM Target 35-50% W.I. Drill in 3-4 Wells per Year Participated in March Lease Sale Upgrading Well Program Lower Risk Profile to Improve Portfolio High-grading Opportunities…
  35. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 35
    SE Asia - Focus Area Sharper Focus in SE Asia Resulting from Regional Work Seismic Options Vietnam Malaysia Continue Focus in Australia Vulcan Sub-Basin MURPHY OIL CORPORATION www.m urp h yo i lc o rp.c om NYSE: MUR 36
  36. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 36
    2015 Drilling Program 2015 Area Block Q2 Q3 Q4 Sea Eagle Dalmatian South 2 Thunder Bird Samurai Opal 110 MMBOE 10 MMBOE Sidetrack 100 MMBOE 400 MMBOE GULF OF MEXICO 20 MMBOE Yu West NW Belum MALAYSIA SK-314A 10 MMBOE 10…
  37. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 37
    GOM: Sea Eagle MC 692 Murphy 35% W.I. (Operator) Murphy Leasehold (Farm-out Subject to Approvals) SEA EAGLE Murphy HBP Murphy Facility Plan 2Q 2015 Spud Mid - Lwr Miocene Subsalt Play Mid-Miocene Stratigraphic Trap Upper Miocene…
  38. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 38
    GOM: Samurai Appraisal GC 432 Murphy Leasehold Murphy 42% W.I. Murphy HBP Murphy Facility (Operator) Mid - Lwr Miocene Subsalt Play Upper Miocene Amplitude Play Appraising Samurai Jurassic Norphlet Play SAMURAI Discovery in…
  39. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 39
    Malaysia: Sarawak Block 2C - Deepwater Murphy 50% W.I. (Operator via Farm-in) Targeting Oligocene Delta-Plain Sandstones (Gas, Condensate and Oil) 4 High Impact Prospects Paus East-1 Block SK2C Paus East-1 Plan 3Q 2015 Spud…
  40. SCOTIA HOWARD WEIL 43RD ANNUAL ENERGY CONFERENCE – Murphy Oil Corp – slide 40
    Closing Remarks Well-Positioned for the Oil Price Pullback Investments Can Endure Lower Prices Balance Sheet Strength Provides Optionality Price & EBITDA Advantaged Adding Balance and Value with Our North America Portfolio EFS…

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