Murphy Oil (MUR) J.P. Morgan Natural Resources Conference 2026 summary

Macro environment and capital allocation

• Operations and capital program remain unaffected by Middle East disruptions, benefiting from higher oil prices and recent bond deals.

• Strong cash flow generation continues, with recent exploration success driving increased appraisal spending.

• Additional appraisal well at Bubale will increase capital expenditures beyond previous guidance, with updated CapEx range expected in the next earnings call.

• Capital allocation flexibility is maintained, balancing onshore and offshore investments, with ongoing stock buybacks and no urgent debt reduction plans.

• Future capital decisions will weigh Vietnam and Côte d'Ivoire developments, with potential trade-offs as Côte d'Ivoire appraisal and development may exceed historical capital bands.

West Africa exploration and Bubale discovery

• Bubale-1x well in Côte d'Ivoire discovered oil in both Turonian and Cenomanian objectives, confirming commercial potential.

• Resource estimate remains broad (340–850 million BOE gross), with further appraisal needed to refine size and development plans.

• Immediate appraisal well planned, with results expected in Q3/Q4 and further appraisal likely into next year.

• Development likely via FPSO with gas pipeline to shore; timeline from discovery to first oil estimated at 5–6 years.

• High working interest (90%) in Bubale to be maintained through appraisal and likely development, providing control over pace and strategy.

Exploration strategy and track record

• Shifted to a disciplined, data-driven exploration approach, emphasizing regional studies and comprehensive seismic data.

• Achieved a 60% exploration success rate in recent years, with notable results in Vietnam and the Gulf of America.

• Focus on skilled teams and targeted risk-taking rather than large budgets, enabling competition with super majors.

• Additional Côte d'Ivoire prospects remain, with near-term focus on Bubale appraisal and future exploration wells planned.