Murphy Oil Corporation · NYSE:MUR
Murphy Oil — Shareholder Meeting (May 2017)
68 slides from Murphy Oil's shareholder meeting presentation, May 9, 2017
Slide 1: Annual Meeting of Stockholders
ANNUAL MEETING OF STOCKHOLDERS EL DORADO, ARKANSAS MAY 10, 2017 ROGER W. JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER MURPHY OIL CORPORATION
Slide 2: Cautionary Statement
www.murphyoilcorp.com NYSE: MUR Cautionary Statement Cautionary Note to U.S. Investors –The United States Securities and Exchange Commission (SEC) requires oil and natural gas companies, in their filings with the SEC, to disclose proved reserves that a company has demonstrated by actual production o
Slide 3: Agenda
Agenda Business Environment Business Update Portfolio Review Looking Ahead MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR
Slide 4: Business Environment
BUSINESS ENVIRONMENT SS
Slide 5: Historical Crude Oil Prices
www.murphyoilcorp.com NYSE: MUR $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 $110 $120 $130 $140 Jan 12 Feb 12 Mar 12 Apr 12 May 12 Jun 12 Jul 12 Aug 12 Sep 12 Oct 12 Nov 12 Dec 12 Jan 13 Feb 13 Mar 13 Apr 13 May 13 Jun 13 Jul 13 Aug 13 Sep 13 Oct 13 Nov 13 Dec 13 Jan 14 Feb 14 Mar 14 Apr 14 May 14 J
Slide 6: Oil & Natural Gas Vital Part of Energy Mix for Multi-Decades
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR Oil & Natural Gas Vital Part of Energy Mix for Multi-Decades IEA (International Energy Agency) •Paris-Based Energy Research Arm of OECD •35 Member Countries, Mostly Mature Economies •Advocate of More Aggressive Climate Policies •Hundreds of Anal
Slide 7: IEA New Policies – Conservative & Realistic Base Scenario
MURPHY OIL CORPORATION 7 www.murphyoilcorp.com NYSE: MUR IEA New Policies –Conservative & Realistic Base Scenario IEA Scenarios •Current Policies (CP): No Enhanced Global Effort to Lower Emissions •New Policies (NP): Nationally Determined Contributions (NDCs) to CO2Reduction Agreed to in Paris are I
Slide 8: IEA Climate Scenarios
MURPHY OIL CORPORATION 8 www.murphyoilcorp.com NYSE: MUR 0 20 40 60 80 100 120 1990 2000 2010 2020 2030 2040 IEA Climate Scenarios •Upper Range Target: Keep Warming Below 2°C by 2100 (IEA 450) •Agreed Upon Plan: NDCs, First World Nations Provide Subsidies to Third World Nations of ~$100 BN / Year (I
Slide 9: Wind Energy Faces Many Challenges
MURPHY OIL CORPORATION 9 Wind Energy Faces Many Challenges •Regions of the U.S. that Consume the Most Energy Get the Least Wind Sources: Bloomberg New Energy Finance, National Renewable Energy Laboratory U.S. Wind Exposure Darker Blue = More Wind
Slide 10: Global Growth of Electric Vehicles
MURPHY OIL CORPORATION 10 www.murphyoilcorp.com NYSE: MUR 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Global Battery Materials Demand Forecast from Electric Vehicle Sales (Mt*) Lithium (tons)
Slide 11: Efficiency & Conservation vs People & Income
MURPHY OIL CORPORATION 11 www.murphyoilcorp.com NYSE: MUR Efficiency & Conservation vs People & Income More Humans + Higher Incomes = More Transportation + More Electricity (Oil) (Natural Gas/Coal) Swelling Global Middle Class 2009 2020 2030 1.8 BN 3.2 BN 4.9 BN Real Income Growth 2014-40 Mature Eme
Slide 12: Very Difficult to Substitute for Oil
12 MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR Passenger Vehicles Maritime Freight Aviation Petrochemical Feedstock 0 10 20 30 40 50 60 70 80 90 100 110 2015 2040 Steam/Process Heat Buildings Power Generation Other Difficult to Replace Oil Transport Accounts for ~55% of Oil Demand 0 200 4
Slide 13: Renewables and Electricity Prices
MURPHY OIL CORPORATION 13 www.murphyoilcorp.com NYSE: MUR Hun Tur Pol Slov Fin Nor Rom Czech Neth Fra UK Aus Greece Bel Port Ita Ire Swe Spa Denmark Germany 0 5 10 15 20 25 30 35 0 200 400 600 800 1000 1200 Electricity Price €cents/kWh U.S. 0 40 80 0 50 100 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Slide 14: Carbon Emissions
MURPHY OIL CORPORATION 14 www.murphyoilcorp.com NYSE: MUR Carbon Emissions 0% 25% 50% 75% 100% 2000 2005 2010 2015 Coal Natural Gas Oil Hydro Nuclear Renewables 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Coal Natural Gas Oil 20 22 24 2
Slide 15: Increasing Global Oil Supply & Demand
MURPHY OIL CORPORATION 15 www.murphyoilcorp.com NYSE: MUR Increasing Global Oil Supply & Demand Source: IEA NP 40 MMbopdNew Supply Needed by 2040 (Ignoring Unconventional Decline) 180 Bbbls Over Whole Period (~9x Exxon’s Reserves) 0 20 40 60 80 100 120 2015 2020 2025 2030 2035 2040 Conv. Base Conv.
Slide 16: Murphy Resources & Economics
MURPHY OIL CORPORATION 16 www.murphyoilcorp.com NYSE: MUR 21% 3% 54% 6% 16% Crude Oil NGLs Natural Gas Murphy Resources & Economics 2P Reserves & Risked Exploration 3.6 BNBOE2016 YE Onshore Liquids Break-Evens & Well Counts 322 759 864 293 175 795 0 200 400 600 800 1,000 <$30 $30-$35 $35-$40 $40-$45
Slide 17: Oil & Natural Gas Vital Part of Energy Mix for Multi-Decades
MURPHY OIL CORPORATION 17 www.murphyoilcorp.com NYSE: MUR Oil & Natural Gas Vital Part of Energy Mix for Multi-Decades •Global Energy Demand Highly Likely to Continue to Grow •Oil & Natural Gas Will Be Needed to Enhance Lives of Growing Global Middle Class •Oil Has Unique Usefulness in Growing Heavy
Slide 18: Business Update
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 18 PORTFOLIO REVIEW BUSINESS UPDATE
Slide 19: Outstanding Year in Safety & Environmental Performance
MURPHY OIL CORPORATION 19 www.murphyoilcorp.com NYSE: MUR 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Oil Spills = 1 BBL per MMboe 2015 Spill Rate 2016 Spill Rate Outstanding Year in Safety & Environmental Performance Safety •Global Employees Recordable In
Slide 20: Murphy Oil Corporation Overview
MURPHY OIL CORPORATION 20 www.murphyoilcorp.com NYSE: MUR Murphy Oil Corporation Overview What We Do •Develop DIFFERENTIATED PERSPECTIVES in Underexplored Basins & Plays •Continue to be a PREFERRED PARTNER to National Oil Companies & Regional Independents •BALANCEour Free Cash Generating Offshore Bu
Slide 21: 2016 At a Glance
MURPHY OIL CORPORATION 21 www.murphyoilcorp.com NYSE: MUR 2016 At a Glance Stabilizing Production & Progressing the Portfolio •Cash Generating Offshore Production 83 Mboepd •Low Risk, Growing Onshore Production 84 Mboepd •Increased Long Term Growth Opportunity Through Advantageous Portfolio Re-Balan
Slide 22: 2016 Peer Net Income (Loss)
MURPHY OIL CORPORATION 22 2016 Peer Net Income (Loss) (6,500) (5,500) (4,500) (3,500) (2,500) (1,500) (500) 500 MUR COG XEC RRC PXD ECA NBL EOG NFX WLL APA MRO SWN APC DVN COP CHK HES $ Millions Source: Bloomberg
Slide 23: Preserving Oil-Weighted & Diversified Reserve Base
MURPHY OIL CORPORATION 23 www.murphyoilcorp.com NYSE: MUR 67% 33% 35% 32% 3% 7% 23% Eagle Ford Shale Canada Onshore Canada Offshore GOM Malaysia 2016 Proved Reserves 685 MMboe Murphy’s Reserve Base Onshore Offshore 50% PDP 58% Liquids & Oil-Indexed Natural Gas Preserving Oil-Weighted & Diversified R
Slide 24: Continued Cost Focus
MURPHY OIL CORPORATION 24 www.murphyoilcorp.com NYSE: MUR Continued Cost Focus $5 $7 $9 $11 $13 2014 2015 2016 $200 $250 $300 $350 $400 2014 2015 2016 Lease Operating Expense* ($/BOE) *Excludes both Syncrude and Severance & Ad Valorem Taxes G&A Expense ($MM)
Slide 25: Preserved Shareholder Value
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 25 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 SWN PXD WLL APC HES NFX DVN MRO CHK ECA NBL COG XEC EOG RRC MUR APA Equity Issuances ($MM) Source: Bloomberg, as of March8, 2017 •No Issuance of Equity in Downturn •Reduced Capital Expenditures •Lo
Slide 26: 2017 Annual Capex Guidance at $890 MM
MURPHY OIL CORPORATION 26 www.murphyoilcorp.com NYSE: MUR 41% 4% 5% 16% 4% 2% 12% 3% 13% Eagle Ford Shale Tupper Montney Placid Montney Kaybob Duvernay Canada Offshore GOM Malaysia Other Exploration 2017 Total Capex, $890 MM** NA Onshore 66% Offshore 34% Field Development & Development Drilling ~85%
Slide 27: Onshore Portfolio Review
ONSHORE PORTFOLIO REVIEW ee
Slide 28: North America Onshore Operations
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 28 North America Onshore Operations Significant Operated Positions in Three Growing, Premier Unconventional Basins •2 Developed Plays & 1 Emerging Play •Low Cost Entry Transfer Learnings & Technical Expertise Onshore Production & Reserve Life •~
Slide 29: Onshore Operations
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 29 Onshore Operations Water 99.2% Acid 0.07% Corrosion Inhibitor 0.05% Friction Reducer 0.05% Clay Control 0.034% Crosslinker 0.032% Scale Inhibitor 0.023% Breaker 0.02% Iron Control 0.004% Biocide 0.001% Gellant 0.5% Other 0.8% Average Hydrauli
Slide 30: Eagle Ford Shale Overview
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 30 Eagle Ford Shale Overview Oil Cond. Gas La Salle Atascosa McMullen Karnes Wilson Dimmit 74% 12% 14% Oil Natural Gas NGL 49 Mboepd FY 16 Production *Operated & Non-Operated as of December 31, 2016 Note: High Return Locations =25% IRR @ $60 WTI
Slide 31: Eagle Ford Shale Highlights
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 31 Eagle Ford Shale Highlights $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 0 10 20 30 40 50 60 70 2012 2013 2014 2015 2016 2017 E Capital Expenditures ($BN) Net Production (Mboepd) Net Production Production (mboepd) Capex ($BN) •Stable Pro
Slide 32: Successfully Executing in Shale Plays – EUR Enhancement
MURPHY OIL CORPORATION 32 Successfully Executing in Shale Plays –EUR Enhancement Higher EURs are Key •Increase EURs per Well by Utilizing Innovative Completion Technologies •Longer Laterals Approaching 10,000 ft in Tupper Montney & Kaybob Duvernay •Higher Concentration Sand Fracs, Up to 2,000 lbs/ft
Slide 33: Tupper Montney Overview
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 33 Tupper Montney Overview British Columbia Alberta TCPL Murphy Natural Gas Gathering Enbridge Facility 100% 2016 Proved Reserves NaturalGas 157 MMboe 100% NaturalGas 33 Mboepd FY 16 Production 14% 86% PDP Remaining Locations 1,700 Locations Wel
Slide 34: Tupper Montney Highlights
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 34 Tupper MontneyHighlights $0.0 $0.1 $0.1 $0.2 $0.2 $0.3 $0.3 $0.4 $0.4 0 5 10 15 20 25 30 35 40 2011 2012 2013 2014 2015 2016 2017 E Capital Expenditures ($BN) Net Production (Mboepd) Net Production Production (mboepd) Capex ($BN) •Stable Prod
Slide 35: Kaybob Duvernay Overview
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 35 49% 43% 8% 2016 Proved Reserves Oil Natural Gas NGL 54 MMboe KaybobDuvernay Overview Kaybob Duvernay •70% WI, Operatorship •~140,000 Net Acres •Murphy Operatorship: May 2016 ~1,100 High Return Locations Low Entry Cost –Top Quartile Field Life
Slide 36: Offshore Portfolio Review
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 36 OFFSHORE PORTFOLIO REVIEW
Slide 37: Established Offshore Business
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 37 70% 19% 11% 71% Oil 27% Natural Gas 2% NGL SE Asia Gulf of Mexico CA Offshore 83 Mboepd FY 16 Production Hibernia Terra Nova Gulf of Mexico 70% 20% 10% 53% Oil 45% Natural Gas 2% NGL 2016 Proved Reserves SE Asia US Offshore CA Offshore 225 MM
Slide 38: North America Offshore Highlights
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 38 84% 5% 11% Oil NGL Natural Gas 25 Mboepd FY 2016 Production 34% 66% 2016 Proved Reserves Canada Offshore GOM 68 MMboe North America Offshore Highlights Gulf of Mexico (Operated) Medusa –60% WI •First Production: November 2003 •FY 16 Net Produ
Slide 39: Malaysia Offshore Overview
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 39 Malaysia Offshore Overview Extensive Operating Experience in the Area Over 15 Years Long Life, Shallow Decline Assets Provide Steady Cash Flow Brent Linked Pricing Provides Diversity to North American Operations Strong Relationships with Loca
Slide 40: Vietnam Block 15-1/05
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 40 35% Farm-In to Block 15-1/05 •Prolific Basin •Joint Venture with PetroVietnam EP (40% Op) & SK Innovation (25%) •Significant Discovered Resource in Lac Da Vang(LDV) Field •Development Planning in Progress •Additional Oil Discovery in Lac Da N
Slide 41: Gulf of Mexico Exploration
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 41 Gulf of Mexico Exploration Gulf of Mexico –Hoffe Park •Murphy 25% WI (Non-Op), Chevron 75% WI •Discovery Delineation Plan Being Developed •Expected F&D Range $8/boe to $10/boe Mexico –Deepwater Block 5 •Murphy 30% WI (Operator) •Most Conteste
Slide 42: Competitive Offshore Returns
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 42 Competitive Offshore Returns •Competitive Project Economics at Significantly Lower Oil Price •Reduced Competition Due to Fewer Active Players •Costs Continue to Decline •Innovative Financing Options Offered by Vendors Tie-Back Example $90 WTI
Slide 43: Looking Ahead
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 43 LOOKING AHEAD
Slide 44: 2017–2020 Plan: Advantages of a Balanced Portfolio
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 44 - 25 50 75 100 125 150 175 200 225 250 2017 E 2020 E Net Production *Not Including Corporate Effects Onshore Net Production, Mboepd Budget Assumptions 2017 2018 WTI $52/bbl $60/bbl Assumes 2% Inflation Thereafter HH $3.10/mcf $2.91/mcf Assume
Slide 45: A Look Back at 2016
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 45 A Look Back at 2016
Slide 46: Takeaways
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 46 Increasing Long Term Global Oil Demand Outstanding Safety& Environmental Performance Maintaining Oil-Weighted & Diversified Reserve Base Preserving Shareholder Value Growing North American Onshore Production Generating Free Cash Flow Offshore
Slide 47: Appendix
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 47 APPENDIX
Slide 48: Appendix
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 48 Appendix •Non-GAAP Reconciliation •Bloomberg Definitions •Abbreviations/Definitions •Additional Slides
Slide 49: Non-GAAP Financial Measure Definitions & Reconciliations
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 49 Non-GAAP Financial Measure Definitions & Reconciliations The following list of Non-GAAP financial measure definitions andrelatedreconciliationsisintendedtosatisfytherequirementsofRegulationGoftheSecuritiesExchangeActof1934,asamended.Thisinfor
Slide 50: Non-GAAP Reconciliation: Adjusted Earnings
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 50 Non-GAAP Reconciliation ADJUSTED EARNINGS Murphy defines Adjusted Earnings as net income adjusted to exclude discontinued operations and certain other items that affect comparability between periods. Adjusted Earnings is used by management to
Slide 51: Non-GAAP Reconciliation: EBITDA
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 51 Non-GAAP Reconciliation EBITDA Murphy defines EBITDA as income from continuing operations before income taxes, depreciation, depletion and amortization (DD&A), net interest expense, and impairment expense. Management believes that EBITDA prov
Slide 52: Non-GAAP Reconciliation: EBITDAX
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 52 Non-GAAP Reconciliation EBITDAX Murphy defines EBITDAX as income from continuing operations before income taxes, exploration expenses, depreciation, depletion and amortization (DD&A), net interest expense, and impairment expense. Management b
Slide 53: Bloomberg Definitions
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 53 Bloomberg Definitions •TSR = Total Shareholder Return Based on 2016YE Adjusted Share Price, which Accounts for all Corporate Actions such as Stock Splits, Dividends/Distributions and Rights Offerings •Net Income/BOE = Net Income (Loss) as Rep
Slide 54: Abbreviations/Definitions
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 54 Abbreviations/Definitions BBL: barrels (equal to 42 US gallons) BCF: billions of cubic feet BCFE: billion cubic feet equivalent BN: billions BOE: barrels of oil equivalent (1 barrel of oil or 6000 cubic feet of natural gas) BOEPD: barrels of
Slide 55: Murphy Oil Corporation
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 55 Murphy Oil Corporation •Global, Diversified Asset Base with Long Term Growth Within Cash Flows •Growing North American Onshore Unconventional Assets •Stable Cash Flows from Long-Lived Offshore Assets •Stabilized Production Post Oil Price Coll
Slide 56: Outstanding Year in Safety & Environment
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 56 Outstanding Year in Safety & Environment 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 2015 2016 Combined TRIR TRIR Y-O-Y 2016 Safety Milestones •Five Recordable-Free Months •No Employee Recordable Incidents •Canada & Gulf of Mexico 1+ Year Inciden
Slide 57: 2016 Overview
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 57 2016 Overview •Stabilized Production for Future Growth •Balanced, Low Risk NA Onshore and Free Cash Generating Offshore Production •Premium Priced, Oil-Weighted (62% Liquids), Brent & LLS Production •Reduced Capital Spending Program •Lowered
Slide 58: Preserving Oil-Weighted & Diversified Reserve Base
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 58 Price Impact as % of Proved Reserves, 2015 vs 2016 Forecasted Development Costs per PUD BOE,CAGR 2013 –2016 4 5 6 7 8 9 10 11 12 0 100 200 300 400 500 600 700 800 2012 2013 2014** 2015** 2016*** Years Proved Reserves, MMboe Proved Reserves &
Slide 59: Preserved Shareholder Value
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 59 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 Equity Issuances ($MM) Equity Issuances 2015 –2016 $22 BN Equity Issuances PeerGroup: APA, APC, CHK, COG, DVN, ECA, EOG, HES, MRO, NBL, NFX, PXD, RRC, SWN, WLL, XEC Source: Bloomberg, as of March8,
Slide 60: Oil Peer Group Benchmarking 2016 YE
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 60 $0 $5 $10 $15 $20 $25 -$60 -$50 -$40 -$30 -$20 -$10 $0 EBITDA ($/BOE) Net Income ($/BOE) Production Netback ($/BOE) Oil Peer Group Benchmarking 2016 YE 2016 TSR Source: Bloomberg Note: Please refer to appendix for definitions of terms as used
Slide 61: Oil Peer Group Benchmarking 2016 YE
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 61 3-Year Total Reserve Replacement Cost (FD&A, $/BOE) Reserve Life Index (Years) Lifting Costs Change Y/Y 3-Year Organic Reserve Replacement Oil Peer Group Benchmarking 2016 YE Source: Bloomberg Note: Please refer to appendix for definitions of
Slide 62: The Key to Our Success
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 62 The Key to Our Success Continue to be a PREFERRED PARTNER to NOCs and Regional Independents BALANCE our Offshore Business by Acquiring & Developing Advantaged Unconventional NA Onshore Plays DEVELOP AND PRODUCE Fields in a Safe, Responsible,
Slide 63: Develop Differentiated Perspectives in Underexplored Basins and Plays
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 63 Develop DIFFERENTIATED PERSPECTIVES In Underexplored Basins and Plays Low Cost Entry Into Kaybob Duvernay •Attributes of Eagle Ford Shale –Oil, Condensate, Natural Gas •Significant Upside Ahead –Downspacing& De-risking Oil & Condensate Window
Slide 64: Continue to Be a Preferred Partner to NOCs and Regional Independents
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 64 •Solid Reputation in SE Asia Led to PetroVietnam Partnership & New Block Entry •Strong Relationship with Global Leader in LNG –PETRONAS •Selected by Joint Venture Partner in Kaybob Duvernay Entry •Selected as Operator by Successful Gulf of Me
Slide 65: Balance Our Offshore Business with Onshore Plays
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 65 •Rebuilding Opportunity Set in Deepwater at Bottom of Cycle •Stabilizing Production •North American Onshore Assets –Unconventional Focus •Eagle Ford Shale –Low Cost Entry, Oil-Weighted Production •MontneyNatural Gas –Low Cost Operations with
Slide 66: Develop and Produce Fields Safely, Responsibly and Cost Effectively
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 66 2016 Outstanding Year in Health, Safety & Environmental Performance Established Cost Focus Culture •Reduced LOE per BOE 35% 2014 –2016 •LoweredG&A 30% 2014 –2016 Onshore Efficiencies •Achieved Top Quartile NA Onshore Operator in LOE ~$7.35/BO
Slide 67: Achieve and Maintain a Sustainable, Oil-Weighted Portfolio
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 67 - 25 50 75 100 125 150 175 200 225 250 2017 E 2020 E Net Production *Not including corporate effects Onshore Net Production, mboepd Budget Assumptions 2017 2018 WTI $52/bbl $60/bbl Assumes 2% inflation thereafter HH $3.10/Mcf $2.91/Mcf Assume
Slide 68: Looking Toward Our Future
MURPHY OIL CORPORATION www.murphyoilcorp.com NYSE: MUR 68 Looking Toward Our Future Re-Focus •Ongoing Cost Focused Culture •Maintained Balance Sheet Strength •Poised for Value-Added Production Growth Re-Balance •Acquire New Unconventional North American Onshore Assets •Position Offshore Exploration