Murphy Oil Corporation

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

Thank you, David. Good morning, everyone, and thank you for joining us on our third 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 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. 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 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.

Thank you. Good morning, everyone. On top of an excellent quarter, both operationally and financially, with consensus beats across the board, Murphy continues to deliver a strong value proposition. Our ongoing execution excellence, especially in our oil-weighted assets, ensures that we remain a long-term, sustainable company as we operate safely. and with focus on continual improvement in our carbon emissions intensity. Offshore competitive advantage is reinforced with significant project success, especially with the achievements with the Khaleesi-Mormont Samurai field's development flowing to the Kings Key floating production system. Murphy has a unique exploration portfolio as we prepare to drill two key wells this quarter. We're generating strong cash flows with higher oil prices and well performance exceeding expectations as we have been able to increase our shareholder returns through quarterly dividend raises as well as accelerate our debt reduction goals. As a result of this success, last quarter our capital allocation framework was announced supporting increasing returns to shareholders in addition to our 60-year long standing dividend as various debt targets are achieved on slide three. Our team has done a tremendous job this year progressing our three priorities. to deliver, execute, and explore. During the quarter, we reduced debt by $248 million across three senior note transactions. Also, earlier this week, we announced an additional $200 million redemption of senior notes due in 2025. We're projected to achieve the high end of our $650 million debt reduction goal by year end and forecast total debt at that time of $1.8 billion, which positions us to, again, Murphy 2.0 of our capital allocation framework in 2023, which will advance cash returns to shareholders. Our ongoing debt reduction would not have been achieved if it weren't for a continued successful execution and our operations. We now have six of seven producing wells from the Coliseum-Oremont-Samurai field development projects with gross production volumes significantly exceeding expectations and achieving a record 120,000 barrel equivalents per day gross at the facility. In our Khaleesi-Mormont volumes alone, we produced practically double our original estimates used in M&A economics due to project execution. Onshore, we continue to see superior well results in need for shale from our 2022 program, and we're pleased to drill and complete Tupper-Montigny wells in 2022 for an average price of just under $5 million per well. with exceptional payout results. Our exploration program has some exciting months ahead as we prepare to spud two operated wells in the fourth quarter with Tulum in offshore Mexico and Oso in the Gulf of Mexico. Oxy and Ridgewood entered into an agreement with Murphy to participate in Oso Well, with Murphy remaining as operator and holding 33.34% working interest. Also during the quarter, Murphy assumed its partner's position in Brazil's Portugua Basin and now holds 100% working interest in those three blocks. Lastly, as announced earlier in the quarter, our board raised our quarterly dividend, returning it to a pre-2020 level of $0.25 per share or $1 per share annualized. Murphy plans to advance its capital allocation framework and return money to shareholders through repurchases and potential dividend increases as we achieve various debt thresholds. On slide four. In the quarter, we produced 188,500 equivalents per day, 57% liquids, which is the highest oil production level since the second quarter of 2021. This exceeded the high end of our guidance due to several reasons, including a less active Gulf of Mexico hurricane season and strong well performance in the Eagleford Shale, which more than offset price-related royalty impacts in the Tupper Mountain. Murphy's realized oil price of $93.65 per barrel you tend to receive a premium to the WTI benchmark, with NGLs just below 37 per barrel, and that gas was $4 per MCF for Murphy. I'll now turn the call back over to our CFO, Tom Morales, for sustainability and financial update. Tom?