Murphy Oil Corporation

Good morning, ladies and gentlemen, and welcome to the Murphy Oil Corporation fourth quarter 2022 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.

Good morning, everyone, and thank you for joining us on our fourth quarter earnings call today. Joining me 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 interests 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 projections will be attained. A variety of factors exist that may cause actual results to differ. For further discussions of risk factors, see Murphy's 2001 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 thank you for listening to our call today. Excuse me. On slide two, 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. We operate safely. with a focus on continual improvement in our carbon emissions intensity. Our offshore competitive advantage is reinforced with our significant recent project success at our Khaleesi-Mormont Samurai fields in the Gulf of Mexico. Murphy has an ongoing exploration portfolio, and we're in the process of a three well-operated program in 2023. We continue to generate strong cash flow. We've been able to more than double our longstanding dividend from 2021 all while significantly reducing debt. As a result of this success, we're progressing our capital allocation framework, where we will support increasing returns to shareholders as various debt targets are reached. Slide three. As we continue focusing on our four priorities to deliver, execute, explore, and return, I'm very pleased at the progress we have made as a company. In 2022, Murphy achieved our 650 million debt reduction goal resulted in a 40% or $1.2 billion reduction since the end of 2020, and our current debt level is $1.8 billion. This has positioned us to begin Murphy 2.0 of our capital allocation framework, where we will allocate 75% of our adjusted free cash flow to debt reduction and 25% of our adjusted free cash flow to shareholder returns beyond our dividend. Our team has done an incredible job executing our Khaleesi Mormont Samurai project, we initiated production ahead of schedule we continue to produce above expectations additionally the kingsea facility maintains an industry leading uptime average of 97 percent i'm sure we executed our well delivery program well with 40 operated wells and 15 gross non-op wells during 2022. we maintain the total reserve base of 697 million barrels of oil equivalent at year end we've continued our excellent environmental performance for the second consecutive year of no IOGP recordable spills in our business, all while reducing emission intensity. Murphy closed out our 2022 exploration program by sputting the Oso 1 well as operator in the Gulf of Mexico during the fourth quarter, and drilling is ongoing today. After this well, we look to spud two more operated exploration wells in the Gulf of Mexico early this year. On slide four, In the fourth quarter, we produced 173,600 barrels of oil equivalent per day at 62% liquids. Due to the significant impact from our Khaleesi-Mormont-Samurai field development, we achieved nearly 30% growth in our oil volumes to 97,000 per day of oil since the first quarter of 2022. I realize oil price was $82.57, while I realize NGL price was $27 per barrel. and that gas was 364 per thousand cubic feet. So turn to slide five. For the full year, our company produced 167,000 barrels of oil equivalent per day with nearly 90,000 barrels of oil, or 54%. This represents a 6% increase in total production from full year 21. Our accrued capex for the year totaled $1.016 billion, excluding non-controlling interest, acquisitions, and acquisition-related capex. For the year, I realized oil price was slightly above the WTI benchmark at nearly $95 per barrel, while NGL was $36 per barrel and NatGas at $364 per thousand for the year. I now turn the call over to our CFO, Tom Morales, for an update on our reserves, financials, and our sustainability efforts. Tom? Thank you, Roger, and good morning, everyone.