Jefferies 2015 Global Energy Conference, Presented by Roger Jenkins, President & Chief Executive...

7/23/2019 Jefferies 2015 Global Energy Conference, Presented by Roger Jenkins, President & Chief Executive Officer

1/22

MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR

ENERGY CO

NO

ROGER JENKINSPRESIDENT & CHIEF EXECUTIVE OFFICER


2/22


Cautionary Statement

Cautionary Note to U.S. Investors The United States Securities and Exchange Commission permits oil and

in their filings with the SEC, to disclose only proved, probable and possible reserves. We may use certain t

presentation, such as resource, gross resource, recoverable resource, net risked P MEAN resource, re

resource base, EUR or estimated ultimate recovery and similar terms that the SECs rules strictly prohiincluding in filings with the SEC.

This presentation contains forward-looking statements as defined in the Private Securities Litigation Reform

These statements, which express managements current views concerning future events or results, are sub

risks and uncertainties. Factors that could cause one or more of the events forecasted in this presentation

include, but are not limited to, a deterioration in the business or prospects of Murphy, adverse developme

markets, or adverse developments in the U.S. or global capital markets, credit markets or economies gene

could cause actual results to differ materially from those expressed or implied in our forward-looking state

but are not limited to, the volatility and level of crude oil and natural gas prices, the level and success rate

exploration programs, our ability to maintain production rates and replace reserves, political and regulator

uncontrollable natural hazards. For further discussion of risk factors, see Murphys 2014 Annual Report on

file with the U.S. Securities and Exchange Commission. Murphy undertakes no duty to publicly update or r

forward-looking statements.


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Agenda

Company Highlights

Strong Financial Position

Adding Balance with NA Onshore

Project Update

Takeaways


4/22


2015 Highlights

Financial Maintained CAPEX $2.3 BN

Reduced LOE $/boe by 19% Y-O-Y; Reduc

Hedged 20,000 bopd WTI @ $52.01 for F

Portfolio Analyzing Monetization of Midstream Ass

Signed Farm-In Agreement in Cuu Long B

Major Projects

Completed Successful Drilling at Dalmatia

SK Gas Record Avg Daily Gross Production

Drilled Successful offshore Malaysia Mera

116 New Wells Online in Eagle Ford Shale

NA Onshore Increased EURs Due to New

Production

3Q Production 207,586 - Exceeded Guida

Increased FY Guidance Range: 205 - 209

Well-PositionedBALANCE SHEET FLEXIBILITY

CAPITAL DISCIPLINE

Progressing the PortfolioMIDSTREAM MONETIZATION

VIETNAM FARM-IN

Adding ResourceINCREASING NA ONSHORE WELLSNEW DEEPWATER DEVELOPMENTS

Oil-Weighted ProductionEXCEEDED GUIDANCE

INCREASED FY15 RANGE


5/22MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,0004,500

Continued Shareholder Focus

Committed to the Divide 12% CAGR Last 10 Years

Current Dividend $1.40/shar

~5.0% Yield at Current Share

0%

1%

2%

3%

4%

5%

6%

MUR

Dividend Yield %

Based on closing prices from 11/4/15

Source: Bloomberg. Peer Group: APA, APC, COP, DVN, EOG, HES, MRO, NBL, OXY

Cumulative Offerings Since

Murphy IPO 1956

Peer Group: APA, APC, COP, DVN, EOG, HES, MRO,

Average = 2.5%

1.40

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015E

Regular Dividends* ($/share)

* Does not include special dividends or Spin effects



3Q 15 Net Debt / Adj. EBITDA (Tra

3Q 15 Net Debt / Capital 3Q 15 Net Debt / Cash Flow From Op

0x

1x

2x

3x

4x

Average = 2.1x

0%

10%

20%

30%

40%

50%

60%

70%

Average = 36%

0x

1x

2x

3x

4x

5x

6x

Average = 2.5x

MUR

Peer Group: APA, APC, CHK, COG, COP, DVN, EOG, HES, MRO, NBL, NFX, PXD, RRC, SWN, WLL, XEC

Source: Bloomberg

Maintained Investment Grade BBB Bond Rating

Over $1.0 BN Available Under Current Bank Revolver

Over $1.2 BN of Cash - Abroad and Marketable Securities

Achieved Net Debt to EBITDA of Less than 1.5

Strong Balance Sheet Provides Financial Advantage

MUR

MUR

NM



Ongoing Cost Reductions

10.53

8.09

14.61

11.04

9.65

5

7

9

11

13

15

3Q 14 3Q 15 2013 2014 2015E

Lease Operating Expense* $/boe

Focusing on Cost Reducti

Reduced LOE by 23% Q-

Reduced G&A by 12% Y-

Reduced EFS LOE to Just

$2 Reduction from 2Q 1

* Excludes both Syncrude and Severance & Ad Valorem Taxes



NORTH AMERICA ONSHORE



Onshore Canada

Tupper West New We

Montney

Montney 9 New Wells Online

New Completions Adding Upside with EURs 8-11 BCF

Future Growth of 1000+ Potential Locations

Hedges 2015: 65 MMCFD @ $C 4.13/MCF (AECO)

2016: 59 MMCFD @ $C 3.19/MCF (AECO)

Analyzing Midstream Monetization

50t N2/CO2 Foam

100t Slick Water



4736 3

0

10

20

30

40

50

60

1Q 15 2Q 15 3Q

Wells Online

Onshore Eagle Ford Shale

5761

600

800

1,000

1,200

1,400

1,600

1,800

30

40

50

60

70

2014 2015 Outlook

Prod Capex

Net Mboepd Capex $MM

Running Room 683 Operated Wells Drilled to Dat

Remaining Resource Potential 80

$2,055 per Acre: Early Entrant Price Advantaged Near GOM

45 API Gravity; Oil-Weighted

Hedges

4Q 15: 15,000 bopd @ $63.30 (W

46% Development Capex Reduction

8% Production Growth

Reduced to 3 Rigs and 1

in 4Q 15Total Wells


11/22


471 437569

0

100

200

300

400

500

600

700

Karnes Ti

EUR, M

2012

+7

+21%

EFS Maximizing Value per Acre

Continuous Well Performance

Improvement

Drilling Tighter Spacing & Longer Lateralsleading to EUR Improvement

Increasing Sand Placement (>1800 lbs/ft)

Reducing Well Costs by ~35% from 2012 -

2015

Restricted Choke Management Generates

Optimized Flowback for Higher IP & EUR

Continually Modifying Completion Designs

Based on Actual Performance

756 MMboe, Net Pr

2014 Proved Res

220

105

155

276


12/22


EFS Austin Chalk

Appraisal in Karnes Stacked Pay Potential Over EFS

JOG Unit A 1H on Production at 1,500 boepd

Drilled, Cored & Logged Pilot

Preliminary Net Resource & Locations

~30 MMboe

~115 Locations

Estimated per Well EUR: 450 Mboe

Appraisal in Catarina Preliminary Net Resource & Locations

~25 MMboe

~150 Locations

Estimated per Well EUR: 200 450 Mboe

Plans for a 2016 Test


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GLOBAL OFFSHORE


14/22


Offshore Malaysia

Sarawak SK Gas

Record Avg D291 MMcfd

SK-314A Successfully D

Marakas Well

Kakap-Gumusut Completed Plann

Ahead of Schedu

Production E

Block H Permai Gas Dis

Rotan Tieback

Core Acquire

Senyum Planne

Malaysia


15/22


Offshore Vietnam

CA-1

CA-2

K

SK 314A

H

144

145

11-2/11

13/03

Vietnam

Cambodia

Thailand Laos

Sarawak

Sabah

Brunei

Indonesia

Malaysia

Philippines

Indonesia

SK 2C

0 250

Miles

Ruby / Topaz Blk.130 MMBOE

Rang Dong Blk.260 MMBOE

Bach Ho / Rong Blk.1,900 MMBOETe GiacTrang Blk.

320 MMBOE

Lac Da Vang

Blk. 15-1/05

Su Tu Den Blk.400 MMBOE

Cuu Lon Signed F

for Block

Oil Pron

Successf

Reviewin

Adds

2015 D illi P


16/22


Area Block2015

Q3

GULF OF MEXICO

MALAYSIA SK-314A

SK 2C

Block H

BRUNEI CA-2

VIETNAM 15-1/05

Solomon

Merapuh 5 Marakas

Paus Kelasa

Permai

Thunder BirdSidetrack

DalmatianSouth #2

2015 Drilling Program

LDV-4X

Success

T k


17/22


Preserving Strong Balanc

Gaining Efficiencies in OffOnshore

GOM Generating Sound E

Current Prices

Takeaways

1

2

3

4

5

Continuing Cost Reductio

Eagle Ford Shale to Becom


18/22


APPENDIX

N GAAP Fi i l M D fi iti & R ili


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Non-GAAP Financial Measure Definitions & Reconcilia

The following list of Non-GAAP financial measure definitions and related reconciliatio

satisfy the requirements of Regulation G of the Securities Exchange Act of 1934, as

information is historical in nature. Murphy undertakes no obligation to publicly upda

Non-GAAP financial measure definitions and related reconciliations.

Non GAAP Reconciliation


20/22


Non-GAAP Reconciliation

EBITDAMurphy defines EBITDA as income from continuing operations before income taxes, depreciation, depletion and amortizationexpense, and impairment expense.

Management believes that EBITDA provides useful information for assessing Murphy's financial condition and results of operaaccepted financial indicator of the ability of a company to incur and service debt, fund capital expenditure programs, and pay

other distributions to stockholders. EBITDA per barrel is computed by taking EBITDA divided by total barrels of oil equivalentsrespective periods.

EBITDA, as reported by Murphy, may not be comparable to similarly titled measures used by other companies and it should bconjunction with net income, cash f low from operations and other performance measures prepared in accordance with generprinciples (GAAP). EBITDA has certain limitations regarding financial assessments because it excludes certain items that affecprovided by operating activities. EBITDA should not be considered in isolation or as a substitute for an analysis of Murphy's G

$ MillionsNine Months Ended September 30, 2015 Nine Months Ended Septem

Income from continuing operations (1,672.5) 583.0

Income tax expense (benefit) (963.3) 452.2

Interest expense, net of interest

capitalized86.8 82.4

DD&A expense 1,318.1 1,354.4

Impairment of assets 2,301.0 -

Consolidated EBITDA (Non-GAAP) 1,070.1* 2,472.0

* Includes $155.1 MM pre-tax gain on sale of 10% interest in Malaysia in the nine-month period of 2015

Non GAAP Reconciliation


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Non-GAAP Reconciliation

EBITDAXMurphy defines EBITDAX as income from continuing operations before income taxes, exploration expenses, depreciation, d(DD&A), net interest expense, and impairment expense.

Management believes that EBITDAX provides useful information for assessing Murphy's financial condition and results of opaccepted financial indicator of the ability of a company to incur and service debt, fund capital expenditure programs, and

other distributions to stockholders. EBITDAX per barrel is computed by taking EBITDAX divided by total barrels of oil equivarespective periods.

EBITDAX, as reported by Murphy, may not be comparable to similarly titled measures used by other companies and itconjunction with net income, cash flow from operations and other performance measures prepared in accordance with geneprinciples (GAAP). EBITDAX has certain limitations regarding financial assessments because it excludes certain items that acash provided by operating activities. EBITDAX should not be considered in isolation or as a substitute for an analysis ofreported.

$ MillionsNine Months Ended September 30, 2015 Nine Months Ended Septe

Income from continuing operations (1,672.5) 583.0

Income tax expense (benefit) (963.3) 452.2Interest expense, net of interest

capitalized86.8 82.4

DD&A expense 1,318.1 1,354.4

Impairment of assets 2,301.0 -

Exploration expense 251.8 390.7

Consolidated EBITDAX (Non-GAAP) 1,321.9* 2,862.7* Includes $155.1 MM pre-tax gain on sale of 10% interest in Malaysia in the nine-month period of 2015

Abbreviations


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Abbreviations

BBL: barrels (equal to 42 US gallons)

BCF: billions of cubic feet

BN: billions

BOE: barrels of oil equivalent (1 barrel of oil or

6000 cubic feet of natural gas)

BOEPD: barrels of oil equivalent per day

BOPD: barrels of oil per day

CAGR: compound annual growth rate

DD&A: depreciation, depletion & amortization

EBITDA: income from continuing operations before

taxes, depreciation, depletion and amortization,

and net interest expense

MCF: thousands of cubic

MM: millions

MMBOE: millions of bar

MMCF: millions of cubic

MMCFD: millions of cub

NA: North America

NGL: natural gas liquid

R/P: ration of reserves to

WI: working interest

WTI: West Texas Interme

EBITDAX: income from continuing operations

before taxes, depreciation, depletion and

amortization, net interest expense, and

exploration expenses

EFS: Eagle Ford Shale

EUR: estimated ultimate recovery

FLNG: floating liquefied natural gas

G&A: general and administrative expenses

GOM: Gulf of Mexico

IPO: initial public offering

LOE: lease operating expense

MBOEPD: thousands of barrels of oil equivalent

per day

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