Murphy Oil Corporation

This call you need assistance, please press star zero for the operator. I would like to turn preference over to Kyle Sani, manager of Investor Relations, please go ahead.

Thank you, operator, and welcome everyone to our second quarter 2025 earnings conference call. Yesterday after the close, we issued a press release, a slide presentation and a quarterly stockholder update, which we will reference on today's call. These documents can be found on our website at murphyoilcorp.com. Joining me on today's call are Eric Hamley, president and CEO, Tom Morales, EVP and CFO, and Chris Larino, SVP Operations. As a reminder, today's call will contain 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, please refer to Murphy's 2024 annual report on Form 10K on file with the SEC. Murphy takes no duty to publicly update or revise any forward-looking statements. Throughout today's call, production numbers, reserves and financial amounts are adjusted to exclude non-controlling interest in the Gulf of America. Eric will kick off the call with opening remarks and then we will move to a question and answer session. We ask that you limit yourselves to one question and a follow-up. With that, I will now turn the call over to Eric.

Thanks, Kyle, and good morning to everyone joining us on the call. As Kyle mentioned, we released a new quarterly stockholder update last night in conjunction with our earnings release. This new format shares additional insights and leadership perspectives on our business, which we believe provides a deeper understanding of Murphy to our stockholders. I hope that everyone had the opportunity to read it and found it helpful. I would like to start by thanking our employees for their hard work and dedication in delivering the results that we will discuss on today's call. Now turning to second quarter results, I will emphasize three key takeaways. First, our second quarter results were underpinned by comprehensive execution across our multi-basin portfolio. We delivered a sequential increase in production to 190,000 barrels of oil equivalents per day, which was above the high end of our guidance on strong new well productivity from our Eagleford Shale and Tupper Mani assets. In the Gulf of America, we completed and returned to production the Samurai number three work over in the second quarter. And early in the third quarter, we completed the Khaleesi number two work over. These operational results were delivered with strong capital and operating efficiency. Second quarter capex of $251 million and total company lease operating expenses of $11.80 per barrel of oil equivalent were both better than quarterly guidance. Lastly, our 2025 company operated onshore well program is now complete. We brought online 10 wells in the Eagleford Shale and a four well pad in Cape Ob Duvernay early in the third quarter. My second key takeaway this morning is that we remain on track to deliver our 2025 plan with capex at the midpoint of the annual guidance range. And we now see full year production trending at the midpoint of the annual guidance range. With the majority of the Gulf of America work over program behind us, we expect operating expenses in the 10 to $12 per barrel per BOE range during the second half of 2025. At Murphy, we are laser focused on running the company with a competitive and right size cost structure. Since 2019, the company has achieved greater than $700 million of cumulative cash cost savings through a greater than 50% reduction in both our GNA and bond interest expenses. You can expect us to continue to have a relentless focus on managing our cost structure. My third and final key takeaway today is looking ahead to our high impact exploration and appraisal activity in the second quarter of the year. Our global exploration teams will be exploring and appraising prospects across three different continents, testing more than 500 million barrels of oil equivalent to more than 1 billion barrels of oil equivalent in mean to upward gross unrisked resource potential. These are key catalysts for the company. And we look forward to sharing more results with you in the coming months. And with that, we can open up the line for Q&A.