SANFORD C. BERNSTEIN 30 TH ANNUAL STRATEGIC DECISIONS CONFERENCE 2014

Transcription

1 EXPLORATION DRIVEN. DELIVERY FOCUSED. SANFORD C. BERNSTEIN 3 TH ANNUAL STRATEGIC DECISIONS CONFERENCE 214 ROGER JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER MAY 29, 214 1

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, probable and possible reserves. We may use certain terms in this presentation, such as resource, gross resource, recoverable resource, net risked P MEAN resource, recoverable oil, resource base, 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 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, and uncontrollable natural hazards. Additionally, the Company may be unable to sell its U.K. downstream business as it desires to do because it may fail to execute a sale of these operations on acceptable terms. For further discussion of risk factors, see Murphy s 213 Annual Report on Form 1-K filed with the U.S. Securities and Exchange Commission. Murphy undertakes no duty to publicly update or revise any forward-looking statements. 2

3 Our Strategy Exploration Driven Delivery Focused SAFE & RESPONSIBLE FINANCIAL Capability & Discipline EXPLORATION Oil-Weighted, Needle Moving Prospects in Under-Explored Basins BALANCE Low Risk NA Onshore & Global Offshore EXECUTION Top Tier Capability on Onshore & Offshore Projects MAINTAIN Diverse & Highly Profitable Oil-Weighted Portfolio PREFERRED PARTNER Efficient & Commercially Focused 3

4 Oil-Weighted Portfolio Delivers Results 6 EBITDA/BOE, $/BOE 6 EBITDAX/BOE, $/BOE MUR MUR 1Q 214 Peers 213 Peers 4 3 1Q 214 Peers 213 Peers Q 13 4Q 13 1Q 14 Peer Group: APA, APC, COP, DVN, EOG, HES, MRO, NBL, OXY, PXD, TLM Source: Evaluate Energy 1Q 13 4Q 13 1Q 14 4

5 Leading in Volume and Value Production Growth Reserves Life Increasing R/P (YRS) PRODUCTION, MBOEPD % 3% 2% 1% % -1% -2% -3% Proved Reserves, % Change 211 to 213 MUR MRO NBL OXY APC COP EOG DVN HES APA PXD TLM % -4% -2% % 2% 4% Future Net Cash Flows, % Change 211 to 213 Proved Reserves And Future Net Cash Flows Data From YE 213 SEC 1-K Filings (excl. TLM), 213 Annual Report (TLM) 5

6 5-Year Production Outlook MBOEPD (Net) Exploration has Needle Moving Impact 25 2 ~8% Oil & Oil-Indexed GOM Discoveries Shortest Pipeline to 1st Production Year Outlook NA Onshore Global Offshore Risked Exploration Expected Range Applicable to Total Production Profile 6

7 Projected Strong Free Cash Flow 6, Cumulative Free Cash Flow (FCF), $MM Cum FCF w/explor Success Cum FCF w/o Explor Success 6, 5, Cash Flow vs CapEx, $MM Risked Exploration - App & Dev Dividends CapEx - Base Assets CF w/exploration Success Share Repurchase Exploration - Wildcat CF w/o Exploration Success 5, 4, 3, 4, 2, 1, 3, , Expected Cash Flow/Capex Parity , Projected Free Cash Flow from 216 to 219 7

8 Investing In Murphy Well Positioned as an E&P Player Profitability Will Continue Due to Diverse Oil-Weighted Business Model Exploration-Focused With Strong Acreage Position Eagle Ford is a Legacy Field & Provides Balance to Portfolio Portfolio Review Continues Proven Ability Onshore & Offshore Free Cash Flow in Sight 8

9 EXPLORATION DRIVEN. DELIVERY FOCUSED. SANFORD C. BERNSTEIN 3 TH ANNUAL STRATEGIC DECISIONS CONFERENCE 214 ROGER JENKINS PRESIDENT & CHIEF EXECUTIVE OFFICER MAY 29, 214 9