Murphy Oil Corporation (NYSE:MUR) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 09:00 am ET

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Murphy Oil Corporation (NYSE:MUR) Q2 2020 Earnings Conference Call - Final Transcript

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Operator
Operator

Good morning, ladies and gentlemen, and welcome to the Murphy Oil Corporation second-quarter 2020 earnings conference call. [Operator instructions] I'd now like to turn the conference over to Kelly Whitley, vice president, investor relations, and communications. Please go ahead.

Executive
Kelly Whitley

Good morning, everyone, and thank you for joining us on our second-quarter earnings call today. Joining us is Roger Jenkins, president and chief executive officer; David Looney, executive vice president and chief financial officer; and Eric Hambly, executive vice president, operations. Please refer to the information on slides we have placed on the investor relations section of our website as you follow along with our webcast today. Throughout today's call, production numbers, reserves and financial amounts are adjusted to exclude non-controlling interest in the Gulf of Mexico.

Please keep in mind that some of the comments made during this call will be considered 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 may exist that cause these results to differ. For further discussions of risk factors, see Murphy's 2019 annual report on Form 10-K on file with the SEC.

Murphy takes no duty to publicly update or revise any forward-looking statements. I will now turn the call over to Roger Jenkins.

Executive
Roger Jenkins

Thank you, Kelly. Good morning, everyone, and thanks for listening to our call today. On Slide 2, we look at where Murphy stands after the second quarter, and what a quarter it was. I'm sure we can all agree that it was not typical, but our company swiftly took multiple actions to ensure that when we emerge from the downturn, we'll be a more resilient company.

We rapidly reduced our capital spending for 2020 and in our long-range plan. As we look to the longer term, we will deliver a flatter oil-weighted production profile with the goal of reducing debt, so we maintain our low leverage to future price cycles. Secondly, we work to rightsize and realign our workforce and corporate structure to drive further organizational efficiencies. Operations teams continue to lower operating expenses, as well as drilling in completion wells faster and more efficiently, thereby achieving lower per well cost.

Most of these savings are durable, which translate to enhanced margins, along with free cash flow generation. Exploration programs in various stages in focused areas, providing significant upside to our existing resource base and optionality for future development. We continue to effectively manage COVID-19 risks by implementing work-from-home processes, along with operational protocol. These processes and protocol have been highly effective in the office and field as we have safely delivered production within the current environment with zero impacts.

I have to say to the organization that I could not be more proud of your resiliency and accomplishments over the last few months as we, like our peers, had to live with incredible uncertainty and stress that COVID-19 has created. We believe that