Murphy Oil Corporation

Good morning, ladies and gentlemen, and welcome to the Murphy Oil Corporation second quarter 2022 earnings conference call. If at any time during the 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.

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 Tom Morales, Executive Vice President and Chief Financial Officer, and Eric Hambly, Executive Vice President of Operations. Please refer to the informational slides that 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 exist that may cause actual results to differ. For further discussion of risk factors, see Murphy's 2021 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. Roger?

Thank you, Kelly. Good morning, everyone, and thank you for listening to our call today. On slide two, Murphy continues to deliver a strong value proposition. Our ongoing execution excellence from our three producing areas proves that we are a long-term sustainable company. As we disclosed in our 22 sustainability report released yesterday, significant improvements in emissions intensity and water recycling. Excuse me. Our offshore competitive advantage is continually reinforced, most recently with the achievement of first oil ahead of schedule from the Khaleesi Mormont Samurai and King's Key projects in April. We continue to generate strong cash flow with higher oil prices and well-performance exceeding expectations as we've been able to increase our shareholder returns through quarterly dividend raises as well as accelerate our debt reduction goals. On to slide three. Murphy remains focused in our three strategic priorities of de-lever, execute, and explore. In June, we continue to advance our de-levering plans with redemption of $200 million of our 2,024 senior notes. Subsequent to quarter end, we announced an additional $242 million in long-term debt reduction, which will take out the last of our 24 notes, along with reducing our maturities. These transactions put us well on our way toward accomplishing our $600 million to $650 million debt reduction goal for 2022. The Murphy team continues to have outstanding execution across all projects. We have now brought online four wells in our seven-well Khaleesi-Mormont Samurai Field development, with the Kings Key floating production system achieving 97% uptime. The fifth well of the seven-well project is expected to come online imminently. Additionally, we also are acquiring high-return bolt-on working interests in two non-operated Gulf of Mexico fields, providing considerable upside to production with several planned development wells. Looking at our onshore assets, recent online wells in the Eagleford Shale and Tupper Montney are exceeding production expectations due to enhanced completion designs and longer laterals, with average forecast investment recovery or payback of less than six months. Our exploration program continues to advance We have the drilling permit in hand for Tulum Exploration Well in Mexico, and we're finalizing plans to spud in the fourth quarter of 2022. Murphy also recently received offshore operator approval from regulators in Brazil, completing a necessary step in attaining a partner's working interest in the Portuguay Basin. In the Gulf of Mexico, we're progressing plans for our 23 Operate Exploration Program. Overall, our strong execution across our operations has supported ongoing debt reduction allowing us to fully restore our dividend to pre-2020 levels of $1 per share on an annualized basis announced yesterday, representing a 100% increase from the fourth quarter of 2021. Further, the three components for our strategy together support our new capital allocation framework that we're disclosing here today. As we target returns to shareholders through repurchases and potential dividend increases tied to debt levels, with an ultimate long-term debt goal of $1 billion. Slide four. In the quarter, we produced 164,000 barrels equivalent per day, comprised of 62% liquids. I'm very pleased to see our production volumes of a high end of guidance as a result of outperformance in the Gulf of Mexico and Eagleford Jail. Realized prices remain strong this quarter, with oil at 109 per barrel, once again above WTI prices. With NGLs, at $41 per barrel and natural gas net back to us nearly $4 per 1,000 cubic feet. On slide five, we're excited to have published our 2022 sustainability report yesterday. The team has done an incredible job once again as they work within their teams and roles to improve Murphy's environmental footprint year after year. Importantly, we have seen considerable improvement in our various emissions intensities from 2019 to 2021 with a 20% reduction in greenhouse gas emissions 28% reduction in methane, an incredible 49% reduction in flaring intensity. Our efforts are supported by receiving third-party assurance for a second consecutive year on our greenhouse gas scope one and two data. Their support also focuses on how we positively impact the lives of the people and communities where we work. I'll now turn the call over to our CFO, Tom Morales, to give a financial update. Tom?