MUR - Earnings call 3 2023 | Murphy Oil Corporation

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Operator

Good morning, ladies and gentlemen. Welcome to the Murphy Oil Corporation Third Quarter 2023 Earnings Conference Call and Webcast. [Operator Instructions] I would now like to turn the conference over to Kelly Whitley, Vice President, Investor Relations and Communications.

Kelly Whitley

Joining us is Roger Jenkins, President and Chief Executive Officer; along with Tom Mireles, Executive Vice President and Chief Financial Officer; and Eric Hambly, Executive Vice President, Operations. Please refer to the informational slides we placed on the Investor Relations section of our website as you follow along with our webcast today. numbers, interest financial Mexico. in production to are call, noncontrolling exclude the today's reserves amounts and adjusted Throughout Gulf of keep assurances considered or will some this that Litigation will Reform in in occur comments XXXX.As Securities given Please during such, be that of made events no the of Private projections call be statements attained. that forward-looking the be the Act as can defined will mind these to exist that may A differ. variety results actual of factors cause

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

Roger Jenkins

I'd proposition. execution flow, and a Murphy debt strong X, $XXX exploration more with offshore we've XXXX, well highlight of As the reduced upside capabilities. onshore sustainable in company room low to like We're Offshore with of long-term and carbon we value holds future of drilling significantly dividend our business with $X.X competitive long-standing and decades approximately advantage reduced been strong than our XXXX as since end cash generate double Slide our to debt. than Murphy's we able a paid Since running continues more to by significant turn billion to Murphy million as intensity. dividends.

all cash while Within the our past purchased quarter, maintaining we stock, and of replacing million balances $XX reserves.

our $XXX to share XXXX repurchases the we notes, capital Murphy X, million for reduction I'm our of allocation in to million goal to execute, achieve debt return. delever, remain we year. senior of on Murphy the excited remained quarter and priorities our advanced redemption we explore and through move has framework As to focused Slide of on say track and $XXX X.X third

per per with XXX,XXX day. Third production averaging barrels quarter the barrels range guidance equivalent XXX,XXX oil end of day, our exceeded of again production upper

XXXX. performance respective of in closed with field Our our into XXXX that our new noncore improvements Canada development previously and Vietnam Da assets bought during I'm their for pleased wells, as with fund onshore portion entry first strong announced, advance sanctioned board our proceeds to highest to Lac today achieving the Da XX% forecast Murphy well the performance Vang d'Ivoire the over oil are quarter, Cote project. our and areas. project Lac certain Also program delivered a field and of Vang XX,XXX of well those divestiture has redirected country new all-time announce development in

commenced since in We Oso-X Cote in the share. quarter, have in will the size Gulf drilling Murphy-operated per resume of well at Gulf, X.X million, $XX million shares repurchased we and reprocessing a term. our rig average outstanding d'Ivoire the third Mexico the projects $XX.XX very an near the of and In and exploration price

results. and tougher $XX just reducing our Murphy board the in $XX.XX Mexico. NGL any million was cubic for increase Gulf Slide per excluding the above of the combination per equivalent in we our an due rates stronger to our midpoint barrels over oil, realized of our oil In in guidance Production generating XXX,XXX royalty gas $X a day quarter, $XXX nearly the Montney was well equivalent Tom XX,XXX barrel quarter. per an onshore average financial produced the barrels day, lower outperformance natural performance, with our was I'll over CFO, forward production call million XX% rather we of of of shareholder absence in to in our feet. the progressing just debt. price quarter, X,XXX pricing Strong our while hurricane turn X.X look led events oil addition Additionally, NCI. the $XXX Murphy and Mireles, On remaining. and Murphy over as revenue of continue today, returns further to realized realized our I authorization have in now we share repurchase for approved update through million to delivering $XXX per X, a on to

Roger Jenkins

X.Murphy Slide the adjusted million strong million, Operations Slide of interest. with or income accrued per resulting diluted X. of CapEx $X.XX $XXX adjusted million million quarter, excluding of $XXX $XXX $XXX of noncontrolling reported third share the diluted quarter net share. in per $X.XX and income EBITDA in remained net minimal or in

As to Roger on excited Murphy of allocation earlier, have executed said we X.X capital framework. are our

the $XX of in framework, and total million $X.XXX of as shares redeemed our we authorization. share. To per as repurchased During our currently $XXX of quarter, flow approved outstanding Overall, paid $XXX million our adjusted an well of board program, the the that we XXX% million and dividend debt support quarterly million has quarter. third we $XXX cash free repurchase share further remaining have additional under returned

adjusted of allocate total to cash Eric funds $X.X Executive our Vice reach operational we prescribed to so we Operations, debt with of X.X Murphy total until had billion will we $X discuss With Hambly, hand our that, XXth, I'll as over September billion, call of free X.X update. in President Murphy debt. flow of to As continue the

Eric Hambly

per oil Assets barrels liquids per Shale guidance exceeding of barrels Slide XX% the XX,XXX equivalent produced Murphy's quarter, with day. of in equivalent X day Eagle third X,XXX by Ford oil

Overall, came revised wells wells X XXXX performers in wells operated As for our the We've top X we quarter. Tilden. XXXX year, great and wells wells XX seen Tilden line lateral XX. have XXX-day plan in quarterly half basis. to return from Tilden million results particular, non-operated per came online at in XXX fourth in Slide the quarter Tilden Murphy planned oil with new cumulative in the online completion with forecast, wells as time adjusting in our a brought third continue midyear this third the X significantly produced no Montney, day year. of outperform we feet of new predrill for cubic In of wells There in twice activity XXX- all are online to that In Tupper and our particularly portfolio on the the first to area wells are planned first Jambers for well as XX% the the our quarter. production Three design. planned, was after more achieved than since XXXX our applied the while wells record Catarina length.

XX and cubic and X wells an in all X top each 'XX million XXXX report. IPXX feet see recently record wells continue wells had of more production feet each X achieved of Internally, of and levels, as an day average highlighted more XX the was achieved We to per top new XX X external per the natural of of in record gas in having company Canada and have XX a cubic day. than than million IPXX Murphy

based to the performers Slide Additionally, per XX Murphy barrels XX% IPXXs. XX% in excited revised completion this of Murphy X,XXX history produced we our on our our quarter. their we third Needless all-time in XX. about from area. with liquids design in day, top are the equivalent results say, XXXX of wells, have achieved oil

million oil noncore divested per equivalent net in nonoperated nearly the As Duvernay and announced we as Kaybob asset $XXX oil third produced maintained in The our closed day approximately able position operated cash Post base future with Montney quarter. our barrels initiatives. the close, the optimization to are entire for of XXX various Kaybob assets in divestiture as portion We production of proceeds. oil. we barrels locations Duvernay a of day of assets our Placid well Slide in September, produced offshore XX% oil across equivalent XX% in XX. per maintain XX,XXX through X,XXX with

X and for XX online Mississippi the Our operated well Canyon Marmalard moving tieback forward and drilling underway ahead first Lucius nonoperated come are quarter wells XXXX. to of in projects new progress forecast #X with the #X development well online Dalmatian DeSoto in XXX, and of continue first are to Canyon oil in now mid-XXXX. the in The

anticipated first year-end projects in water life XX. extension Nova Malo production major return Slide the injection Sao waterflood the Terra project XXXX. to asset nonoperated Our advancing also to toward working are project with and by

We have valve well year with mechanical the well while safety the at problem encountered quarter. year. earlier a Dalmatian in fields issues of had Mexico separate the this #X occur issues had the subsurface operated third this Gulf X Neidermeyer mechanical The in #X

production We resume have wells workovers for planned the by both wells will mid-XXXX. year and next anticipate

nonoperated nonoperated Lucius forecast fourth that, to well workover for the scheduled the to return well scheduled addition disclosed the is for and #X first Additionally, well With stimulation in turn Kodiak with #X Roger. XXXX it back XXXX. will is mid-XXXX. previously I quarter The the production quarter of zone to of

Roger Jenkins

forecast barrels to XX,XXX for is reviewing store Da we're currently the the Murphy block barrels in XX, by development Murphy. Slide we CI-XXX, to a forecast will multiple sanctioned The in efficiency, field region. and in with today XX,XXX net estimated which or field through ensure the has concepts XX-X/XX field is XX,XXX in XX% The equivalent equivalent XX,XXX to previous Vang appraised Overall, during million premium phases pleased Slide to is to Lac XX, XXXX day gross board an in of that development on first Paon and Vietnam, operator. commerciality oil discovery On On quarter, oil-weighted a our capital barrels the XXXX. be to field pricing field developed that XXX production basis. recoverable equivalent gross resource per targeting Brent receiving oil wells of achieve to announce the Block

to XXXX. potential million barrels block, resource XX-XXX, and of will gross well, the next to to development provides development to XX million Block southwest exploration The X Da have agreement end of equivalent. field. equivalent. In across the reprocessing the XX, to initial by Hai d'Ivoire Vang we're the excited Vang oil barrels of possibilities of a provided gross will that plan planning nearby by with Gulf upward exploration third opportunities we in X a near-field prospects Block in of two well CÃ´te the to to committed XXX exploration upside viable the be us Overall, Mexico We Atwater Lac XXX outstanding advantaged Da the country drill drilling newest by of wells Slide about These in resource our mean this resource we're entry near forward million commenced quarter well XX Vietnam, well barrels during equivalent. our located in just As field exploration a of Vietnam Su Vang Lac exploration a of in submitting X well in targets term, to which XX, planned initiating this XXX target mean XXX move Slide location XXX. infrastructure on XXX Oso look million the rig part the blocks. Lac forward to back our project. Valley look we're on upward business field is Slide #X year. will work to oil XX-X/XX In moving to million million on Vang resume our Da we On of additional on long-term Murphy-operated to talk seismic by advancing country. of the upward the potential mean target to gross This The potential to

our Slide and about guidance, XX. talk we As on capital plans

in the of oil impacted free planned XXX.XXXX of forecast our range with allocation program primarily by day barrels X Order of XXX.X framework. flow per of For quarter, front-end maximizes day fourth per This weighted that we of capital equivalent production cash capital oil is includes our equivalent XX% onshore. downtime, X,XXX support barrels oil. to

in production of of being equivalent which production oil day includes quarter. Niedermeyer is a shut X,XXX third the prior well in field, our per the guidance to the of late barrels Additionally, loss in today producing

in This we're XXXX, oil day, XXX,XXX XX% oil barrels day year raising range compromised XX% increase to per per which guidance represents X,XXX midpoint. to full equivalent barrels to is For range equivalent oil XXX,XXX and a production our of liquids. of our

we long-term $XXX well that further base our returned costs. our Lastly, dividend annualized multi-tier to per to additional a announced XX, toward the range $X.XXX advancing quarterly Since X.X continuing in rewarding of own CapEx of of through share On purchased of million to dividend that Slide Lac million annually share our I'm there. as quarterly progress capital had multiyear Da million approval acquisition-related programs. the tremendously field we d'Ivoire, million framework This back nearly well through first are XX, look in framework Murphy announced August forward we allows On $XX disclosing maintaining and a $X to our framework, development by first share $XXX including million our as $XXX beyond the $XX for sanction a as pleased XX, Vang $X.XXX this while returns plant have down remaining year additional allocation guidance of shareholders new is accrued of we've of has debt. stock in excluding allocation $XX debt long-term target January, I increases billion. quarters Murphy an capital on supported and authorized repurchase our the in field and as positive million CÃ´te events come. in entry possible in as plan Slide since our the paid Vietnam shareholders country development billion,

report our will planning to our share as updates reviewing also January. capital incorporate in annual normally we're As and we in we longer-term process, work events, strategy do we our through these

increasing slight and capital remains and can production so I of returns our we through allocation intact. that capital progress framework our growth that discipline strategy delevering say However, today shareholder buybacks with fully may underlying maintaining

I'd our billion and close $X.X past XXXX. and on our capital years. to oil with multiple support competitively new business. XX we're approximately debt to today, of exploration to decades company, are a sheet We're like of we're we of on in North development balance adding the in internationally Mexico America delineated uniquely our Slide a we're Offshore, prices activity reduction opportunities to and Murphy's locations basins. well Gulf allocate significant prestine onshore positioned higher continuing and advantaged establishing since long-standing to our year-end amount highlight with fully capital call way As couple well company that discipline of

I for that, With successful to and the and to take and this looking would the today forward end work comments your quarter to our it. up our quarter Lastly thank employees incredible questions great another like end appreciate year. we'll

Operator

from [indiscernible] question-and-answer Ladies [Operator comes Bert and Instructions] line question of gentlemen, now begin we will First session. the the

Unknown Analyst

could drive volumes your looks you of participate those after plan maybe prospects sales if like that It just exploration future lease in helped beat XQ of and talk and as well was Mexico well. the wondering part maybe also if your future you so I in your outperformed Gulf that maybe guidance. have to you about field

Roger Jenkins

going that all sales forward. will of of active We be in in now. course, these We're right the middle

We table plan that well haven't risk prospects and field, participate lower We're and critical participating to year competitive field It's want had very are advantage countries budget work us approved at we very to of next a the another country, lease cost in We're in at now very the LDV is of and level have X significant opportunity likely, be reviewing participating wells and these sought in to and active we experience wells. faster. we Gulf Vietnam internationally. Murphy some and all we but primarily a our time. nice company after partners development active lower our we working internationally one bring where prospects enter in exploration, we're and large a likely this finalized, going are move we Also the bring and Vietnam because long our sales. highly with our to on in a Murphy. to a non-op very in of

for We have is internationally and differentiator right positions in Doing now nice a now, internationally. really real the Corporation. which Oil X and Gulf Murphy well well positioned

Unknown Analyst

that I sure in understood the every to supposed for XQ? second payout. that the annual of wanted part, What is be I make that quarter? an did Then to you percentage XX%. Or more target X.X just is just Murphy target Maybe

Thomas Mireles

strategy a part excited about there phase this. an we of about our really think is and of moving of there's into part timing way this execution this, it, Yes, actually The we're framework.

trying On basis. is we and precise disconnect of side, be we if It on basis. flexibility aren't bit the a intrinsic gives little to more value. of quarter-to-quarter share an price our -- between a annual see our timing That see any us to

we as really differences While this target we you us. see generally being on an for framework, there. some may to stay the annual It's focus

Roger Jenkins

million about and good get real in focusing to where really on are I debt feel that. got we this today, down goal that We've we're and $XXX

this we from the trying to go Just out line and there. can down close on to the on best formula be year, but

Operator

the from Your of Mariani line next Roth question comes MKM. Leo from

Leo Mariani

Question should terms could if us in on see to ballpark CapEx wanted XQ. you be help there fourth quarter number of the I out here. what in

those sheet You $XX you've also this are hit and here? Have Or costs had come on terms those talked about the million the acquisition numbers of balance of here related of into XQ? late. already in the

Roger Jenkins

Leo, broke time, was first What your The sorry. just more question of One up that again? CapEx, I'm part second. a is last

Leo Mariani

million of areas entering. of $XX some with new related you're mentioned acquisition You where costs these

have curious, on those fourth the are come incurred already quarter Just or those here? the been into

Roger Jenkins

behind in pretty have primarily. us do over Those much in been exploration that's expanse some work covered Cote seismic d'Ivoire that's We and have here.

You have the Eric. CapEx,

Eric Hambly

fourth million. $XXX the under in quarter for CapEx ought to come

Roger Jenkins

number It shape we're our have maintains that. don't with adds of guidance, handy all midpoint our but us, to good guidance. on up it in We and right that

really we're Our quarter. lower, cash CapEx is in flow and fourth the shape for on good free

Eric Hambly

major really we comfortable in restating, we the uncertainty, CapEx of where of There's CapEx and why good a of a I full that don't ongoing because year we're we Just we bit have with have give with business range fields that's projects we've range mean give Obviously, feel nonoperated operate. about range. CapEx a range. we we our our primarily outcomes uncertainty Again, expressed.

Leo Mariani

onshore. in really non-op XQ? of but there's There's bit of like the quarter? of those bulk the provide sounds that's activity in comprises that handful spending. kind de you of I of in expenditures terms kind Wells, minimis here What a nothing it the Can fourth a more Ford little Eagle color know

Eric Hambly

with our onshore pointed business, As out, done there. essentially program you we our are

up Eagle number from ready to That That's CapEx a to the drilling of activity that of a business. get doesn't project Oso XXXX. the our Ford at bit Malo of have Montney our our offshore, Marmalard our the projects in a of work as nonoperator have in facility too ongoing Eagle for We In drilling the fourth much. with picking here our activity do have We're a and little We we spending. well resumption drive Ford. in of and quarter Sao development for little highlighted doing in activity bit bit nonoperated working normal rigs well. we the as quite X #X in

Leo Mariani

buyback, quarter. It it you on Just was kicked see. talk with off share to bit as a little great just balancing you reduction how this obviously, forward that debt Can here. we go maybe the you're about

Roger Jenkins

to formula, a Leo. We're the bias to have little how don't is getting with our coming it. for down towards at debt the XX-XX rest year-end formula off trying further year, stay the color the that split. of we're that. I I to It's see any don't working more

Thomas Mireles

I that covered No, Roger think it.

stated of our We have reduction goal a for the with it of and delevering. this fits priorities year, debt year

Roger Jenkins

Just repurchase the to though, in stock be the Along quarter. anticipate production. fourth Leo, do with clear we

Operator

question Rice. Meade Charles Your of from Johnson Instructions] [Operator comes line from the next

Charles Meade

Vietnam just what us just also already relatively X from us? Or any is you I on risk guys more those but I talk for some bang that briefly you these these that it's -- bit just clarify are a going to that to Can like? I success to you XX,XXX Can activity to numbers prospects? exploration that's -- you they're touched exploration earlier net get you is that? prospects think I the what to you understanding XX,XXX prospects first for Does characterize day Roger, locked to see about in be there. characterize you in Then include your low XX. said that. only? could if My over is to think X your BOE Q&A. want that a risk, put little

Roger Jenkins

appreciate that held of put here, it them. We've question. with us forecast, XXX% prospects. with simple while, to a this number, been PetroVietnam. prospects, with their a plan, also that come money us. just No, over approval is any held sleeping development has back with do Murphy. in are one project. carbonate ready nice any had Vietnam to to a from the We anything sands life by in back for giant I fractured in meaning geologic field the Nothing the setting. for great these very had It's of exploration they're These

zone Also how partners the to that, one One nearby stratigraphic resembling very similar field room has some in and the recently long by we for our well XX,XXX Other some good very laid a exploration a XX,XXX, of success and level a term, a a wells very has business of very this is large large XX,XXX, trap our same prospect some structure of is that which as out. day change barrel is the it. nice drilled that or as the world targeting there to and can Vietnam success. make have us

it's low lower As but to Gulf it's not risk, the the $XXX million component, of Mexico. risk sub-salt risk in wells big than

South in frames familiar, a high most what to Vietnam, here. unless are about platforms, talking of of years That wells of country are You're kind production There people we're basin here. a is this would like look Charles? Vietnam, lower not cost in in This follow-on we're FSOs infrastructure, pipelines, shallow water. here FPSOs, doing that, Rank a not you multiple in Vietnam. Also XX lot segment Wildcat everywhere the like of with risk. the a ago, It's had Louisiana which

Charles Meade

by it's obviously your my my really to X.X. Murphy second get modeling, about is Then achievement X.X and Murphy an question it's

on time looks net For you me, rolling the debt sense in that 'XX, by territory a report on XQ a to X.X if guys basis, the be basis. going an certainly not in are you debt like absolute it stop

forward you any that be guys are -- what -- you see year if position conversation the if and debt shifts effect extent any you board discussed the 'XX, guys to you a can that Has you -- just to have thing. with -- you characterize had must you exit without I'm board but at going your same are the meeting could there's repurchases. share there's for that you giving that a having to guys roll guys thinking X board about it's with -- you what as the guys 'XX? curious you're You the possible level?If net that on

Roger Jenkins

Obviously, No. this. we are discussing

time, the finance where because our our our do returns great to on into then with board, depleting to new way. my returns. keep price, because very advantage countries that there more well The detail. more here modeling and in like putting it's We to middle not there, in get X.X we can plan, fairway honoring opening move to to things and assets go X overall us competitive XX-XX. picked you budget the be for have up be as in we committee I We assets. similar there X.X us there positioned. offshore the wollstone strategy comments, get we framework, We're quickly. We're would review the We're we down in our up our XX-XX, can come business. opportunities incredible We're I of execution. over oil very would could just next We the know, of Murphy still our our want orderly say year, a go oil depending to on have said it we'll the then and we important

you the that that is each of morning. so, this rolling can stop, of before great to we X.X, least said quickly. change. We that it We probably line appreciate comment quarter us. heard to We're numbers X XX% at want as higher move me I coining doing above extremely well. for this of oil I we have opportunities execute very Charles. way, but front or you in haven't With prices a

Operator

at no to time. I remarks. Jenkins further back Roger for to are this questions like it would turn There closing

Roger Jenkins

it. looking call one and you, we're we in for really had talk appreciate everyone, long a January. appreciate quarter, the of you. Thank forward to We a in we'll good one, time, you I best today. to another late attending Thank our and

Operator

concludes conference for this and gentlemen, Ladies call. Thank you today's participating.

You disconnect. may now

Murphy Oil (MUR) 2 Nov 232023 Q3 Earnings call transcript