Earnings call transcript Q2 2023

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Operator

Hello and good morning, ladies and gentlemen, and welcome to the Murphy Oil Corporation's Second Quarter 2023 Earnings Conference Call and Webcast.

Following the presentation, we will conduct a question-and-answer session. [Operator Instructions].

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

Kelly Whitley

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

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

informational Throughout to placed we the numbers, amounts and today's of call, the Relations along with are on you financial exclude in website production Gulf as Please follow Investor noncontrolling adjusted our section slides refer the our Mexico. webcast interest to today. of reserves

Slide keep made in Act Please statements be in X. Reform of mind defined the during considered that comments the as will Litigation XXXX. some Private Securities this call of forward-looking

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

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

I will the Jenkins. Roger to over Roger? now call turn

Roger Jenkins

Kelly. If Thank today. for to proposition. you listening everyone, strong Murphy thank to and call value morning, Slide deliver turn our continues to we Good X, you,

excellence with our sustainable a we that We operate improvement company. safely Our remain carbon execution a ongoing continual ensures on intensity. focus long-term in emissions

advantage Mexico. competitive significant recent fields of Gulf project with offshore is Our our Samurai reinforced the success at in Khaleesi/Mormont

entry into diverse a has d'Ivoire. exploration portfolio new and Cote also country with Murphy expanded recently our

last generate than significantly XXXX as to XX continue flow, as we from double the more debt We cash dividend to months. over reduced and long-standing been have strong our able well

X. Slide to On

half asset X.X from year of in second delever, advance Canada. with by the goal through well We're focus be buybacks. stock or capital Murphy goal will execute, divestiture in the debt proceeds of excellent our framework of and explore as stated our noncore Murphy The as million advance enhanced in to of return XXXX. targeted allocation as X.X our reduction shape a $XXX using we Our remain priorities

production exceeds continue quarter second brought plan years. two second well of production addition We performance production Gulf row Eagle due range and across total or to completed team Shale maintenance to oil The second the Montney the at onshore execute of online highest and XX a in our also a or end upper in priorities rather, quarter in the as to ahead rate the operationally strong operated the Tupper of ahead quarter Mexico schedule. our Ford in of facility wells in

approval development pleased we this for government field Additionally, Vietnam the plan I'm lockdown received that in quarter.

and Regarding of operational Oso Murphy-operated a our strategy the capital the resume entry quarter, funds progressing to with our quarter country of third for year, exploration Mexico late initiated drilling framework. will well cash on second flow generate We're exploration the the performance into in return allocation Cote consistent strategy to through rest in the also d'Ivoire. Gulf we in plans free to CapEx new decreasing the support our shareholders

had feet we Oil strong was from per Murphy day oil, for day quarter. XXXX, oil-weighted which beats gas was equivalent Mexico $XX.XX On our for NGL barrel and assets. us. realized grew by second cubic X,XXX X,XXX quarter of barrels and Eagle equivalents the by barrels XXX,XXX Gulf some In realized $XX and production barrel over our guidance our reflecting Ford per Montney lower plus better-than-expected performance, price over per royalty Tupper a nat quarter, We barrel of today, of Slide Shale and above was while XX% realized day the for $X.XX X,XXX per per from the X, a guidance for second exceeded well the equivalent XX,XXX rates. X,XXX quarter per equivalents production barrels

I'm the call our Mireles and to an Now for CFO, over turn sustainability Tom efforts. on to financials our update going

Tom Mireles

interest. in in for adjusted well, totaled of suspended injury. amounts $X.XX Net diluted $XX you, noncontrolling $XXX everyone. six. Slide income second were Cote the This million during including Including morning, X $XXX quarter for the the d'Ivoire in the previously write-off adjustments, $XX new of as net after-tax comprised number These good $XX million was net a Cholula per Murphy well Chinook primarily and to Roger, was million per quarter, seismic impacted share. $XX well million costs and costs million of the million exploration or exploration country Thank income drybulk by exploration as diluted or share. expense $X.XX

oil Murphy's interest of had million. adjusted the noncontrolling million Key. total $XXX we additions of generated at After cash strong property acquisitions, consideration million. $XXX anniversary first for This including performance payments million which operational of $XX of in King's reflects during and amount $XX second one-year cash accounting flow the related contingent from made to quarter, net operations, was

fulfilled have the related Mexico acquisitions Gulf XXXX. XXXX been our of now to All obligations in two and of

Slide improving say our impact continued seven. enhanced just communities pleased oversight and governance to strong actions water which surrounding ongoing to recycling, I'm includes the released, reducing focus fifth towards an was annual report us. sustainability positively disclosures around our emissions intensity,

methane our XXXX. recorded for Of since note, intensities in flaring emissions gas, XXXX, and lowest we greenhouse

recycling ratio We across onshore our in company assets. achieved our water also have highest history

a continuously awards to received service for recognitions make number better. and to dedicated have strive we our as Lastly, communities it the of we

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

Eric Hambly

of per liquids wells and we operated XX% Thank and good Shale, with the total Catarina across in XX,XXX equivalent Tilden, nine. them and morning, to our seen expectations completion quarter second A as design. Ford planned of outperform Eagle online brought everyone. XX weighting. you, Tom, In were Slide optimized have day due barrels produced the Murphy oil

Overall, an equivalent of per line Of with barrels eight pads in are forecast IPXX producing four these forecast. the of the X wells wells producing their XX% oil began with pre-drill have with day Tilden by quarter, four X,XXX wells outperforming the oil. that Tilden XXX%, other in average

wells the third Tilden. in seven quarter, plan operated bring two For Catarina and online we in nonoperated and wells to Tilden

early. cubic feet Slide online produced amount, Montney wells We per real-time we applied quarter, incredible Eagle optimization, completions such online learnings the were from XX that were on the Of our as Tupper our Murphy brought through brought Ford the XXX wells XX. most quarter Shale but seven the this activities during originally in seen frac Montney third have results. and Tupper seven in planned recent second design the and day quarter. million for

cubic approximately rates Murphy the We IPXX have the per and encouraging, million record well applying wells to achieving of learnings per These plan of in on cubic XX we seven day. as XX with for Even more XXXX history XXXX in wells these more remaining forward drilling our than feet a day. new some million IPXX highest achieved all two Murphy wells are averaging feet program. look

Slide XX.

of closing Murphy transaction and XXXX customary all-cash We are onshore date, sale subject to the a we excited assets the private have a X, company. quarter Under signed to buyer will to CAD anticipate in occur a and The has third of that transaction, portion closing terms million XXX we XXXX. effective the announce of the a in March today, conditions. our closing pay purchase and adjustments sell Canadian agreement noncore to an at will agreement,

areas interest Murphy a the The weighting with include produce Athabasca currently areas. closing, consists XX% be XX% related Saxon our with marketing processing of barrels XXX X,XXX by XXX XXX two XX, contracts. assets, oil. equivalent of barrels working day, of interest. net included operated Simonette of remaining and Murphy's XX% gross gross million also average across included assets Net XX% as locations and all oil and X.X of were drilling operated as in assets proved drilling locations the XX% operator, Duvernay, Oil Corporation. have in Kaybob equivalent Duvernay, The where holds batteries XXXX, which working will Placid NedlMurphy locations and Kaybob are to as interest approximately per the combined oil After are Montney pipelines as divested Also, assumption December of well an working reserves a the oil or Murphy of

in will Montney. no have position the remaining Placid We

Slide XX.

and particularly equivalent Mormont day offshore quarter our barrels oil per with We above wells, XX,XXX performance our of continue assets XX% guidance. Khaleesi, offshore second produced the from to X% see in outstanding Combined, Samurai. production oil at and weighting

in projects tieback before moving late the our will well focus the Murphy-operated Marmalard third in to quarter, development completing on quarter. one number the the number three Looking we to well Dalmatian spud

Nova St. Malo to progress and Terra to Waterflood continue partners projects. operating our Additionally,

million barrels tests, is estimate XX. Slide Vietnam. Lac Da the oil field multiple gross our penetrations XX equivalent field in well final XX, on in approval development a Block plan received we discovered field XXX with XXX to Fang million for and This in resource. Murphy of recently

project plan to field final continue the advance will sanctioning year. later development Murphy of this ahead

also to as additional attractive. are multiple We forward look that there block exploration this future prospects we within find

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

Roger Jenkins

you, by Thank we as Cote working into in operator five recently new contracts expanded production country our slide blocks focus d'Ivoire. On exploration interest signing exploration entry XX, Eric. to secure sharing for

We'll working well to conduct have block. working It's provides exploration geophysical the phase, interest we to each with proper note XX% blocks. initially important in over holding interest hold commitments studies which the no XX% in to the us PETROCI two-year initial remaining time the

on well Eni one as has which discoveries in well side in eastern by as pan the a adjacent Baleine, of the d'Ivoire a field discovery country in largest Cote in a d'Ivoire considered industry the sizable is Jubilee to discovery and development the operated Ghana, is comparison which is called recent of largest years. successful as as Cote large

the just south CI-XXX, is CI-XXX our to discovery, Baleine different type look to water opportunities a the structure in historic West type like Shifting of field which Murphy. a opportunity have for is and carbonate which a operated we Block as a acreage in Eni, shallow by to

the discovery which XXXX. hold undeveloped multiple we called a operator well block, CI-XXX, a previous viable as is of development by as the submitting wells on with committed the long-term appraised field end by In to agreement plan we've Paon,

large with is a We similar highlight and for very Overall, which will entry Murphy. unique Lastly, operational exciting a in CI-XXX, Jubilee. exploration is forward geologic opportunities features block to look multiple this new abilities. the to our

expensed X $XX Gulf of Mexico the encountered well during On drilling the million quarter. in dryhole of abandoned number the the whole well and and plugged quarter Chinook the costs slide Murphy hydrocarbons. net non-commercial in XX, exploration we and completed

the quarter, well in OSO suspending temporary drilling Mexico resume the to this year. of earlier in after drilling we Gulf third of Murphy-operated exploration Late plan

per equivalent Mexico with as slide equivalent well On the of forecast day to of of of as includes XXX,XXX barrels oil XXX,XXX quarter, per barrels assumed downtime day barrels downtime This of Gulf per equivalent XX,XXX X,XXX operated planned per barrels a range day. oil day. some we storm for XX, of production X,XXX total

in third Also acquisition-related accrued million, costs. of excluding we forecast the $XXX quarter, CapEx

We full day this X,XXX guidance year to our per equivalent we represents day, XXX,XXX barrel producing liquids oil barrels raising to XXXX, increase the XX% the per midpoint. For forecast are production in to a XXX,XXX XX% and range. which

to CapEx XXXX million capital Additionally, of $XX we in are range new remain tightening $X.XXX XX% an a costs. growth $XXX accrued volume billion, year guidance We and confident excluding our growth full spending. delivering X% with of lower with oil production acquisition-related over million

Murphy slide On allows long-term capital while a $X beyond of that additional a returns allocation XX, dividend, shareholder billion. for multi-tier debt advancing the target has toward quarterly framework

limit. million authorized variety has program, repurchase Board Our a initial shares allowing of time through repurchase Murphy $XXX to with methods share no an

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

we an of first additional as the we framework to well shareholders proceeds pleased $XX the shareholders $XXX as capital progressing nearly year that Since Murphy one forward through today we X.X transaction further in per annually I'm returned quarterly increase down debt. the to to announced on with come. million million $X.XXXX our share long-term the and ago, announced quarters paid dividend I of rewarding the look allocation

forecast equivalents of Slide XXX,XXX annually continue debt forecast as XXXX, cash delever, flow. oil through on is averaged execute invested explore our while focused Approximately strategy we we XX, with X% combined be to through with flow XX% a We a an average supporting day, On operating and reducing XX% remain of adjusted return, weighting annual to representing exploration cash per program. rate growth targeted XXXX. maintaining production also free

day. equivalent XXX,XXX As this sustainable Average average with weighting. annual offshore approximately targeting business, is metrics. term, production to day maintain an investment-grade maintaining Longer equivalent will XX% XX,XXX plan, focused part we're per barrels at forecasted XXX,XXX production on of barrels of oil per

total our shareholder reinvestment operating capital investment further used framework results enhance allocation free ample funding of in ongoing cash high-returning of approximately and returns Our cash XX% generation, flow which adjusted flow reductions to of debt in in fund we addition opportunities.

of declining, $XXX as capital reduction looking diversiture Canadian with year proceeds buybacks half our Slide shareholder we're framework. today oil announced our returns focused enhancing program and at current On of million, through onshore X.X allocation prices, upcoming and on from debt our XX, we our advance second the achieving the capital goal

continue maintaining to everyone achieve program high-quality portfolio. our it's important high complete onshore our the our look and execution as at home We improving Ultimately, ability a to year while strong safety able culture. for well day, the of we declines the production we're across send base also ongoing uptime to end through and this delivery

have Oso third in well drilling late resume exploration and We we'll operated in one remaining program, XXXX the quarter.

PSCs in of the announcements d'Ivoire. Lac I'm development of approval new and plan Vang Da two Lastly, signing Cote our receiving proud recent

business, while the to longevity, delivering these of our both off with Coast Vietnam free term conventional near a We flow exploring projects on and with possible of will opportunities long the executing add cash Africa. in and West longer have development and successfully history plan our

I've achieve thanking to takes call of by to and I close appreciate every organization success, of their our this Murphy. quarter outstanding we and had every this one level great ongoing our It of dedication employees, the you. today

morning. it turn back now you listening remarks to And prepared our I'll and calls, appreciate for this the to our operator I

Operator

Thank [indiscernible] sir. have The conduct gentlemen, now question-and-answer you, in first question and be from we coming it's the today Bert to will session. queue the Instructions] going [Operator Ladies we

Unidentified Analyst

ahead, Hi, good operator. team. and Yes, go morning. Roger

Operator

ahead Go [ph]. go [indiscernible] ahead, Charles

Unidentified Analyst

I morning, -- stronger it we Good than were want cash was expecting First you. to in guys. just flow Thank XQ. all, right. of All free

away Just where square year to of calculation trying the the works. rest the

determine is And acquisitions lease of the of in $XX right, So for and other think there cash still, framework? $XX we X.X flow all gone, math international maybe math any sale. but the million payments netting side the then the background are Gulf the estimates contingency be think the for is I did that should million I there to I free maybe our against Mexico Murphy

Roger Jenkins

question. that Really for question. Thanks good

Cote we think the range. of to today, that and if you I as that our year which then for way d'Ivoire, and top our of blocks activity. were show that, feel have on And includes that such additional never business, new will, signing is we've is capital Vietnam $XX the to about tightening field achieving seismic in development, plans announced million other the new in

to top we So of think rest the a to about flow cash and so been it, of that money be on of year, the range on for high far way about that the remaining CapEx acquisition that of our is spent which spent and third expenses, will way about to the to the has the what have take a for think total for that's the year. the to date

we privacy break due what don't out have. the to proud that really of deals around Vietnam in have, We the the we we're really d'Ivoire Cote

out year. breaking about But for spending to the the capital our rest what's not think what. way of So we're that's the

Unidentified Analyst

that does towards divestiture closer X.X the to And moves Canadian the or situation? calculation Okay. of just X.X, Murphy kind count

Roger Jenkins

down assuming debt really through Thank just it How money bringing you and be in. point. we when that and in. dollars, home It's debt come pay convert good a for in it this C will and to XX-XX and is needed, year that. transported US shared dollars, too That's buyback we're we're

back what's our the and if our debt you square down. to new add reduction that, Canadian it, the about goal If easily is and you handles midpoint, debt really our proceeds in think and happening on acquisitions take here we're

we're spending the buying in the of that about as goal and paydown debt year. and capital back as very rest lower excited Our stock, well

the flow extra as in it's you framework, if in African So, businesses free to new spent allow cash for the non-planned will, money on Vietnam.

about And so it. that's thinking we're how

Unidentified Analyst

That's that to that of the sell? are it. that about follow-up looking a all on just Was is way great any let parts sale. to And go? your non-core looking a think guys there to you're Canadian or maybe other then you that positions opportunistic, Is

Roger Jenkins

out early good call. Again, glad a that the in pointed you question. really I'm

lot a have assets. We of

a the have doing in with Montney comments Montney play million XX this any with you very We and today oil-weighted of Eric's an XXs North onshore is IP also assets position great competes see from high-quality lot incredible gas America. how

about that reserves. side, have very think oil if ample you in X barrels It's good know a million the this have over of a we business away good was we little a only all offer. we On volume lower a growth US$XXX onshore, offer million, taking locations. and And also very

per think about is, think how how you you is, about oil, acre much today barrel only at it for much how the XX% flowing that much locations. If production

So XXX double weighted and at NGL offer Ford, XX% we we that it's locations they're which have is of take, below price is to incredible in oil, just the Eagle because in an Canada, NGL still needed slightly Texas. the in region that all go to the but

not sold are to these And happy we're as take transpose for it, really and it for invest sale an aging be very but to We're them for d'Ivore. about into money Code So locations there. pay to But there. that want price things wants to the we'll non-core really and going drilled think us, we that in about as a such wells people that good have XXXXs. operator we

opportunity. new have cost unreal entry many very a opportunities, We large including into blocks with

and and I in We have d'Ivoire Vietnam there. development development development have Vietnam. we in exploration a mean a a possible in Cote

something in business So in investing onshore forward execution. is around advantage we used move able cash, have our competitive offshore to long great locations and where take

Unidentified Analyst

That's a great Thanks. update Roger.

Roger Jenkins

you. Thank

Operator

Rezvan with Tim KeyBanc. the The next question from in comes queue

Your line is open.

Tim Rezvan

hit dig specificity provide deeper on on Vietnam. year-end. maybe you I if we production then Thanks. and of give expect how taking sanctioning think towards picture how this stand my asset was on updated overview in a big can the Thank today, I by Good if Just was the news. you hoping morning, in possibly can you ramp? more latest you could little XXXX sort where you steps wondering could to thoughts first question. a based everybody. to And for

Roger Jenkins

Tim, for that I time. that. and you new coverage Thank has on our calling our thanks around for Vietnam call business question, into long today. for and a Murphy been appreciate

a COVID has our We the sidelines have have bit. things been in through and capital, on through reduction some

PetroVietnam, which which to key that sometime. to planned. million submitted see partner XX here been The is It's development million our It's been as XXX for has also We change tested. field plan, is organized approve decided well and opportunity. very well our barrel this type a,

had have we've detailed field a We a while. that plan for development

So in of to drilling economics on and the check services probably sometimes but that, seek building Board, as either all XX. not then we would would December we then is what's meetings, the go oil October of that now reaffirm or the have to our and again, first going re-bid such there, facilities to that, there

in We to a is if have through early so history very a will, large or our we development built shareholders into development, you we business. XX, key a doing which work ample want for where difficult can expensive key, late framework, to our a returns we something it's us. a Malaysia And have long the really not shallow-water of project focus

into drilling year next Also more and can have a very Vietnam make business. nice exploration we're as opportunities, actually but probably key have that, that in than I two we this two hence

field lower forward make on a in the in day to exploration, to XX,XXX business the have is into goal to barrel that We Murphy should looking XX,XXX to this to and Our opportunities do that. Vietnam. risk executing net a

Tim Rezvan

a X.X context. follow-up That's appreciate we that the helpful. then, I And take framework. if on Murphy Okay. could

some sure that. know notes in a par the of And not status repatriation I callable have XXXX mid-August. You on asset sales, there's,

measure But our retired your over two at out as you call to have retiring site soon of debt, about versus years. because XXXX XXXX the callable you to getting waiting par think as premiums as one do how kind next debt and possible that

debt So retired. look just and how on you when officially Thank curious get you. your that thoughts to on will

Roger Jenkins

that Yeah. Tim, let Tom, going handle for to you. our I'm CFO,

Tom Mireles

open Sure. balance it's we with Roger. way the decide to trading those the generally, Yeah. notes we calling Thanks, go Yeah, we are Thanks, about Tim. and or the how it, factors, are whether or market or maybe all maturity think tendering. date going

into just will out, able you As point getting we XX. we've later second this at at Those got as look par X.X to of those call half be this month. year,

overall And probably getting so million if initially. us those to But billion, $XXX the of $X focus we'll goal debt on you of reduction. another at that's look

today, XX is them And that and being close par amount, XX, about between that's that that's XX% to callable calling the soon.

So it. that's about how thinking we're

take our So billion we that target, we think $X can path. to get to

Tim Rezvan

Okay, the Thanks. response. I appreciate

Tom Mireles

Sure.

Operator

proceed. next with you. question And from comes the queue Stanley. McDermott Thank in the Devin Morgan Please

Devin McDermott

Thanks for Good morning. Hi taking…

Roger Jenkins

Good morning. Devin. Devin. Hey Thanks

Devin McDermott

Hi Roger.

ask So some the d'Ivoire. I and opportunities exploration wanted specifically on first to Côte on of

So there's second One development and it like two of the plan for that seismic the acquisition here. a would blocks. and for remaining of discovery be Paon is kind that the evaluation seems processes the parallel and submitting

blocks just of wells timeline you to seismic acquisition other would us the any there? development potentially, you ultimately development about similarly, And the see exploration Could plan, for on for you drilling to those? through then and think the there? proceed walk So the when of need each what

Roger Jenkins

on Thanks real exploration fits for so near to exploration, for kind focus different types. of for a more very that need a It's this that. us success, Devin, and much, for us good bill opportunity opportunity play

the ample That's is commercial prior up it. resources to our and made turn of data on hands Google. and discovered work what is our should just in very where it butter on on terms flow leading will power is things hands operators with We're but Then you word rates a around deepwater just bread Quan. a country. look a about few ultimately believe into operators. It and different up two-pronged there, getting generation barely can that is developments This require just We our ability. other Quan successful process it discovery we gas years by we getting They ago. real our I a Anadarko made were have those

us be It the have the on gas won't country words. here that of commercial process. We wants to field viable their will depend development plan, part a rate. Obviously,

So we that company. returns aspects different the for price there'll with it that type needed have have can we to to our be be the in of make viable, were a all

So put that's process well you. by one

have We a the working that. Kingsey under our on team team, our managing then and And have in that, Eric team seismic. we work development

ongoing. we'll And the have There's government have seismic to here, seismic that really shot. in decisions to So seismic major our drilling. will to has time receiving the scratch. be owned by that through a from months data the all few alike excited to a shot be We're It area. about XD field east. that of throughout the There and been some doesn't our have make modernization be to be look ample reprocessing will

we're data There's been shallow a opportunities this successful look There's in Vietnam, get we forward, really other two and is those the we're expertise, which be Vietnam, on go to side similar to many forward with real very It's like exploration in with done and with today possible nice our what and XXX. development. things Canada a to transposing prospect Malaysia in have but development we into prospects have older to XXX. in because the development. XXX and have offshore And There's new different we a good always get here. oil set water shallow would water in and in discovered be that exploration

Devin McDermott

Gulf Lucius. of to concluding detail. at through and half shift the that do over have we you're series this sticking wanted opportunities with tiebacks opportunities Great. kind quarters, And here that, development if St. XXXX? of with you few further Malo to look XXXX, and for Helpful Mexico. I early you a back year And now your next tieback have plans or over offshore, the of of Roger. After evaluating Thanks, the but

year Gulf And together investment production and Mexico? as of this year for us and the can outlook in cadence the next you all into you kind of about think put next for

Roger Jenkins

going I'm walk Devin. through have you to Eric that,

Eric Hambly

our as Khaleesi-Mormont of fields. always Thanks, It's the the our a to job Mexico. noticed, with Samurai Devin. nice about you in have with Gulf plans We, done tremendous talk Quay development we've may really here King’s

We per in that, and BOE producing performance or have highlighted per bit. If we with of on discussion on may day shorten well of to development plateau a the plateau to saw production we XX,XXX fields we Recently, first previous the a that those would those net year closer the field into rates, the fields just from day. XX,XXX XXXX. around period so, been were that we've that calls continue then net remain maintain expecting up BOE type

So in conjunction we're normal further and monitoring performance the for of other with the evaluating type development of then that field development. field, opportunities

that of workovers this a plateau. looking number future zone extend we're wells potentially Khaleesi-Mormont time, At or at would change in the Samurai that field

things those that to budget We two show a 'XX, and likely but well for have evaluating or haven't area yet in formed we're up. a

the this have out, and pointed a we're DC Marmalard then onto getting well you here #X we'll quarter, third in Dalmatian quarter, well. As XX #X

Waterflood there. will and water into to see the to project, related Lucious drilled to years should XXXX, XXXX, is And the there injectors complete and St. on facilities Malo scope non-operated injection and water Malo early, late by bit going move quite support increasing As have volumes you wells come, Sao then previously injection come install online. so in for remaining two which we'll a potentially from flattening some

continue to sort why volumes new and opportunities of future, or which other see years. five X, foreseeable any offshore and subsurface may work of X is our we for for to we our the six well X, likely maintaining or tieback next the view steady teams as pretty year. those And a have our work out to opportunities have always, of in long-range try a have excellent the we communicated to oil portfolio with through Mexico. by identify Gulf continue And we're

Devin McDermott

Great. Thank you.

Roger Jenkins

Thanks Devin, I appreciate the call.

Operator

in question ROTH Mariani next with The the queue from comes MKM. Leo

is line open. Your

Roger Jenkins

Good morning, Leo.

Leo Mariani

something everyone. hoping on Hey back. guys you buybacks little a to guess the while bit here. that more of was drill down good share I a sort I announced morning,

you've is half and As of you've higher CapEx year the got pointed lower obviously second the here. production in out,

yet, So, this in as I imagine we you over, done as tomorrow. that be anything maybe near should something expect haven't future. maybe the but sounds would might is like it that soon blackout the period on that

So to in prepared we're second given the get to of of that of are share here kind kind you start half month the guys year? buyback a after the

Roger Jenkins

are, back working. just framed as doing to from development it closing a I that. the excited d'Ivoire Canadian with the about talking really get Yes, into lot proceeds plus and will of you with Vietnam The the this And forward we're We're Cote what everyone. Leo. Board said and we very and us week, formula our a appreciate is and exploration. some morning, our about exactly we've this movement enhance into It's older locations development call and

last We're shares dividend major as now, and very a our feel undervalued, really able history. We and see various dividend been excited player we and to years. it buybacks, I look about working returning are of too, to there'll to We've open up. share our Tom shareholders. And execute buybacks. doing forward of look to the couple across doubled are ways be and it throughout forward periods. in executing We've from And setting peers, it. our ready on And to we'll that the doing be year, we team and do his we're

a of half decreasing, significantly, maybe capital of this know capital behind and at forecast shareholders long hurricane the Murphy. had production behind we've forward us, and season we us, had, decreasing highest to with of second real strong production look year payments highest contingent third I abandonments quarter oil have We when, ever strong we've rewarding the guided a quarter, don't the some time,

Leo Mariani

exploration just Okay. the to to And side wanted then, That's helpful. turn here.

Brazil decision? bigotspudregial get start So, think, I well kind I've to that, expecting of guess mention you heard Gulf. the the you the 'XX. of be Vietnam, how Is Mexico you you I anything you're should anything front, have of an of months else couple the just past OSO on I don't estimate say redrilling. take, exploration, near guys drill they'll future. next sense, XXXX of two kind a else kind looking wells in maybe did another in that guys also to long in And exploration want or at in And once a probably if in year in

on high-level what get months exploration-wise a the the in here. could wanted sense just next I XX be of docket So, to

Roger Jenkins

going I'll a company. He'll drilling the OSO plans. handle answer. the the and It's I'm then about two-part to XX team, talk talk about time, the he the let at manages Eric drilling his

Eric Hambly

with some to equipment, much. well well. to a very a the managed drilling of We're just allow but On drill will the well, we're Thanks, the already not section clarify, the we've redrilling going which enhanced well reusing Yes. OSO, us of lot system, pressure we're back drill to bottom the drilled.

to in just redrill. not complete have I of a We're middle the fourth and the clarify, by So, want going of quarter, start activity it's kind that to should work we complete third quarter. that the

Roger Jenkins

Okay.

We approved do Vietnam. do Board. drill to it our prepared, the we're wells our our in program, two budget rest not have As by not have yes, of looking

wells the We’re I'm sure imagine, not do Gulf likely that. of interest. would of to a Mexico. that are in we drill couple would working I

ample have We opportunities.

with opportunities some have We other partners.

so, honor that, deck, of couple We our the in at buying deck. the back of end a Gulf, a in again, you probably end the framework to, as that And and wells get our it program, we're of four-well too. we're will couple in because, the we're trying asked, stock undervalued, do interested have probably and talk our while want just rewarding shareholders and Vietnam, capital we'll the at to

So, that's Thank Leo. that, you. what we're thinking kind about of

Leo Mariani

helpful. That's Okay.

sounds So, the for in probably or on like 'XX? nothing Mexico docket Brazil it

Roger Jenkins

right. That's

Leo Mariani

you. Thank Okay.

Roger Jenkins

you. Thank

Operator

JPMorgan. comes proceed. question with in Jayaram Arun queue the Please The from next

Arun Jayaram

and some here Cote I how details thoughts some maybe just wanted Roger, d'Ivoire? the technical to insights your team on type is or Hey team experience Houston. does what have us Africa, West situated in and give work exploration at in get team on of your And Murphy

Roger Jenkins

of had We for business a worked question. ago Democrat world. Gabon. We in development, the year very a a in Congo. unique had Arun, in development that Thanks, Republic We've everywhere

much All executed that the international is player. throughout more an OSO simple have Murphy well, We've drilling far world. team wells internationally. of worked our This like easier a execution. shallower, executive than much an is

same then development, this technical King's We team our a depth drilling internationally. side. isn't around experienced the as difficult very the development. development Key have a great water And for It's on is anything is us. This

major and side, experienced execution the including very through is and today, very team in management exploration both team, really to not Tom, I worked But company our development successful exploration other us, internationally, different very from and working course, have lived a and There company. we company experienced a just offshore our the have that's Murphy. exploration Eric a naturally, careers, entire personnel executive this Arun. of really is much Anadarko work traveled and On internationally. like a great for Anadarko that entities in and

are thing I in greatly about ocean. on anything we able and ocean. can't to experienced do can't of execute the in the just We the globally think

Arun Jayaram

question. to I quarter tweaked that We growth variance? year-over-year that housekeeping want oil Great. just you guys. did your for from some you It's XX%. Roger, good drove get one note conservatism? X% Is what thoughts a that on to

Roger Jenkins

be Well, of quarter a here with this going only my you to conservative. operations I'm I EVP say day guidance by have beat not today when X,XXX unconservative me

we're here, doing guidance kind I extremely is our what's season. well, hurricane on going it's strong of think for very and

Eagle the We've a a We doing matters very Key I well. incredible extremely player. our rates Dalmatian really had Eric, Ford at year. with operational call, Mexico at We've some big plateau mentioned think the are covered positive. throughout King's as would up We of early all in know and that performance that. of that also Gulf strong some

help better, there, to to that field a had loss. to will, some well produce we've issues this so we're and And you that's if get online need caused going

our less We helped returns of sort doing the it they company they're the to and earlier we're year, then overproduce and also planned, end the onshore we're they of have being and toward today. capital at shareholders you more put wells on then capital decline early end because with than come on for our front-loaded by great extremely when prices plan oil well

So what's going on. that's

We have Terranova anything hardly basically flowing.

kind hopeful season great of Any Hurricane we that a doing help well year Dalmatian flow it's extremely drilled or month. on to We're well this a ago. So is there.

Our that team well. is executing already

were, proper can high we think how back to were guidance I'm this going. team today think today, post-hurricane was season headed. up little reckoning, be where doing our we the that quarter and I we a on I'm Eric's get ability assets all back pleased of but last felt what rates that I quite So get time. super We're today still extremely if our a well get the that sort the incredible and have to we're production of it pleased today, cover this at sale to where making you in we have next at with ample it's just And that. we and quarter. to conservatism we're but will,

Arun Jayaram

Great. Thank you, Roger.

Roger Jenkins

Appreciate Thank you, it. Ryan.

Operator

from next in queue Please Meade Rice. The question Charles the with Johnson comes proceed.

Charles Meade

and Murphy Good morning, Roger to you the there. team

Roger Jenkins

Charles. Thanks,

Charles Meade

there's or talk been that's at in up less talk service happening And going costs the think Roger, more lot about is least worldwide. of I a the that's offshore.

maybe you low-end current for to far? main contemplated or contributor are service your I'm you're if it raising perhaps can the degree wondering wondered or of you've XXXX. is forecast you XXXX in back is that increases of of seen what so seeing big -- I whether And the whether the year? you've one bit a how seen either And So if the the for the to that, even much half guidance cost that CapEx contributors which talk about or

Roger Jenkins

Eric little him to Charles, walk you is that. through to I'm closer that. a going let

Eric Hambly

$XXX,XXX of good pretty that at market rate the And now. a relative enough XXXX fortunate XXX-ish rig day is to offshore The per right In below XXXX. a first in to Thanks, year, into Charles. slots in the our type range the in half Charles, was were to working probably well we're this were per we rig lock activity Gulf conduct a Mexico position in cost day. range. significantly market into of in we planned the early

locked a market rig is bit at We have current little rate. rates below of kind in what

XXXX. in helping the well that see have going some in other on, you which costs, as pressures moving casing they're imagine, us had really expected can inflation So are pretty the and up costs. costs monitor really is we for We services And what sometimes pretty are industry at other that related There beyond cost the carefully. casing a not of and program our are executing thing look minor to driving big That's us. down. most the rig you

about So on cost through lot good positioning XXXX. we're offshore feeling relative really to a our of people, our

rates. Beyond to that, of we'll be market type exposed

rates of of our see XXXX, for in to looking how half least be So we'll the last in like at rig is have activities and XXXX everybody planned market on exposed the with kind industry. else the

Charles Meade

-- for your see And the about risky about if Got and I target it. big That's days bit targets Roger, to go main in XXX in there? helpful you. – then that well? little that well. a of these MBoe the is think, how at actually a Gulf could detail. Thank Mexico. that for pretty you success well risk maybe Can nature And talk back what that -- the, resource single look possibly you or when of of we I OSO the that your

Roger Jenkins

very that’s Charles. A a prospect. Thanks, large question. good real Yes,

lease got fields infrastructure as ample This here. you also One that of feel play a platforms have underdrilled the This They're the prospect in of salt of reprocessed to typical bit area. is now the against last back close a a in structure massing Gulf. drilled. the place prematurely. an here is never area classic seismic years has against up in the will. been been to and being larger salt is in major has ones Chevron objective we salt to very reached a ago. if sale. people drilled the not up massing area. drill, competitive This going prospect hitting This all with that The like lot this We

competition up severe in leases here. picked under We here coming with some Chevron

of a was It's the greatly have data well. area. us and is We the and not simple is partner that it. excited a seismic well. about in the strong back the Oxy also the and data right to a through It interested, well That great this being up type Very lease the company have the well equity with very of private also a tells who lease a since region Gulf, one. in middle day very who's you drill. our industry interest successful new in we in set. shot The top sale greatly prospect OBN key on on

up wouldn't drill, And -- it's drill but us it's lease there, a to -- thing we're happy means and which pick more some around risk to it we're the in a it. the and to not excited see the new to thing. we're on right It's We're have come happy get we're low a everyone happy big I well. well. well, in to to

We them have working a a Vicki great successful. we great partner and Oxy, very like partners with with at PE is and

well and back So it. we're getting the about excited very to

Charles Meade

So a sands? three-way classic against a salt kind a up few to of up with chance stack

Roger Jenkins

correct. That's

bounce to would years We that, of derisk offsetting have nearby Gulf. called and reallocated where other ago, Chevron prospect that also parts an Rushmore a pay area very the

as So big it hub a area, could new the be and Gulf good the here. near we're And about the a a in necessary. prospect and in there, BP excited prospect new follow-on leasing

Charles Meade

for detail Roger. Thanks the

Roger Jenkins

you. Appreciate it. Thank

Operator

question Silverstein next queue comes Josh from proceed. the with UBS. Please in And the

Roger Jenkins

morning, are you there Good Josh. How you [indiscernible] doing? -- Josh.

Josh Silverstein

Yes. Sorry.

infrastructure not that's a at little whole lot wonder you the bit just a Duvernay, an received bit exit of Thanks. exit the So a a look the been of full little of capital, it's the of of exit to Duvernay, constraints. the don't non-core look Montney area Why area?

Roger Jenkins

go too. likes Eric, that. Duvernay. I'll let I Eric through do

Eric Hambly

appraising performance Josh, I And competitive. a very well as the there the say structure as conducting remain, from to Duvernay. with our get job performance be our fully asset. with well really Duvernay have ago, holding the do happy really to will like part we that that of of I to the ability the very Yes, years Duvernay we're a did cost and much program nice

of economics are are think out activity. activity to quite the pressure to So locations way have Duvernay in of any and there we we not is, just And the about kind those head strong. have

really and Eagle in Ford our our we Tier type work bulk breakeven through competes opportunities, X and a behind Duvernay, inventory rather Eagle or Eagle and Kaybob our the the highlighted quite years that the because rest we'll and shale between as focus that of shifting strong, slides lot the XX the have of with locations Kaybob a us, X Eagle years focus of end Ford of of we and But Ford the X Tier get up Duvernay well Ford from under those previously locations adding we've of really to in in our locations we economics barrel. are call oil of the our $XX

us it runway is a a contribute for oil our in to this excited the scale part of business decades. long of has our and for we're volumes our maintaining So about business. and to core, as we and really shale of diversity And potential think it

Josh Silverstein

really the next segue Eagle which and to That's good a well question, is year. strong helpful been has performance this Ford the

of Thanks. levels some year? are want wells. basin? been How activity you capital performance about you highlighted Do has thinking the guys this accelerate the of to strong try the allocation because the Tilden guys some next pretty into year to You

Roger Jenkins

question. always great performance. about well our like Josh, great Yes. to a that's I talk

So try thanks We've in were that. for excited asking new highlighted style that to enhanced Tilden. we completion out previously our pretty

XXXX. until a had We have since not well Tilden the second of quarter XXXX, online

performance performance, enhancing our and this Tino, pad, of production just work rates it lot it Catarina, IPXX effectively production a showing done than doubling data our with here more we an two completion Tilden and basis. That we've and in put from design featured, it's four-well we we've in so have year pads. Karnes great as to So work on Jambers on

The saw pretty we line with in pad, much other expectations.

per flow XX,XXX wells single of So and to seeing. can explorer share you term overall, the generated we to little from think pleased out a use Tilden kind net with to reduction. great, to still in we're a of Eagle what come work asset to really value And allocation. we're our had to We we're going how to results. there we're Ford execute level cash shareholders in with big about would but picture, similar day and as follow great results every for do budget, do return don't the to figure Murphy, as and BOE range from When we've really it to that's Ford years. with in what need and stick and make repurchases near of is well reactively to of our certain trying the one Murphy we're of to XX,XXX really trying form quarter to business What imagine flat do, to to through dividend debt framework the our what couple change of number we maintain the work type in XXXX up we capital limited I respond last activity our delever, Eagle

Josh Silverstein

Great. guys. Thank you

Roger Jenkins

Thank question. you. the Appreciate

Operator

[Operator in proceed. queue Instructions] Fargo. the Wells Read comes question The Please from next Roger with

Eric Hambly

morning How have Roger. Good you been?

Roger Read

there. was Very good, Eric. well least is doing I hope a At it everybody good quarter.

Eric Hambly

well. very Doing Yeah, good.

Roger Read

on to build pay debt prices of sheet if a things? the Is hit. Yes. I'd to that retirement. stay should the sure just more like something cash. that think in that we're be Is commodity on generate that would right two you advance I'm assume able about early don't One, down maybe balance and we that have anticipate. making thinking just cash higher, to And kind back terms way little you'll free and the been for in come to overpay safe it things of

Roger Jenkins

close I'll that, walk Rogers Tom that. let you to through real

Tom Mireles

way is annual we're targets. have about these to Yes, have thinking And priority debt for Roger, it hit we this targets. our we The thanks that.

-- cash it to we weighted up we more going to well. building free are debt. quarter try will towards adjusted some through as the flow. execute And -- we we'll vary. as probably the quarter get be reducing on But that So may done more quarter how start will it focused But fourth quarter be this

we'll weeks, repurchase are earlier, in the just the and those we focus at again, par are trading And targets. as a here those Between and probably out. mentioned those XX on few more debt taking annual share

as we'll to efficiently so as do that And possible. try

may Board But with bit. that try focusing be little that's a on the I efficiently quarter within that will our how weights possible. Roger the and is to So thing that do to vary as as

Roger Jenkins

dislocation, I is price, monitoring note the some we that, and may the of peers I the over it's also to year. bit add think like And execute of the at mean want little to another are of a add the of some that end ahead the try the end we year some the Roger, on to really if to of quarter we our year, hard catch of have at is perfectly the doing various purchasing formula. repurchase target we're do what might ways -- right reduces out can in Yes. right XX to the I debt be of do notes

today. incredible to production and excited those position things a are to prices to that payments, the price, that. for to meeting a But on of of to have good looking solve. a we've in year, our all going We're we're math the higher is call expense monitoring interest Tom's the flow, there and oil CapEx all that's focused greatly cash all contingent we're That's on team what really lower how we're spend been number good free and about really be meeting

Roger Read

right of think areas Okay. about profile, be and there's some some as that. up not in and some but Africa right trying an I'm get the areas, to as company, Murphy more mentioned way to I question. you that super in blocks, to the Thanks for America. exploration we parts high little maybe think And to competition But that West also trying in this -- a sum seem think to in South then

the the a of the going quarters that focused just to that of feeling about on your are you that maybe others competitive there -- progressed in maybe are opportunities are want? or blocks over the given too like I opportunity focused not looking last So was think on. as do last the you're of high-profile that little some you wondering things said, too several years get the you're get you at terms if couple how and exploration areas on, kind I we that

Roger Jenkins

in We're global in a Roger. into We where lot it active less places than to past, we can Houston. try work in keep to are question, we your We here work for now. try explorer Thanks primarily countries. the more

we So look we that criteria at. have some

work also can places not discoveries. like us. Coast Canada. development We are and prior we to regard that really for do major too in some East of We're interested super where have possible Wells expensive a in

not countries allowing many of want we're time There really have execute are some gone expense And and We're reviewing on are that's to execute enormous a long two for opportunities and field That's well with, our a these development additions majors -- with and really here Namibia to globally success super offshore different type actively focus. known if a very for there. with Vietnam, our and you that, seismic occasionally, our will, now happy large we ability we're compete, us wells. very partner. about

there. We didn't want to execute our drilling

on that Cote very plan field for big, that's working very suddenly had forward long large time. changing. a We've prove is development we a came So acreage that d'Ivoire area. our been

And way for everything more some than country in at know we're shareholder paid to just again, back exploration debt again, monitor we're hunt about our out positioned this more that. is, not well toward we're global that our out you We down, and -- big very about this time. walk high looking through getting asked entry return which to trying acreage. growth, going lower -- So Because expensive globally. and Tom business is at

Roger Read

it right. Thanks. All Appreciate

Roger Jenkins

Take Roger. you, care. Thank

Operator

the proceed. Jenkins. in Please We further to the queue. questions have over I'll no turn back call

Roger Jenkins

another I to coming on quarter, get you. the everyone everyone you. at one very and and had we everyone focusing call about today. questions and participating key for add soon. framework today, it. our real see anticipating Okay. good Thank up Thank how thank Appreciate value a good shareholder Thanks into a

Operator

lines. Ladies your Please teleconference. gentlemen, your will this and conclude disconnect

Murphy Oil (MUR) 3 Aug 232023 Q2 Earnings call transcript