Murphy Oil Corporation

Good morning, ladies and gentlemen, and welcome to the Murphy Oil Corporation second quarter 2020 earnings conference call. If at any time during the call you require assistance, please press star zero for the operator. I'd now like to turn the conference over to Kelly Whitley, Vice President, Investor Relations and Communications. Please go ahead.

Good morning, everyone, and thank you for joining us on our second quarter earnings call today. Joining us is Roger Jenkins, President and Chief Executive Officer. David Looney, Executive Vice President and Chief Financial Officer, and Eric Hambly, Executive Vice President, Operations. 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. Throughout today's call, production numbers, reserves, and financial amounts are adjusted to exclude non-controlling interest in the Gulf of Mexico. Please keep in mind that some of the comments made during this call will be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. As such, no assurances can be given that these events will occur or that the projections will be attained. A variety of factors may exist that cause these results to differ. For further discussions of risk factors, see Murphy's 2019 Annual Report on Form 10-K on file with the SEC. Murphy takes no duty to publicly update or revise any forward-looking statements. I will now turn the call over to Roger Jenkins.

Thank you, Kelly. Good morning, everyone, and thanks for listening to our call today. On slide two, we look at where Murphy stands after the second quarter and what a quarter it was. I'm sure we can all agree it was not typical, but our company swiftly took multiple actions to ensure that when we emerge from the downturn, we'll be a more resilient company. We rapidly reduced our capital spending for 2020 and then our long-range plan. As we look to the longer term, we will deliver a flatter oil-weighted production profile with the goal of reducing debt so we maintain our low leverage through future price cycles. Secondly, we work to right-size and realign our workforce and corporate structure to drive further organizational efficiency. Operations teams continue to lower operating expenses as well as drilling and completion wells faster and more efficiently, thereby achieving lower per-well costs. Most of these savings are durable, which translate to enhanced margins along with free cash flow generation. Expiration programs in various stages and focused areas, providing significant upside to our existing resource base and optionality for future development. We continue to effectively manage COVID-19 risks by implementing work from home processes along with operational protocol. These processes and protocol have been highly effective in the office and field as we facially deliver production within the current environment with zero impacts. I have to say, organization, that I could not be more proud of your resiliency and accomplishments over the last few months as we, like our peers, had to live with incredible uncertainty and stress that COVID-19 has created. We believe an important tenet of Murphy's strategy is to maintain a multi-basin portfolio to provide flexibility and in the long run reduce risk. Although we will not be providing formal guidance today, As you look toward next year, the flexibility we've built into our future business planning scenarios and our ongoing process of reducing costs will allow us to deliver on our goal of maintaining a conservative balance sheet with flatter production, paying our dividend, and paying down debt in an oil price recovery. On slide three, Murphy's second core production is 168,000 barrel equivalents per day, consisting of 58% oil and 65% liquids, and a near even division between our onshore and offshore assets. As previously disclosed on our first quarter earnings call, our production was negatively impacted, primarily at 16,000 barrels equivalent today that were shut in in the Gulf of Mexico due, as we know, extraordinary extreme low pricing. We spent a total of 174 million in capex for the quarter, including 33 million for Kings Key, with capex totaling 542 for the first half of the year as planned. Please keep in mind that we do expect to be reimbursed $177 million at the closing of Kings Key transaction, which includes $52 million spent in the first half of 2020. While oil prices experienced a black swan event, briefly falling to unimaginably negative levels, a realized price for the quarter was at $23 per barrel. Currently, we're seeing our various oil pricing points trade closer to WTI parity, on a realized basis, which is our norm. Our overall natural gas price remained in line with previous quarters of realizations at $1.54 per MCF. I now turn the call over to our CFO, David Looney, to give a financial update.