Murphy Oil Corporation

Good morning, ladies and gentlemen, and welcome to the Murphy Oil Corporation second quarter 2021 earnings conference call. If at any time during this call you need assistance, please press star zero for the operator. I would now like to turn the conference over to Kelly Whitley, Vice President, Investor Relations and Communications. Please go ahead.

Thank you, Operator. 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, along with David Looney, Executive Vice President, Chief Financial Officer, Eric Hambly, Executive Vice President, Operations, and Tom Morales, Senior Vice President, Technical Services. Please refer to the informational slides we 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. Slide one. 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 exist that may actually cause results to differ. For further discussion of risk factors, see Murphy's 2020 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 would now like to turn the call over to Roger Jenkins.

Thank you, Kelly. Good morning, everyone, and thank you for listening to our call today. On slide two, as we kick off our quarterly call and investor meetings, we would like to remind our investors of our story. We're pleased to do so briefly again this morning as each tenet of this slide remains in effect this quarter, and in the future. Our ongoing execution in our three producing areas continues to show outstanding results while progressing our offshore long-term projects and expansion of the Tupper Mountain. Our competitive advantage of executing an offshore, again, is illustrated by the outstanding progress on our Coliseum, Warmont, Samurai, and Kings Key projects We've also maintained strong cash flow that easily covers our planned spending for 2021 and supports shareholders through our long-standing dividend. Further, we were able to increase our cash position this quarter by nearly $190 million, which allows us to accelerate our delevering plans. Our ongoing meaningful level board and management ownership highlights our personal interest in the company's long-term success. Slide three. Our three priorities are simply to delever, execute, and explore. And I'm pleased with the progress we've made on all fronts in the second quarter and this year. After our initial delevering event, we repaid our revolver in full in quarter one. We stated our goal of reducing long-term debt by $200 million by year end 2021. We've recently announced the redemption of $150 million of 6.875% senior notes due in 2024 and now today we're able to increase our delevering goal to $300 million, assuming a $65 oil price for the remainder of 2021. The additional cash flows have been accomplished not only through stronger oil prices, but also ongoing operational excellence as we've achieved less operated downtime offshore while experiencing the benefits of our optimization efforts and upgrades completed over the previous 18 months. Along with continuing to bring on our onshore wells online below budget and ahead of schedule. As a result of this work, production from every single asset was above the midpoint of guidance for this quarter, with all onshore operations exceeding the high end of the guidance range. Additionally, we produced 100,000 barrels of oil per day in the second quarter, topping our guide by 5%. Offshore, our Gulf of Mexico projects remain on budget and on schedule. We also remain focused on advancing our exploration program We participate in the drilling in Brunei in the second quarter with the Jagas Subthrust 1X Expiration Well, along with the Sputnik non-operated Silverback Well in the Gulf of Mexico. In the fourth quarter, we'll participate in the drilling of the Cutthroat Expiration Well in Brazil. On our sustainability report on slide four, our report has been published on our website and includes expanded disclosures to share our sustainability efforts and further align us with multiple international standards, such as the UN Sustainable Development Goals, and five reporting principles outlined in sustainability reporting guidance for our industry. We've now established a goal of zero routine flaring by 2030 and obtained third-party assurance of our 2020 Scope 1 and Scope 2 greenhouse gas emissions. Additionally, we've revised and strengthened our climate change position, instituted a human rights policy, advanced our diversity, equity, and inclusion efforts, Statistical highlights include receiving a 47% reduction in Scope 1 and Scope 2 greenhouse gas emissions since 2016 and a 10% decrease in greenhouse gas emissions from 2019 to 2020. Building upon our current top quartile low carbon emission intensity for oil-weighted piers, we are continuing the internal work to reduce our environmental footprint and advance the energy transition while protecting and supporting our people, and the communities in which we work. On slide five, our second quarter production volumes of 171,000 barrels oil equivalent per day were 4% above our guidance midpoint for the quarter. Accrued capex for the quarter was $198 million, revenue of near $700 million, which is the highest in a year, was achieved through strong realized pricing of $65.53 per barrel for oils. I'd now like to turn the call over to our CFO, David Looney, to give his financial update.