M U R PH Y OI L C OR POR AT I ON
Tudor Pickering Holt
2013 Energy Conference
Roger Jenkins
Executive Vice President & COO
...
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 2
Cautionary Statement
C...
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 3
On-Going US Retail Spi...
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 4
Focus On Shareholders
...
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 5
 Top Tier Production ...
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 6
Reserve Growth with Re...
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 7
Our Strategy
 Develop...
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 8
EXPLORATION
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 9
Exploration
Play Type ...
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 10
Exploration Prospect ...
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 11
Blacktail
Madagascar
...
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 12
Brunei LNG
Lumut
BLOC...
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 13
Australia Browse Basi...
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 14
Cameroon – Impactful ...
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 15
Gulf of Mexico
 Long...
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 16
GLOBAL OFFSHORE
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 17
Malaysia Shallow Wate...
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 18
Malaysia: Block K
 N...
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 19
Sarawak Gas: Long Ter...
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 20
Malaysia Block H:
Nex...
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 21
Building Back GOM Bus...
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 22
NORTH AMERICA ONSHORE
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 23
Seal – Long Term Focu...
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 24
Onshore Canada – Long...
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 25
0
5
10
15
20
25
30
35...
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 26
EFS - Improving Cost ...
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 27
Financial Stability
C...
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 28
Quality Assets with H...
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 29
Takeaways
 Growth is...
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 30
APPENDIX
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 31
Non-GAAP Financial Me...
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 32
Non-GAAP Reconciliati...
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 33
Non-GAAP Reconciliati...
M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 34
Abbreviations
 3D: t...
Upcoming SlideShare
Loading in …5
×

Murphy Oil Corp. 2013 Tudor Pickering Holt Energy Conference

1,029 views

Published on

Published in: Business, Economy & Finance
  • Be the first to comment

  • Be the first to like this

Murphy Oil Corp. 2013 Tudor Pickering Holt Energy Conference

  1. 1. M U R PH Y OI L C OR POR AT I ON Tudor Pickering Holt 2013 Energy Conference Roger Jenkins Executive Vice President & COO June 20, 2013
  2. 2. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 2 Cautionary Statement Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved and probable reserves. We use certain terms in this presentation, such as “reserve estimates”, “contingent resource”, “gross or total resource”, “resource base”, “possible reserves”, “EUR or estimated ultimate recovery” and similar terms that the SEC’s rules strictly prohibit us from including in filings with the SEC. This presentation contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express management’s current views concerning future events or results, are subject to inherent risks and uncertainties. Factors that could cause actual results to differ materially from those expressed or implied in our forward-looking statements include, but are not limited to, the volatility and level of crude oil and natural gas prices, the level and success rate of our exploration programs, our ability to maintain production rates and replace reserves, political and regulatory instability, uncontrollable natural hazards and the failure to complete the spin-off of Murphy USA within the currently contemplated timeframe, because of adverse market conditions or tax consequences, among other things. For further discussion of risk factors, see Murphy’s 2012 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission. Murphy undertakes no duty to publicly update or revise any forward-looking statements.
  3. 3. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 3 On-Going US Retail Spin  Strategic Plan Focus  Resource and Capital Allocation  Proper Peer Group Pure E&P U.S. Retail
  4. 4. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 4 Focus On Shareholders  Special Dividend of $2.50 per Share – Approximately $500 Million  AuthorizedShare Repurchase up to $1 Billion  First $250 Million; Retired 4,064,261 shares; Announced Dec 10, 2012  2nd Tranche of $250 Million; Announced May 23, 2013  Regular Dividend– ConsistentGrowth;Well Positionedin Peer Group $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 0% 1% 2% 3% 4% 5% MUR Dividend Yield %Dividends, $/share Peer Group: APA, APC, CHK, COP, DVN, ECA, EOG, HES, MRO, NBL, OXY, TLM
  5. 5. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 5  Top Tier Production Growth  Oil Weighted  Continued Growth to 2016 & Beyond  Onshore Growth and Well Count–Improving External Guidance Sustainable Growth Record 0 50 100 150 200 250 300 2007 2008 2009 2010 2011 2012 2013E2014E2015E2016E Oil & SK Gas Dry & Assoc. Gas 78% 85% Net, MBOEPD MUR -10% -5% 0% 5% 10% 15% 20% 5-Year ProductionCAGR Peer Group: APA, APC, CHK, COP, DVN, ECA, EOG, HES, MRO, NBL, OXY, TLM
  6. 6. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 6 Reserve Growth with Resource Migration Ahead NA Dry Gas 21% EFS 19% Syncrude 19% Other Projects 15% Malaysia Oil 16% Malaysia Gas 8% Kikeh Gas 2% Reserves:  2012 Additions – 70 MMBOE  5 Year Average Replacement 160%  77% Oil & SK Gas Projects Resources:  3.3 Billion BOE  70% Within Existing Development 2008 2009 2010 2011 2012 ProvedReserves MMBOE 402 439 455 534 604 LowRisk Migration  Current Capital Spend  Resource Plays  Syncrude ProvedReserves Total Resources Proved 18% Non - Proved 19% Resource Play 22% Conventional 11% Heavy Oil 7% Syncrude 8% Deepwater 15% Contingent 63%
  7. 7. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 7 Our Strategy  DevelopDifferentiated Perspectives In UnderexploredBasins and Plays – The Key to Our Success  Continueto be a PreferredPartner to NOCs and Regional Independents  Complementour Offshore Business by DevelopingUnconventional Onshore Plays in North America  Developand Produce Fields in a Safe,Responsible,Timely,and CostEffective Manner  Achieve and Maintain aSustainable,Profitable,Oil Weighted Portfolio 0 5 10 15 20 -10 0 10 20 MUR MURAdjusted to Exclude Discontinued Operations, After Tax Impairments, Corporate and Gains on Asset Sales. Peer Group: APA, APC, CHK, COP, DVN, ECA, EOG, HES, MRO, NBL, OXY, TLM UpstreamIncome 2012 ($/boe) UpstreamIncome 1Q 13 ($/boe)
  8. 8. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 8 EXPLORATION
  9. 9. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 9 Exploration Play Type Focus:  Large Structures in New Areas or Plays  Oil-Prone Deepwater StratigraphicPlays  MultipleStructures - Cluster Development Program Goal:  Consistent 10 Well per Year Program  Portfolio 2X Proved Reserves 1 Gulf of Mexico 4Atlantic Margin 3 Southeast Asia Focus Regions 2 Australia 1 2 3 4 Southeast Asia – Australia: Long Term LNG Projectswith “Value Chain” Partners
  10. 10. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 10 Exploration Prospect Portfolio *NA Onshore Excluded 0 100 200 300 400 500 600 700 0% 20% 40% 60% 80% 100% Pg (Chance of Success) % GrossP50Resources(MMBOE) 2013 & Q1 2014 Wells  7,500 MMBOE Total P50 Gross  900 MMBOE P50 Net Risked  1.5x Proved Resources  75% Operated - 20 40 60 80 100 120 140 160 2017 2018 2019 2020 2021 2022 Gross P50 Resource By Region Risked Exploration, MBOEPD Gulf of Mexico Atlantic Margin S.E. Asia Australia Serai & Bawang Putih Dufresne Elombo DW Titan Ntem Brunei Australia 17% Gulf of Mexico 23% Atlantic Margin 34% S.E. Asia 26%
  11. 11. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 11 Blacktail Madagascar 2013 Exploration Program BLOCK Q1 - ‘13 Q2 - ‘13 Q3 - ‘13 Q4 - ‘13 Q1 - ‘14 BRUNEI CA-2 INDONESIA Semai II AUSTRALIA Browse Basin CAMEROON Elombo & NTEM USA Gulf of Mexico Elombo - Deep Water Kelidang NE-1 Elombo CB-1A Bassett West-1 Dufresne-1 NTEM Eupheme-1 Planned Well Dry Hole/Non-Commercial Oil Discovery Gas Discovery Titan Keratau & Kempas Serai-1 & Bawang Putih-1 SpudRange
  12. 12. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 12 Brunei LNG Lumut BLOCKCA-2 (30%W.I.) BLOCKCA-1 (5%W.I.) BLOCKK Kikeh Kakap- Gumusut Siakap North- Petai Kelidang NE Brunei CA-2 Gas Exploration BRUNEI Deep Offshore Block CA2  Kelidang NE-1 Discovery  2 Follow On Wells Late 2013  Murphy W.I. 30%  Petronas,Shell, ConocoPhillips, Mitsubishi- Partners  Existing LNG Plant 0 5km Kelidang NE Kelidang SW Kempas Keratau Kelidang NE FollowUp Prospects
  13. 13. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 13 Australia Browse Basin  Murphy W.I.20%  Large Prospects in a Proven Play  BassettWest-1  Found 20ft of Gas Pay  PotentialRemainson Structure  Acquiring3D Seismic  Dufresne-1  Spud Mid June  Resultsin Q3  GrossResources 2 to 2.8 TCF
  14. 14. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 14 Cameroon – Impactful Prospects  MultipleProspects and Leads  Stacked Fan Play  Late Cretaceous  EarlyTertiary  2,600 MMBOETotal Gross P50  Spud Elombo Well Early Q3 600 MMBOE 300 MMBOE Drill Q1 ‘14 Drill Q3 ‘13
  15. 15. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 15 Gulf of Mexico  Long History of Success  3 Play Types  1,600 MMBOETotal Gross Resource P50  MultipleProspects and Leads  Strong Positionin Emerging NorphletOil Play Titan  Murphy W.I.70%  JurassicNorphletPlay  GrossResources 150 - 300 MMBOE  Spud Late 2013
  16. 16. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 16 GLOBAL OFFSHORE
  17. 17. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 17 Malaysia Shallow Water Developments Patricia  1st Prod Oct ’13  NetPeak Rate: 1,100BOPD ’14 Serendah  1st Prod Jun ’13  NetPeak Rate: 6,200BOPD ’14 South Acis  1st Prod Sep ’13  NetPeak Rate: 8,400BOPD ’15 Permas  1st Prod Dec ’13  NetPeak Rate: 3,400BOPD ’15 0 5 10 15 20 25 30 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Future Fields Existing Net, MBOPD Note: All Projects 85% W.I.
  18. 18. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 18 Malaysia: Block K  New 2013 Block K Production  KakapFloating Production Unit  SiakapNorth/ Petai  Kikeh – Key Asset  New Completion Designs Working  Kakap Early Production System – To Plan  High Valued Crudes in SE Asia 0 20 40 60 80 100 120 140 Aug-10 Dec-10 Apr-11 Aug-11 Dec-11 Apr-12 Aug-12 Dec-12 Kakap Production NewDevelopment(Gravel Pack) Gravel Pack Repairs Original Completion - 5 10 15 20 25 2013 2014 2015 2016 SiakapNorth/Petai Kakap Gross,MBOPDNet,MBOEPD
  19. 19. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 19 Sarawak Gas: Long Term Value  1.5 TCF P2 EUR Resources  1.1 TCF Total EUR Proven & Certified  PhaseII 640 BCF - Contracted  Oil-Indexed Gas Price  Production Ability to 2022 & Beyond $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 0 50 100 150 200 250 300 Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 $/MCF Gross,MMCFD Rate Prices 0 100 200 300 400 500 600 2010 2011 2012 Gas Revenue - Opex, $MM 0 50 100 150 200 250 300 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Gross,MMCFD Phase I Phase II Make-Good Depletion Phase I 250 MMCFD 5 Yearsfrom 2010 460 BCF Phase II 250 MMCFD 7 Years 640 BCF 1.5 TCF P2 EUR
  20. 20. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 20 Malaysia Block H: Next Gas Project  7 Consecutive Discoveries  1.5MTPA FLNG Operated by PETRONAS  Progressing FLNGFEED  Phase 1 (950 BCF)  Rotan,Alum,Bemban & Buluh  10 Years Production  Targeting Sanction Late 2013  First Gas 2017 Block H Gross Estimated Resources of ~2300 BCF Phase 2 Phase 3 Phase 4 0 100 200 300 1 6 11 16 21 GasProduction(MMCFD) Year Phase 1 Phase 2 Phase 3 Phase 4 Murphy Net Entitlement = ~1,150 BCF
  21. 21. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 21 Building Back GOM Business  Strong NetIncome & Cash Flow Provider  History of Ability  Favorable Terms & Regulator - 10 20 30 40 50 2013 2014 2015 2016 # of Blocks??? Base Production Dalmatian Medusa Expansion - 5 10 15 20 Q4 2012 2013 2014 2015 2016 Net, MBOEPD Opex per BOE Dalmatian Project Medusa Expansion
  22. 22. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 22 NORTH AMERICA ONSHORE
  23. 23. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 23 Seal – Long Term Focus  Recent Bolt-On Land, Facility, Production  5,850MMBBLS Oil In Place  Significant Reserve Upside  Polymer  SuccessfulPilot Project  Expected RecoveryIncreased 5- 14%  CommercialProjectUnderway  Thermal  RegulatoryApprovalReceived  Started 1st CSS Pilot  7 Project AreasIdentified Successful Competitor Steam Pilot Seal Chipmunk Gift Dawson 0 6Miles Harmon Valley Seal North 2013 Thermal Focus 2013 Polymer Focus Net , MBOEPD 0 10 20 30 40 50 2013 2015 2017 2019 2021 2023 2025 Thermal PolymerPrimary
  24. 24. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 24 Onshore Canada – Long View Properties Add a map 150,000 Net Acres Recent Liquids Success Montney:  Option on Gas Price  3.6TCF Resource@ $4.50  5.4TCF Resource@ $5.00  > 8 TCF Resource@ $6.00  Quality – De-risked Sub-Surface Asset  LNG Long Term Option Syncrude:  Complements Global Offshore  Unique Low-risk, Steady Oil Production – Not Easy To Replicate  Huge Remaining Resource  Option Value Oil Prices$- $50 $100 $150 $200 $250 $300 - 5 10 15 20 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Syncrude Production Profile, MBOPD Production EBITDAX$MM
  25. 25. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 25 0 5 10 15 20 25 30 35 40 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13  Ground Floor Entry – High Value  300 MMBO Net  Largest inCompany History  87 MMBOEProved  De-risked by Industry  Drilling & Completions Improvement  Transportation & Quality Advantaged  High Margin Upside:  DownSpacing  Pearsall Shale Eagle Ford Shale – New Legacy Asset Net, MBOEPD 0 10 mi TILDEN N TILDEN CATARINA KARNES Pearsall Focus Area  158,661 Net Acres  90% Oil + Condensate  9 Rigs  3 Frac Crews 0 20 40 60 80 2012 2013 2014 2015 2016 Net, MBOEPD  281 Wells Drilling  231 Producing Wells  16 Facilities  Pipeline Projects in Place - 20 40 60 80 100 120 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Upside Base NUECES
  26. 26. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 26 EFS - Improving Cost Structure - 5 10 15 20 25 30 35 40 2011 2012 2013 Q1 2013 2014 2015 2016 EFS Overall Opex, $/BOE  Drilling&Completion Improvements  Driving Capital Efficiency and Margin Improvement $1,210 $763 $/Completed Lateral ft 35% $291 $169 $/ft EFS Completion CostEFS Drilling Cost 42% 0 10 20 30 40 50 60 70 80 90 100 2010 Q1 2011 Q1 2012 Q1 2013 Q1 TildenLifting Cost ($/BOE) % Facilities Complete Wells on Production
  27. 27. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 27 Financial Stability Capex & Cash Flow, $MM Returning to Free Cash Flow  RecentDebt  Recapitalization  EFS Development  Liquidity Sources  CashFlow  Revolver  US Retail Dividend  UK Downstream Sale 0% 10% 20% 30% 40% 50% 0.0 0.5 1.0 1.5 2.0 2.5 1970 1975 1980 1985 1990 1995 2000 2005 2010 LTD % Debt/Cap Historically LowDebt $ Billion 0 1,000 2,000 3,000 4,000 5,000 6,000 2013 2014 2015 2016 Downstream Corporate EFS Exploration(ex.EFS) Development(ex.EFS) Cashflow E&PIntegrated Refer toAppendix for Non-GAAP Financial Measures $100 Brent, $85 WTIin 2014; $95 Brent, $90 WTI From 2015
  28. 28. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 28 Quality Assets with High Margins - EBITDAX/BOE Refer toAppendix for Non-GAAP Financial Measures $100 Brent, $85 WTIin 2014; $95 Brent, $90 WTI From 2015 EFS GOM Montney Canada Offshore Syncrude Shallow Water Malaysia Deep Water Malaysia* Seal E&P 2012† Total 2016* (40) (20) - 20 40 60 80 - 20 40 60 80 2016 EBITDAX/BOE ProductionGrowth 2012 – 2016, MBOEPD * Excludes Sabah Gas. † Excludes Sabah Gas, UK & Congo. USONSHORE $/BOE 2012 $60 Q1 2013 $66 CANADA ONSHORE $/BOE 2012 $21 Q1 2013 $18 MALAYSIA* $/BOE 2012 $66 Q1 2013 $67 CANADA OFFSHORE $/BOE 2012 $89 Q1 2013 $95 USOFFSHORE $/BOE 2012 $55 Q1 2013 $69
  29. 29. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 29 Takeaways  Growth is Visible, High-Margin & Oil-Weighted  Exploration First – Four High-Impact Tests in Next 12 Months  Complementary Onshore – Eagle Ford a New Legacy Asset  Rich Portfolio of Discovered Resources – Low-Risk Migration  Proven Onshore Capability – New Avenue to Capture Value
  30. 30. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 30 APPENDIX
  31. 31. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 31 Non-GAAP Financial Measure Definitions & Reconciliations The followinglist of Non-GAAP financial measure definitionsand related reconciliations is intended to satisfythe requirementsof Regulation G of the Securities Exchange Act of 1934, as amended. This informationis historicalin nature. Murphyundertakes no obligationto publicly update or revise any Non-GAAP financial measuredefinitions and relatedreconciliations.
  32. 32. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 32 Non-GAAP Reconciliation EBITDAX MurphydefinesEBITDAXasincome fromcontinuingoperationsbefore income taxes,explorationexpenses,depreciation,depletionand amortization(DD&A),andnetinterestexpense. ManagementbelievesthatEBITDAXprovidesusefulinformationforassessingMurphy'sfinancialconditionandresultsof operationsandit is a widelyacceptedfinancialindicator of the ability of a companyto incur and service debt,fundcapital expenditure programs, andpaydividendsand make otherdistributionstostockholders. EBITDAX,asreportedbyMurphy,maynotbe comparable to similarly titled measuresusedbyothercompaniesandit shouldbe consideredin conjunctionwithnetincome,cashflowfromoperationsandotherperformance measurespreparedinaccordance withgenerallyaccepted accountingprinciples(GAAP). EBITDAXhascertainlimitations regardingfinancial assessmentsbecauseitexcludescertainitemsthataffectnet income andnetcash providedbyoperatingactivities. EBITDAXshouldnot be consideredinisolation or as a substitute forananalysis of Murphy's GAAPresultsasreported. $ Millions Year Ended December 31, 2012 Three Months March31, 2013 Incomefromcontinuing operationsbeforeincome taxes 1,623 403 Exploration Expense 381 108 DD&A 1,376 394 Interestexpense, net of interest capitalized 15 14 ConsolidatedEBITDAX(Non-GAAP) 3,395 919
  33. 33. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 33 Non-GAAP Reconciliation CASH FLOW MurphydefinesCashFlowasnetcashprovidedby operatingactivitiesbefore changesinnoncashoperatingworkingcapital, geological and geophysicalexpensesandotherexplorationexpenses,proceedsfromsale of propertyof discontinuedoperations,expenditures formajorrepairs andabandonments,andotherminoramounts,net. ManagementusesCashFlowbecause itisusefulin comparisonswithcapital expendituresasitexcludeschangesinworkingcapital and all explorationexpenses. ManagementusesCashFlow toidentifyhow muchof the Company’scapital expenditure programisfunded withinternally generatedcashflows. $ Millions Year Ended December 31, 2012 Three Months March31, 2013 Net cash provided by operating activities 3,056 921 Changein noncash operating working capital 401 (211) Geological & geophysical expense 32 39 Other exploration expenses* 37 13 Recovery of property netbook value for discontinued operations -- 46 Expenditures for major repairs& abandonments 40 16 Other minor items, net (26) 20 ConsolidatedCash Flow(Non-GAAP) 3,540 844 *Excludesexpensesfordry holesandamortization of undevelopedleases.
  34. 34. M U R P H Y O I L C O R P O R A T I O N w w w . m u r p h y o i l c o r p . c o m N Y S E : M U R 34 Abbreviations  3D: three-dimensional  BBL: barrels(equal to 42 US gallons)  BCF: billions of cubic feet  BCFE: billions of cubic feet equivalent  BOE: barrels of oil equivalent (1 barrelof oil or 6000 cubic feet of natural gas)  BOPD: barrelsof oil per day  CAGR: compound annualgrowth rate  Capex: capitalexpenditures  EBITDAX: incomefromcontinuing operations beforetaxes, exploration expenditures, depreciation, depletion and amortization, and net interest expense  EOR: enhanced oil recovery  EUR: expected ultimate recovery  FLNG: floating liquefied naturalgas  FPSO: floating production, storage, and offloading vessel  GOM: Gulf of Mexico  MBO: thousandsof barrels of oil  MBOEPD: thousandsof barrels of oil equivalentper day  MBOPD: thousandsof barrels of oil per day  MMBO: millions of barrels of oil  MMBOE: millions of barrels of oil equivalent  MMBTU: millions of British thermal units  MMCF: millions of cubic feet  NA: North America  NGL: naturalgas liquid  NOC: national oil company  Opex: operating expenditures  PDP: proved developed producing  PUD: proved undeveloped  R/P: ratio of reserves to annual production  TCF: trillions of cubic feet  TPY: tons per year  TRIR: total recordableincident rate  VOC: volatile organic compound  WI: working interest  WTI: West Texas Intermediate (a grade of crudeoil)  YTD: year-to-date

×