Earnings call transcript Q4 2022

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Operator

Good morning, ladies and gentlemen, and welcome to the Murphy Oil Corporation Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions]

I would now like to turn the conference over to Kelly Whitley, Vice President, Investor Relations and Communications. Please go ahead.

Kelly Whitley

Good morning, everyone, and thank you for joining us on our fourth quarter earnings call today.

President Jenkins, Executive Chief Financial Vice Eric Executive Roger with Officer; Officer; is Hambly, Mireles, Tom President Vice me President Executive and along and Joining Operations. of and Chief

Relations webcast exclude some the in please interest financial the in to amounts reserves considered you have of the website slides Gulf Please today's during section in call comments with call, Act of noncontrolling refer Securities our that this Mexico. our informational Slide made of along and to Reform Throughout keep placed are we forward-looking mind on adjusted Investor today. follow numbers, as X; XXXX. statements the the will Litigation of be as Private defined production

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

For Murphy publicly further Form factors, file on risk forward-looking any on with Murphy's no report annual statements. takes see XXXX discussions or revise of the duty SEC. XX-K update to

now turn the Jenkins. will to over Roger call I

Roger Jenkins

and Thank you Kelly. everyone, call thank morning, Good our for listening today. you, to

we in On oil-weighted proposition, our continual improvement especially strong emissions Slide assets, carbon to intensity. value operate Murphy execution sustainable excepts, ensures a X, a ongoing company. long-term focus on continues deliver remain that We with a our safely in our

with reinforced and the in success process project portfolio, recent advantage a the at Mormont, significant ongoing competitive Mexico. of operated Gulf in of our Murphy Samurai in program Khaleesi, offshore fields is has XXXX. Our we're X-well exploration our an

all to dividend more cash debt. flow strong long-standing we've while than XXXX, significantly our double reducing to able been from continue generate We and

reached. allocation we we're returns of progressing support As are various as our success, increasing a debt framework, targets this where capital to shareholders will result

achieved XXXX, we current as return; This our reduction XXXX, of framework, to we of billion. explore company. in since $X.X free the focusing flow XX% our will In XX% and billion debt resulted at we on to our reduction debt delever, very of our X; cash as $XXX -- returns I'm cash a progress million end positioned have our priorities beyond goal X and made Murphy and to to of Murphy reduction debt flow a our Slide our $X.X pleased continue adjusted execute, us or is X.X capital allocate allocation adjusted where dividend. begin level we has free shareholder XX% the

reduce schedule, an has project, we continue our incredible to Our we and executing team above Samurai ahead where production job expectations. of done initiated

uptime Key the facility an Additionally, maintains industry-leading King’s average of XX%.

After sure I'm well this closed wells during business, Gulf look at our OSO is early base operated quarter IOGP of Mexico recordable exploration ongoing a spills operated our the as the year-end. more consecutive performance wells well, continued XX all the intensity. we maintained non-op second of X spudding the year. we exploration during XXX of year our of Then, executed We gross oil in wells a delivery total XXXX. program environmental We've with and excellent barrels XX the equivalent reserve well million with no fourth and by today. program reducing in operator emission while well of XXXX Murphy Gulf X this drilling Mexico to in out

of per liquids On Mormont, our equivalent due oil we in XX% field X. from development, oil our day $XX,XXX achieved first quarter nearly the Khaleesi, the barrels quarter, since per Slide to day the of impact of In growth XXX,XXX volumes XXX, Samurai significant produced XXXX. oil fourth we to XX% at

per cubic and was barrel while $XXX Our price realized NGL oil X,XXX gas price per was realized our $XX feet. XX.XX% nat was

Slide X. So turning to

increase interest, in or excluding $X.XXX for and year, per the the day noncontrolling We barrels oil nearly from a with totaled CapEx year production equivalent XX%. of oil For of billion, total XX,XXX X% full year acquisitions full accrued XXX,XXX barrels CapEx. produced -- acquisition-related This our 'XX. company our represents

$XX For while barrel, was for the WTI year, and NGL gas per $XX our realized barrel $XXX,XXX nat oil nearly benchmark slightly at above price per the was the year. at

the turn our an now efforts. call to our I'll Mireles Tom? over reserves, our Tom financials CFO, on update and for sustainability

Tom Mireles

you, and morning, good Thank Roger, everyone.

barrels prior at total XXXX. XX% of crew Slide year-end an XX% level year-end around proved a proved billings. while to has average increased flat With total reserves of improved the year, reserve approximately since XXX at we developed life annual CapEx average XXXX same entire X; XXX totaled effectively of weighting maintain our proved to of remaining acquisitions, $XXX XX%. liquids from able been XX% Overall, barrels our million, oil preserved Murphy has portfolio, proved our XX% reserves of from the including and noncontrolling million replacement at reserves equivalent its reflecting Murphy to of Compared years. than XXXX, million our excluding interest oil across to XX from reserve reserves more

generated in year million and for $XXX and respectively. XXXX, the Slide Including million the year X; $X.XX net additions year income certain million With we and XXXX fourth the quarter since net cash the adjustments, reported income last year. interest and accounting XXXX property we quarter had $XXX full and $X.XX which diluted from operations, $X.XX net XXXX was or million and XXXX. for oil noncontrolling the Murphy the XXXX $XXX per second achieved we or realizations, of out including advantaged acquisitions, diluted is $XXX share we positive for full fourth full per closed adjusted after-tax for XX net highest share, per quarter or After has significant adjusted outstanding flow quarter highest price years. $X.XX cash our billion as financial income results fourth totaled with diluted of share

returning I'm working $XXX by we dividend properties, higher has reduce require interest our through million. generate that Mexico that sufficient our capital and fund Gulf say pleased XXXX to flow of in Now debt to CapEx, continued cash ended, double discipline,

of of billion. X; XX, Murphy as on in of million XXXX, cash $X.X had equivalents $XXX and just December net hand, resulting Slide debt

$XXX we undrawn into million entered new year-end facility November credit maturing in a November, which unsecured at in Additionally, XXXX. was XXXX, senior

Slide lowest X; focus on with we lower to on environment we our by X In operational XXXX, intensity gas years through lower we continue spills. to our that consecutive impact flared the now intensity. recorded IOGP to proud X team onshore, emissions our X%, greenhouse in the and execution, reduce volumes of both record. emissions conjunction say the on achieved reduced I'm company have level

of representing XX% our water water recycled which of company recorded in in also million total is onshore history our ratio highest recycling We barrels from use, XX% with up X water XXXX.

discuss I Hambly, to our With it will of turn asset Eric President success. Executive Vice that, Operations, over to our

Eric Hambly

Thank everyone. you, morning, good Tom, and

Eagle liquids. quarter XX; the Slide Shale wells with our of equivalent produced average an fourth XX,XXX Ford XX% barrels day in per oil

XX,XXX our year, above online. at through of per above as the results the in in history. highest including Overall, completions achieved new slightly Murphy's a results, achieved our production foot Eagle was rates well equivalent was Murphy IPXX gross report For recent day non-operated in validated per which well XX We the and brought on wells XXXX, barrels sell-side of we program oil Shale. XXXX, design carried wells XX operated which industry-leading Ford expectations, some in

our also a which company achieved X.X%. downtime, low Our of team improve record to worked

prior XXXX. with continue efforts online management production base to for wells base declines our XX% averaging Additionally,

Slide XXX included for XX; feet Tupper the as cubic for the million per fourth Montney which our royalty XX% -- anticipated. business rate produced quarter, day quarter a the

per cubic produced XXXX, the average year we feet million full an day XXX XX during wells For brought online and year.

with protected price price our While forward diversification for is of employ the volumes. majority we our of also sales a contracts, fixed production portion strategy a

Ventura at Dawn XX our pricing day approximately million with the prices. XX% feet exposed For Chicago, to we fourth and quarter Malin, XXXX, cubic sold AECO per of volumes remaining

equivalent Duvernay, XX; barrels produced was day the liquids the Slide quarter fourth oil Kaybob XX% in weighting. for per X,XXX Murphy of

For XXXX, operated XX% wells. on produced year barrels equivalent and brought line liquids day full X,XXX X per with of oil we

Gulf volumes. of the assets with Slide Mexico barrels in quarter equivalent oil produced XX% XX; XX,XXX fourth oil per our day of

of equivalent produced per and we oil XX,XXX barrels weighting. XX% XXXX, For day oil maintain

pleased year in Our the Gulf tieback at with to projects a well scheduled successful short-term was XX% that year. progress Mexico drilled production XXXX. is for I'm come online the we during which the our as Dalmatian, of made up

the Lucius Additionally, X online quarter is project wells of and non-operated [indiscernible] while non-operating were early first XXXX, brought the completion XXXX XXXX. quarter in fourth in towards of the progressing

across is Khaleesi, in years to ahead for Key to floating of XX; come forecasting to quarter Slide payout discovering we scheduled initial a pay Samurai X XXXX. for at recently the as of in successful field quarter with project say fields zones full production exceed well the expectations. the phase forecast excited are production I'm additional the success Samurai online also the tremendously without the is King's our several We development Murphy-operated approximately development additional production system second sanction Mormont, next X XXXX Khaleesi previously cycle and years case. after in continues of second X the and that to and drilled of development. which We of original Samurai pleased the during the the well Mormont, I'm plateau

XXX in is to we gross ongoing. Gulf during the that upward March. which $XX to OSO Murphy. a to estimate XXX the we of OSO net We resource Mexico is equivalent spud approximately XX; quarter, and anticipate exploration of million mean barrels the from TD in forecast drilling reach Slide cost fourth to oil million potential of well will million We

Roger. And back with that, it to turn will I

Roger Jenkins

Thank you, Eric. On Slide XX.

capital to to spending scheduled our cash the Our generates our supports year, this WTI low than decide loading that X/X development in I our million cash of to front-end that to rate announced set towards year. XX% of of our our approximately reduction ultimately XXXX dividend goal was going spending $X.XXX our plan operated half flow. -- over more cash has XXXX operating a flow $XX today in and capital occur XX% range debt our us only increase of pricing, with oil the free $XXX of oil say XX% a Overall, of for of billion. pricing quarterly spending the million all first reinvestment allows using $XXX is projects. a of flow More with

XX,XXX XX% barrels quarter XX; XX%, Slide oil XXX,XXX Onto XXX,XXX our our of or includes to liquids. with day approximately production volumes of equivalents XX being guidance per first of

equivalent production well in and September in the that we we haven't the first to July. and all range of is reflects the just to range like planned fourth over across Additionally, this lower this production while that day it as I'd downtime due on Montney jail our note assets. Tupper decline brought our weighted since X,XXX yearly of Ford use natural tax includes quarter, operated barrels our per CapEx in Eagle since

year $XXX.X growth for the guidance of forecast per represents barrels with XX,XXX X% per XX% a this Overall, oil and in equivalent For growth. production 'XX, 'XX, for total production of to full forecast day or range barrels year with XXX,XXX a the and X% oil million CapEx day lower

Moving XX. now Slide to

will quarter. 'XX online forecast to XX,XXX bring plan second XX% we Our to our production per we spend the $XXX total online XX Shale in wells In generate Ford which onshore for non-operated operated gross an liquids. majority average and million business, is with budget million, coming day third of and Eagle with the XX equivalents $XXX

of taking our it forward from Tilden new completions to to our our we learnings look adjusted apply design part wells. and delivery As plan, well the

we oil equivalent barrels Montney per volumes online XX For that forecasting our we equal AECO a XX% XX,XXX XX CX XXXX, a day, million, of per operated forecast or plans approximately cubic for is XX% $XXX wells per for royalty XX% to or And day Tupper million rate liquid year, XXXX. bring and to X,XXX production asset the price XXX feet assuming produced with volumes. forecast

development $X field asset. For Duvernay per estimate X,XXX of approximately and equivalents production to we XX% in day, XX% our liquids spend asset, Kaybob plan and million that oil on

to our offshore Turning business on XX. Slide

tieback The Lucius and wells and the Marmalard In a Our we're at equivalent forecast year. day, operated project Malo increase Satale We'll wells which from million oil of X a year planning subsea generate XX,XXX field. calls Samurai, as is waterflood to progressing well continues barrels this per non-operated Dalmatian to for development representing on here as budget, in non-operated non-operated $XXX Gulf full million $XXX Mexico, St. be to plan. spend plan XXXX. XX% the

the non-operated in $XX full the XX,XXX our 'XX, produced. XXXX to production will X,XXX offshore advance approximately in For day and barrels we generate oil XX% spend be offshore for XX,XXX production per XXXX XXXX. oil assets production per year Hibernia volumes of and equivalents estimate in Canada day development equivalent quarter Gulf in business and We million equivalents with drilling at of Plans the field Terranova plan of returning to day. second development work in include to of was per in

For spent our exploration Gulf equivalent, calls mean, mean plan to of for $XXX XXX resources nearly Slide million target on to unrisked Mexico. the plans XX, the in barrels million be

As quarter we the of which currently OSO fourth was mentioned, the are operated spud in previously drilling 'XX. well,

Next, well this late moving middle still third well long time. our we operated towards before with operator of to a at in of location call first the group plan well a working Gulf spud third to spud We're the Mexico the a of 'XX. quarter partner

advancing returns time, shareholder by framework, while the our initial share allocate methods a a no to is free maintain towards of $XXX We're to adjusted at of is million of a a this living. which along framework time us target XX% achieving debt multi-tier base program cash into shareholders. XX, Murphy Slide On quarterly variety with $X Board slide billion. of allows this Murphy flow allowing capital repurchasers a We disclosed repurchase dividend X.X toward previously pleased additional allocation capital that long-term reminder beyond for our authorized

As we've authorization. not of under any executed repurchases today, this

to move to Slide and return. disciplined continued As delever, we explore XX, our we strategy execute,

and is forecast equivalents supporting XXX,XXX near-term our average CapEx. allocation plan of operating framework our XXXX an day through rate exploration to also business XXXX per XX% oil XX% million X% in representing production, XX through with growth flow this while our will capital targeted weighting a reinvested is with of combined $XXX average of to have XX Our cash reduce annual We for average an annual that approximately maintain of through program. our follow

Additionally, share plan to through laid in XXX,XXX dividend our increases we average production continue day at execute in out cash plan enhancing barrels equivalent our flow, to will of capital as per period an XX,XXX and payouts with excess to maintain we framework. of shareholders this allocation to offshore buybacks

cash of a fund targeting operating equivalent and Longer flow additional forecast with XX% fund and flow weighting, sustainable maintaining business XX% investment-grade our in approximately of shareholder well reinvestment as ongoing 'XX in production term high-returning 'XX, XXX,XXX approximately further annual allocation free to investment as capital of Murphy average barrels debt cash framework we per forecast our ample oil see we opportunities. enhanced reductions returns metrics day and and

the sustainability, Montney, alone well an inventory inventory of On in per various more years Kaybob maintains 'XX. annual optionality XX XXX Slide assuming we Murphy $XX XX of year-end maintains approximately XX Murphy portfolio of of these more less, X price of XX locations long-term basins, Oil or we X,XXX than Murphy in years inventory, or hold a less. producing XX, support than breakeven American Hells than with areas program Shale X,XXX a price are sizable multi-basin a to Eagle onshore years assets, delivery years XX-well oil-weighted Shale price a cubic breakeven Tupper more XXX breakeven And barrel more have wells Overall, North our ample approach Ford Murphy today. with X more US$X.XX of total feet. across environments. locations with program. this less XX with -- provides barrel of than of Montney The as assuming per per a and Ford than Eagle the inventory stand with than across $XX In

by plan supported opportunities approximately barrels an an XX,XXX is with XXXX. a $XXX maintained XX; through of oil total million to business very average per million at equivalent annual a a additional successful CapEx also offshore average of Slide development offshore year This projects of inventory to Our will $XX offshore in XXX,XXX XXX equivalent our X XX on an of million of be less day combined resources at barrels of a $XX price with breakeven or breakeven equivalent, $XX. multitude price representing have $XX projects

Progressing free as our with goal 'XX to operating along allow and XX% at WTI. $XX moving Today, our plan million we've share X.X our $XXX a we flow Slide well XX. with debt adjusted cash us delever as in priorities investors. Murphy Further, to of reduction in us our program continued the outlined XXXX on and of

base production the Samurai Our by company, will strong the areas of a drilled. of full at Key, X successful from Khaleesi have X be and recently maintain flowing which Mexico well our Mormont further for we will producing year Samurai, Gulf production a / supported to King's

solid drilling the we'll Shale at be offshore non-operated field previously production Canada award-winning Eagle in permitting our a in Tupper North the more it activity on substantial second Ford Terra well drilled addition now well delays Montney will to development 'XX, behind well in as at Also of locations and at well the new in are plan be a we're A Dalmatian Marmalard assets, completing Nova rebound bringing year America quarter. that onshore us. as our in

Lastly, in Gulf. exploration the X wells we're drilling operated

for future, as with to production As to our ongoing returns shareholders. thousands the strong long-term low-breakeven cash in locations steady on as long-term be high-quality of sustainable of wells we onshore remain the support business offshore well drilled and

the our look a Ford by and our year. assets accomplish dedicated solid to led In slight growing with we a investments company are growth all on keen and close, and We environment, year XXXX. Shale. Murphy for eye a in accomplishing Gulf offshore positioned remains what and great had able employees We competitive coupled key protecting priorities, long-term Eagle to we've the rates, been thank stable had our oil-weighted with to low the advantage in I'd long-term production for in like success. forward

look taking today. we'll Thank it operator back to forward your and questions turn you. that, With to over

Operator

everyone. first Jayaram Instructions] morning, [Operator from with JPMorgan. Your comes question you. Good Arun Thank

Arun Jayaram

Slide to XX. want I start with Roger,

for exit 'XX. highlight your expected You rate

early XX% call into will XXXs upper Terra maybe expect to Malo you think kind Nova XXX the the How growth, BOEs in 'XX. get BOEs the I about an think what of that BOEs And wondering and you -- downtime. if help could highlight the for for oil then from kind could thoughts on XQ. XX% X,XXX project. of from do you In put you your that volumes? you it, then to I And us just do play So with wanted a expect downtime day oil. follow St. did just maybe I uplift particular, trajectory you, over of in was on the project update the

Roger Jenkins

Is frac you, Eric for in production at on lower that a mixture to our XX America it's and a a drilling and only like From to over quarter of crew we quite X XX,XXX-foot front-end and start 'XX rigs CapEx the that drilling a of me for books. a lot by and question morning, loaded in early and where carries it Thank Arun. we due we're you have was level, us North have I on common today, DUCs for first X production. company that not this drilling now 'XX, looking our

throughout looking the But XXXs I'll year. oil mid-XXXs at looking let into We're the I much significant in pretty downtime, the we we're out had have So year. the we've can Eric growth past. high going have in get minute. production a really the than into to finish more to the

Terranova have coming We on.

way in have that turnover year, We're being feel the estimate to that looking that the what to X,XXX we that's is. quarter. be business minimum That for be, we probably will and and have trajectory around there. at our what whole X,XXX will second We

issues up wrap have make I questions. your of Eric I'll back address we let downtime this sure all And we'll and quarter, handle the just

Eric Hambly

of release non-operated downtime fracture our related both Roger. that maintenance onshore, highlight the have frac offset program, in business. have quarter, we shut-ins and did of we first Thanks, projects Okay. planned in and Gulf typical also for some for operated our Those our impact. Mexico we as We in are stimulation some sort planned to begin

a also through storm rest us. offset business, do in a the For forecast planned of from of quarter of is number impact for the the a our typical Gulf a second in provision frac perspective, downtime downtime, ongoing year, downtimes for and onshore we which Mexico

X For the from is from barrels downtime is of the per full storm total July have by which of that our calculated day, X,XXX of a production to days of we year, October, assuming the Mexico. X on order Gulf

more points terms few in production a of Just growth.

the we our volumes you which second new V, of rather, have the of from which coming and course, TERANOVA, highlighted. quarter, offshore XX onshore business, DC some the we Dalmatian in second online Samurai expect For year, in half well

X,XXX about per and get day X,XXX it production really in Samurai that's BOE with when net X,XXX And comes forecast. offshore X if around come barrels rates, up you comes online. X,XXX net think should is So about to barrels to range the online per to TERANOVO how when we rough [indiscernible] our us it day

quarter. new of Roger the substantial to onshore, for -- there, we third see that's through bit wells As pretty highlighted, our how of online first the our We growth our Tupper Montney volumes, we coming to online have and business. increase year model with fourth and quite in fully with a to ought quarter being a volume from

Roger Jenkins

Malo's the very injecting to this business. go CapEx. that start growth world. our probably from an ever-increasing be an fuels had XX,XXX, margin a oil these year, think about owner it's does reserves here Same We're maintaining a there'll about of as with on changes the Further a to really barrels of going in decline have proud field, that, us. growth inflection phasing stopping the But there a add major appreciate big is you room to this and in super reservoir for we production. significant and We're and great a questions occasion. to who come be oil pressure The best a we with CapEx there be day because waterflood project in working and and the of year. I We're that XX,XXX question I really was XX,XXX, one solid a fortunate the

continues the and execute on to out face are year they occasion in as well. a also production injector on So wells well of go the the end and on they year there's it, at coming completed. But being that's CapEx project and this that

So for Chevron a forward. us. that It's nice have with to progress a relationship them very and that, continues great moving asset

Arun Jayaram

And Great. is follow-up, X.X. my just Roger, on Murphy

mentioned that to threshold. reach soon $X.X you're you billion think I

how we should flow the is the cash cash of $X.XX, kind out about your cash was way loud and think will by take just that mean 'XX? buybacks. So in returns higher think I and be I dividend about that we this multiplied to forecast and basically it thinking free return to it year? the Is

Roger Jenkins

thanks proud I'm Arun, not that of and for That's that, framework. iWork.

we adjusted have focus the -- where slide, payments our in the take statement, last CapEx be payments, the spending from on you contingent flow removing on We cash that dividends we the less we the remember then year. pay have flow to remove to free so capital operating or would have the flow you contingent cash described take cash we and and

factors we our dividend the not cash biggest and we'd XXX abandonments, So Slide in the be our payments things that of our to This year, quarterly XXXs quarterly is and NCI NCI, adjusted removing we probably and nature, XX. pension, outlined dividends of that. are payments, and This free -- something, flow. to have get on high contingent distributions our abandonment

Of is course, $XXX million. at well around dividend our calculatable

to fast to And rest. have can. as formula asked the would and of it's be it as we trying quarter executing XX% every and So we'll for to get out the pulled share

Arun Jayaram

it. Appreciate you. Thank

Operator

Your comes next Charles Johnson question from with Rice. Meade

Charles Meade

X whole there. do your of follow up. low I'm and things end team there; about guys lot I you to just that guidance you like the your as of is up questions production wanted well the well, you're But One, the of have one the X, to wondering to I a there Tupper that first -- but performance start ask, the towards I'll on Roger quarter. with just cited reasons Montney. on I'm the I'd

something is carry in central view below is, saw XQ? second, something so in sit XX%, $X you here but more that that a thing, you And a And plan, it, onetime Or the just to you that's call an of XX% this my going we're morning. question to was good, asset? your forward Mcf as that referenced your then

the So you're do any in going there what in in Tupper is to flexibility 'XX?

Roger Jenkins

for Charles. Eric's going to hand you, that

Eric Hambly

Okay.

pretty XXXX. let issue in address experienced in quarter. well execute fourth our to were the planned the successfully program me First, We able performance we that

we permitting we consequence restrictions into wells. a of about As were brought year online producing were half those system. XX experienced wells new highlighted, last One that of facility-constrained is

fourth producing we the debottlenecking construct So that a the effectively of wells were were flat a wells we pipeline. rate near -- facility not because would to flat able a basically because flat were expected And a at at rate through those quarter. constraint that remain producing

little bit for model below constraint. And it As we a on that the challenging late constrained quarter, progressed down came to that happen data the wells. us fourth we into the we that was would exactly through saw wells based decline when through natural have facility

the reflects going wells, So onetime our in and forward I that's that here reflected our guidance would characterize the of forecast a as performance today. and

XXXX gas average an ACO price around color CADX at From to try provide is sensitivity because you as it would noted. What quite sensitive. we model did I perspective, of some a

CADX.XX For ACO, average. you the every roughly see BOE X,XXX might on annual something X,XXX impact net in to

on So AECO decrease perspective price. increase a Hopefully, up sensitivity down have the as on $X.XX on go or can gas a for a that or get by a different your production of if go price, might based you question. much how addresses can you use you that kind

Roger Jenkins

One on more of color that, bit Charles.

this their the were While you first there's day stated XX%. year X% wells about Well, at the a only in lot of now Haynesville royalty. And Marcellus the talk even and regime under about the royalty for XX%. pay new price, Montney, morning as is in a this every elevated

it's below but So United lot the always of a talk, States.

Eric Hambly

to that talking Just infringement not on -- and we're our we treaty on regarding private limitations Tupper, that is those agreement province with are on last while lands January British expect about into lands. ability Nations And on because an while acreage that Murphy's River you on affected was may rights. private noted program that agreement this we're just E&P of is on lands, comment of any of the to have execute do one reached. go-forward based And and public impactful agreement the XX entered Colombia the companies the of understanding our significant Bluebird year, our

Charles Meade

And other and big a detail. but helpful all already down there, got down in That's prospects block of you've Roger, it. that you you dry that had got down there. disclosed, guys Got hole Mexico lot then a you've

So tell can us how it's future what what activities give us there? this well? found -- your inform learned And you kind with to going you down of what of you've kind first

Roger Jenkins

that that for question, well have Yes, Charles. well. a it's It in the disappointing we system. Thanks was a

drilled here this If the not operator a at be to was which enough being there in key this some that still you We've trouble is review, little the But in my where getting time. another there's our the reservoir at it's equipment well had data It's of a issue we year. really slowed ongoing. review our really have. wells look out by would just reservoir north and the -- bit there the

we can at have also that a Cholula to review our our time. go later We acreage back

going And have that well move so north significant learnings, not to but that key and watching to we acreage. the we'll be our through ready off,

company. have many prospects We in our

acreage X PortoGra in Brazil, in same same Basin. the that acreage the block acreage the same Gulf, in have We

net the our X we So that have have business. across acreage we same areas of

people this. on million only work with about are which really and better as the our seismic, year the And in to wells we $XXX on we'll and really spending do exploration, business than about well keep and of seeking disclosed continue into have a drilling, these of it that We're our opportunities 'XX beyond, all onshore all But opportunities thousands today, flat to we returns business. our multitude offshore wells what business. documented, includes in known

oil stay about of the exploration I not one can we So include does all our sustainable. future from mentioned today things drop And success.

of as puts do to to on well we a unique in it's outside of So that something our plenty We'll others. differentiation have well. us that own stuff positioned do

Charles Meade

Appreciate you. it. thank Well,

Operator

Thank you.

MKM. with Mariani Leo Next question, we have

Leo Mariani

to address Eagle just I start bit off a wanted Ford the here. and little

there and wells are forecasting reading about of right, if looks XQ, also think I you are XX% in have disclosed bit the I'm the to slides It timing versus just looks quarter you a is more downtime operated around maybe kind right, this then but I of was down if XXXX. you it's in first wells. I production versus few a 'XX fair year-over-year. guys information the like some think it X% And guys some know down that like of I I maybe guess reading the

you that next a maybe try Eagle could to of kind kind why hold terms the plan decline you're was flat the of just talk seeing through of over in there? So Forward of years. to was I thought handful

Roger Jenkins

XX,XXX appreciate flow. cash it trying the maximize same question. while I Leo, thing, Actually, the cash free the plans plan to flow -- that to that asset producing to Actually, to free to grow be XX,XXX plants Montney, in fill

the address number all right is questions generation to free your cash X now. flow going goal. here But So Eric's

Eric Hambly

okay. Yes, XXXX. relative are similar with are primary counts factors There sort well lower Leo. to driving production of that X Thanks,

new on the our when a our all, the so the you XXXX lower. 'XX little It's year. of for come average than wells online do year bit later program, in First bit a average

probably Tilden on Karnes is and completion calls, 'XX significantly, Catarina we've XXXX locations. Second split significantly operated Catarina delivered results design. And highlighted enhanced as Karnes, evenly 'XX and our in and most by our and program improved almost we recent our applying between

Tilden drilled well not operated have since and We XXXX.

improvement So level Catarina Karnes performance recent wells we're XXXX and that our of wells. same will see our Tilden as hopeful the

for wells. pre-XXXX Tilden for on aligned curves our based However, with that is 'XX type are guidance

been of for XXXX. a an production the average expectations area mix our our experienced sort of driving per to we from haven't and a actually what combination down in we So well bit

production Roger XX,XXX in noted, as Ford day been Eagle And the we've barrel from a range. to the targeting XX,XXX

that we have, we're exceeded We deploying that but for assuming in expected. it last not 'XX, years, production higher are in We there, than expectations would happen the love our realized X the to from getting we will. capital

Leo Mariani

helpful. very That's Okay.

the there on I On ask bit up just here. the Ford, CapEx color wanted little about and -- follow Eagle a to

front-end as first loaded, half. loaded in XXXX. plan in were As XXXX, I second XX% very, also you the well half, front-end very look guys know the XX% at I in for the

CapEx? decision there there. sense kind to kind to projects as the raise a However, just of extra progressed, the guys get in of trying know get make you some I did to were year I'm here.

for You've the a got proposing in dynamic to And guys between Maybe caught CapEx is end if end bit are little other potential a terms the in on kind kind that trying the of if a come pretty of Gulf, to range the in XXXX. bit. decide little I a there's I'm in there just late understand to bottom of wide partners of and range? you of more activity you what there guess do high through if just talk year, the have wells?

Roger Jenkins

way for our I think that common I range that, for Thanks like morning. -- The [indiscernible] -- incredible to completing year, very -- it it's had a other as is so many we peers some complete. quite have question. to a This there. We that we dumb be wider program, one have -- non-well Samurai. myself. appreciate this zones many Dalmatian. additional would success Leo, of we year's to found we're about were don't don't well others -- I not we We And last additional We successful drilling we're seeing at pay. see for

Mamelodi accelerate up development to that of what well production. other several at wells well middle is. a drilling that So we the We're in know

in Malo. out Oxy St. monad I Lucius have The risk of on is Chevron involving and So anticipate phasing in of and out super coming by it. another CapEx majors like we

Samurai coming big there There's be acreage, Tilden. non-op meaning to Could yes, the are of for cover amounts with about Tilden of of activity a don't that They greatly were the across I that could a way. for very, all. array positive at CapEx year for lot were things as wells was us Eric longer a players, of see some positive many we a probably same very large be we some techniques We, area and not last wide come because lot us to border the of in it that on completion coming AFE things by talked laterals laterals businesses, of Tilden driven doing now. assets. activity. we have the our lot very and our new successful area, by you and just longer

And about see Leo. spend have I every it's morning [indiscernible]. so And write a range don't I that's have to to how I you so that when that, today it -- so think appropriate

Leo Mariani

Yes. Understood that. on

Roger. sure, For

just that. me, up then maybe appreciate I lastly for returns capital just year. to Okay. follow And here this on

Just laid should kick the relatively in going soon. of out, on way it's that expect is we to sort the buyback

to dividend are the You of going to kind obviously But nice here, is half? order in numbers, here kick first to in hit buyback the see see. raised we to those which in start the

Roger Jenkins

in And to It We to every buy me great loaded plan question, of it the trying And get guidance. want really back on would first honestly, it's this that at -- CapEx and midpoint to was on a back-end be day with execute want and are it not carrying I we're this to -- to X half, would more back the of your lot stock. focused Leo, things, really it going the we're like poking back our can like it's spreadsheets that. buying be stock. keep undervalued how to CapEx the to be Jeff our there, We but of end.

it So can. I trying fast to get to

Leo Mariani

it. Okay. Thanks. Appreciate

Operator

from Next Scotiabank. Paul Cheng question comes with

Paul Cheng

you Several think when day XXX feet questions reach growth now? real the you do million Paper Montney, cubic quick. per will In

Roger Jenkins

let I'll that, ahead, handle Eric go Eric.

Eric Hambly

in come capital that, for was expect Tupper half Montney we we year our the program. this a our that year will asset, have typically, happen XXXX Well, first of Paul, program,

we we wells, plant -- to So when be we full be bring expect to online our capacity. ought a XXXX

Paul Cheng

So second half? the

Eric Hambly

third XX say quarter. Midyear

Paul Cheng

what And at and XX% more time, assume should XXX to that so you, unmet. TI be would will we and take become that that met just

Eric Hambly

XXX Yes. Obviously to royalty when prices say, the assumption on AECO we price Paul, sensitive. it's is quite are let's sensitive CAD in extremely to the, the X.X your in range,

what as, X% your on will based high as can to as royalty price be, view something say, So royalty. see the low you from XX% of as

XXXX, beyond our of We your and kind to expect improve gas own assumption. net will prices that's come to will but you down up make

think... I

Paul Cheng

can I have those And areas, me, right? working you you XXX% Eric, remind in interest think all

Eric Hambly

In Tupper sir. -- Montney yes,

Paul Cheng

several about talking that of for years you're million, Okay. are longer-term a, you're talk XXXX, question, $XXX your I targeting it's And $XXX in range XXX, that saying think second next by 'XX, that you by trend, the you about XXX%. the

in of Where area -- years? the the increase? what the is that cause the So lead to a increase you production outer higher what will

Roger Jenkins

probably for get you ahead you, that didn't you have appreciate more. room got questions. couple Thanks, was a of Paul I of to it question. The

end 'XX of Eagle so day, up XXX, morning, toward in the look Montney As at Montney and the XXX, production mentioned the answered creeping the you Ford look you Eric our across barrels onshore just maintaining we the when disclosed you this XX around at this program, as XX, just as in our as greatly close increase time. that's and a from primarily our to I year, and -- this about onshore XX,XXX increased onwards, business today, across the business, Montney our look

-- growing. is so onshore So the that

maintain is very back Paul. It the put makes as $XXX,XXX success XXX, between close that business. Terranova cash coming of today. business as to Our get disclosed business us, and We but it. type 'XX proud free that through Real on business and in of mentioned from -- XXX,XXX 'XX. this offshore and XXXXX, really we flow, to we for to projects have XXX all on, enormous XXX this through XXXX, business project a leading incredible 'XX, now in through But which is an 'XX look this solid 'XX these $XX,XXX we morning and

Paul Cheng

reason the I in why the And And production And the behind? finished Titan, well reason the Eagle or the the back the I to -- right? of is earlier case, that what's that if go [indiscernible]? question why means is mean drill and that final on why think Ford. best lower the there over Titan concentrate drilling one, not well I are back because and I -- that want to the I most the mean go saying on -- that's mean, we we Eric Kings already

Eric Hambly

your to going He's notes. it. right I'm excited I'll This is let him so question, do -- Eric, Craig. answer Paul. He's to in

Roger Jenkins

back, want hold don't ahead, that Go to energy. that I Eric.

Eric Hambly

under Paul, we lease of our the have Tilden area. the there in agreements owners with acreage

those like drilling have to Some drill or our But enhanced completion also, leases X. as XXXX or ongoing some would toward we X, we how to perform year you our And highlighted obligations. really they earlier, program design. is with have commitments well fulfilling or see X in that our oriented of every well another

be might of around see primarily there, and wells leases. our larger maintaining our we amount it's obligations So but top-tier performing able fulfilling a to

Roger Jenkins

you Paul, that, a there's rigs these add of industry moving of area top cover, and Montney, a at common. we've the been the very because the through in laterals laterals, Tilden lot XX,XXX-foot -- are together are activity more companies many in be underdrilled the if believes in because And becoming that's doing Eagle will on then look companies which Tilden, it's of you the long Well, higher an Ford working area to production. longer lot there's a time into Permian,

Catarina there's to Tilden, and Our have that any Catarina and that grow plan Karnes And in sophisticated, very planned allows time how XX us to extended lot move and make level it XX from way. be very the if business. offset maintain out plan, plan we in impacts game can't a want in to of a frac now game a to for long a we money to it's this and to corns

going great as year, that to succeed there the me will technology our to -- did count believe I fracking it's the by others we that Tilden, all just and rig personally So And back well. around on believe going what's a as clear well. on we're that work

Paul Cheng

Right. one -- follow-up on I want Great. to obligation. Eric, just the

in that have For also a you drill several years, the QX? you to next large do obligation X have

Eric Hambly

details, a at look to view to been allocation within it and obligation. able to that relatively get optimal into capital it as have framework. I manage I'd been the minor, we've large wouldn't our but It's

be So drilling every significant. clear expect for now. very in obligations to yes, I the a right it Paul, have company Ford. has answer you don't I Eagle wouldn't cover you

Paul Cheng

the going several of in obligation the to years to or Understand. I item because also just whether you're see see a want drill bit fair to we're that that going next not?

Roger Jenkins

an Paul. that understand for see issue volumes we said, as on as can have. and question your as Well, don't it. the hit Thank the to you, I Eric we that appreciate see that, CapEx But we

Operator

Neal next with comes Securities. Your question Truist from Dingmann

Neal Dingmann

to try along I'll Roger, day. the X to just keep keep X moving to things mine or

Roger Jenkins

No, here. you got to get in

Neal Dingmann

summarize X through relatively plans the flat I get K? to over to X us, X You wells think the next And of to X obviously should a assume year? fantastic how how try job compete. if got sort more so, what does are my think on fuel development. Or Could years, to well, play? X keep there to that -- a entail Roger, about the that just we X question about months the a want list or made us you on has do done just just Kings that will production you remind to that

Roger Jenkins

We'll have think way great to very a deal on about there. XXX for that that an our asset for Thanks discovery from X proud million Neal. question Sari We of wells now barrel is exploration in Samurai The you, Thank it. largest our it great there, us. could company, think near the be incredible asset. asset now is out X

other Each things capital we field flat. well flat add would done and Clesormont. with be all CapEx the things of some just today plan de base. that a wells in Of around the these already recompletion have through other OpEx at technology it different these is and period in in lot be X-year zones minimis wellbore resource de course, of and to that to this have There To to through zones. a we minimis additional then add to to there's X there some remain of ways keep keep not to it slide, allow additional those be will next There's deferring in perforations uphole same wells efforts, advertising are which the added. we're an the and have

Neal Dingmann

follow-up. Great hear. then just a And to

pop XX-plus on there's you or you, your You what you just be given inventory. consider consider job Slide quicker. debt in Eagle giving maybe again, include position. and many peers any Ford need on down would market show don't not assets mean, all the pay just all did credit to shareholder inventory again years full remarkable return of Duvernay I divesting I a a and that think, quicker Would good of I'm know, -- the that I the for high obviously, by even looking where don't XX, for appears wondering, you

Roger Jenkins

buy business we deals I X probably delivering that, buying and minutes all is and and M&A It's weighted, our it's just been in billions shareholders. And without price going $X to that. without it's business, in down. going to XXX,XXX stability few a appreciate business. because lot both unique. of it a exploration going active Paul time our keep and billion ago, be rattled selling to it's sustainable not of gives to this part However, It dollars Neal, Neil Well, off up And the have for may a unravel to to of I've our it's to M&A, very people success years offshore -- a long make

we what with we're So happy have.

returning that to here of shareholders and start to long that and a doing haul into now. going We have anything consider we need opportunity about right type to solid business, execute before

Neal Dingmann

Appreciate it. Thank you.

Operator

Mehta next with Goldman Instructions] Sachs. question comes [Operator Your Neil from

Neil Mehta

is M&A. question around first bolt-on Roger,

You've done Mexico. in particularly good Gulf some the really stuff, of

right all you curious -- prospects set. but on given are going in do your on the views that's what there, now, think Just especially opportunity the Brazil the

Roger Jenkins

It's cash has money like Gulf and of way Malaysia, taxes, followed bought a out very originally advantage at Neil, prices repatriated, extensive than early -- as is the no you, in us for real paid been us for that that came and pay things Murphy another to we our question. pain key got more people into taxes. cash -- good all Thank Goldman produced way for planned we 'XX. the long time, a

We transaction. M&A that So in the to Everything at to is with and review. leader Murphy brought We in ourselves Gulf. consider this. the look positioned incredibly execution well

And on around We focusing particular have every we have of and a field. experience database continue though, knowledge We know pay, process asked. a get ask. word around to things and oftentimes, we're don't and and deals. bid Murphy We to particular incredible the to resource will about It about first very and we every Gulf the pay, people bid we because going matter We, what ask doesn't deal. price come. Mexico these know are the we care

it at do to keep like So we as can still that with to possibly it heck financed try to soon what we look how them really we can. them be framework framework want at the closely, and into will get framework, the because our look as

-- to our people of at us come structure. any type So look will return looking if them, operatorship. require lot significantly And we with when all due capital up, altering that execute come we type multiple outstanding to our a altering deals factors lot of our way of certain for. come lot those to those a that a those, and of big But to EBITDA And not coming partner a things, at our have of look bear. on situations but certain a we

As ability. being time well matter drilling for the to into promoted we're a a our due operating first of fact,

coming proud things of. that way unique to operational of our skill So set lot due our we're a very

a that So looking on that, but of have don't question at at them, but at really we're share around your look criteria it. deal, we'll looking them, appreciate all we tight and that and I

Neil Mehta

inflation And you quick of guys just around things How you All seeing service the see it commentary. you about it? the right. mitigating Great. And talked in follow-up do signs and we're like rig offshore rates is what CapEx, firsthand? but comments are and in

Roger Jenkins

that for question, Thanks Neil.

you're when all you're lower in high when a X of the Of the part market everything Gulf. middle bit player, the drillships your the We're the recently have -- and have have we had been, in in or and we the drillers friends. company We active rigs you'll a program business today, like an Mexico our covers of active an course, end. floating have X these we player, and We Gulf. in

you're high you pick the end. the very If business, up rarely on constantly all in

high-fare of some at in I'd really end we today. the have a program long XXX and level, So rates possible is lower have you the market say the at which XXX that today for market the at not kind the It's of time. to -- Max unless is something contract

rig are and well we the in at really feel positioned. things There's So Mexico, bit this keeps services. Gulf on other talked inflationary before. really bay count around we've big in Other of about which not people a the costs, a increase inflation little

in the all rigs. onshore to went the from it course, Of XXX-something post-COVID, up way

is more in about the it's really, have every our and you're see if So time. long the and rate rig because this than we frac location count executing is in days But DUCs pressures increasing business increasing there business, are kind a Neil, of you'll for the on offshore.

Neil Mehta

Roger. color, great That's right. All

Roger Jenkins

Neil. Thank you,

Operator

Partners. from Your next Daniel Energy question comes from Jose [ph]

Unidentified Analyst

quick for Just me. real

you quarter going were pretty Ford, every the third is the Obviously, last quarter. fourth Eagle was of to much I wondering in numbers how the with year in X just out activity So rig for rigs guys rough the around case play the year.

of the Ford. XXXX, you in rest cases the Given to like what Eagle CapEx and look wondering I what how the suspect thought year in your going just the activity would kind was you tail of is for

Roger Jenkins

that I fares have Eric right here. away answer

Eric Hambly

Yes.

We there, detailed program both and cadence Ford have which well onshore a slide as program. the number of Tupper our our non-operated. the Eagle shows Montney operated We as XX, program

quarter come our see Ford quarter Karnes third first then the online can from the second wells similar first it's of the XX activity with you kind that And is in the quarter. quarter of level biggest Eagle So contributing quarter.

Unidentified Analyst

so are drop down year -- my Ford? to for the Or you flexing. program a of question of to point? is, you guess some I Eagle how Okay. But sort mean that X-rig at in I remainder program will Or really that X the sustain see going

Eric Hambly

Yes.

be working have X X quarter. right X So the we in of and all the drilling in on they terms and in out of rigs now, Ford, third work activity, Eagle Tupper will

Unidentified Analyst

That it. Appreciate clarifies it.

Operator

turn further no I are for lines. now to like questions our there call remarks. closing Jenkins from back Roger to And the would form any over

Roger Jenkins

I to Thank next call in you. and our year today good please questions Any our on have, asking great focusing appreciate you And get here. company appreciate in We help. a quarter, forward to all you questions. everyone we our the Appreciate that look talk and our IR way seeing team about ahead. with

Operator

Ladies and for you this today. and that call your conference lines. your concludes gentlemen, for We ask thank please participating you disconnect

Murphy Oil (MUR) 26 Jan 222022 Q4 Earnings call transcript