MUR - Earnings call transcript Q3 2017

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Operator

Good day, ladies and gentlemen, and welcome to the Third Quarter 2017 Murphy Oil Corporation Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time.

As a reminder, this conference is being recorded. I would now like to turn the call over to Ms. Investor Communications. President, Vice Whitley, Relations and Kelly

Kelly L. Whitley

of Executive Good which on section our today. third of are our with keep and refer along thank to Litigation Securities highlights John defined financial be will results, the Roger Officer. follow call slides website Roger of Chief providing John Act joining that on us you for the our Reform begin the Eckart, and as Please by call quarter Officer; have operational President the this as Chief during you in quarter morning, will followed by President the some taken. made Please of webcast mind XXXX. in and and and Financial everyone, questions Jenkins, Executive Vice we be Private from today. placed comments informational statements highlights With considered outlook, with after me will forward-looking Relations Investor

be that As exist or attained. factors such, of no assurances differ. results A variety will given that the to projections that events cause be actual occur may will these can

takes update on I factors, further on duty XX-K For XXXX SEC. the call file turn no now for or publicly Murphy comments. Annual with John risk Murphy's to revise his Form any the statements. Report discussion see of forward-looking to over

John W. Eckart

everyone. morning, good and Kelly, you, Thank

quarter million which net $X.XX one same million the results a in diluted $X.XX $XX share to third quarter of of equates consolidated ago. or in $XX a diluted Our compares of were share. XXXX per year loss to That the per loss

items $X third results periods, which $X.XX share million adjust was our a the various that comparability affect of of loss, between XXXX. in Our or per loss quarter GAAP numbers adjusted for

our schedule after-tax adjusted as reported schedule this is are of of basis. release on part an loss amounts earnings and in included Our

and XX% debt maturities. our September balance show liquidity XX, and third sheet quarter, debt we facility, billion. ample total balances low revolving amounted employed, was the cash $X.X capital borrowings or while end total billion to XX% to At with credit $X employed of $X.X debt totaled $X.X equivalent cash billion. manageable had At and capital Our outstanding of was our under and continues no billion XXXX, leverage of net our the

During of the quarter, net X-year The million that offering mature X.XX% proceeds of company's rate. notes million $XXX to we the the from this the issued were year. note with note were an XXXX to scheduled in December coupon redeem $XXX originally used a

these order production. gas of sale matures Murphy's of the forward cash of XXXX. our portion and a note redemption next in our oil In our Canadian flow, part notes, hedge Following to we underpin a natural

quarter barrels of for per fourth hedged for X,XXX October XXXX. XX, XX,XXX day barrels at $XX.XX the As as per as $XX.XX barrel at per well hedged we day had XXXX, barrel per

CAD natural had as XXX feet AECO, X.XX feet for for of XXXX. as balance per X.XX we per CAD for forward year, XX this the gas, sold per day per at through As at day well XXXX cubic AECO million Mcf Mcf million at cubic

review XX concludes period the XXXX. We day from March Gate will per a November per to million have the also for at of Mcf comments. company's a contracted Chicago's cubic That $X.XX for at present now Roger XXXX City feet my operations.

Roger W. Jenkins

third equivalents thanks barrel produced and for everyone, quarter, In XXX,XXX at in morning, good and John, the XX% liquids. we calling today. you, Thank

our cash $XXX production; flow quarter. the provided sheet Our provided free cash XX% equivalents balance quarter. million of offshore $X billion this able of in cash onshore of XX% generated offshore We're and production, business to our and of on the maintain

We've and paying been able four able quarters, our averaged to shareholders. consecutive for this all this Brent $XX Dated oil quarters. capital cash consistent to last has for while More funding the do maintain approximately prices, importantly, four to of at program modest we've dividend been as level a

base near Our asset a margin per diverse third with of $XX EBITDAX oil-weighted competitive boe. pricing provides adjusted quarter with premium

to by barrel. achieving efficiencies, costs creating drive sustainable of $X.XX quarterly decade-low LOE down our continue We operating per a

During XX,XXX took Midland that oil-weighted entry wells a capital measured for future enhance aligned count onshore, This through allocation increase of our our offshore entry strategy. entry leasing via the Basin. announced lease prior organic and with low Runner approximately sale. the acquired Clipper wells breakeven quarter, Sergipe-Alagoas our with the in allows we and new, bids onshore we offshore co-venturers flexibility. steps announced low-cost to acres and portfolio facility. field, recent QGEP. the entries which We've net we to will low-cost our that Gulf strategic has accumulated We've Front In Basin, our Brazil are location into successful In also into of the two in flow quarters ExxonMobil and Mexico,

day in and with wells unplanned five full barrel Kaybob. refining planned quarter And in our was Tupper Clipper per production Tupper Looking Eagle in and guidance equivalents the equivalents. in and XX the Production another equivalents the offshore barrel X,XXX temporary wells our and detail, by to extended natural our Eagle Montney scheduled downtime, the a ramp downtime approximately were X,XXX XXX negatively completions more XXX,XXX fourth the turnarounds, in issues production XXX,XXX third from associated barrels. Fourth barrel downstream Pipeline to turnaround Gulf, X,XXX Hurricane minimal day. above range due with attributed is affected from is Canadian midstream three at TransCanada actuals to partial gas approximately conjunction Ford, on factors. per quarter in to Harvey, Ford quarter Montney, of quarter time of curtailments equivalents. bringing and in be barrel of expected Shale production the third wells quarter following wells production by quarter shut-in in delayed

realizing Basin, equivalents. XXX,XXX full increasing quarter XXXX our year our This Basin $XX to million production NGLs, our of $XXX along we oil, fourth have premiums Since Hurricane minimal million is entry into our the exposure of to oil-weighted pricing. Gulf tightening drilling diversified million. both business WTI the that additional for to in on premium pricing, our from are X% XX% sold receives for primarily of third day portfolio realize barrels of our for quarter, production shut-ins Based are Field We're and also of and an the with guidance our have $X crude, $X Our with program linked a to under since and not In includes capital we're acreage accounts week mid-XXXX. prices prices Sergipe-Alagoas Gulf. a as for core completions XXX,XXX $X to LLS, just well WTI. premium range Malaysia business, acquisition $XX Clipper and Brent seen We're for currently as we Brent over or WTI one million Mexico to Nate. currently $X.XX Midland in LLS premium at to analysis, our

which Production per Gulf, generating us quarter. and during over Sarawak third per has spread continue the Block advantage our the $X.XX currently initial the and Malaysia Long with this a cash and averaging day XX flow was working operating scheduled million to estimates are for ramped per Vietnamese to East for levels. quarter, of are cash $XXX production Commerciality the Terra of day. rig be significantly up low-cost economic field, In in a in million of assets over was And the with on flow XX,XXX natural next executed acquisition that in year. production Sarawak steady At XX-day a of third the after this plan. the is equivalent for in XX-X/XX XX,XXX well liquids. we to than In XX% for resumed, offshore for differential our it's Canada, LDV with quarter, in producing from significant day liquids The field operating Coast day. is X,XXX this a pre-turnaround third Block wells we're Malaysia equivalents second outperforming time averaged Nova just Basin, took equivalents Our a last over In offshore the several for business discovery longer now barrels and next repair with we XX,XXX quarter. approximately to subsea at Production over producing and of early at K per made of scheduled partners produced our mobilizing two expense process business, Clipper, the fleet turnaround. quarter discussed business Cuu gas free to planned expect the Gulf an Sarawak we XX% business boe. the wells Offshore turnaround, provided quarters. Kodiak quarter per In Declaration delivered Mexico highly had non-operated liquids, now

block Block incorporating encounter a through expect we're Nam contract these the XX-XX XX-X, Block Con second CM-XX approximately drilled the well sign CT-XX in XX evaluation exploration into net This adjacent in Basin feet well we ongoing of discovery sharing a neighboring pay, oil oil We quarter. of block. production results for early from our In our XXXX. to Son

partner mid-term entered to Sergipe-Alagoas Brazilian-based farm-in a near block lease to We're working for several Mississippi bid a for lower and working with exploration through XD payments is position, believe system consolidated expense in which We Brazil or of with quarter, the interest XXX renewed group prospects. have XXXX Mexico our working this X mature the same in will blocks sale. Gulf entered third in remaining Block us has for existing We're excited recent about During in this total approvals. to Deepwater with play, operator risk, Gulf our we're on leads The farm-in $XX play. awarded their contains million, offshore opportunities. adjacent petroleum QGEP In adjacent will with as successfully Murphy including drilling well sale, In blocks XX which that two commitments. as Mexico, a acquire low-cost co-venture we intervals. significant were for interest. XX% working Block strategy part group tie-back Round with XX%. Brazil, our this for Canyon resource And also a progress two lower of QGEP, same discoveries The to prospect. exploration lease blocks for interest, We Basin, XXXX. farming Petrobras Mexico, agreement into targeting drilling seismic four we opportunities decision. several be of no remaining XXXX. opportunity stratigraphic its continue our seismic and bonus XX% estimate renewing Murphy in portfolio large lease E&P prepare Brazil's the major Across In at the to We and Leibniz to new working in ExxonMobil XXXX plans tieback company,

The over brought Austin equivalents in X,XXX a validated XX first our Karnes Mexico exploration plans spud wells had Our which leads of total three-year And brought well average X,XXX Shale, drilling Catarina, ongoing the and was expenses of We IPXX across XX% for XX resources Eagle million brought online day. Brazilian period. Catarina more originally three production Upper Eagle XX wide-az online were wells to $XX net In approximately entries four estimated cost, Shale Ford over per a online next wells planned us per expose and a day newly XD with Together, wells of equivalents with of quarter Shale, on IP an interpretation including Chalk. XX and averaged in were in multiple significant had Karnes has XX,XXX to late for Ford initial Eagle for our one of Ford reprocessed day. the liquids. total per seismic analysis average than boe year. an of block, third Lower

on We continued quarter driving reductions, boe, $X.XX down sustainable OpEx record a our focus per third low. cost to

target fourth plan increases test us of completion Gen over top-tier our successfully increase X in low-cost by Ford and the Ford and Catarina. to Eagle also to bring seeing Shale Shale Gen lower are in approximately wells unconventional the in we level production our for After Midland Eagle We're seen are production we areas will highest Catarina review, In in These technique which entry. an XX%. the Karnes and position continue core American North XX of testing extensive which wells locations another Basin X Catarina. in the We XX% three downspacing, completions drive online, our XX XXXX. – to are additional order,

approximately year organically Basin. in past half, Austin a the been Midland XXX% leased County, actively interest at Texas. the acreage acres in northern we've Over and We've working the XX,XXX leasing

that sale lease acre Gaines the interest net addition, tracts a in with Andrews add bidder portfolio U.S. portion we're In at Lands to University of our a acres $X,XXX average XX,XXX partner. under two acreage now $XX in private for is acreage located play approximately in barrel. per high XXX will This the is onshore at This University position primarily with working have cost Texas. We breakevens XX% in County, a recent an over a locations small County successful.

During very potential cased maturity And acreage with the is one This from offset peer wells, the day across that gives from and Dawson expect third IPXX area two of and have several Spraberry bench. the review initial expectations. benches. well quarter, we Midland of one we well drilled, in for rates Basin with from including and northern similar barrel County, Wolfcamp our can in A data X,XXX porosity per from process upside are with our results over Lower active. acreage, cored, around multiple our in oil which wells, in core these benches. analysis us is line of completing multiple confirm The wells equivalents consistent our wells B in results and confidence results positive, the the

during six in days. the for rigs XXX Montney well quarter been quarter. five asset business, permits our in sanction. which on project, day the quarter. over Over and our this the issued we drilled four produced well, a wells third our six was just feet, area. the drilled pad miles our XXXX. are these lateral wells five-well expansion and was have Canada, drilled longest recently for fourth new over We is in a XX of months, also online with with XX In In fourth The past a record with bring pad in acreage, of almost drilled FEED, conjunction active fifth spud within wells Tupper for the XX progressing XX of XX,XXX pacesetter cased We million Tupper a track and onshore XXXX and

achieved quarter sales and Montney in Murphy As netbacks CADX.XX other third a of long-term result contracts Tupper forward of per marketing agreements, Mcf.

cycle returns this breakeven per as play, Mcf We full our in continue AECO CADX to under pricing. competitive have remains

one path online drill XX% three with in be in physical wells This has Our liquids third quarter, Coast our style hedge team of completed brought through prices through means were we with XX% access and wells the XXXX quarter. Kaybob to forward percentage curve marketing first through determine natural we XX as AECO significantly the well day, averaged that Each Emerson, three the wells our the bring quarter asset, year. higher long-term the our AECO which increase X,XXX production increasing Early are wells, exposed estimated. gas type XX% oil we different East than XX-XX to contract. to best ratio believe of us of other XX appraisal more year, the for new in in Dawn, Montney we to current combination not of of peers. of outperforming and that as This In positions as our us of drill with quarter planned quarter the per to unhedged to increase pricing, play. favorably Coast at exposure will All window as wells completion reduced XX of West the Malin, Midwest The pad. this online. Duvernay production our the three a complete compared will higher-margin liquids the and to development to ongoing third from help part equivalents percentage in Chicago liquids through originally field XX% of continues

continues between brought liquids. additional and estimated wells be of into in outperform designs pad. our three Saxon, XXX,XXX also XXXX shorter two-well we've looking of will our second quarter. learnings, production improvements. oil quarter, active the with southern the the was quarter equivalents, online refined the an XX-XX year the on liquids. oil de-risking new in at Our with follow to our bringing remainder enter online the the of to and the as be continues quarter of time XX% led type XX% this be rigs. continuous the We're and pad, to estimated northern on to West, window Kaybob cycle XX-XX and year in acreage Kaybob The was well pleased two has and of for in bringing area of play, spud in online window type and parts be the with will well of the The equivalents XX-XX drilling very portion testing Simonette, with curve fourth XXX,XXX and online forward the drilling first Based completion In very its we'll in pad will which in curve trend the XX-XX brought part for fourth running for of remainder year plans the East. our we'll we

to now a appropriate you long-term cycle full of and through our few all have We'll quarters, a the to balance entry. are takeaways continue for positions high-return walk enhancing funding We're on can of questions. maintain number and dividend We're in capital We're by you. returning your billion delineation Brazil call. to the by me locations from Mexico working onshore our maximizing consecutive We new That's interest by of focusing remarks Let today's today. potential. up our Midland deliver Duvernay establishing Shale. Ford well growing returns. for Thank successful transformational competitive of production and lower in Kaybob cash achieving We're on course program. record-low risk open the $X and through our that down LOE value while four across underpinned consistent cost shareholders sheet over policy. as cash Eagle evidenced LOE, decade-low We're company, driving

Operator

from of comes Stephens. Wyatt line question with Ben first the The

Your line is now open.

Ben Wyatt

guys. morning, good Hey,

Roger W. Jenkins

Ben. morning, Good

Ben Wyatt

year Midland. how if Duvernay? look of we asset the I'm year? first, activity going should next of kind maybe sense of of can the across of you this in to like maybe similar the just base, a kind XXXX? in just think with be just the maybe Roger, trying start, of it Is that we did move kind How kind to a what get could activity delineate, to Hey,

Roger W. Jenkins

critical the I our we part at here wells slide The in acreage positions. mean, the today, .Of big it's one two one you large of Southwest, course, and two play that's we what our have in see release the Northeast look two in these in one real accumulations.

we'll So hoping to of $X.X that us. our Those Murphy an $XXX years, think a way today, Texas to seven-hour business, Eagle of of top-tier with State this the company, business driving probably very in million, capital would several the people, $X of wells those $XXX billion to locations. by find about, same billion And be about Catarina, is that onshore probably bringing type be a execution. same to extension capital. We're And interesting million on. more $X billion CapEx the to enhance the it's a the achieving XX% around of from consider of way run drive, we Ford over

course, locations these of which at another think probably $XX XXX that's of oil tiering, a more appropriate. I and oil, Of breakeven, and way have is we XXX if $XX at

we plan Ford, fit. February, into capital out have play. may of capital wells finding probably in in we But some can January, And more drill portion the of play going to these to Eagle to that it's new into then, see capital we it's we low-cost into wells and tie about here what more allocate and allocate to the up spend capital how other Ford see work this how it's So much we goes. Eagle if it as in entry, to just places tiering before or optionality be And area. this we allocate were

Ben Wyatt

it. just down then got to it, That's maybe Got helpful. jumping the GOM. And

previously talked guys about You Clipper. the

like production. kind could of low-hanging to be there fruit Just that curious, – it to bridge some feels just

little then us what wells put looks you sense maintenance on seeing just at Just curious these it? and a guys like of a maybe you the look And what are then there? you like about the the, maybe opportunities when give purchase uplift if could

Roger W. Jenkins

strategy, have Gulf to spectrum our unique ground work ear in we're and are for – and we places of There different as our in the XX part the across years.

wells our have to that facilities. flow We

the are flows some from facility. and to exit or looking have we to of need financial Some may wells operators have help exit. it they data our or possibly as able that, them all to the those through We're do distress of

these we believe well, on a operating it our help rate the up return. execute But months look many facilities. that levels of it's into allows you're to wells, if how and know things in some arise, pay know and production of to that the may there And production and these able move I capital game, the So to of how. from because in to the take somewhere when of to pick how hard perform assess that. out at have us be to you're will these pressures come, opportunities business, opportunities reserves want add more quantify well. we onshore they and the When XXX% we them the six their things from our we do flows the people well to that from an and when

a to wells their we for and and situation, these allows we can and abandonment so operator up And We unique ability facilities operate, some small into a out cases. of cost, amount liabilities make the of money. on long-time these understand lot And always bring a key things. us in for take wells have that pick we're do of been our in

Ben Wyatt

a the good. Have helpful. Appreciate one. Very that's good Well, time guys.

Roger W. Jenkins

Thanks.

Operator

next comes Fargo. with line question Read of Wells our from And Roger the

Your open. now line is

Roger D. Read

Roger. morning, Yeah. Good

Roger W. Jenkins

Hey, Roger.

Roger D. Read

And else as to everyone there well.

are the or the So into we norm what couple of exploration going next returns ask, which on that is achievable going short-term into the say the When and maybe I'm a environment, think kind last about tiebacks. For Mexico, the to say, in one-off do returns XXX% entry in the dig look offshore, could think what if took question the tiebacks? achieve this do in supporting I the let's are was the environment? to this of what as you to to years, at opposed of you you there. your kind want overall is,

Roger W. Jenkins

XXX%, that the regarding? I'm what sorry, was

Roger D. Read

You XXX% the return rate mentioned the of tieback. on

Roger W. Jenkins

That's unique show you're uniqueness have – but XX% achieve beyond low-XXs that the if the pick what about company we're the things It where something for have of and rate In incredible of returns. you cycle, to the oil game about achieve cost couple These enormous these our situation type quite our talking make and in easy full easily. over of at last allows return, about a today, the return. to tieback I can hope up there's about and strategy rate those us big things it's very here in breakeven incredibly of an are we're want to – course, returns of the XX% sale to for years, that talk because this improved talking and, does low. Gulf prices now, to have prices able do things push now, prices

is and going that's a one thing So It regime going key point regime offshore has been. I cost business is up, some business cost out always one by think to one down, cycle is so full And the definition. business. solid

not high et drill these and long You the well, say cycle, they're produce when land, without automatically cetera. XX% mid-XX% full with you And to I the of period rates these of time. cycle, not not tieback, return, lease, midlife,

in we in are opportunities very and good, costs good, So very the interested are. I those, think are we're business, the good participating and and it's

Roger D. Read

should Canada. to the coming billion $X.X usual, my versus Eagle the dollar And that's Thanks. out the onshore that's what you're moving of Permian, what of, spinning pretty about okay, of or CapEx improvement in off so, billion, in of maybe in then think XXXX, as the Permian the my Okay, the XXXX? good Thinking maybe spending $X on up a and is great. relatively stable at and Ford doing explanation, XX% number, expense I incremental or

Roger W. Jenkins

kind results area or results, may could protect year two our the I wells to an entered have are drilled gotten and be an want Permian. pads in allocated they going curve into Well, we there, we eight very we've are wells top be After we after next move the have wells capital issues with to Duvernay business. and to performing all due acreage, on to we into want all mid-XXXX. agreement And in a loading, better you leasing. mean, core wells leasing our of wells there, there, level those opportunities production sand, have have into we situations there years, know these above And start we pleased better better of we not nearby We're Eagle to since where and onshore the sand we're of well very tier, but done those for with eight we of Ford. course, started there and of low the results mesh are. what capital And invest maintaining proppant better better with there in get and in results, CapEx backs we Eagle clusters, It for the Ford, entry have a points, at better. couple we've different to

years move place a drilling do to two going plays of and Until do – and we to well and Duvernay, handle Eagle so, spend out best required we allocate absolute to these will we'll acreage three in that Ford when we're is the in then that what that. into into some assess so we're matter in capital, very And testing the of at area it get put how and that it going this be further time. is our among completions next the all or the completion we'll

Roger D. Read

taxes, a a value rate the policy, could different, and of be a corporate tax And a lot there I potential lot sort corporate news tax impact a then expectation tax taxes that gears. With that know any are forward tax there not Okay. environment? is here any of changing of lower energy deferred of rate or on an asset going have a overall kind in might of other

Roger W. Jenkins

John let answer that. I'll

Our text on with at delegation from the moment matter. up our Arkansas phones are this blowing

John W. Eckart

we do know, is net have deferred Good assets United Roger. And tax in Hi. probably This deferred States. you morning, tax assets, John. the as

and deferred Overall, We liabilities. have assets. have we net tax assets

on would the an to deferred down asset you'd say, that rates one, have the day let's have rate. go So should tax be in tax impact tax on the to change incremental for our XX%, reduced

a and deferred States. those impact the tax would deferred, net in us that creates future So United of lower value assets it

So lower of as tax an prices but impact then, there, would allegedly, would to many peers later rate. lower tax be similar about, they on would cash at taxes we impacts. going have think we overtime have continuing have better, forward, pay, And I talking with been our

Roger D. Read

Yeah. to get always away Congress right. But Well, to Thank you. understand All something going breath I'm for the make my not hold need parameters. done. sure we to

Roger W. Jenkins

Thank you, Roger.

Operator

And Arun from line with comes the our question JPMorgan. next Jayaram of the

Your now line open. is

Roger W. Jenkins

morning, you Good How doing? Arun. are

Arun Jayaram

Good morning, sir.

as initial question, depend production. it preliminary allocation obviously, (XX:XX) think XXXX the ready you announced you but see about like thoughts of to some on and Permian on results, will entry First what into Roger, the XXXX, you you out put your sounds in terms capital yet are

And provide time? at capital You close number something maybe that so. billion of to thoughts around this XXXX $X us a gave or can you

Roger W. Jenkins

obviously, way be CapEx call But, our little is the describe It's higher, been to would it. way production We bit really bit we've that a at on that. oil get little end the price prefer to January. higher, of best into higher, a the done

Arun Jayaram

my second question. All right. Fair And enough.

efficiently you our very you're count portfolio. areas, the given portfolio your tuning next have my guess think your can now this the maybe to amongst most number question thoughts look in a areas? that And of XX probably about about and how focus of different perhaps independents have you from maybe a of the XX you of the to By Roger, your And at. capital we diversified is, fewer do portfolio, allocating In resources? size terms clearly, overall a standpoint

Roger W. Jenkins

Well, our with how Mexico kind that's the a the mean, is one company Houston one a of exploration of while Gulf long team, long, been for our team time. with for game that a Mexico the office I exploration personnel. one exploration, misnomer works. running, about floor in and It's Brazilian

upper Miocene zones, are, the to with plays big we're there. So it upper to manage or able us that no makes where our stratigraphic team Cretaceous difference

in that incredibly Kuala cost head without offshore. our the much And Lumpur, without other world are difficulty. we company office Our in and runs out team our of of exploration side on major high

of So issues when that we're we business. one, we're moving from cost because on a margin of because less and margin focused tax number real make number and lot a have and like ForEx of things our cost, of And we make our adjusted diversity, lot here EBITDAX nature. items higher a

up this into on we're we that those current or period, on add together, Eagle back all-in time. Brazil, and prospects, of all when LLS. three, well resources business Ford go over long can and the basis, Mexico And our nine you're an do a can about We very double differentials in things in on let's to four-year been do you change drill a world exploration very proven. be for around cost amount business, around a The we share So well Brent two costs, pick everything equivalent diverse on that. do do because and double massive for very seismic, our we will wells, all the to talking the of able of well diverse we've entries

this. We've we why Malaysia very, do in is this doing successful very this. been So

going are cycle incredibly in Our to continuing offshore high drive its businesses full returns, back history.

our Brazil at adding area ExxonMobil to remain our like this LOE right capital do. with profile, going business onshore run difficult that allocation, business. with onshore to And major to compared low nice on in is remaining business operator very doing at all a a with not technology And office of growing we're out interest a is the things efficiency. and others, working So Houston we're and XX%

Arun Jayaram

one I in can sneak more, Roger. Great. If

the weaker marketplace concerns the bit the prices. is in One a of AECO around

You able and compete commented maybe the in gas ability that in elaborate Tupper of being your marketing just environment? release you around that through maybe Can agreements. a navigate to price lower to some on

Roger W. Jenkins

best Well, go-forward assets economics. number of has the and is Tupper the one, the one of best some company

X, are near high CAD looking at economics on spots and of it's just our ago, weeks is and a cycle couple is even to our we the these much CAD of still which now, imagine, can full higher wells AECO really X.XX. cycle X.XX just only CAD You

many Milan, getting mind days Murphy pricing give long-term in prices in on in a we many, just real $X.XX. see C we USD over we're time, have we need keep around marketing between few above the we our Chicago to yielding and producing to and basis, And decades USD in about our $X.XX of speak basis, USD, look be what gets our many, good diversification has keep $X.XX, spot continue it feel we on Emerson $X.XX to AECO we So a AECO a believe, going ago, these mind, if here through and around and is occasionally Canada and here basket, the have Dawn, markets always diversity one and was again, in keep to then both at other gas prices around off you egg hedging us, not for to every

we're right incredibly volatile TCPL lowering place the to our that focusing have that by quarter think it's returns good happen, we to is that our on due our areas. real And various our plus the different evidenced fact team So shut-ins and market into and planning really marketing and how about thinking where a to long-term five different we make our hedging, diversified that's to things AECO some around things had risk unscathed in on due business. of we're I

Arun Jayaram

sir. Thanks a lot,

Roger W. Jenkins

Okay. Thank you.

of Raymond James. line comes question next Our the Ghulam with Muhammed from

open. now is line Your

Muhammed Ghulam

morning. Good

Roger W. Jenkins

you, to good morning Hey, sir.

Muhammed Ghulam

my Yeah. Thanks for taking question.

So in platform plans yesterday, at the future? the in future? are basin Delaware the into the acreage Midland any the consider the there to expanding And increase central you Basin would announcement after guys in

Roger W. Jenkins

never a be year you think say ago, I'll never; and a half I guess here. I didn't

plays, we're We we an with happy that and in it's foot we're came on we're Montney that. and Ford, trade acre So we there today. the of today, up least, what plays different an full and Eagle perspective, worked the documented long-term to you there But with we always knowledge have in have, look have attending in this on a by again, these Murphy we breakeven, probably – incredible and in executing $X entry like of we actually oil go but what now, per of a of require work. prosper a the the again, improve a XX $X,XXX into in and appropriate $X,XXX we're acres a what when acre happy started at a on with Duvernay, to sub-$X,XXX and can take get happy last never rooms, have leasing $XX lot we can strategy, we see, our entry we now at cycle bid-ask years, the into When – spread at basis. how way in high for do this – differentiated lot these data was view we

Muhammed Ghulam

America. farm-in Similar plans any to are auctions further the to next So in down A&P moving quarter? two Or years? participate any this to had plans South you the like that planned question, agreements, pursue over

Roger W. Jenkins

the We to working ability. do so, these and have will be but at only appropriate appropriate appropriate experience looking that interests with the partners

there's expertise discovered big with opportunity exploration very, last an resource country One level focus. on due do capital And allocation a our at which of our can couple months, our value opportunities key massive in we working on in the Brazil. this in into very offshore. at look is that primary If an way, doing operating the still be to add here we there, basis. into we'd super-majors, was co-venturers That of

opportunity pressures, there, then sourcing. major fields the approval it gone focused cycle than in we became to only oil away and with we're very discovered miles geological to similar blocks very to farm-in the by has XX an from five fields Petrobras my to tie near, slower depth, setting, very have on that successful and working on these blocks Petrobras next with desired. However, the been we Petrobras And

situation because and very successful bang we to inexpensive again decided group, there on partner executed the buck very that's that's with for our it. why in enter a and So focus, it's

Muhammed Ghulam

me. That's all for Thanks.

Roger W. Jenkins

you. Thank

Operator

no further time. I'm And showing questions this at

remarks. that, I'd for like to Mr. to Roger call turn with and So President closing CEO, over Jenkins, the back

Roger W. Jenkins

Thanks, everyone care, everyone, the for in you calling see new you. and in thank take today. year We'll and

Operator

Ladies program, conclude in conference. all disconnect. thank have you and a you This does the and wonderful day. for gentlemen, participating today's Everyone, may

Murphy Oil (MUR) 2 Nov 172017 Q3 Earnings call transcript