Murphy Oil Corporation

focused on debt reduction since 2020. Between August 2020 and August 2022, excuse me, we reduced total debt by $730 million. Since announcing the framework in August of 22, we've consistently executed a combination of debt reduction, share repurchases, and dividend increases. And since total year 2020, we've reduced debt by $1.7 billion. We purchased a total of $200 million of stock our 4.7 million shares have an average price of $42.68 a share and raised our quarterly dividend 140%. In the first quarter of 2024 specifically, we generate sufficient adjusted cash flow to allow us to purchase 50 million of stock and capitalize on stock price dislocation to oil prices. For 2024, we're solidly on track to achieve our $300 million debt reduction goal and reach Murphy 3.0 of our capital allocation framework. especially with current oil prices. Looking forward to reaching this next step and further increasing shareholder returns to 50% of adjusted pre-cash flow later this year. Slide five. Murphy produced at the high end of guidance at 170,000 barrels equivalent in the first quarter of 24 with 89,000 barrels of oil per day. We achieved a slight premium to WTIs. We realized $78 per barrel. And I realized NGL prices $23 a barrel and NatGas was $2.12 per thousand cubic feet. Overall, we generated $746 million of revenue in the quarter, excluding our non-controlling interest. I'll now turn the call over to our Executive Vice President and Chief Financial Officer, Tom Morales, for an update on our financial results. Tom?

Thank you, Roger, and good morning, everyone. Slide five. In the first quarter, Murphy reported $90 million of net income, or 59 cents per diluted share. and $131 million of adjusted net income, or 85 cents per diluted share. We achieved $405 million of adjusted EBITDA due to a combination of strong production and realized prices, with $264 million of accrued CapEx, excluding non-controlling interest. Overall, as Roger mentioned previously, we had an outstanding quarter in returns to shareholders as we repurchased $50 million of stock, paid a higher dividend, and increased our cash balance. In total, we returned over 60% of our free cash flow, all while supporting a front-end loaded CapEx plan with approximately 60% of spending in the first half of 2024. Slide 6. Murphy maintained strong liquidity in the first quarter with $1.1 billion as of March 31st, including more than $300 million in cash and equivalents. I'm pleased that during the quarter, we received positive outlooks from both Moody's and Fitch, revised from stable outlooks previously, with the corporate ratings affirmed at BA II and BB+. At quarter end, we had $1.3 billion of senior notes outstanding with a long-dated weighted average maturity of nearly eight years. We remain on track for further debt reduction this year, and I look forward to reaching Murphy 3.0 with total debt of $1 billion before year end. Slide seven. At Murphy, we seek to continually minimize our impact on the environment, whether that's using natural gas rather than diesel to fuel our onshore operations or utilizing recycled water for our well completions. We also support the communities in which we work, like the city of Uvalde in South Texas or here in Houston. Because of this service, we have been presented with awards such as the United States President's Volunteer Service Award from the Houston Food Bank. And I look forward to Murphy developing further initiatives to enhance our positive impact. With that, I will turn it over to Eric Hambly, our president and chief operating officer, to discuss our operational updates.

Thank you, Tom. Slide 10. Our Eagleford shale wells performed above expectations in the first quarter, achieving total production of 29,000 barrels of oil equivalent per day with 86% liquids volumes. Our operating partner brought online four Tilden wells during the quarter, while Murphy progressed our 20 well operated drilling program for the year as planned. We are on track to bring seven operated Catarina wells online in the second quarter, plus an additional four non-operated Tilden wells. Slide 11. In the Tupper Montney, Murphy produced 348 million cubic feet per day and progressed our 2024 well delivery program with 13 wells that are either now producing or will be online in the near term. This will complete our plans for the year. We are excited to announce that Murphy has joined the Rockies LNG partnership, which may create future LNG opportunities for our Tupper-Monte acreage as projects in the area near completion. This partnership is comprised of Western Canadian natural gas producers driving LNG export optionality, and we are eager to be a part of it. Murphy maintains a strong price diversification strategy mitigating against ACO price exposure For the first quarter, we sold approximately half of our natural gas volumes at the Chicago, Don, Malin, Emerson, Henry Hub, and Ventura price points. Slide 12. Our K-Bob DuVernay asset produced 4,000 barrels of oil equivalent per day with 68% liquids in the first quarter of 2024. We progressed our development program for the year and have three operated wells coming online in the second quarter as planned. Slide 13. Our Gulf of Mexico assets produced 73,000 barrels of oil equivalent per day with 82% oil volumes. This production was impacted by approximately 13,000 barrels of oil equivalent per day of planned downtime events during the quarter. MRFB is advancing our development program for the year, and we look forward to bringing online the sizable Khaleesi No. 4 well in the second quarter, as we found approximately 200 feet of net pay when drilling. We're also progressing the drilling of a new well at our Mormont field, which is scheduled to come online in the third quarter. Additionally, our operating partners brought online wells at the St. Malo and Lucious fields during the quarter. In offshore Canada, we produced 6,000 barrels of oil equivalent per day in the first quarter, according to plan. Slide 14. During the first quarter, we completed the zone changes on the Marmalard number one and number two wells as planned. as well as the subsea equipment repair at Moormont No. 2. Murphy also initiated work on the Niedermeyer No. 1 well workover with the plan now updated to drilling a sidetrack well, which will delay the online date to the third quarter of 2024. Our workover expenses, which are included in our lease operating expenses, total $50 million for the first quarter with $65 million forecast for the second quarter. This figure includes the cost of the Niedermeyer sidetrack well. Additional work is planned later this year at the Dalmatian No. 2 well for the subsurface safety valve repair, as well as the non-operated Kodiak No. 3 well stimulation and zone addition. Slide 15. In Vietnam, we have been progressing our plans for our Loc Da Vong field development project, including advancing a ward of major contracts this year. We look forward to begin drilling our development wells in 2025 and remain on schedule for achieving first oil in late 2026. Slide 17. In the Gulf of Mexico, we're excited to begin our 2024 exploration program. Our operating partner is currently drilling the Ocotillo Exploration Well. Immediately following this well, the rig will shift to drill the nearby Orange Exploration Well. These two Miocene prospects are located near existing infrastructure and could be brought online quickly if either is a discovery. Also in the first quarter, we expanded our portfolio and were awarded six deepwater blocks from the Gulf of Mexico Federal Lease Sale 261. Slide 18. We're continuing preparations for our Vietnam exploration program later this year and are excited to have contracted a rig which is currently drilling in-country. Murphy will first bud the Hai Su Vong exploration well in block 15217 in the third quarter and target a mean to upward gross resource potential of 170 to 430 million barrels of oil equivalent. The rig will then move to drill the Loc Da Hong exploration well in block 15105 targeting a mean to upward gross resource potential of 65 to 135 million barrels of oil equivalent. We look forward to seeing the results of these wells as they provide the potential to create a more sizable business in Vietnam. Slide 19. Our seismic reprocessing work continues to progress for our acreage in Cote d'Ivoire, and we are pleased at the multiple opportunities available across exploration play types. Importantly, ENI recently announced positive results from its Moraine 1 exploration well on the Kalau discovery nearby. Murphy is excited at this news, and I note that our block CI502 in particular is very near this discovery. In general, our Cote d'Ivoire acreage position is now bookended by two significant E&I discoveries. We will continue to progress our analysis of the data as it comes in with the final seismic data due by year end 2024. And with that, I will turn it back to Roger.