fourth quarter 2016 earnings conference call &...
TRANSCRIPT
Roger Jenkins
PRESIDENT & CHIEF EXECUTIVE OFFICER
FOURTH QUARTER 2016 EARNINGS
CONFERENCE CALL & WEBCAST
JANUARY 26, 2017
MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 2
Cautionary Statement
Cautionary Note to U.S. Investors – The United States Securities and Exchange Commission permits oil and natural 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 SEC’s rules strictly prohibit us from including in filings with the SEC. Investors are urged to consider closely the oil and natural gas disclosures in Murphy’s 2015 Annual Report on Form 10-K on file with the SEC.
Forward-Looking Statements – This presentation contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as “targets”, “expectations”, “plans”, “forecasts”, “projections”, and other comparable terminology often identify forward-looking statements. These statements, which express management’s current views concerning future events or results, are subject to inherent risks and uncertainties. Factors that could causeone 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 Murphy’s 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 furtherdiscussion of risk factors, see Murphy’s 2015 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 www.murphyoi lcorp.com NYSE: MUR 3
4Q 16 Financial Overview
$MM (except per share)
4Q2016
4Q2015
FY2016
FY2015
Continuing Operations
Income (Loss) (62.8) (583.2) (273.9) (2,255.8)
$/Diluted Share (0.36) (3.39) (1.59) (12.94)
Adjusted Earnings
Adjusted Earnings (Loss) (26.9) (130.5) (230.1) (536.7)
$/Diluted Share (0.16) (0.76) (1.34) (3.08)
Adjusted Earnings 4Q 16 – Cont’d Ops• Mark-to-Market Loss on Crude Oil
• Redetermination Expense
• Foreign Exchange Gains
• Tax Benefits on Investments in Foreign Areas
Balance Sheet (Dec 31, 2016)• $3.0 BN Total Debt (Including Capital Lease)
• $1.0 BN Cash & Liquid Invested Securities
• 38% Total Debt / Total Capitalization
• 29% Net Debt / Total Capitalization
US WTI Hedges
2017: 22,000 bopd @ $50.41/bbl
AECO Hedges
2017: 124 MMcfd @ C$2.97/mcf2018 - 2020: 59 MMcfd @ C$2.81/mcf
MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 4
Financial Position as of December 31, 2016
$0
$500
$1,000
$1,500
Senior Notes Undrawn RCF
10 YEAR 20 YEAR 30 YEAR
Debt Maturity Profile $ MM
• Total Liquidity $2.1 BN at YE 2016
• ~$1.0 BN of Cash and Liquid Invested Cash
• $1.1 BN Senior Unsecured Guaranteed Revolving Credit Facility Expire August 2019
• $630 MM of Unsecured Revolving Credit Facility Expire June 2017
• No Borrowings on Credit Facilities
• Cash On Hand to Meet Near Term Debt
• Net Increase in Cash and Cash Equivalents of $120 MM in 4Q 16
Maturity Profile
Total Bonds Outstanding $MM $2,800.0
Weighted Avg Fixed Coupon* 5.6%
Weighted Avg Years to Maturity* 10.1
*Long-term fixed rate notes
MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 5
FY & 4Q 16 Overview
• 4Q 16 Production Averaged 168 Mboepd
• FY 16 Production Averaged 176 Mboepd, 168 Mboepd Excluding Divestitures
• Spent $605 MM* Capital Expenditures
• Balanced, Low Risk NA Onshore and Cash Generating Offshore Production
• Oil Weighted (~62% Liquids), Diversified Production Base
• ~$1.0 BN Cash & Liquid Invested Cash on Balance Sheet
• Reduced Costs Across the Company
• Reduced LOE per boe 15% Y-O-Y
• Reduced G&A Expense 14% Y-O-Y
• Adjusted Dividend While Maintaining Top Quartile Yield
• Increased Long-term Growth Opportunity Through Advantageous Portfolio Re-Balancing
• Expanded Exploration Portfolio Through GOM Farm-in & Deepwater Mexico Block
• Acquired Kaybob Duvernay/Placid Montney for C$265 MM – Bottom of Cycle
• Monetized Midstream Assets for C$539 MM – Top of Cycle
• Monetized Syncrude Interest for C$937 MM – Mid Cycle
• Monetized Seal Asset for C$65 MM – Mid Cycle
Progressing the Portfolio While
Maintaining Asset Balance
Maintaining Balance Sheet Strength
Through Capital Discipline
Stabilizing Production with
Lower 2016 Capital Spending
$
*Excludes $207 MM acquisition costs of Kaybob Duvernay/Placid Montney
MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 6
67%
33%
35%
32%
3%
7%
23% Eagle Ford Shale
Canada Onshore
Canada Offshore
GOM
Malaysia
2016 E Proved Reserves685 MMboe
2016 Reserves
Onshore
Offshore
50% PDP50% PUD
58% Liquids & Oil-Indexed Gas
2016 Estimated Reserves
4
5
6
7
8
9
10
11
12
0
100
200
300
400
500
600
700
800
2012 2013 2014** 2015** 2016 E***
YearsMMboe Proved Reserves & Reserves Life
Proved R/P**2014 and 2015 includes impact of Malaysia Sell-Down***2016 includes impact of Syncrude Divestiture
• Divested High Costs, Heavy Oil Assets While Increasing NA Onshore Unconventional Portfolio
• Reserve Life Index 10.7 Years
• 3 Year 16% Increase in Reserves Life
• Organic Reserves Replacement 69%
• 3 Year Rolling Average of Reserve Replacement 154%
• 3 Year Cumulative F&D Costs of $15.98/boe
• SEC Benchmark Pricing• 2016 WTI $42.75, 15% Below 2015• 2016 AECO $1.65, 21% Below 2015
*Includes Syncrude divestiture of 113 MMboe
774
685
49
52
121
64 5
500
550
600
650
700
750
800
YE 2015 Divestitures* 2016 Production Price Impacts Technical Acquisitions YE 2016 E
-
-
-
MMboe
7MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR
PORTFOLIO REVIEW
MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 8
Offshore 4Q 16 Highlights
MalaysiaSarawak• S. Acis Development
• 1st Gas Achieved• Recovered from FSO
Shutdown
Sabah• Kikeh & Siakap North Petai
• Planned Shutdown Completed Successfully and On Schedule
Gulf of MexicoDalmatian – 70% W.I. (Op.)• Subsea Pump Project Underway
Kodiak – 29% W.I. (Non-Op.)• Commingling Complete• 20,000 boepd Gross Production
Hoffe Park – 25% W.I. (Non-Op.)• Well Encountered Hydrocarbons
and Has Been Suspended While Delineation Plan Being Developed
Focused Offshore Opportunities• Gulf of Mexico
• Mexico – 30% W.I. (Op.) Successful in Bid Round at Block 5
• Vulcan & Ceduna Basins in Australia
• Malaysia & Vietnam
MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 9
0
20,000
40,000
60,000
80,000
0 10 20 30 40 50 60 70
Cu
m G
ross
BO
E
Days on Production
Catarina – Briggs Ranch 3 Well Pad
Type Curve Briggs 3 Well Avg
Average Well 100% Above 315 MBOE Type Curve
• Catarina • 7,500 ft Completed Lateral Length in Lower EFS at Avg
D&C Cost $3.9 MM• Reduced Cluster Spacing, Longer Laterals, Higher Sand
Concentration, Allowing for Choke Increases• Improved Returns Rival Karnes Area
• Tilden• Seven 4Q 16 Wells Inline with Type Curve, 500 to 800 BOPD IP30s• Increased Sand Concentration & Reduced Cluster Spacing• Reduced Offset Frac Impact
• Eagle Ford Shale Opex reduced by 11% Y-O-Y
• Over 1,000 Premium Locations with Break-Even Price Below $38/bbl
Eagle Ford Shale 4Q & FY 2016 Highlights Eagle Ford Shale 4Q 16 FY 16
Total Production (boepd) 45,531 48,751
New Wells Online 17 53
Total Percent Liquids 88%
0
20,000
40,000
60,000
80,000
0 10 20 30 40 50 60 70 80 90
Cu
m G
ross
BO
E
Days on Production
Catarina – Stumberg 3 Well Pad
Type Curve Stumberg 3 Well Avg
Average Well 70% Above 538 MBOE Type Curve
MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 10
Tupper Montney
• Completed 2 Wells During the Quarter• >9,300’ Laterals (1,000 lb/ft)• 19 BCF EUR Expected
• Currently Drilling 5 Well Pad to be Completed 1Q 17• Drilled Longest Lateral to Date >9,800 ft
• Full Cycle Break-Even C$2.05 AECO
Tupper Montney 4Q & FY 2016 Highlights Tupper Montney 4Q 16 FY 16
Total Production (MMcfd) 204 200
New Wells Online 2 8
-
200
400
600
800
1,000
1,200
- 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160C
um
ula
tive
Gas
Pro
du
ced
, mm
scf
Days on Production
10 BCF Type Curve
14 BCF Type Curve
17 BCF Type Curve
Recent Tupper West Well Performance
MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 11
Kaybob Duvernay 4Q & FY 16 Highlights
Light Oil67K Acres
Lean Gas22K Acres
Black Oil110K Acres
Condensate33K Acres
4-36 PAD (4 Wells)Online 3Q 16
Kaybob Duvernay RightsJV AreaLight OilCondensateLean GasBlack Oil
1-18 PAD (2 Wells)Rigging Up to Frac
4-32 PAD (2 Wells)1Q 17 Drilling
0
200
400
600
800
0 20 40 60 80 100 120 140
4-36 B&C
4100' Type Curve 4-36B boepd 4-36C boepd
EUR 470 MBOE
0
100
200
300
400
500
600
700
800
900
0
1
2
3
4
5
6
7
8
9
10
CVX2014
ECA2014
CVX2015
ECA2015
Shell2015
CVX2016
ECA2016
MUR2016
MUR8000'
Shell2016
Drilling Cost (m USD) Lateral Length (ft) Cost per ft (USD)
2014
Peer A Peer B
2015
Peer A Peer B Peer C Peer C
2016
Peer A Peer B MUR
Competitive Drilling Costs
• 4 Well Pad (4-36)
• 4,100 ft Wells Performing to Plan at 470 MBOE Type Curve
• First Murphy 2 Well Pad (1-18) Spud 4Q 16
• Anticipated EUR >500 Gross Mboe (59% Liquids)• Lateral Length – 4,500 ft• Drilling Costs Avg $2.5 MM per Well• First Well Executed at Industry Benchmark
• Cost & Completion Improvements Ahead
11-18 PAD (3 Wells)1Q 17 Drilling
Co
st p
er f
t(U
SD)
–La
tera
l Len
gth
(*1
0 f
t)
Tota
l Wel
l Co
st, $
MM
*Source: IHS Rushmore Reviews 2012-2016 Q3
Kaybob Duvernay 4Q 16 FY 16
Total Production (boepd) 3,180 3,120
Total Percent Liquids 54% 51%
8,000’
bo
epd
MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 12
LOOKING AHEAD
MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 13
Financial Strategies
• Targeting Cash Flow Neutrality
• Preserving Financial Strength & Liquidity While Maintaining Dividend
• Continuing to Focus on Cost Structure Improvements
• Stabilizing Production to Prepare for Future Growth
Operating Strategies
• Appraising the Oil Window in the Duvernay Shale
• Driving Efficiencies While Delineating Multi-Zones in the Eagle Ford Shale
• Participating in High Return Offshore Projects
• Returning to Exploration at Bottom of Cost Cycle
2017 Capital Budget Strategy
MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 14
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 Million*
NA Onshore66%
Offshore34%
Field Development & Development Drilling ~85%
boepd
164
167
155,000
160,000
165,000
170,000
175,000
180,000
4Q 16 FY 16 1Q 17 E FY 17 EContinuing Ops Divested
166 - 170162 - 168168
176
*Inclusive of Kaybob Duvernay carry
Net Production
2017 Annual Capex Guidance at $890 MM • $590 MM Allocated to NA Onshore Unconventional
• Guidance Assumes $52/bbl WTI and $3.10/mcf HH
• Onshore Production Growth ~9%**
• Exploration $113 MM
2017 Production Guidance• 1Q 17 Guidance 166 – 170 Mboepd
• FY 17 Guidance 162 – 168 Mboepd• 62% Liquids
**Adjusted for asset sales
2017 Production & Capex Guidance
MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 15
-
25
50
75
100
125
150
175
200
225
250
2017 2020
Net Production2017 – 2020 Plan
• Long Term Oil-Weighted Production Growth Within Cash Flow from Existing Assets
• Generating Cumulative Adjusted Free Cash Flow of ~$400 MM by 2020 with Dividend
• EBITDA CAGR ~15 – 20%
• Stable Offshore Production Providing Cumulative Free Cash Flow of ~$1.7 BN*
• Onshore Assets Drive Long Term Production Growth with Production CAGR of ~10 – 15%
Note: WTI Price $52/bbl 2017; 2018 $60/bbl assumes 2% inflation thereafterHH Price $3.10/mcf 2017; 2018 $2.91/mcf assumes 2% inflation thereafter*Not including corporate effects
Offshore Offshore
Onshore Onshore
Advantages of a Balanced Portfolio Driving Long Term Plan
mboepd
MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 16
Growing Onshore Production by 9% Y-O-Y
Preserving Balance Sheet & Strong Liquidity
Leading EBITDA per boe Producer
Adding Reserves from M&A Leading to Below $10 F&D
Expanding Exploration Portfolio at Bottom of Cycle
Achieving Value-Added Top Tier D&C Performance
Establishing Foundation for Future Growth Within Cash Flow
Takeaways
MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 17
APPENDIX
MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 18
Appendix
• Non-GAAP Reconciliation
• Abbreviations
• Guidance
• Hedging Positions
MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 19
Non-GAAP Financial Measure Definitions & Reconciliations
The following list of Non-GAAP financial measure definitions and related reconciliations is intended tosatisfy the requirements of Regulation G of the Securities Exchange Act of 1934, as amended. Thisinformation is historical in nature. Murphy undertakes no obligation to publicly update or revise anyNon-GAAP financial measure definitions and related reconciliations.
MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 20
Non-GAAP Reconciliation
ADJUSTED EARNINGSMurphy defines Adjusted Earnings as net income adjusted to exclude discontinued operations and certain other items that affect comparability between periods.
Adjusted Earnings is used by management to evaluate the Company’s operational performance and trends between periods and relative to its industry competitors.
Adjusted Earnings, as reported by Murphy, may not be comparable to similarly titled measures used by other companies and it should be considered in conjunction with net income, cash flow from operations and other performance measures prepared in accordancewith generally accepted accounting principles (GAAP). Adjusted Earnings has certain limitations regarding financial assessmentsbecause it excludes certain items that affect net income. Adjusted Earnings should not be considered in isolation or as a substitute for an analysis of Murphy's GAAP results as reported.
MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 21
Non-GAAP Reconciliation
ADJUSTED EARNINGS SCHEDULE$ Millions
Twelve Months Ended – December 31, 2016
Twelve Months Ended – December 31, 2015
Net Income (loss) (276.0) (2,270.8)
Discontinued operations loss 2.0 15.0
Mark-to-market loss (gain) on crude oil derivate contracts 81.2 (37.7)
Foreign exchange gains (52.3) (86.7)
Impairment of assets 68.9 1,660.0
Redetermination expense 24.2 -
Tax benefits on investments in foreign areas (21.7) (16.9)
Environmental provisions 4.5 35.8
Deepwater rig contract exit costs (benefits) (2.8) 183.3
Oil Insurance Limited dividends (4.5) (4.5)
Materials inventory loss 9.0 -
Syncrude operations, including tax benefits of $68.0 on sale (47.9) -
Income tax benefits associated with Montney midstream (20.9) -
Restructuring charges 6.2 14.1
Deferred tax on distributed foreign earnings - 188.5
Gain on sale of 10% interest in Malaysia - (218.8)
Increase in Alberta corporate tax rate - 23.8
Decrease in Malaysia corporate tax rate on certain fields - (21.8)
Adjusted Earnings (Loss) (230.1) (536.7)
MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 22
Non-GAAP Reconciliation
EBITDAMurphy 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.
$ MillionsTwelve Months Ended – December 31, 2016 Twelve Months Ended – December 31, 2015
Income (loss) from continuing operations (274.0) (2,255.8)
Income tax benefit (219.2) (1,026.5)
Interest expense, net of interest capitalized
148.2 117.4
DD&A expense 1,054.1 1,619.8
Impairment of assets 95.1 2,493.2
Consolidated EBITDA (Non-GAAP) 804.2* 948.1**
*Includes pre-tax charge for redetermination expense of $39.1 million**Includes pre-tax gain on sale of 10% interest in Malaysia of $155.1 million and pre-tax charge for deepwater rig contract exit costs of $282.0 million
MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 23
Non-GAAP Reconciliation
EBITDAXMurphy 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 widelyaccepted financial indicator of the ability of a company to incur and service debt, fund capital expenditure programs, and pay dividends and make otherdistributions to stockholders. EBITDAX per barrel is computed by taking EBITDAX divided by total barrels of oil equivalents produced during the respectiveperiods.
EBITDAX, as reported by Murphy, may not be comparable to similarly titled measures used by other companies and it should be considered in conjunctionwith 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 providedby operating activities. EBITDAX should not be considered in isolation or as a substitute for an analysis of Murphy's GAAP results as reported.
$ MillionsTwelve Months Ended – December 31, 2016 Twelve Months Ended – December 31, 2015
Income (loss) from continuing operations (274.0) (2,255.8)
Income tax benefit (219.2) (1,026.5)
Interest expense, net of interest capitalized 148.2 117.4
DD&A expense 1,054.1 1,619.8
Impairment of assets 95.1 2,493.2
Exploration expense 101.9 470.9
Consolidated EBITDAX (Non-GAAP) 906.1* 1,419.0***Includes pre-tax charge for redetermination expense of $39.1 million**Includes pre-tax gain on sale of 10% interest in Malaysia of $155.1 million and pre-tax charge for deepwater rig contract exit costs of $282.0 million
MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 24
Abbreviations
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 oil equivalent per day
BOPD: barrels of oil per day
CAGR: compound annual growth rate
D&C: drilling & completion
DD&A: depreciation, depletion & amortization
EBITDA: income from continuing operations
before taxes, depreciation, depletion and
amortization, and net interest expense
EBITDAX: income from continuing operations
before taxes, depreciation, depletion and
amortization, net interest expense, and
exploration expenses
MMBOE: millions of barrels of oil equivalent
MMCF: millions of cubic feet
MMCFD: millions of cubic feet per day
MMCFEPD: million cubic feet equivalent per day
MMSTB: million stock barrels
NA: North America
NGL: natural gas liquid
ROR: rate of return
R/P: ratio of reserves to annual production
TCF: trillion cubic feet
TCPL: TransCanada Pipeline
TOC: total organic content
WI: working interest
WTI: West Texas Intermediate (a grade of crude oil)
EFS: Eagle Ford Shale
EUR: estimated ultimate recovery
F&D: finding & development
FLNG: floating liquefied natural gas
G&A: general and administrative expenses
GOM: Gulf of Mexico
HCPV: hydrocarbon pore volume
JV: joint venture
LOE: lease operating expense
LLS: Light Louisiana Sweet (a grade of crude oil)
LNG: liquefied natural gas
MBOE: thousands barrels of oil equivalent
MBOEPD: thousands of barrels of oil equivalent
per day
MCF: thousands of cubic feet
MCFD: thousands cubic feet per day
MM: millions
MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 25
Guidance – 1Q 2017
Guidance 1Q 20161Q 2017
Liquids (bopd)1Q 2017
Gas (mcfd)
Q Production: 103,500 387,000
US - Eagle Ford Shale 41,500 31,000
Gulf of Mexico 13,000 15,500
Canada – Tupper Montney - 211,500
Kaybob Duvernay & Placid Montney 2,000 11,000
Offshore 11,000 -
Malaysia – Sarawak 13,500 111,000
Block K 22,000 7,000
1Q Production Volume (boepd) 166,000 – 170,000
1Q Sales Volume (boepd) 158,000 – 162,000
1Q Exploration Expense ($MM) $25
Full Year 2017 Production (boepd) 162,000 – 168,000
Full Year 2017 Capex ($MM) $890
1Q Expected Realized Prices ($/bbl) Malaysia – Block K $52.26
Sarawak Oil $54.23
($/mcf) Sarawak Gas $3.50
MURPHY OIL CORPORATION www.murphyoi lcorp.com NYSE: MUR 26
2017 Hedging Positions
Field Commodity TypeVolumes (bbl/d) Price (USD/bbl) Start Date End Date
United Stated WTI Fixed Price Derivative Swap 22,000 $50.41 1/1/2017 12/31/2017
Field Commodity TypeVolumes
(MMcf/d) Price (CAD/mcf) Start Date End Date
Montney Natural Gas Fixed Price Forward Sales 124 C$2.97 1/1/2017 12/31/2017
Montney Natural Gas Fixed Price Forward Sales 59 C$2.81 1/1/2018 12/31/2020