JEFFERIES

ENERGY CONFERENCE
NOVEMBER 12, 2015

ROGER JENKINS
PRESIDENT & CHIEF EXECUTIVE OFFICER
MURPHY OIL CORPORATION

www.m urp h yo i lc o rp.c om

NYSE: MUR

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 PMEAN resource, recoverable oil,
resource base, EUR or estimated ultimate recovery and similar terms that the SECs 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 managements current views concerning future events or results, are subject to inherent
risks and uncertainties. Factors that could cause one or more of the events forecasted in this presentation not to occur
include, but are not limited to, a deterioration in the business or prospects of Murphy, adverse developments in Murphys
markets, or adverse developments in the U.S. or global capital markets, credit markets or economies generally. 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. For further discussion of risk factors, see Murphys 2014 Annual Report on Form 10-K on
file with the U.S. Securities and Exchange Commission. Murphy undertakes no duty to publicly update or revise any
forward-looking statements.

MURPHY OIL CORPORATION

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Agenda

Company Highlights
Strong Financial Position

Adding Balance with NA Onshore

Project Update
Takeaways

MURPHY OIL CORPORATION

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2015 Highlights

Well-Positioned
BALANCE SHEET FLEXIBILITY
CAPITAL DISCIPLINE

Financial
Maintained CAPEX $2.3 BN
Reduced LOE $/boe by 19% Y-O-Y; Reduced G&A by 12% Y-O-Y
Hedged 20,000 bopd WTI @ $52.01 for FY 16 Subsequent to 3Q

Portfolio

Progressing the Portfolio

MIDSTREAM MONETIZATION
VIETNAM FARM-IN

Adding Resource
INCREASING NA ONSHORE WELLS
NEW DEEPWATER DEVELOPMENTS

Oil-Weighted Production
EXCEEDED GUIDANCE
INCREASED FY15 RANGE
MURPHY OIL CORPORATION

Analyzing Monetization of Midstream Assets

Signed Farm-In Agreement in Cuu Long Basin, offshore Vietnam

Major Projects

Completed Successful Drilling at Dalmatian South #2

SK Gas Record Avg Daily Gross Production of 291 MMcfd
Drilled Successful offshore Malaysia Merapuh 5 & Marakas Wells
116 New Wells Online in Eagle Ford Shale YTD
NA Onshore Increased EURs Due to New Completions

Production
3Q Production 207,586 - Exceeded Guidance by ~7.6 Mboepd
Increased FY Guidance Range: 205 - 209 Mboepd
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Continued Shareholder Focus

Regular Dividends* ($/share)
$1.60
$1.40

Committed to the Dividend

1.40

$1.20

12% CAGR Last 10 Years

Current Dividend $1.40/share Annualized
~5.0% Yield at Current Share Price

$1.00
$0.80
$0.60

$0.40
$0.20

$0.00
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015E
* Does not include special dividends or Spin effects

Dividend Yield %

6%

Cumulative Offerings Since IPO $MM

5%
4%

Average = 2.5%

2%

MUR

3%

1%
0%
Based on closing prices from 11/4/15
Source: Bloomberg. Peer Group: APA, APC, COP, DVN, EOG, HES, MRO, NBL, OXY
MURPHY OIL CORPORATION

4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0

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Murphy IPO 1956

Peer Group: APA, APC, COP, DVN, EOG, HES, MRO, NBL, OXY, PXD
NYSE: MUR

Strong Balance Sheet Provides Financial Advantage

3Q 15 Net Debt / Adj. EBITDA (Trailing 12-months)
4x

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

Average = 2.1x
2x

1x

MUR

Achieved Net Debt to EBITDA of Less than 1.5

3x

0x

3Q 15 Net Debt / Capital

70%
60%

5x

50%

4x
Average = 36%
3x

Average = 2.5x

30%
2x

10%

MUR

20%

1x

0%

0x

NM

MUR

40%

3Q 15 Net Debt / Cash Flow From Ops (Trailing 12-months)

6x

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

MURPHY OIL CORPORATION

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Ongoing Cost Reductions

Lease Operating Expense* $/boe
15
14.61
13

Focusing on Cost Reductions

Reduced LOE by 23% Q-O-Q

11

Reduced G&A by 12% Y-O-Y

11.04
10.53
9.65

Reduced EFS LOE to Just Over $8/boe $2 Reduction from 2Q 15

8.09
7

5
3Q 14

3Q 15

2013

2014

2015E

* Excludes both Syncrude and Severance & Ad Valorem Taxes

MURPHY OIL CORPORATION

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NORTH AMERICA ONSHORE

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Onshore Canada
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

Tupper West New Well Completions
100t Slick Water
50t N2/CO2 Foam

Montney

MURPHY OIL CORPORATION

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Onshore Eagle Ford Shale

Running Room

683 Operated Wells Drilled to Date

Remaining Resource Potential 800+ MMboe
$2,055 per Acre: Early Entrant
Price Advantaged Near GOM
45 API Gravity; Oil-Weighted 77% Oil
Hedges
4Q 15: 15,000 bopd @ $63.30 (WTI)

Net Mboepd
70

46% Development Capex Reduction

8% Production Growth

60
50
40

61

57

30
2014
Prod
MURPHY OIL CORPORATION

Capex $MM
1,800

Reduced to 3 Rigs and 1 Frac Spread

in 4Q 15

Total Wells
60

1,600

50

1,400

40

1,200

30

1,000

20

800

10

600

2015 Outlook
Capex

47

33
20

1Q 15
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36

2Q 15

3Q 15
Wells Online
NYSE: MUR

4Q 15E
10

EFS Maximizing Value per Acre

700
600

Continuous Well Performance

Improvement

EUR, Mboe
+21%

+164%
+7%

500
400

Drilling Tighter Spacing & Longer Laterals

leading to EUR Improvement
Increasing Sand Placement (>1800 lbs/ft)
Reducing Well Costs by ~35% from 2012 2015

300
200

471

569

210

100
0

Karnes

Tilden
2012

Restricted Choke Management Generates

Optimized Flowback for Higher IP & EUR
Continually Modifying Completion Designs
Based on Actual Performance

555

437 469

Catarina
YTD

756 MMboe, Net Proved Reserves

220
105
155

276

EFS
Syncrude
CA Onshore
Offshore

2014 Proved Reserves

MURPHY OIL CORPORATION

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11

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

Austin Chalk Core/Pilot

Preliminary Net Resource & Locations

1st Austin Chalk Well,

on Flowback

~25 MMboe
~150 Locations

Rig on Location

Estimated per Well EUR: 200 450 Mboe

Plans for a 2016 Test

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12

GLOBAL OFFSHORE
MURPHY OIL CORPORATION

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13

Offshore Malaysia
Sarawak
SK Gas

Record Avg Daily Gross Production

291 MMcfd

SK-314A

Successfully Drilled Merapuh-5 and

Marakas Wells

Kakap-Gumusut
Malaysia

Completed Planned Outage 3 Weeks

Ahead of Schedule

Production Exceeding Forecast

Block H
Permai Gas Discovery
Rotan Tieback to FLNG

Core Acquired Successfully

Senyum Planned for 4Q 2015

MURPHY OIL CORPORATION

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14

Offshore Vietnam
Su Tu Den Blk.
400 MMBOE

Ruby / Topaz Blk.

130 MMBOE

Lac Da Vang
Blk. 15-1/05
Rang Dong Blk.
260 MMBOE

Thailand

Laos

Bach Ho / Rong Blk.

1,900 MMBOE

144
Te Giac
145Trang Blk.

320 MMBOE

Cambodia
Vietnam
Philippines
11-2/11

Cuu Long Basin

Signed Farm-in Agreement
for Block 15-1/05
Oil Prone Basin
Successful Flow test
Reviewing Further Acreage
Adds

H
CA-1
13/03

SK 2C

Sabah
CA-2

Malaysia

Brunei

SK 314A

Sarawak
Indonesia
Indonesia

250
Miles

MURPHY OIL CORPORATION

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15

2015 Drilling Program

Area

2015

Block
Q3

Solomon

GULF OF MEXICO
MALAYSIA

Dalmatian
South #2

Q4
Thunder Bird
Sidetrack

SK-314A

Merapuh 5

SK 2C
Block H

Marakas

Paus Kelasa

Permai

Senyum
Keratau SW

BRUNEI

CA-2

VIETNAM

15-1/05

LDV-4X

Success
MURPHY OIL CORPORATION

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Dry

Drilling Yet to Drill

16

Takeaways

MURPHY OIL CORPORATION

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Preserving Strong Balance Sheet

Continuing Cost Reduction Focus

Eagle Ford Shale to Become Legacy Asset

Gaining Efficiencies in Offshore &

Onshore

GOM Generating Sound Economics at

Current Prices

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17

APPENDIX
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18

Non-GAAP Financial Measure Definitions & Reconciliations

The following list of Non-GAAP financial measure definitions and related reconciliations is intended to
satisfy the requirements of Regulation G of the Securities Exchange Act of 1934, as amended. This
information is historical in nature. Murphy undertakes no obligation to publicly update or revise any
Non-GAAP financial measure definitions and related reconciliations.

MURPHY OIL CORPORATION

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19

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 provides useful information for assessing Murphy's financial condition and results of operations and it is a widely
accepted financial indicator of the ability of a company to incur and service debt, fund capital expenditure programs, and pay dividends and make
other distributions to stockholders. EBITDA per barrel is computed by taking EBITDA divided by total barrels of oil equivalents produced during the
respective periods.
EBITDA, as reported by Murphy, may not be comparable to similarly titled measures used by other companies and it should be considered in
conjunction with net income, cash flow from operations and other performance measures prepared in accordance with generally accepted accounting
principles (GAAP). EBITDA has certain limitations regarding financial assessments because it excludes certain items that affect net income and net cash
provided by operating activities. EBITDA should not be considered in isolation or as a substitute for an analysis of Murphy's GAAP results as reported.
Nine Months Ended September 30, 2015

Nine Months Ended September 30, 2014

(1,672.5)

583.0

(963.3)

452.2

86.8

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

$ Millions
Income from continuing operations
Income tax expense (benefit)
Interest expense, net of interest
capitalized

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

MURPHY OIL CORPORATION

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20

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 believes that EBITDAX provides useful information for assessing Murphy's financial condition and results of operations and it is a widely
accepted financial indicator of the ability of a company to incur and service debt, fund capital expenditure programs, and pay dividends and make
other distributions to stockholders. EBITDAX per barrel is computed by taking EBITDAX divided by total barrels of oil equivalents produced during the
respective periods.
EBITDAX, as reported by Murphy, may not be comparable to similarly titled measures used by other companies and it should be considered in
conjunction with net income, cash flow from operations and other performance measures prepared in accordance with generally accepted accounting
principles (GAAP). EBITDAX has certain limitations regarding financial assessments because it excludes certain items that affect net income and net
cash provided by operating activities. EBITDAX should not be considered in isolation or as a substitute for an analysis of Murphy's GAAP results as
reported.
Nine Months Ended September 30, 2015 Nine Months Ended September 30, 2014
$ Millions
Income from continuing operations

(1,672.5)

583.0

(963.3)

452.2

86.8

82.4

DD&A expense

1,318.1

1,354.4

Impairment of assets

2,301.0

Exploration expense

251.8

390.7

1,321.9*

2,862.7

Income tax expense (benefit)

Interest expense, net of interest
capitalized

Consolidated EBITDAX (Non-GAAP)

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

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21

Abbreviations
BBL: barrels (equal to 42 US gallons)
BCF: billions of cubic feet

BN: billions

EBITDAX: income from continuing operations

before taxes, depreciation, depletion and
amortization, net interest expense, and
exploration expenses

MCF: thousands of cubic feet

MM: millions

MMBOE: millions of barrels of oil equivalent

MMCF: millions of cubic feet

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

6000 cubic feet of natural gas)

EFS: Eagle Ford Shale

MMCFD: millions of cubic feet per day

BOEPD: barrels of oil equivalent per day

EUR: estimated ultimate recovery

NA: North America

BOPD: barrels of oil per day

FLNG: floating liquefied natural gas

NGL: natural gas liquid

CAGR: compound annual growth rate

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

R/P: ration of reserves to annual production

DD&A: depreciation, depletion & amortization

EBITDA: income from continuing operations before
taxes, depreciation, depletion and amortization,
and net interest expense

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WI: working interest

WTI: West Texas Intermediate (a grade of crude oil)

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