Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Greenhouse Gas Emissions
• Water Management
• Community Relations
• Biodiversity Impacts
• Business Ethics
• Climate Change

Environmental Achievements

• Exceeded environmental protection goal in 2018, beating the International Association of Oil and Gas Producers’ spill rate target.
• Reduced GHG emissions and intensity from 2015 to 2018.
• IOGP spill rate of 0.06 for 2018, well below the annual target of 0.11.
• Increased water reuse from 2% in 2017 to 8% in 2018 across all Murphy Eagle Ford Shale operations.

Social Achievements

• El Dorado Promise Scholarship Program benefiting nearly 2,500 students.
• Enhanced benefits by adding personal paid leave and paid parental leave for all U.S. employees.
• Global voluntary turnover rate of 9.48% in 2018.
• Significant contributions to United Way organizations.

Governance Achievements

• Established Health, Safety and Environmental Committee of the Board (HSE Committee) in 1993.
• Added safety and environmental metrics to its annual incentive plan performance metrics in 2008.
• Regularly engages with external experts on critical issues such as climate change.

Climate Goals & Targets

Environmental Challenges

• Challenging safety performance in 2017 and 2018 with a total recordable incident rate of 0.40 in each year, falling short of ambitious goals.
• Increase in industry activity level, primarily in the North America Onshore business, and demands on the workforce.

Mitigation Strategies

• Focus on contractor engagement, training, and mentoring short-service employees to drive continuous improvement in safety performance.
• Setting a total recordable incident rate target for 2019 at 0.38.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRI, TCFD

Certifications: Center for Offshore Safety — Safety and Environmental Management System (SEMS) Certification (US Offshore), Certificate of Recognition (COR) from Enform (Murphy Canada)

Third-party Assurance: Internal review

Environmental Metrics

ESG Focus Areas

• Climate change
• Greenhouse gas emissions
• Water management
• Biodiversity
• Employee and contractor health and safety
• Diversity, equity and inclusion
• Human capital management
• Community engagement

Environmental Achievements

• Reduced total Scope 1 and Scope 2 emissions by 47% between 2016 and 2020.
• Decreased total company GHG emissions intensity by 43% between 2016 and 2020 (30% excluding Malaysia).
• Decreased GHG emissions intensity by 10% from 2019 to 2020.
• 74% reduction in chemical treatment volumes in the first quarter of 2021 compared to the 2019 average in the Gulf of Mexico.
• Eliminated flare stacks from the design of new facilities in Tupper Montney operations.

Social Achievements

• Offshore workforce infection rate of only 2.8% during the COVID-19 pandemic (half the peer average).
• Developed a COVID-19 tracking app.
• Expanded employee benefits, including revised time-off and family-time policies, a new remote work policy and a bonus day.
• Launched the Life Saving Rules campaign.
• Improved safety metrics with a 46% improvement in TRIR from 2019 to 2020 and a 30% decrease in PVIR from 2018 to 2020.

Governance Achievements

• Established an ESG Executive Management Committee in 2019.
• Created a new Director of Sustainability role in 2020.
• Updated climate change position in 2021.
• Added GHG emissions intensity reduction target metric to the 2021 compensation plan.
• Formalized a process for monitoring and managing sustainability risks and opportunities in 2019.

Climate Goals & Targets

Environmental Challenges

• Climate change and emissions reduction.
• Market transition away from fossil fuels.
• Regulatory risks related to GHG emissions.
• Physical risks such as severe weather events.
• Water scarcity.

Mitigation Strategies

• Setting meaningful emissions goals, including zero routine flaring by 2030 and a 15-20% reduction in Scope 1 and 2 GHG emissions intensity by 2030.
• Assessing net-zero emissions pathways.
• Implementing emissions-reducing initiatives (dual-fuel fracturing fleet, reducing truck transportation, etc.).
• Robust safety protocols and emergency response plans.
• Comprehensive water management strategy focusing on alternative water sources and recycling.

Supply Chain Management

Responsible Procurement

• Supplier qualification process considering competitiveness, technical capabilities, compliance history, safety record, environmental record, and business alignment.
• Contracts requiring compliance with laws and regulations, including HSE, conflicts of interest, and anti-corruption.

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events

Transition Risks

• Regulatory changes
• Market shifts away from fossil fuels

Opportunities

• Development of energy-efficient products and technologies

Reporting Standards

Frameworks Used: SASB, TCFD, GRI, IPIECA

Certifications: COR (Canada)

Third-party Assurance: ERM Certification and Verification Services (ERM CVS)

UN Sustainable Development Goals

• Goal 4: Quality Education
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 13: Climate Action

Initiatives contributing to these goals are detailed throughout the report.

Awards & Recognition

• Chevron Conservation Award (Charles H. Murphy Jr.)

Environmental Metrics

ESG Focus Areas

• Climate change, including the energy transition and scenario analysis
• Greenhouse gas emissions, including Scope 3
• Water management
• Biodiversity
• Employee and contractor health and safety
• Diversity, equity and inclusion of our workforce
• Human capital management
• Community relations and engagement
• Stakeholder engagement
• Board diversity
• Cybersecurity
• Risk management

Environmental Achievements

• Reduced total Scope 1 and Scope 2 emissions by 55% between 2017 and 2021
• Decreased total company GHG emissions intensity by almost 50% between 2017 and 2021
• Decreased GHG emissions intensity by about 20% from 2019 to 2021
• Decreased methane intensity by 28% from 2019 to 2021
• Decreased flaring intensity by about 49% between 2019 and 2021
• Achieved zero IOGP spills in 2021
• Increased percentage of recycled water to total water consumed in onshore operations to 17% in 2021 from 4% in 2020
• Achieved almost a 20% total average reduction in topside chemicals since 2020 in offshore operations

Social Achievements

• Relaunched internal program to promote the nine IOGP Life-Saving Rules, plus an additional rule called “Fit for Duty”
• Revised HSE training matrix, adding training sessions required of all employees
• Installed vehicle monitoring system in all Company vehicles
• Expanded benefits to include consumer-driven health plan, infertility treatment coverage and an expanded network of mental health providers
• Almost a quarter of suppliers reported having a level of diverse ownership within their organization in 2021

Governance Achievements

• Updated climate change principles in 2021
• Published a comprehensive Supplier Code of Conduct in 2022
• Three Board Committees enhanced their charters to reflect continued oversight of ESG-focused responsibilities
• Executive Compensation Committee incorporated a GHG emissions intensity performance metric into the Company’s Annual Incentive Plan

Climate Goals & Targets

Environmental Challenges

• Regulatory changes related to GHG emissions and climate change
• Global demand change toward non-fossil fuel energy sources
• Severe weather events
• Fossil-fuel business model disruption
• Price volatility in oil and natural gas markets
• Impact of carbon prices on reserves estimation

Mitigation Strategies

• Monitoring policy and regulatory proposals
• Increasing internal awareness and transparency
• Enhancing data quality and tracking
• Improving external reporting and disclosure
• Utilizing a process for evaluation and innovation
• Robust safety protocols and emergency response plans
• Investigating low-carbon technologies
• Disciplined capital allocation
• Scenario analysis to understand and manage market transition risks

Supply Chain Management

Supplier Audits: Regular audits conducted by Murphy HSE personnel and ISNetworld

Responsible Procurement

• Supplier qualification process
• Compliance with laws and regulations
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events

Transition Risks

• Policy and legal risks
• Market transition risks
• Reserves estimation risks

Opportunities

• Resource efficiency
• Energy source diversification
• New products, services and markets

Reporting Standards

Frameworks Used: SASB, TCFD, GRI (Core option), Ipieca, API

Certifications: Center for Offshore Safety’s SEMS Certification, Energy Safety Canada’s COR

Third-party Assurance: ERM Certification and Verification Services (ERM CVS)

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 7
• Goal 8
• Goal 13
• Goal 15

Initiatives contribute to these goals through various programs and policies

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• ISS Governance QualityScore (highest percentile rank)
• Greater Houston Partnership’s “Best Place for Working Parents”
• President’s Volunteer Service Award
• Newsweek’s America’s Most Responsible Companies
• Houston Chronicle’s 100 Leading Companies
• United Way of Greater Houston’s Community Campaign Honor Roll, President’s Division

Environmental Metrics

ESG Focus Areas

• Board diversity, refreshment and expertise
• Cybersecurity
• Risk management
• Climate change, GHG emissions and energy transition
• Water management
• Biodiversity
• Occupational health and safety
• Human capital management, including diversity, equity and inclusion (DE&I)
• Community and stakeholder engagement

Environmental Achievements

• Reduced absolute Scope 1 and Scope 2 emissions by 51% since 2018
• Reduced GHG emissions intensity by 53% since 2018
• Reduced GHG emissions intensity by 25% from 2019 to 2022
• Achieved the highest water recycling ratio in the Company’s history (27% in 2022)
• Zero IOGP spills in 2021 and 2022
• Lowest GHG, methane, and flaring intensities since 2013

Social Achievements

• Named Best Place for Working Parents by the Greater Houston Partnership in 2021 and 2022
• Received the United States President’s Volunteer Service Award from the Houston Food Bank in 2021 and 2022
• Achieved United Way of Greater Houston’s Chairman’s Division in 2021-2022 and 2022-2023
• More than 3,200 students received El Dorado Promise scholarships since 2007
• Improved Total Recordable Incident Rate (TRIR) by 29% from 2019 to 2022
• Improved Lost Time Incident Rate (LTIR) by 63% from 2019 to 2022

Governance Achievements

• Increased weighting of ESG metrics in compensation from 15% to 20% in 2022
• Third-party assurance of absolute Scope 1 and Scope 2 GHG emissions for the third consecutive year
• Well-defined Board and managerial oversight and management of ESG matters
• ISS Governance and Social score of 1 in 2022

Climate Goals & Targets

Environmental Challenges

• Climate change related regulatory changes
• Market transition away from fossil fuels
• Reputational risks
• Acute physical risks (severe weather)
• Chronic physical risks (climate change impacts)

Mitigation Strategies

• Monitoring policy and regulatory proposals
• Increasing internal awareness and transparency
• Enhancing data quality and tracking
• Improving external reporting and disclosure
• Utilizing a process for evaluation and innovation
• Robust safety protocols and emergency response plans
• Monitoring asset and infrastructure condition
• Water management strategy

Supply Chain Management

Supplier Audits: Regular audits conducted by Murphy HSE personnel and ISNetworld

Responsible Procurement

• Supplier Code of Conduct
• HSE requirements
• Ethical standards

Climate-Related Risks & Opportunities

Physical Risks

• Tropical systems
• Floods
• Severe weather
• Shifts in precipitation patterns
• Drought
• Rising sea levels

Transition Risks

• Policy and legal risks
• Market risks (fossil fuel disruption, reserves estimation)
• Reputational risks

Opportunities

• Resource efficiency
• Energy source diversification
• New products, services, and markets (natural gas)

Reporting Standards

Frameworks Used: SASB, TCFD, GRI, Ipieca, API

Certifications: Center for Offshore Safety’s SEMS Certification, Energy Safety Canada’s COR

Third-party Assurance: ERM Certification and Verification Services (ERM CVS)

UN Sustainable Development Goals

• Goal 7
• Goal 12
• Goal 13
• Goal 8
• Goal 3
• Goal 6
• Goal 14
• Goal 15
• Goal 16
• Goal 4
• Goal 5
• Goal 17

Various initiatives contribute to these goals as detailed throughout the report.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Greater Houston Partnership’s “Best Place for Working Parents” (2021, 2022)
• United States President’s Volunteer Service Award (2021, 2022)
• Newsweek’s “Most Responsible Companies” (2022)
• Newsweek’s “Most Trustworthy Companies in America” (2023)
• United Way of Greater Houston’s Chairman’s Division (2021-2022, 2022-2023)

Environmental Metrics

ESG Focus Areas

• Climate change, GHG emissions and energy transition
• Water management
• Biodiversity
• Occupational health and safety
• Human capital management, including diversity, equity and inclusion (DE&I)
• Community and stakeholder engagement
• Board diversity, refreshment and expertise
• Cybersecurity
• Risk management

Environmental Achievements

• 11% decrease in absolute Scope 1 and 2 emissions from 2019 to 2023
• 37% reduction in total Company Scope 1 and 2 GHG emissions intensity from 2019 to 2023
• 32% reduction in absolute methane emissions from 2019 to 2023
• 51% decrease in total Company Scope 1 methane intensity from 2019 to 2023
• 66% decrease in flaring intensity from 2019 to 2023
• Highest-ever recycled water volume in company history in 2023

Social Achievements

• Zero fatalities in 2023
• Total recordable incident rate of 0.28 in 2023
• Launched internal mentorship program, doubling participation since 2023
• $11MM+ in charitable contributions over the last four years
• More than 15,000 professional and technical training courses offered in 2023
• Recognized by the Greater Houston Partnership as a “Best Place for Working Parents®” for three consecutive years
• Received the United States President’s Volunteer Service Award from the Houston Food Bank for 2021, 2022 and 2023 volunteer efforts
• Achieved United Way of Greater Houston’s Chairman’s Division for past nine years

Governance Achievements

• 90% of Board directors are independent
• 20% weighting of Sustainability performance metrics in Annual Incentive Plan (AIP) in 2023
• Fourth consecutive year of third-party assurance of GHG Scope 1 and 2 data

Climate Goals & Targets

Environmental Challenges

• Climate change and the global energy transition present risks and opportunities
• Regulatory changes related to GHG emissions and climate change
• Market transition and reputational risks due to global demand change toward non-fossil fuel energy sources
• Physical risks from severe weather events
• Water scarcity
• Achieving desired water chemistry for operational efficiency when using recycled produced water

Mitigation Strategies

• Implementing emissions-reducing initiatives, including investments in equipment upgrades, effective maintenance programs and new technologies
• Adopting a climate change position and setting meaningful emissions goals
• Utilizing a Marginal Abatement Cost Curve (MACC) as a screening tool for capital allocation
• Developing targeted methane emissions reduction programs for each asset by source type
• Investing in water management infrastructure to improve water recycling efforts
• Conducting a lab study to assess friction reducer effectiveness in varying compositions of produced water

Supply Chain Management

Supplier Audits: Periodic audits of preferred facility locations and select major contractors

Responsible Procurement

• Supplier qualification process considering competitiveness, technical competence, compliance history, safety record, financial stability, environmental record, and business alignment
• Supplier Code of Conduct requiring adherence to ethical standards

Climate-Related Risks & Opportunities

Physical Risks

• Tropical systems
• Floods
• Severe weather

Transition Risks

• Policy and legal risks
• Market risks
• Reputational risks

Opportunities

• Resource efficiency improvements
• Use of lower-emission energy sources
• Development of natural gas markets

Reporting Standards

Frameworks Used: SASB, TCFD, GRI, Ipieca, API

Certifications: Null

Third-party Assurance: ERM Certification and Verification Services (ERM CVS)

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 7
• Goal 8
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 17

Initiatives contribute to these goals through responsible energy production, community investment, employee well-being, and environmental stewardship

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Rystad Energy’s highest-scoring company for 2021 ESG performance
• Greater Houston Partnership’s “Best Place for Working Parents®”
• United States President’s Volunteer Service Award
• Newsweek’s “Most Trustworthy Companies in America 2023” and “Most Responsible Companies in America 2024”
• United Way of Greater Houston’s Chairman’s Division
• Spring Branch Independent School District’s Good Neighbor Award