MUR - Earnings call transcript Q3 2024

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Operator

Good morning, ladies and gentlemen, and welcome to the Murphy Oil Corporation Third Quarter 2024 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. Please go ahead.

Kelly Whitley

Good morning, everyone, and thank you for joining us on our third quarter earnings call today. With me are Roger Jenkins, Chief Executive Officer; Eric Hambly, President and Chief Operating Officer; and Tom Mireles, Executive Vice President and Chief Financial Officer. Please refer to the informational slides we have placed on the Investor Relations section of our website as you follow along with our webcast today. numbers, interest amounts Mexico. Slide in production exclude adjusted X. call, noncontrolling our the today's reserves, are financial to Throughout Gulf of during the Private Please the Litigation Reform considered that mind XXXX. Securities statements this of made forward-looking in keep be call defined some as Act will in comments of

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

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

Roger Jenkins

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

Vietnam. drilling construction Hai the project for began program Da balance returning exploration our leading to our X.X to focused pleased As third progressing HSV of maintaining Su wells program funds in equivalent in of the the of day field brought Vang Vietnam. Murphy pleased our quarter, Slide early well returns. corporate priorities and the we Murphy in Gulf Vang like fourth in the Eagle progressed advancing Execute, oil I'm shareholders we Mexico initiated we announce that shareholder third quarter, development Lac or per to the third planned. I'm produced quarter, production X, operations, platform our Shale during while progress Also Ford in exploration quarter. I'd Delever, sheet. program initiated our online reiterate of exploration Explore, X-well made Return. In and and our We as to well, with barrels we've at XXX,XXX which a executing we on the turn

our $XXX a average repurchased shares to we count we of stock the $XX.XX or year-end of Murphy reduced moving XXXX. On shares. million Last disclosed share Year-to-date, we've quarter, or Slide has price third million X.X by capital at of framework. since million Murphy our an X.X million of share. Overall, $XXX we're quarter, X. repurchased of that XX% announced stock the During allocation X

returned As a primarily XX% return to to minimum, in that free buybacks. Murphy times minimum of result, such price buy the I shareholders on our us XXX% that our minimum, is now. Most for past of flow dislocation, of a cash free flow this target shareholder is as adjusted emphasis cash our stock adjusted and we free flow allows significantly, now through after threshold, extensive we pay. allocating adjusted quarter reminder, A returns, more highlight as certainly which to dividend cash year-to-date, a of buybacks. we

years allocation the adjusted our our we're balance shares sheet in As time, our I'm billion debt free the sheet particular, to years repurchased of improvements, accomplished in dividend launching with and that Since framework recent described X goal. we've million our in long-term remaining increased XX%. our ago. by committed will cash to our $XXX since as balance capital allocated of proud what be framework, has flow $X.X team

million average an we quarter Murphy X, in XX,XXX the of As XXX,XXX $XXX authorization. On equivalent repurchase have third X, of of remaining share Slide approved barrels November total our billion produced oil. approximately barrels $X.X under with

$XX forward fixed per contracts WTI price price $X.XX was to price and natural was As oil diversification per NGL a $XX while premium realized cubic with feet, nearly nearly a realized Canada. usual, sale we and in our realized helped barrel, price thousand of by gas

to turn interest. I'm our update results. call As excluding for on over the now going Mireles, a over million Tom Murphy financial quarter, result, in generated revenue CFO, $XXX an Tom? noncontrolling the to of our

Thomas Mireles

quarter CapEx, third net accrued excluding generated $XXX Good income Slide net we per in Roger. noncontrolling or $X.XX Overall, and income share. EBITDA with everyone. of million share you, reported adjusted million $X.XX million Murphy X. $XXX diluted interest. $XXX diluted or of morning, per of Thank the during of $XXX adjusted quarter million the

notes that maturity with profile transaction us the notes Murphy repurchased the a debt. Slide years we capital executed issuance to nearly XXXX, $XXX to tender call were through priority very senior of commodity with quarter, due so successful plan and strengthened of reduced of cash the has $XX remaining the in pleased per $XX extending and the As fourth price just due long-term transactions the in of XXXX, to flow have in balance to quarter quarter, of us the Murphy's notes We XXXX. of delever we partial generated of the recent million price sheet of are a achieve million led XXXX million stock at I neutral. that during free $XXX early and markets over has fourth average Year-to-date, volatility. result debt am share. the repurchase debt an X. $XX that stock to positioned withstand able our million senior

$XXX into X-year billion from increase represents provides of senior and credit $X.X of unsecured entered Murphy XX% facility liquidity. Slide a our facility, previous X. our we a credit Additionally, This with an highlighting the million new this quarter. additional strength

responsible over Murphy Murphy's oversight our our being achieving community. I will President Officer, it to to that robust and to Hambly, details Operating Chief environmental discuss and operational stewardship, goals. With we on and a governance sustainability focused our turn have positive that, strong look remains impacts company, a our We Eric forward updates. on mission's ongoing report

Eric Hambly

volumes. with Shale, average and in In XX. liquids XX% you, equivalent the of quarter day per an XX% the produced third Murphy Thank oil Ford barrels XX,XXX oil Tom. Eagle Slide

and as gross Karnes online to We program the non-operated Tilden as brought X delivery wells. non-operated well execute our during quarter Tilden continue gross well wells and X wells X

in Murphy at maintained year-end. hold high of continue in with in not wells fourth DUCs advance DUC as will completions. planned Karnes X come inventory as online Historically, well Catarina program quarter X a to Our the as XXXX drilling to has

However, Ford early in a to from consistent lateral design, per shifting XXXX. I'm well increase optimized see a so completed XXXX. XX% history lowest Murphy excited onshore, since foot in decrease achieving more to we results production rig be schedule will cost Shale our we our continued with completion particularly positive positioned to are the Eagle

Murphy year-to-date guidance approximately feet per Tupper XXXX maintain the average price Murphy Our cubic net forward XX mitigate for sales in an of an outperform in fixed per quarter, sold price volumes contracts of feet XXXX. Slide accounted a program volumes AECO third Dawn. Chicago, including has diverse this XX. hours length a portfolio price compared risk. lateral wells seen quarter day to to half at day points, million as significant We and increase XX% pumping from And to our million produced continue by which Malin, exceeded and third Montney in also in XXX cubic per sold. Ventura, completed nearly expectations. asset, also the our Emerson, XX% increase day

well achieved As the produced AECO third well. per this realized oil Mormont as barrels compared this diversification in cubic #X XX% per quarter. strategy, In thousand results initial quarter, the new from $X.XX thousand planned and Murphy average and of at I'm the equivalent $X.XX feet. Slide of we drilling oil spud a of price XX,XXX XX. online the a result cubic per Gulf of #X the an average Mexico, We in price Mormont day excited feet with operated an brought of to

gross initiated Canada, Samurai average node on with downtime. of exploration improved of Khaleesi, a where XX,XXX of equivalent started barrels technology was over the and non-operated at Additionally, survey oil nearby X Nova provide impacted bottom the Mormont, pleased fields the pleased day Mormont, project third in development will additional announce XXX% wells day with This we In the our barrels and injection the enhanced we new Murphy-operated the I'm water opportunities. produced are per Khaleesi an partner also Terra St. that to which basis. waterflood during with oil oil operating results across and quarter, first our Malo imaging by at production and each X,XXX per our our quarter. Recently, ocean seismic us producing I'm across prospects. offshore

quarter brought total the million previously announced, workovers $XX we As planned third expenses. we online during workover all for

significant field and Vietnam, recently Lac we've milestone early Da We been plan construction. the shipyard, initiated as quarter, million fourth #X very and $XX a project I impressed yard. Samurai production a platform with workover and to well and #X of #X planned developed before at workover expenses return to the operated We For Samurai wells. the achieved the the we were have forecasted In in we rig the year-end. Slide and visited recently quarter Marmalard our we progressing a mechanical operated fourth the issue Roger well Vang. team construction XX. development for the at

Overall, project look We drilling development first expect late for remains for XXXX. Slide forward to major oil to in achieving remaining and contracts award the XXXX. on in year-end Murphy beginning schedule our XX. our by wells

During Non-commercial and the the well. well. #X the exploration present, plugged we we drilled and hydrocarbons were abandoned operated Sebastian quarter,

that d'Ivoire, for before costs We Murphy out the opportunities Gulf with we exploration X Vietnam plans the million progressing excited seeing our to business in multiple exploration quarter. to for close year, position These forward Vietnam, blocks. Slide we continues Cote the of the initiated final I'm the Block to Mexico I we're partners As XXXX expect and with in opportunities XX. end our across we program look the the XX-X/XX to in forecast this Da XX in the in in reprocessing exploration spud potential quarter. well wells. the sizable Hai fourth receive create results. Slide drill exploration the seismic net move third to drilling progress the provide total of Lac we as program rig the Vang-XX and data for drilling exploration year. meaningful XX-X/XX a will in Su Block After XX. our $XX well, Hong-XX and well our

other across types as as with We have discoveries nearby operators. the identified pleased exploration opportunities interesting well by and prospects several recent announced are play

begin We will or of an -- it in program available continue for XXXX becomes our begin we'll late data likely planning exploration evaluation as and XXXX. the

undeveloped on field XX. Additionally, for for track year-end a plan the we by remain discovery XXXX. Slide submitting pond development

oil quarter, the planned X,XXX per includes XX% of forecast This per Terra barrels production barrels at X,XXX volumes. of For of of downtime range fourth of downtime oil XX% equivalent non-operated equivalent XXX,XXX to we Nova. day liquids and equivalent for per with onshore oil day volumes barrels planned oil XXX,XXX maintenance of and day

CapEx $XXX million. fourth planned forecast quarter includes Our of also accrued

to full volumes. per For range our are XXX,XXX oil XX% guidance liquids XXXX, XXX,XXX oil equivalent XX% and tightening of volumes barrels we with to year day

production at Terra As impacted been previously has continued Nova. disclosed, by downtime

to January. multiyear each CapEx NCI. Slide XX. We of our plan We $X.XX our billion, excluding million are maintaining accrued $XXX range share

full a for budget we provide our quarter spending and are update January. plans, evaluating our assumptions, also progress fourth price with in we we and commodity As XXXX, results our production will

constant. aspects many will However, remain

As cash years. approximately to remains for in target. We'll deep toward while inventory achieve the as long-term XX% debt onshore oil-weighted many future as projects Murphy supports billion flow we high-returning that of well offshore look future, committed our together reinvesting growth $X this

have Vietnam in and across catalysts with in the of oil exploration exciting Mexico, high-impact Vietnam, first wells Cote reaching XXXX Gulf We d'Ivoire. ahead drilling and

potential We loyal rewarding achieving our ongoing to Roger. shareholders investment-grade are to while dividend increases that plan back turn metrics continue also it that, I and with an rating. And with will with share consistent repurchases

Roger Jenkins

Eric. Thank you,

Gulf We XX, solid and shareholder results in our onshore had As we another through capital exceeding our as like I'd framework. that guidance our you on well execution prescribed program. reiterate to with Slide of deliver get allocation buybacks returns and able performing of of were continued assets Mexico quarter to

my our starting enhanced portfolio and we last is and also high-impact quarter. look balance call the development fourth in we're exploration We executing this liquidity exploration opportunities. Well, transactions call expanding my this forward XXXX I market in of COO. is estimate to through capital our Moreover, August as sheet advancing plans, and today, our Vietnam early with XXth

look of our I I'd Whitley, to think their shareholders wish we Murphy dedicated for all like with I one team you leading Eric I great longer, their Kelly thank IR for say. I like analysts our an of as Megan our these like the over personally one support Tom, along years. forward and I covered must I'd also way. support. IR our career Tigers, best missed that and it thank all XX-year-plus a the and executive all like our and excellent big thank to this and X have seem game team go plan, weekend. the Kelly, excel. Thank also all watching employees to years. best for is along to thank Thank I'd all CEO. efforts And does to great my you lot all. of I'd the Beth. there last she's us a

Operator

Neal Your Securities. Truist question comes first from Instructions] [Operator with Dingmann

Neal Dingmann

volatility out First, different be your your lot year's oil on Roger, the specifically, depending Really, 'XX depending price of offshore I'm all And 'XX is the what your say prices to toggle I along the would way. higher oil you wondering, or first the operations. on next I'd appreciate to low help $XX be want a under question [indiscernible] a retirement congratulate on could speak plan? spend there today on versus do. really My how environment, There's would plan oil? $XX a just you what

Eric Hambly

is you for aspiration think 'XX CapEx We production on company to to be slightly similar remain annual I'll our growth approximately would of jump answer basis. that we have 'XX program, this about of production in CAGR Shale a new low we've 'XX Eric. well expect Neal, on is delivery. to be from as Ford significantly while XXXX, an and spending look past XXXX way average higher the The plan. When quite timing through Eagle to question. with to committed anticipate in $X.X higher higher our we communicated the bit and oil-weighted in oil our that billion based production I to than the

to CapEx in something finalizing a you our be that call look price obviously, into January. in of allocation head terms In that budget, on scenario, we as and in we'll evaluating, forward we'll our that's low updating

Neal Dingmann

exploration plans just these the wondering, the And beyond all optionality. of second just of then a just typical could my love remind Vietnam you question like Vietnam. me wells of maybe shallow have these potential implication, well. I'm about versus wondering on And first just wells? wondering, Gulf and from you I spoken cost X I Mexico upside in Vietnam

Eric Hambly

we nice Great the our really progress that XXX Vang discovery equivalent basis We're developing an is question, which Long about got And a blocks Vietnam gross. opportunity in really identified Neal. had on long we're there project once excited X here. exploration running that barrel in that have development, We the moving Da we a Vietnam we with field, a in room Cuu million made we Basin. great on a Lac that on the

equivalent first Hai late mean which in to sizable third prospect the on million of The oil is over X XXX barrels, Vang really XXX to got we of prospects. starting quarter a the of an So drilling Su nice million upward targeting barrel is a prospect.

XXX million XX field, million material. compare that potential be a the to mean Vang we're you the Da something After Vang we It has Hai Lac about. it's move opportunity. If drill of to we'll and upside to the excited type barrel to targets Lac obviously, Su that well, million Hong, that barrel Da XXX the really really barrel

Vietnam, decade to a which produce to toward XX,XXX business really X have end these the to So allow to in be together barrel might XX,XXX of the a in the potential day material range. develop us the meaningful really able

the So results talk with so about really we're how likely progress next able far executing year. and excited really happy to early be about there,

Roger Jenkins

more a that, color Just on bit Neal.

and business exploration, Cote Tom We're in a of sought really shallow I advantage, Eric project company both the business, copy before. next highly same think having have go-to unique and a possible thing doing PON. door, significant in for to water, development a at did very infrastructure Malaysia we a big with had it's we exploration where big ran development what a after a that while d'Ivoire,

one for development company very our on unique, here the together was and So sets a good put by and of team. that the the development of business changeable on with world exploration we very got really on our other, both possible ends

Eric Hambly

Yes.

are Just results be we prospects from by even terms develop from what remaining follow-on, a from geology have last with quite excited comment of have find. inventory prospects impacted we these success dependency me, on only prospects would Neal, the with in not some no to of both large them, blocks. the wells. But these blocks, of but we that Obviously, do with

that quite other have we'll future in evaluating few a We be years. opportunities

Operator

Carlos next question comes with Research. Your Wolfe from Escalante

Carlos Andres E. Escalante

I of all, congratulations. this win role might congratulations Alabama on Roger, weekend. your think Eric, Roger First as well.

So given there's question. the of up on start And given let a picking inevitable out that, strategy. that previous there's exploration on Obviously, me volatility handful just with there. only plays an and prices share

some over just and how course on you consolidation what's to of order for what's mitigate this do in is forward shortsighted, So see but happened your the the of quarter? Obviously, going options into how the space and entering into perspective as would context especially place. is and the on falling like year its your to political balance the you XXXX, geopolitical see get now the of and moving

Roger Jenkins

has We Africa. have Vietnam we work one elsewhere. business. kind and We have worked caught thing in never executive to of we one we lived West that cash necessary and Murphy maximization kind either Eric ins one about work Canada. anywhere will of return, we execute our our really, never we're that. or focused really on international on do can let budgeting really so highest on Murphy our and just prepared have to And world for the in that We our experience, most ability kind have answer I'll move pipe allocation vendor, regulator. work up work capital but We and We sheet Gulf. negatives of with focus in and setup internationally. on with outs an balance and of And is positives side. work and the free is and in we -- in be executing one the our We really focused flow framework. Political the whatever team

there elections. both will that that. Cote regulatory welcomed as we're Vietnam, a pride We incredibly really And different to we d'Ivoire animal company here Murphy. very by say ability, a execution ourselves at these like of governments. outcomes That's in to and super on we majors. singular kind of what Murphy all They're So worked have with built happy super which I in major

to advantaged and this of week can, of probably things But leasing, of to we're Mexico, that? be corporate things. Eric, for from if taxes offshore particular like advantages course, add to Gulf forward. we're involving have bear, in all this but and So to those thing, any less outcome kind election the to moving really you'd regulatory come have different just us

Eric Hambly

Yes.

a Just to couple points of I'd like make.

in opportunities, existing we within the maintain ability referenced investment then an now. in investment fields have have grow scale our and portfolio opportunities the offshore the fact We have what we discovered fields of our that that producing past the to and from are our

We onshore, opportunities locations, low to decades Kaybob an of inventory and invest the we ever locations barrel. In shale decades locations deep allow have and in with an many extensive without and business of the us the a of evens scale $XX discovery of Ford, X,XXX that able to below making oiliness acquisition. be most another the without very Duvernay oil our XXX in a bench investment them break have nearly Eagle there for multiple maintain making for

feel business CAGR the shareholders execute several next we to oil-weighted, So type to decades. for of single high nice returning very growth, well positioned we're a cash

do term. that potential Cote about We're unique the near late d'Ivoire getting It's think and material have exploration fairly kicking excited about off exploration that that's opportunities we the our also I program really that Vietnam opportunities, fairly excited all progressing for XXXX. in a we're we're that, can in unique. also very company

doing. we're make really investments kind the happy that our how exploration to and forward. with we're of well both and we heading with feel portfolio, our So positioned

and for and help wasn't can you ask how re-ask a you that. did frame answer You I that, quite could question maybe you. sure that about I consolidation, question

Carlos Andres E. Escalante

more Well, opportunities optionality both that on both the that in have onshore guess onshore Sure. question I with my offshore create to the and spaces. you provide have and consolidation you was the ability opportunities you or offshore

And there's you terms in in hit point that that? past of risk volatility? about it of same you how handful only were a do plays. quarter, exploration share the the my see they how And that seems like current And harder -- price think do that terms mitigating over of for reason. was of So

So what that inorganically wondering about doing, opposed to exploration been is how you've you which led? as expanding think

Eric Hambly

Okay. Yes.

me jump So frame I feel guess to in. and Roger, free that let

We offshore happy across for we M&A consistently advantage. a we are competitive in the that We really think the opportunities space, portfolio we the exploration have. with primarily where do have evaluate

made made have really have just We and a exploiting Mexico to proven of nice the likely XXXX, to a Malaysia successful Mexico, deep-water be Gulf XXXX position, built in block on to made nice and someone very money but of and to a that. is. people very decade active to I the into in underexplored in divestiture Gulf acquisitions spend we're doing discovery last M&A, may see chase over of in inorganic low-cost what great happy from we're with don't in that with 'XX partly through exploration when our basins look with Namibia. We very to make to those like to we at M&A. And we've an vent, developed exploration more exploration that business. we organic up us relatively assets We're always in find what advantaged our an enter blocks, be of portfolio very and maintain a well through that an been which opportunities It's grow our growing and lot cost. That's beef portfolio been come all to low something have interested those partly entry, some watching our be production, A a much to imagine we do focus successful potential portfolio. acquisition a that prospects little common of of perspective. large deliver kind can the

Carlos Andres E. Escalante

sure. Sure,

quick and downtime impacted this you question. downtime, which second plenty additional it my was And around On quarter has a Nova, Terra that had just production. quote has then Okay. follow-up, of

the has operating there about potentially chatter been disposing some Now party of it.

in rumors, I speculate see an your And do on thoughts? be would know what into it how asset consider on you that your greater I this you falling but operating. priority? wonder if portfolio Obviously, would you terms are So of don't ever

Eric Hambly

Yes.

owner We've So the run we're with Terra at XX% extremely the perspective. disappointed working time interest from Nova. been a asset in of performance

If been how a with do averaging a assets, we example, XX% in in that about our XX% contrast Nova Quay, uptime. Terra asset you produced for we operated King's has uptime.

do they expected We to XX% XX%. would that

has thought guidance frustrating they It's that historical achieve reflected uptime. we XX% XX%. our could a been about disappointing. They've and XX% So been actually to doing

We can. try are with where help improve to working our group partner to operations we

As very a challenging do to that, XX% it's we're but non-operated owner, doing what we can.

Our than reflects production about a fourth have ongoing historically the guidance they're quarter that lower of level because we thought might downtime experiencing.

future that's operating happen. operatorship, to will have effort come of agreement would something type operator And language there's working just unlikely make terms where the really In the in extremely change about. any XX% not of operate think to really that We're no interest, that something to bear. that at in would to

we'll strategic if So operator the as that has and a to alternative and we And asset, will sort for try help. see of the monitor well. watch

Operator

ROTH Mariani Leo next from Your question comes at Capital.

Leo Mariani

looks to follow you're the a quarter. that in it up in the wanted Just I Eagle your in about of you Ford all comments the fourth here. onshore drilling areas guess some little made like bit

past. next year, Montney Duvernay getting like on It you're early than wells. plan out? also year to growing heard growing you in there. Do Duvernay production similar little and in Montney it sounds early and If the different of the expect bit to you're you're you the start next of think well drilling after call, quarter general I start as I Eagle bit smooth you've the get head bit expecting you kind of a a year start little sort well maybe trajectory? Ford earlier had some in a Do as just onshore see to drilling a a from some fourth as the of right

Roger Jenkins

wells profile, Thanks, Ford allow intend great drilling Eagle with been to trying question. to of new we've We to Leo. maintain timing a this business is more XXXX. that a which will What do average us to -- going year earlier of That's have have have online a in our forward. profile type consistent

of a higher be deliver to with bringing bit with a to sooner. wells on similar level expect So relatively we average CapEx, annual little slightly able

fourth in quarter come will XXXX. those drilling are in early relatively our wells the online in We area, Karnes and

to once see are we that, that think you'll able slightly maintain average I we establish production. higher

to Ford may X,XXX grow X,XXX average an production compared in barrels on XXXX. or Eagle annual basis 'XX day So a

expect onshore our in years. first and us asset, over to That's we normal Canada drilling specifically of few the get the to been last pad month work for Tupper For in sort last of the the year.

We in that to Tupper full. plant have program very capacity a limited our keep required asset

budget, well program that's consistent of throughout a expect of completing I we plant and we'll the delivery of when past 'XX few done new so And of capacity and that asset we the finalize operated years. have drilling our we've And with right at number the rest soon have decline. And for little limited at least in the near the our wells a the term, plan in bit early be will how after. to year, Tupper keep with pretty

helps plant with wells. frame touching for at do our what to it you. our trying that capacity, So we're not we'll always with Hopefully, new assets delivery we're of onshore but be

Leo Mariani

that do little time mean, to this they of just Or time fair from that? I that's some XQ, It bit I some a around wells, on you No, a little drop think get And Can just on touch helpful a and that? mean, as detailed be in bit. But higher the that I to maybe to and just well for been a looks XQ require workover versus to prepared bit bit older XXXX? seems of out little workover little running last. I little a and your more general, you I TLC. perhaps perspective in of like went bit get year have kind down, expectation comments kind get of there a tend a into have start that provide of with, in your your sure. costs remediate little bit little to expenses. you're up to going it like going kind think just more guess, wanted we can a to What's bit they're you that, versus a

Eric Hambly

say workover bit the than typical expense we Yes. the this on we've third would quite at time, quarter. higher What third Thanks, Leo. quarter, a year. early the was to the workovers part that the we we primarily able year, of anticipated normally complete a I In is our expect or towards were seen would

expense workover little So lower. a was bit

not we And build this end it which have us, production. see business ownership to the heading we're the to and little quarter. of so It's happy a well a into type of that, well, on aware well XXXX opportunity. And to well approaching I a and It's this in something will it fourth anticipate after finish then we're significance. for of Marmalard into we're than not to unless start work unfortunately, opportunity specific higher of the quarter, offshore any next plans As that we're is sort workovers unusual. average #X of quarter the of thing return a It's outlier been an our happen. And Samurai our a to up quite also routine planning our working bit interest, then XX% don't has soon.

Operator

Greta at Drefke comes question from Sachs. Goldman next Your

Margaret Drefke

role was over play of a your to on you view about time? the then diversification. Canadian position your more broadly, could benefits talk the wondering bit portfolio And asset more I the if expect you onshore in

Roger Jenkins

question, known for been XX probably a very that operator first that almost I but we've let Eric to have Canada years. We're in answer I'll frame there.

one uniquely limited represented the coming done about perspective, expanding we forward very also there. West from gas that lot see sale the we've off different. We is assets in large at of we're anything I position a unique out We've haul. LNG our all a day a and only the all have, to there. And Southeast uniquely Tupper the LNG the experience both Canada the are gives long-term of West forward there significant that Chevron. partners us get and with the globally key, Asia to sales. We're see have Coast there Duvernay known Montney, there. over Eric through all peak by to we all with assets so of where far, the the very Canada from scratch no coming through we We visit we position. But situation market worked going M&A, long And lived we a international in very that Tom recently and higher today, with a shows a never sought we a LNG that LNG of lot and that be relationships onshore equity off well it our a leasing. of macro Coast very to for as macro that and partners happy by Canada level feel issue meetings are which Shale the a is valuable, And differentiated or big built These in see acquire of We're that into the Malaysia. after player sales action

Eric, you which more need different we're up for detail should you glad from provide. believe to unless So there. be you'd I frame it And that

Eric Hambly

years more Roger. What done Thanks, a our in turn capital-efficient a we've to the X asset with one really our ability assets dry couple our We've it low just and job well with America done performance. last tremendous Montney is most cost. North Tupper Yes. at resource well X cost into gas of terms or develop a our of over I'll the make observations.

in some leading Western We an from have the IPXX perspective. of wells Canada

quite will what So low, is which the efficiency we improve which of opportunities price we controlling there. And current time. capital our is we're think unfortunately, can, the over AECO

Western in. If in Roger We'll perspective. oily a perspective, positioned invest Ford we pivotal when invest our Canada It's there Eagle to rate we the in basis locations Kaybob in go-to cost Duvernay, it wells which Kaybob. there you asset be really on part top XXX capital a have portfolio term, efficiency. One we proven allow have quite a well will be feel in Kaybob, from is gas an nearly pointed geography because the locations XXXX, and performing positioned out, of with ultimately, us believe a Canada we natural other and we industry to to that start long our oil very well-performing in and We portfolio our have high on entered energy flow that to nice around we multiple Kaybob, really have to maintain an in be pivot our continue -- a decades. make future. also the LNG able comment I'll cash as high past shale will for with most tier. top us our We'll the into business move to And allow the assets will oil gas their look gas now a investment that weighting, and generating

Margaret Drefke

on you've time? have here, on efficiencies for And are you and then that that Ford, XX, very the on for think what the untapped additional incremental thus quick call progress a on helpful. so then from recognizing the That's Slide far levers further follow-up of the drive the Eagle can example, over just kind I outlook efficiencies highlighted far

Eric Hambly

That's question. great a

call little reduction of I So slide pressure things Eagle in why anticipating costs we but this the that's bit our the rig like of here. our have fluctuation to not highlight we're and next and a for of course, service which, one performance compared our driving Ford year a of in to was we business what's for prepared the one year earnings wanted really pumping did costs, reasons you commonly

we to wells demonstrated hours of foot our many and of our which business a I'm continuing up our track with and for That's cost the exactly online improve to we've performance the accomplishment operations consistently in record hard know driven next achieved Ford how we Our that team in more Eagle of up the in set to looking great how for pumping they'll optimize think for come strong lowest by keep but slightly in team, cheaper the It's how look terms by a we recognizing thing per to is history and fact sooner, location, real-time. me we're of my we've our what we the improving efficiency, for drill will my years, and efficient which us I and also from so is is lateral we get opportunities. more and same. consistently that. We play, wells anticipate proud design a I able how perspective, the fracs, our bring critical operations, on completions pump improve allowing extremely

Operator

with Paul [Operator from Instructions] next Your question Scotiabank. Cheng comes

Paul Cheng

to so with not you and you. for wanted the promotion question, forward all say for I retirement on appreciate. congratulations and thank Eric sometimes look and really very the the a congratulations And also to on help tolerate working and insight intelligent

Roger Jenkins

they like I them not were but that questions Paul, questions. they I didn't were good all, unintelligent just recall.

Paul Cheng

X questions.

I one, the first think you one either to of maybe gentlemen.

Third your flow great free XX% cash buyback quarter and the been certainly rate. year-to-date, and adjusted has significantly above

the closer rate? sense, several be And Murphy understandable is cash over to Is given the given at you are. so a to stock buyback be we're If as year-to-date? say, X.X flow going what going stay XX% we how you your significantly in free to in seen should it have we your to the or market, oil the that closer adjusted where the quarters, looking next, in look uncertainty at above

Roger Jenkins

free the lot paid and of for on closely a a and with flow will our debt financial to Directors outcomes. we're predict committee I that, personally say will of Leyster, didn't have all I team, Treasurer around cash keep We're working the plus from a finance perspective, informed. didn't reduction. hard that Paul, where our go -- does and a it's our will we like getting Tom that detail debt what his Board happen. we feel Board we

it's when our incredible. think of billion think lot. And was I It we mean, we have a little we greatly company helped more we bonds. our now, were bit oversubscribed so right a the outgo than had incredible also I $X bonds. for

in a company. on XX% facility, credit in revolving our and -- So unsecured new non-investment-grade our a increase revolving facility, credit

to of and the honestly, course, equity But and of So And we, low got the Board Paul. more thinking you thinking be price price gets way. But more a the the balance than want when little at And so if than XXs, this, work per than debt oil XXs is And thinking of you long-term until got greatly got into undervalued XX% regarded. notes. sheet Eric be today, on these that the we're on like the you're oil as agreement end XX%. and that committee. finance to the that the up other so Tom level, stays down will minimum you the and stock manage this our year in more XX% pay our be bit to our to at quite our to as low

Paul Cheng

I XXX%. mean, paying because then are Yes out more you actually than

the that level So we reasonable over is assume that could a next.

Roger Jenkins

because go start to would situations I dislocation but they use ahead likes getting put undervalued. just more Tom where if too around these XXs likes don't He are of hanging to available, XXX%. it. balance we think we low on cash sheet than But it's some that's

unrest evaluate, forever, XXX% the lot monitor We Fed. what factors and as this different with was things clicked have have will One in of happen risk over Middle week, go have still East several Eric There and a but to the Paul. the are in business. can't off says,

XX% But now. But got on you to we've as shall right plus shareholders but know. looking at focused we we're the -- So be see, here.

a way. in long Murphy as with paid shareholders things really here buy continue things I'm dividends, shape the money Board rewarding to a paying And haul, the increase over Vietnam. long got really good be of approval, of to and our both big back at quarterly d'Ivoire forward with potential and in dividend, history of for lot proud to there, execute stock Cote things is little our of to my Oil. hopefully, looking There but -- year, One career dividend and a our work of will here looking next heading we've lot and

Paul Cheng

we don't At than for the workover. like question, X same Eric. for it's The are it's is far to know what have workover expected. year, it's be of have higher already Gulf the Eric, look I mean, think, I Mexico quarter, schedule. on the It usual example, year, the of even would case. Like, wells previously, there think this we heavier in going I fourth than beginning

your in maybe is adjusted that just process? and unlucky So something need happening is be it to purely or

Eric Hambly

revenue Great additional my better really expenses. us and with because is purely year been unlucky, for was It luck question. I wish a and challenging lost it's workover

with to horizon. it's not earlier common year of pointed fourth lucky. these responses the bit this a have beginning well As it's our quarter very didn't on we type at a and you And challenging or that of thing been I call, the year, wells, of on we as out have mentioned happen not workovers with a the

workovers. to back these see happy when yes, it So XXXX in of X finish the we early

Operator

Tim with comes question KeyBanc. Rezvan next from Your

Timothy Rezvan

understand know Congratulations about into the folks to back on a a the you've hoping consistent dig full-time was retirement more and bit. schedule. in Does a Eagle Ford imply the rig year-round? onshore been comments trying little that rig I I your promotion. I'm to intermittent past.

understand what this the kind in ] a So or We're asset? is structural if in of is view [ to of real consistent trying more just accelerated developing XXXX sort change TILs how just needs? you

Eric Hambly

typically the opportunity X-rig thanks clarify. of to In Tim, Yes, year. gives ran for XXXX, first program we it an for half XXXX me and a through that the

we'll It make a a Hopefully, in year. So that to our a with half smooth then delivery we like the It of and them. the our peaky all people We cadence doing delivered well in out anticipate rig consistency. X consistently less running year long little little happier year bit. 'XX going delivered and have first should the you will forward. wells be almost little pivoted all drilled throughout of -- our

Timothy Rezvan

follow-up, touching story up The LNG a Canada, on as on generally have then the And coming comments been Yes. plant just back positive. there. on the that schedule macro online

in LNG and really growing would start So to Montney expanding that would about your need Canada? see you production from the there? need see when to hard you to plant And thinking what

Roger Jenkins

I because I'll that let be won't answer that. for Eric here

Eric Hambly

Yes.

chance me gives to a it frame bit. Well, a it little Okay.

feed first development from from plant. phase we -- for provided that Canada, been who interest has own gas, predominantly in the of that the the people as understand will So LNG it an

Canada. sourcing The be day more Phase they're approved years. And that of next or would gas. own of takeaway likely probably likely is approximately So the Western out participate which is we in another sometime a their a X, of in X that we to think gas see get opportunity Bcf X X

that the market. I just the second phase AECO moves be, overall quite forward that, fact for will So good think,

Tupper know We people was in they for we Asia the we have operate of who these an gas asset, likely that that could work with with opportunity attempting develop and from decide highlight, may Montney, X Roger gas to Phase our some of also, instead the as come to themselves. would

deal as a that And we consider diversification if of available, we may We'll pursue monitor. strategy. will opportunity an part so then that's the of accretive that would it type think be is we

sales. prices consider going some done swing So price bit. We gas markets. around to diverse not of diversification looking diversification, LNG a back But forward into globally of immune U.S. fixed they're and we've quite at our a sales We've Montney fluctuations. can the done as would then part Canada in overall being strategy. LNG our sold

an So wouldn't gas plant. all LNG, LNG especially we to to want of dedicate our

decided X-year it the it's day, That's be there. it. And approximately little million kind approval expand process how think current strategy about about an XXX permitting process. a would perspective its color an per overall a and from If more on just it's feet longer of beyond and construction, to we an So we part cubic plant capacity term. engineering X-year of a

be would doing So to if in we we would definitely signal were do well that, we advance that.

it gas about for before our deliver several able from were years to You materially more would asset. know we

Operator

question comes Jayaram. from Arun next Your

Arun Jayaram

wish Stadium weekend to the as well. you wanted best be Tiger you I this at Hopefully, head you'll into off as the Roger, sunset.

Roger Jenkins

friends. there other with XXX,XXX be I'll

Arun Jayaram

be weekend. will here. too probably Gators, Good also talk much for about shouldn't in but the anyways, Austin playing I college I luck football this

the around as spend could as environment you it. Yes. good your Roger, worried the permit time question, of of lot bit. think maybe next to I Quick anyways, environment you from your a your Roger's Gulf and been I the a around over on regulatory buy up was Eric, a could in procurement Eric market large process, with of Mexico. Obviously, just to filling Mexico, comment in talking the new execute thoughts the CEO and punted little just Gulf you that obviously, that's or Well, ability shoes about perspective. and a year. and best on luck bit regulatory the But little the Although thoughts administration take program early on

Roger Jenkins

information, we've just a quick we've I'll different one, lot lot stab a entire in Macondo, regulatory, change lot been more BOP not lot a inspection. a regulatory phases, in of a design, Mexico realize, of had XX-plus a career, a Mexico at my -- the thing regulated of people of of it. take Obviously, year X well lot interaction. One of had Gulf post that lot lot of has in change a monitoring, Gulf may heavily

my it big day joke any Gulf entire thing, fail way. today from is administration, of change. So the eliminate a more of the it and change look have things I of with probably and government monitored Mexico this thought will have And career. Macondo May, Interior U.S. Interiors this about a then because this. that to also in Department to office fisheries that quickly the example helps nothing of forward extended thing. this Mexico of we calm administration federal with good down I mind regulated us that new have into the concern another without to issue notch. to in of in way. move incredible to of which to I in too a shareholder Republican thing. to thrive as redo the And kicked you the positive, then in an redo those did type around of administration scrutiny moving old with and Mexico, to no never it a big in of well, that forward It's It's anticipate forward we'll on in through but federal again. I stop detailed up Gulf the we'll bid because the any to Interior any we Murphy buy needed Senate all, allow an the all-out at will awarding Department help way changes industry sales that's anticipate personally have always for leases try effort is Department lease time change up a extremely this blocks. the Gulf

So if buy is Eric color for up, Eric. set wants to up to it not add you some a how a thing, to

can disagree. You

Eric Hambly

Totally agree.

in from significant which an out, see the biological really -- May in but or impact not which were May, in to I we We that we pushed expect want or pointed be have opinion, happy did in believe would make issue to will that operations. very opinion we been We some a do biological not there's the consistently the at not vacated is another being this that or communicating the it Roger to some ruling, which question, into out expected related type point, even if of issue as had being all. happened that our issue data, if delay place recent

current impacted at and Our production by not this operations are all.

a they impact little our The approve because to the We single and able might also biological operation proposed have longer. permits opinion a biological how species. consider operations. process allows the bit -- proposed would BSEE the may opinion not streamlined process every have do on be just for works, endangered It to view the way still we permitting for to have agencies industry take that understand

proceed. for basis of sort would on permits our to a little Without operations endangered just It have a they So species. every be because the able place, applied longer to it's still take the that's in might to approve permit would it of blanket approval. review how op and bio they allow impacted

how So and next current in our And don't that, on expect but that's it, all. we or just near term expect they not issue like year that. any may operations they the can at do reiterating, we

Arun Jayaram

the analyst I Roger get Morgan's as My I Eric, JP well. Unfortunately, moonlight Great. oilfield as follow-up, don't paid by and hour. service

Roger Jenkins

we see Yes, that. We that. reading love

Arun Jayaram

I by Roger, is put opportunity one list. And get interestingly, on Murphy PON they note I [ hour. TechnipFMC. I the ] thing Unfortunately, their the Okay. paid subsea follow project don't But did

that a I at. I unless And you that can is Doug describe thought this list there's wouldn't the his get to if and occur. where maybe project they that just so assume on maybe put chance team that would good that wanted

an data from slide was deck. So I TechnipFMC that of interesting kind point thought the

Roger Jenkins

Arun, Great really field We're to been that. as is XX Eric and to text same I age, him have on guys, let that. PON, working know the over development worked we're let I'll Doug that. him it, doing way. years. the for but have obviously, forward extremely our together well. appreciate plan, I I'll really by move per required I'll close on him about

Eric Hambly

Yes.

preparation our is discovered the resource. development on progress a We're commitment by of PON submit development under to to rapid block making of plan by are We a we the XXXX. do XXXX. end on for plan The that have field end of our track field that

would us. So things. In evaluation we're going the around around as how studies sure in Ivorian the an and we with negotiating various there, we sell several price which or and subsea our make gas resource to how highlighted and of with addressing critical out we've field are all parallel, a been FPSO has doing that structure infrastructure supply. really it's declining country, the PON the for progressing been to domestic engineering d'Ivoire plants they gas the completely, sell also would the gas we we TechnipFMC for parties needs would the material that around the understand doing feed develop subsurface in a this and very moving that be will opportunity nice of provide project for also the an and think providers to and us, think and we really moving the forward. We've project We power And the be forward help also because aggressive Cote gas beneficial service that Ivorians. that have mutually the country opportunity with an country

that. moving of all we're So

We have or of to any any contracts not awarded facilities. installation fabrication for do

of but would have conversation can type a limited number subsea We project, the providers providers. in number And that not you we're do with there of are a work. of limited as that sanctioned imagine,

think unreasonable play. to the in a And they did sanction future project if that with date so be move it's we forward not might

Arun Jayaram

a that Eric. Would project your on be Got Got of just be would that? maybe $X.X a on would CapEx follow-up it. project billion? And medium-term that in of be discrete kind it. and top that of that, guide included Or

Eric Hambly

I early It's next year. related to billion in of not our project, something $X.X we top that. to average minimal highlight, and that X-year X-year long would PON. engineering would There'd material spend included the to as CapEx to in were be anticipate as say, sanction I period on lead some related spend commitments not if be

Operator

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

Roger Jenkins

will closing from be remarks. and there. everyone A A Eric And move and him it. of questions all. appreciate No lot January, wish great call chair. next appreciate on in all you be We in. I Thank in best. the sitting today, will today. calling We'll good I late this call

Eric Hambly

Thank you.

Operator

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

Murphy Oil (MUR) 7 Nov 242024 Q3 Earnings call transcript