MURPHY OIL CORP Q4 FY2024 earnings call

Priorities - Delever: Reduced senior notes by $50M in 2024, debt down 60% since 2020 to ~$850M. - Execute: Produced 177,000 BOE/day in 2024, 175,000 BOE/day in Q4; brought online 36 operated and 20 gross non-operated onshore wells. - Explore: Drilled Hai Su Vang-1X oil discovery in Vietnam, spudding Lac Da Hong-1X soon, exploration wells in Gulf of Mexico and Côte d'Ivoire. - Return: Increased quarterly cash dividend 8% to $1.30 annualized; 2025 CapEx ~$1.135B-$1.285B, 60% in first half, 85% development spending. Reserves: 713 million barrels of oil equivalent at year-end 2024, 11-year reserve life.

In the fourth quarter, Murphy Oil produced 175,000 barrels of oil equivalent per day. Revenue was $629 million. Key segments: Eagle Ford Shale produced 30,000 barrels of oil equivalent per day in Q4 (85% liquids); Tupper Montney had 387 million cubic feet per day in Q4; Kaybob Duvernay produced 4,000 barrels of oil equivalent per day (71% liquids); Gulf of Mexico production was 68,000 barrels of oil equivalent per day; offshore Canada produced 7,000 barrels of oil equivalent per day. Average realized oil price was $70 per barrel, NGLs ~$23 per barrel, natural gas $1.84 per 1,000 cubic feet.

Production Forecast - 2025 full-year: 174,500-182,500 BOE/day. - First quarter 2025: 159,000-167,000 BOE/day. ### Development Spending - Lac Da Vang field development to spend ~$110M in 2025. - Exploration: ~$12M in 2025 for Vietnam and Côte d'Ivoire projects.

Risks - Production impacts in Q4: Hurricane downtime, revised completion design, mechanical issues, rig delays, and additional pay found in Gulf of Mexico. - Weather-related: Non-operated Gulf of Mexico downtime due to late-season hurricane. - Uncertainty: Exploration results and field development plans for new discoveries like Hai Su Vang and Paon remain uncertain.

Q: Clarify CapEx context with Paon and Hai Su Vang development.

A: Current guide doesn't include Paon in Côte d'Ivoire or Hai Su Vang in Vietnam development costs.

Q: Q4 production softness and lessons learned.

A: Downtime from storms, workovers, completion design issues; mostly resolved by Q2 2025.

Q: Workover expense and Gulf of Mexico activity.

A: Operating expenses expected to be elevated in Q1, then normalize.

Q: Vietnam development timing and CapEx.

A: Lac Da Vang to spend ~$110M in 2025, appraisal well ~$20M.

Q: Eagle Ford completion design impact.

A: Underperformance from new design, but plan to return to higher production range.

Q: Canada offshore production and Terra Nova.

A: Improved operational reliability at Terra Nova, boosting offshore production.

Q: HSV reservoir development.

A: Appraisal well to assess lateral extent of reservoirs.

Q: Canada LNG and Tupper Montney.

A: Evaluating expansion of plant capacity if commodity prices support.

Q: Offshore CapEx and portfolio rework.

A: More offshore opportunities lead to increased CapEx, with cost escalation in subsea work.

Q: Cash return and 2024 performance.

A: ~80% of adjusted free cash flow to share repurchases, planned for 2025 with 50% to buybacks.