Murphy Oil (MUR) Status update summary

Strategic exploration and development overview

• Emphasizes a disciplined, integrated approach to offshore exploration and development, focusing on long-term value creation, particularly in Vietnam.

• Maintains a balanced portfolio with both onshore and offshore assets across North America, Vietnam, Côte d'Ivoire, Morocco, Africa, and Asia, leveraging operational flexibility and financial resilience.

• Highlights the necessity of continued exploration to meet global energy demand amid declining discovery sizes, natural production declines, and longer project development timelines.

• Presents a 120-year history of successful exploration, development, and value creation through cycles.

• Achieves first oil about 40% faster than industry average, optimizing value through steady exploration and development commitment.

Exploration culture and portfolio management

• Fosters a unique exploration culture that encourages creativity, technical rigor, and calculated risk-taking, supported by multidisciplinary teams.

• Builds a balanced portfolio with both lower-risk, mature basin opportunities and higher-risk, high-reward frontier prospects, prioritizing high-quality opportunities.

• Applies a systematic, data-driven approach to regional geologic evaluation, improving pre-drill prediction accuracy and reducing risk.

• Allocates 10%-15% of capital to exploration, focusing on emerging and frontier basins with attractive fiscal terms and transformational potential, achieving a 60% commercial success rate in exploration since 2024.

• Employs rigorous portfolio management to balance risk and resource potential.

Offshore execution and development capabilities

• Demonstrates top-quartile offshore execution, enabling rapid transition from discovery to first oil, supported by a strong balance sheet and lower costs than industry averages.

• Fast-tracks development by progressing appraisal and development in parallel, leveraging fit-for-purpose solutions and industry partnerships.

• Achieved industry-leading cycle times with projects like Kikeh (Malaysia) and King's Quay (Gulf of Mexico), delivering significant pre-tax value, rapid payback, and shareholder returns.

• Applies these capabilities to Vietnam, aiming for efficient development and early value realization from discoveries like Hải Sư Vàng.

• Vietnam projects feature low finding and development costs ($10/BOE), break-even below $40, and premium Brent pricing.