Murphy Oil Corporation Q4 FY2025 earnings call

• 2025 had strong execution despite challenging commodity prices, production exceeded guidance, exploration had 80% success rate. • 2026 to invest in future growth, net production lower but cash flow impact muted. • Maintained Eagle Ford Shale production flat with less capital spend. • Focused exploration and appraisal program in 2026. • Balance sheet solid with low leverage and over $2 billion in liquidity. • Employees' hard work contributed to 2025's successes.

In 2025, production exceeded guidance with strong onshore and offshore performance. Lease operating expenses reduced by 20% year-over-year. Exploration and appraisal had highlights like successful Hai Su Vang appraisal, oil discoveries in Gulf of America, and a dry hole at Civette. 2026 net production expected to be 171,000 barrels of oil equivalents per day, lower than 2025's 182,000. Eagle Ford Shale production flat with 25% less capital spend. Lease operating expenses to stay in $10 - $12 per barrel range. Focused exploration and appraisal in 2026 with wells in Vietnam and Côte d'Ivoire. Entered offshore Morocco and acquired 7 new blocks in Gulf of America.

• 2026 net production expected at 171,000 barrels of oil equivalents per day. • Capital has elements that are more fixed for certain investments like Lac Da Vang development, Côte d'Ivoire exploration, Hai Su Vang appraisal, and Chinook development. • Flexibility in some parts of the business like last 3 - 4 months of rig program in Gulf of America, Eagle Ford program, and onshore Canada. • Midterm expected low single-digit oil growth with Vietnam business growing and Chinook well contributing.

• Unpredictable market environment and softening commodity prices. • Potential impact of weather downtime on offshore production. • Uncertainty around timing and production rates of new wells like Chinook. • Geologic uncertainty in exploration and appraisal results, such as at Civette. • Royalty rate changes in Tupper Montney affecting net gas volumes.

Q: On Hai Su Vang - 2X stem test and 2026 CapEx flexibility.

A: Hai Su Vang - 2X test rates were due to reservoir deliverability, not facilities. CapEx has fixed elements and flexible parts.

Q: On Civette drilling failure and impact on Caracal and Bubale.

A: Civette failure doesn't affect Caracal and Bubale as they are independent prospects.

Q: On Vietnam business size and growth.

A: Vietnam business could be larger than Eagle Ford by early 2030s, but more appraisal needed.

Q: On oil volume and 2027 exit.

A: 2026 oil volume softer due to timing, Chinook well expected to contribute to exit rate.

Q: On royalty mechanism in Tupper Montney and Hai Su Vang appraisal wells.

A: Tupper Montney royalty rate to double in 2026, Hai Su Vang appraisal wells will assess shallow secondary reservoir.

Q: On 2027 growth and Morocco plans.

A: 2027 growth low single-digit, Morocco entry with low expenditure for seismic reprocessing and exploration.

Q: On Vietnam Lac Da Vang ramp-up and Hai Su Vang contribution.

A: Lac Da Vang peak likely late 2027/early 2028, Hai Su Vang first oil expected in early 2030s.

Q: On proved reserves decline and GOA base decline rate.

A: Proved reserves decline due to lumpiness, GOA assets have ~18% annual decline rate with exploration to extend runway.