Murphy Oil Corporation

This morning, I will begin by sharing some key insights about our performance and then focus primarily on the year ahead. Before we dive in, I want to thank our employees. Their hard work and commitment made last year's impressive exploration and operational successes possible. Looking back, 2025 was underpinned by strong execution across our assets, despite a challenging commodity price environment. Our production, both for the fourth quarter and full year, exceeded guidance as we delivered some of the best performing onshore wells in company history and maintained strong uptime at our key offshore facilities. We also managed costs closely, reducing lease operating expenses by 20% year over year and capital expenditures below guidance, partly due to realized efficiency gains in our Eagleford Shale program. Exploration and appraisal results were certainly the highlights of 2025 as we advanced more exploration and appraisal wells across three continents in the fourth quarter alone. Knowing that many of you were keenly anticipating the results from these wells, we released updates as they became available. We reported a highly successful appraisal result at Hai Su Vong, Golden Sea Lionfield. Oil discoveries at both of our exploration wells in the Gulf of America and unfortunately, a dry hole at Savette in Cote d'Ivoire. Although the results for Savette were disappointing, we remain optimistic about the next two prospects in the program, Caracol and Boubal, as all three wells were strategically chosen to target independent plays. In Vietnam, the Hai Su Bong Golden Sea Lion appraisal found 429 feet of net oil pay without encountering the oil-water contact. indicating a resource that is significantly above our initial midpoint of 170 million barrels of oil equivalents. Although we're continuing the appraisal campaign with two additional wells, results to date suggest a significant new growth business for Murphy in Vietnam. To put that into context, our exploration results in Vietnam will help us build a business that, by the early 2030s, will surpass the scale of our current Eagleford shale operations. This outcome exemplifies the long-term organic value creation capability that makes us unique. In 2026, we will strategically invest in development, exploration, and appraisal activities in the Gulf of America, Vietnam, and Cote d'Ivoire that will grow our portfolio and enhance shareholder value in the mid to long term. Let's be upfront. We do not expect 2026 to be without its challenges. We're all aware of the unpredictable market environment and softening commodity prices. However, at Murphy, we've spent the last few years positioning the company to withstand a downturn. So this year is about making intentional strategic investments that set the groundwork for growth far beyond the next few quarters. Something that differentiates us from our peers. From an operational perspective, Our 2026 net production will be lower at 171,000 barrels of oil equivalents per day versus last year's 182,000 barrels of oil equivalents per day. Most of that production decrease is Tupper Montney natural gas volumes driven in part by higher gas prices and therefore higher royalties. So the cash flow impact will be muted. It's noteworthy that we'll maintain our Eagleford shale production flat with 25% less capital spend this year. Additionally, our lease operating expenses will stay in line with the $10 to $12 per barrel range that we have previously guided. We continue our focused exploration and appraisal program in the first half of 2026 with two appraisal wells in Vietnam's Hai Su Vang golden sea lion field and two exploration wells in Co To Voa. In addition, as I mentioned in my stockholder update, We have expanded our exploration portfolio with an entry into offshore Morocco and acquisition of seven new blocks in the Gulf of America. Bid results are pending for another seven blocks in the Gulf of America, where we were the apparent high bidder in the December 2025 lease sale. With industry's average reserve life at 12 years and Tier 1 shale inventories declining, our proactive approach to securing new blocks in diverse basins reinforces our exploration pipeline, demonstrates our unique ability to partner globally, and provides optionality for sustained growth in the decades ahead. Through all this, our balance sheet remains solid with a low leverage ratio and over $2 billion in liquidity. Our eye is on the long game. However, we have the ability, we have the flexibility to adjust if necessary to protect our balance sheet. we see an extended period of low commodity prices. We're ready to tighten the purse strings and pull back on capital spending. To sum it up, following a successful 2025 marked by robust operational execution, ongoing financial discipline, and an outstanding 80% success rate in our exploration efforts, we view 2026 as a year to invest in future growth and long-term shareholder value. We're navigating uncertainty by investing with intention sharpening our operations, and setting up Murphy for sustainable organic growth. With that, we're now ready to take your questions.

Thank you, ladies and gentlemen. We will now begin the question and answer session. Should you have a question, please press star followed by the one on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys. Your first question comes from Paul Chang with Scotiabank. Your line is now open. Hey, guys. Good morning.

Good morning. Just curious that on the Hei Su Van 2X STEM test, the 12,000 bill per day, is it the equipment constraint or is choke or that this is the natural flow rate? And the second question is that if we're looking at your 2026 ethics are you saying that you you're ready if the condition needed you could adjust it so what portion of your capex in 2026 is considered flexible thank you great questions paul thanks for that at our high suvang appraisal well we encountered pay in two reservoirs