Announced Discovery at Ocotillo #1
Exploration Well in the Gulf of Mexico, Repurchased $56
Million of Shares Outstanding and $50 Million of Senior
Notes
Murphy Oil Corporation (NYSE: MUR) today announced its financial
and operating results for the second quarter ended June 30, 2024,
including net income attributable to Murphy of $128 million, or
$0.83 net income per diluted share. Excluding discontinued
operations and other items affecting comparability between periods,
adjusted net income attributable to Murphy was $124 million, or
$0.81 adjusted net income per diluted share.
Unless otherwise noted, the financial and operating highlights
and metrics discussed in this commentary exclude noncontrolling
interest (NCI).1
Highlights for the second quarter include:
- Produced 181 thousand barrels of oil equivalent per day
(MBOEPD), with 91 thousand barrels of oil per day (MBOPD)
- Achieved record high peak gross production rate of 496
million cubic feet per day (MMCFD) in Tupper Montney
- Drilled a discovery at the non-operated Ocotillo #1
exploration well in Mississippi Canyon 40 in the Gulf of
Mexico
- Repurchased $56 million of stock, or 1.4 million shares, at
an average price of $41.03 per share
- Repurchased $50 million of senior notes due 2027 and 2028 in
open market transactions
- Maintained quarterly dividend of $0.30 per share or $1.20
per share annualized
Subsequent to the second quarter:
- Revised capital allocation framework, progressing to Murphy
3.0, which increases shareholder returns while maintaining $1.0
billion total long-term debt goal
- Repurchased $44 million of stock, or 1.1 million shares, at
an average price of $38.62 per share
- Increased share repurchase authorization by $500 million,
with $800 million currently remaining
- Published the company’s sixth annual sustainability
report
“We have made incredible progress advancing our priorities of
Delever, Execute, Explore, Return since they were first announced
more than three years ago. From outperformance across our onshore
assets to continued execution offshore in the second quarter, we
have generated ample cash flow to fund our operations and
repurchase more than $50 million of stock and $50 million of
long-term debt. I am pleased with our recent exploration success at
the non-operated Ocotillo well in the Gulf of Mexico, and I look
forward to drilling our two exploration wells in Vietnam beginning
in the third quarter,” said Roger W. Jenkins, Chief Executive
Officer. “Further, I am excited to announce today that we are
moving into Murphy 3.0 of our capital allocation framework so that
we may increase our shareholder returns primarily through share
repurchases, while remaining focused on achieving our $1.0 billion
total long-term debt goal.”
SECOND QUARTER 2024 RESULTS
The company recorded net income attributable to Murphy of $128
million, or $0.83 net income per diluted share, for the second
quarter 2024. Adjusted net income, which excludes both the results
of discontinued operations and certain other items that affect
comparability of results between periods, was $124 million, or
$0.81 adjusted net income per diluted share for the same period.
Details for second quarter results and an adjusted net income
reconciliation can be found in the attached schedules.
Earnings before interest, taxes, depreciation and amortization
(EBITDA) attributable to Murphy were $389 million. Earnings before
interest, tax, depreciation, amortization and exploration expenses
(EBITDAX) attributable to Murphy were $431 million. Adjusted EBITDA
attributable to Murphy was $396 million. Adjusted EBITDAX
attributable to Murphy was $438 million. Reconciliations for second
quarter EBITDA, EBITDAX, adjusted EBITDA and adjusted EBITDAX can
be found in the attached schedules.
Second quarter production averaged 181 MBOEPD and included 50
percent oil volumes, or 91 MBOPD. Onshore production was
approximately 5.4 MBOEPD above guidance for the quarter primarily
due to stronger well performance. This offset 2.4 MBOEPD of
unplanned downtime in the Gulf of Mexico and 2.4 MBOEPD of
additional downtime at non-operated Terra Nova.
Accrued capital expenditures (CAPEX) for second quarter 2024
totaled $292 million, excluding NCI. Details for second quarter
production and CAPEX can be found in the attached schedules.
CAPITAL ALLOCATION FRAMEWORK
Murphy had approximately $1.1 billion of liquidity on June 30,
2024, with no borrowings on the $800 million senior unsecured
credit facility and $334 million of cash and cash equivalents,
inclusive of NCI.
Debt Reduction
During the second quarter, Murphy repurchased $50 million of
senior notes in open market transactions, comprised of $26.5
million of 5.875 percent senior notes due 2027 and $23.5 million of
6.375 percent senior notes due 2028. As of June 30, 2024, Murphy’s
total debt was $1.28 billion, and consisted of long-term,
fixed-rate notes with a weighted average maturity of 7.8 years and
a weighted average coupon of 6.2 percent.
Share Repurchases
During the second quarter, Murphy repurchased $56 million of
stock, or 1.4 million shares, at an average price of $41.03 per
share. Subsequent to second quarter, Murphy repurchased $44 million
of stock, or 1.1 million shares, at an average price of $38.62 per
share. Additionally, the Board of Directors increased the share
repurchase authorization by $500 million.
As of August 7, 2024, Murphy had repurchased $150 million of
stock in 2024, or 3.8 million shares, at an average price of $39.70
per share. Murphy currently has $800 million remaining under the
share repurchase authorization and 150.1 million shares
outstanding.
Accelerating Shareholder Returns
Murphy’s Board of Directors has approved a revision to the
capital allocation framework that allows the company to move into
Murphy 3.0 when the company reaches long-term debt of $1.3 billion,
which it has achieved. Murphy will now allocate a minimum of 50
percent of adjusted free cash flow to shareholder returns,
primarily through share buybacks. The remainder of adjusted free
cash flow will be allocated to the balance sheet. Murphy is
committed to maintaining a $1.0 billion total long-term debt goal,
which it is forecast to achieve by mid-2025 assuming a $75 per
barrel West Texas Intermediate price.
“We first announced our capital allocation framework in August
2022, which detailed our plans to reduce debt, build an
industry-leading balance sheet and return capital to shareholders.
Since that time, I am pleased that we have repurchased $300 million
of stock and increased our dividend by 70 percent. Additionally,
since year-end 2020 we have reduced debt by $1.75 billion, or 57
percent, and achieved $87 million in annual interest expense
savings,” said Jenkins. “During this time, we have maintained a
disciplined capital program, supporting existing asset development
and exploration, proved reserve growth, acquisitions and a field
development project. As we approach our $1.0 billion total
long-term debt goal, we wanted to accelerate returns to our
shareholders.”
OPERATIONS SUMMARY
Onshore
In the second quarter of 2024, the onshore business produced
approximately 99 MBOEPD, which included 28 percent liquids
volumes.
Eagle Ford Shale – Production averaged 28 MBOEPD with 71
percent oil volumes and 86 percent liquids volumes in the second
quarter, which exceeded guidance by 1,700 BOEPD primarily due to
wells producing above expectation. Murphy brought online 11
operated wells in Catarina and four non-operated wells in Tilden
during the quarter.
Tupper Montney – During the second quarter, natural gas
production averaged 400 million cubic feet per day (MMCFD), which
exceeded guidance by 20 MMCFD primarily due to improved well
performance. As planned, Murphy brought online 13 wells during the
quarter, completing its 2024 program. During the quarter, Murphy
achieved a record high peak gross production rate of 496 MMCFD.
Kaybob Duvernay – Production averaged 4 MBOEPD with 72
percent liquids volumes in the second quarter. Murphy brought
online three operated wells in the second quarter as planned.
Offshore
Excluding NCI, in the second quarter of 2024, the offshore
business produced approximately 81 MBOEPD, which included 83
percent oil.
Gulf of Mexico – Production averaged approximately 74
MBOEPD, consisting of 82 percent oil during the second quarter.
Murphy drilled the operated Mormont #3 (Green Canyon 478) well, and
brought online the operated Khaleesi #4 (Green Canyon 389) well and
non-operated Lucius #11 (Keathley Canyon 919) well as planned
during the quarter. The company also progressed the operated
Neidermeyer #1 (Mississippi Canyon 208) sidetrack well and the
non-operated Kodiak #3 (Mississippi Canyon 727) well workover, and
both wells were brought online in the third quarter.
Canada – In the second quarter, production averaged 8
MBOEPD, consisting of 100 percent oil.
Vietnam – Murphy advanced its Lac Da Vang field
development project during the second quarter and awarded
facilities and pipeline contracts. The remaining major contracts
are expected to be awarded by year-end 2024. The project remains on
schedule to achieve first oil in late 2026.
EXPLORATION
Gulf of Mexico – During the quarter, Murphy drilled a
discovery at the non-operated Ocotillo #1 (Mississippi Canyon 40)
exploration well and found 100 feet of net pay across two zones.
Murphy holds a 33.33 percent working interest in the well.
Also during the quarter, Murphy concluded drilling the
non-operated Orange #1 (Mississippi Canyon 216) exploration well.
The well encountered non-commercial hydrocarbons and has been
plugged and abandoned. Approximately $26 million of the net well
cost before tax was expensed in the second quarter. Murphy holds a
50 percent working interest in the well.
2024 CAPITAL EXPENDITURE AND PRODUCTION GUIDANCE
Murphy maintains its 2024 accrued CAPEX range of $920 million to
$1.02 billion. The company also maintains its full year 2024
production range of 180 to 188 MBOEPD, consisting of approximately
95 MBOPD oil and 105 MBOEPD liquids volumes, equating to 52 percent
oil and 57 percent liquids volumes, respectively. Currently the
company expects to be at the lower end of the production range due
to operational impacts in the Gulf of Mexico. The development plan
of an operated well in the Samurai field was altered to a single
zone to maximize total field recovery. Additionally, extended
operations at the planned Neidermeyer #1 sidetrack well delayed the
rig from commencing a well workover in the Dalmatian field.
Production for third quarter 2024 is estimated to be in the
range of 181.5 to 189.5 MBOEPD with 91.5 MBOPD, or approximately 50
percent, oil volumes. This range is impacted by 9.4 MBOEPD of total
downtime, comprised of 3.9 MBOEPD of assumed Gulf of Mexico storm
downtime, 2.9 MBOEPD of planned onshore downtime and 2.6 MBOEPD of
planned Gulf of Mexico downtime. Both production and CAPEX guidance
ranges exclude NCI.
Detailed guidance for the third quarter and full year 2024 is
contained in the attached schedules.
FIXED PRICE FORWARD SALES CONTRACTS
Murphy maintains fixed price forward sales contracts in Canada
to lessen its dependence on variable AECO prices. These contracts
are for physical delivery of natural gas volumes at a fixed price,
with no mark-to-market income adjustments. Details for the current
fixed price contracts can be found in the attached schedules.
CONFERENCE CALL AND WEBCAST SCHEDULED FOR AUGUST 8,
2024
Murphy will host a conference call to discuss second quarter
2024 financial and operating results on Thursday, August 8, 2024,
at 9:00 a.m. EDT. The call can be accessed either via the Internet
through the events calendar on the Murphy Oil Corporation Investor
Relations website at http://ir.murphyoilcorp.com or via telephone
by dialing toll-free 800-717-1738, reservation number 55528. For
additional information, please refer to the Second Quarter 2024
Earnings Presentation available under the News and Events section
of the Investor Relations website.
FINANCIAL DATA
Summary financial data and operating statistics for second
quarter 2024, with comparisons to the same period from the previous
year, are contained in the attached schedules. Additionally, a
schedule indicating the impacts of items affecting comparability of
results between periods, a reconciliation of EBITDA, EBITDAX,
adjusted EBITDA and adjusted EBITDAX between periods, as well as
guidance for the third quarter and full year 2024, are also
included.
1In accordance with GAAP, Murphy reports the 100 percent
interest, including a 20 percent noncontrolling interest (NCI), in
its subsidiary, MP Gulf of Mexico, LLC (MP GOM). The GAAP
financials include the NCI portion of revenue, costs, assets and
liabilities and cash flows. Unless otherwise noted, the financial
and operating highlights and metrics discussed in this news
release, but not the accompanying schedules, exclude the NCI,
thereby representing only the amounts attributable to Murphy.
CAPITAL ALLOCATION FRAMEWORK
This news release contains references to the company’s capital
allocation framework and adjusted free cash flow. In an effort to
accelerate shareholder returns, Murphy’s Board of Directors has
approved a revision to the framework that allows the company to
move into Murphy 3.0 when the company reaches long-term debt of
$1.3 billion, which the company has achieved. As a result, the
company will begin allocating a minimum of 50 percent of adjusted
free cash flow to share buybacks and potential dividend increases,
with the remainder of adjusted free cash flow allocated to the
balance sheet as the company maintains the $1.0 billion total
long-term debt goal.
Adjusted free cash flow is defined as cash flow from operations
before working capital change, less capital expenditures,
distributions to NCI and projected payments, quarterly dividend and
accretive acquisitions.
ABOUT MURPHY OIL CORPORATION
As an independent oil and natural gas exploration and production
company, Murphy Oil Corporation believes in providing energy that
empowers people by doing right always, staying with it and thinking
beyond possible. Murphy challenges the norm, taps into its strong
legacy and uses its foresight and financial discipline to deliver
inspired energy solutions. Murphy sees a future where it is an
industry leader who is positively impacting lives for the next 100
years and beyond. Additional information can be found on the
company’s website at www.murphyoilcorp.com.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are generally identified through the
inclusion of words such as “aim”, “anticipate”, “believe”, “drive”,
“estimate”, “expect”, “expressed confidence”, “forecast”, “future”,
“goal”, “guidance”, “intend”, “may”, “objective”, “outlook”,
“plan”, “position”, “potential”, “project”, “seek”, “should”,
“strategy”, “target”, “will” or variations of such words and other
similar expressions. These statements, which express management’s
current views concerning future events, results and plans, are
subject to inherent risks, uncertainties and assumptions (many of
which are beyond our control) and are not guarantees of
performance. In particular, statements, express or implied,
concerning the company’s future operating results or activities and
returns or the company's ability and decisions to replace or
increase reserves, increase production, generate returns and rates
of return, replace or increase drilling locations, reduce or
otherwise control operating costs and expenditures, generate cash
flows, pay down or refinance indebtedness, achieve, reach or
otherwise meet initiatives, plans, goals, ambitions or targets with
respect to emissions, safety matters or other ESG
(environmental/social/governance) matters, make capital
expenditures or pay and/or increase dividends or make share
repurchases and other capital allocation decisions are
forward-looking statements. Factors that could cause one or more of
these future events, results or plans not to occur as implied by
any forward-looking statement, which consequently could cause
actual results or activities to differ materially from the
expectations expressed or implied by such forward-looking
statements, include, but are not limited to: macro conditions in
the oil and gas industry, including supply/demand levels, actions
taken by major oil exporters and the resulting impacts on commodity
prices; geopolitical concerns; increased volatility or
deterioration in the success rate of our exploration programs or in
our ability to maintain production rates and replace reserves;
reduced customer demand for our products due to environmental,
regulatory, technological or other reasons; adverse foreign
exchange movements; political and regulatory instability in the
markets where we do business; the impact on our operations or
market of health pandemics such as COVID-19 and related government
responses; other natural hazards impacting our operations or
markets; any other deterioration in our business, markets or
prospects; any failure to obtain necessary regulatory approvals;
any inability to service or refinance our outstanding debt or to
access debt markets at acceptable prices; or adverse developments
in the U.S. or global capital markets, credit markets, banking
system or economies in general, including inflation. For further
discussion of factors that could cause one or more of these future
events or results not to occur as implied by any forward-looking
statement, see “Risk Factors” in our most recent Annual Report on
Form 10-K filed with the U.S. Securities and Exchange Commission
(“SEC”) and any subsequent Quarterly Report on Form 10-Q or Current
Report on Form 8-K that we file, available from the SEC’s website
and from Murphy Oil Corporation’s website at
http://ir.murphyoilcorp.com. Investors and others should note that
we may announce material information using SEC filings, press
releases, public conference calls, webcasts and the investors page
of our website. We may use these channels to distribute material
information about the company; therefore, we encourage investors,
the media, business partners and others interested in the company
to review the information we post on our website. The information
on our website is not part of, and is not incorporated into, this
news release. Murphy Oil Corporation undertakes no duty to publicly
update or revise any forward-looking statements.
NON-GAAP FINANCIAL MEASURES
This news release contains certain non-GAAP financial measures
that management believes are useful tools for internal use and the
investment community in evaluating Murphy Oil Corporation’s overall
financial performance. These non-GAAP financial measures are
broadly used to value and compare companies in the crude oil and
natural gas industry. Not all companies define these measures in
the same way. In addition, these non-GAAP financial measures are
not a substitute for financial measures prepared in accordance with
GAAP and should therefore be considered only as supplemental to
such GAAP financial measures. Please see the attached schedules for
reconciliations of the differences between the non-GAAP financial
measures used in this news release and the most directly comparable
GAAP financial measures.
MURPHY OIL CORPORATION
SUMMARIZED CONSOLIDATED
STATEMENTS OF OPERATIONS (unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(Thousands of
dollars, except per share amounts)
2024
2023
2024
2023
Revenues and other income
Revenue from production
$
797,510
$
799,836
$
1,592,113
$
1,596,067
Sales of purchased natural gas
3,497
13,014
3,742
56,751
Total revenue from sales to customers
801,007
812,850
1,595,855
1,652,818
Gain on sale of assets and other
income
1,764
1,738
3,328
3,486
Total revenues and other income
802,771
814,588
1,599,183
1,656,304
Costs and expenses
Lease operating expenses
259,628
194,292
493,892
394,276
Severance and ad valorem taxes
10,417
12,765
20,503
24,205
Transportation, gathering and
processing
53,470
59,868
110,023
113,790
Costs of purchased natural gas
2,987
9,657
3,147
41,926
Exploration expenses, including
undeveloped lease amortization
42,677
115,793
87,106
125,975
Selling and general expenses
22,893
25,345
54,054
43,653
Depreciation, depletion and
amortization
215,543
215,667
426,677
411,337
Accretion of asset retirement
obligations
13,053
11,364
25,827
22,521
Other operating (income) expense
(2,219
)
4,960
5,047
16,948
Impairment of assets
—
—
34,528
—
Total costs and expenses
618,449
649,711
1,260,804
1,194,631
Operating income from continuing
operations
184,322
164,877
338,379
461,673
Other income (loss)
Other income (loss)
26,245
(7,694
)
37,796
(7,767
)
Interest expense, net
(20,986
)
(29,856
)
(41,007
)
(58,711
)
Total other income (loss)
5,259
(37,550
)
(3,211
)
(66,478
)
Income from continuing operations before
income taxes
189,581
127,327
335,168
395,195
Income tax expense
32,676
34,870
62,733
88,703
Income from continuing operations
156,905
92,457
272,435
306,492
Loss from discontinued operations, net of
income taxes
(643
)
(602
)
(1,515
)
(323
)
Net income including noncontrolling
interest
156,262
91,855
270,920
306,169
Less: Net income (loss) attributable to
noncontrolling interest
28,523
(6,431
)
53,179
16,239
NET INCOME ATTRIBUTABLE TO
MURPHY
$
127,739
$
98,286
$
217,741
$
289,930
INCOME (LOSS) PER COMMON SHARE –
BASIC
Continuing operations
$
0.84
$
0.63
$
1.44
$
1.86
Discontinued operations
—
—
(0.01
)
—
Net income
$
0.84
$
0.63
$
1.43
$
1.86
INCOME (LOSS) PER COMMON SHARE –
DILUTED
Continuing operations
$
0.83
$
0.62
$
1.43
$
1.84
Discontinued operations
—
—
(0.01
)
—
Net income
$
0.83
$
0.62
$
1.42
$
1.84
Cash dividends per common share
$
0.300
0.275
$
0.600
0.550
Average common shares outstanding
(thousands)
Basic
152,153
156,127
152,409
155,976
Diluted
153,144
157,299
153,480
157,308
MURPHY OIL CORPORATION
CONSOLIDATED STATEMENTS OF CASH
FLOWS (unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(Thousands of
dollars)
2024
2023
2024
2023
Operating Activities
Net income including noncontrolling
interest
$
156,262
$
91,855
$
270,920
$
306,169
Adjustments to reconcile net income to net
cash provided by continuing operations activities
Depreciation, depletion and
amortization
215,543
215,667
426,677
411,337
Impairment of assets
—
—
34,528
—
Unsuccessful exploration well costs and
previously suspended exploration costs
25,843
95,682
58,280
96,533
Deferred income tax expense
34,450
43,515
53,928
92,557
Accretion of asset retirement
obligations
13,053
11,364
25,827
22,521
Long-term non-cash compensation
11,972
13,540
21,823
22,076
Amortization of undeveloped leases
2,985
2,716
5,778
5,369
Loss from discontinued operations
643
602
1,515
323
Contingent consideration payment
—
(15,609
)
—
(139,574
)
Mark-to-market loss on contingent
consideration
—
3,175
—
7,113
Other operating activities, net
(18,578
)
(52,307
)
(33,959
)
(59,417
)
Net decrease (increase) in non-cash
working capital
25,479
59,691
1,126
(15,340
)
Net cash provided by continuing operations
activities
467,652
469,891
866,443
749,667
Investing Activities
Property additions and dry hole costs
(267,791
)
(349,434
)
(516,876
)
(694,753
)
Net cash required by investing
activities
(267,791
)
(349,434
)
(516,876
)
(694,753
)
Financing Activities
Borrowings on revolving credit
facility
100,000
100,000
200,000
200,000
Repayment of revolving credit facility
(100,000
)
(100,000
)
(200,000
)
(200,000
)
Retirement of debt
(50,000
)
—
(50,000
)
—
Repurchase of common stock
(55,887
)
—
(105,887
)
—
Cash dividends paid
(45,772
)
(42,942
)
(91,545
)
(85,867
)
Withholding tax on stock-based incentive
awards
(28
)
(3
)
(25,298
)
(14,220
)
Distributions to noncontrolling
interest
(38,209
)
(6,304
)
(61,210
)
(15,983
)
Finance lease obligation payments
(167
)
(157
)
(331
)
(296
)
Contingent consideration payment
—
(12,565
)
—
(60,243
)
Issue costs of debt facility
—
(3
)
—
(20
)
Net cash required by financing
activities
(190,063
)
(61,974
)
(334,271
)
(176,629
)
Effect of exchange rate changes on cash
and cash equivalents
391
(1,511
)
1,249
(893
)
Net increase (decrease) in cash and cash
equivalents
10,189
56,972
16,545
(122,608
)
Cash and cash equivalents at beginning of
period
323,430
312,383
317,074
491,963
Cash and cash equivalents at end of
period
$
333,619
$
369,355
$
333,619
$
369,355
MURPHY OIL CORPORATION
SCHEDULE OF ADJUSTED NET INCOME
(LOSS) (unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(Millions of
dollars, except per share amounts)
2024
2023
2024
2023
Net income attributable to Murphy (GAAP)
1
$
127.7
$
98.3
$
217.7
$
289.9
Discontinued operations loss
0.6
0.6
1.5
0.3
Net income from continuing operations
attributable to Murphy
128.3
98.9
219.2
290.2
Adjustments:
Impairment of assets
—
—
34.5
—
Write-off of previously suspended
exploration well
—
17.1
26.1
17.1
Foreign exchange (gain) loss
(5.5
)
7.9
(16.0
)
8.3
Mark-to-market loss on contingent
consideration
—
3.2
—
7.1
Total adjustments, before taxes
(5.5
)
28.2
44.6
32.5
Income tax expense (benefit) related to
adjustments
1.4
(2.7
)
(8.8
)
(3.6
)
Total adjustments after taxes
(4.1
)
25.5
35.8
28.9
Adjusted net income from continuing
operations attributable to Murphy (Non-GAAP)
$
124.2
$
124.4
$
255.0
$
319.1
Adjusted net income from continuing
operations per average diluted share (Non-GAAP)
$
0.81
$
0.79
$
1.66
$
2.03
1 Excludes amounts attributable to a
noncontrolling interest in MP Gulf of Mexico, LLC (MP GOM).
Non-GAAP Financial Measures
Presented above is a reconciliation of Net income to Adjusted
net income from continuing operations attributable to Murphy.
Adjusted net income excludes certain items that management believes
affect the comparability of results between periods. Management
believes this is important information to provide because it is
used by management to evaluate the Company’s operational
performance and trends between periods and relative to its industry
competitors. Management also believes this information may be
useful to investors and analysts to gain a better understanding of
the Company’s financial results. Adjusted net income is a non-GAAP
financial measure and should not be considered a substitute for Net
income as determined in accordance with accounting principles
generally accepted in the United States of America.
The pretax and income tax impacts for adjustments in the above
table are shown below by area of operation and geographical
location, and exclude the share attributable to noncontrolling
interests.
Three Months Ended June 30,
2024
Six Months Ended June 30,
2024
(Millions of
dollars)
Pretax
Tax
Net
Pretax
Tax
Net
Exploration & Production:
United States
$
—
$
—
$
—
$
60.6
$
(12.9
)
$
47.7
Corporate
(5.5
)
1.4
(4.1
)
(16.0
)
4.1
(11.9
)
Total adjustments
$
(5.5
)
$
1.4
$
(4.1
)
$
44.6
$
(8.8
)
$
35.8
MURPHY OIL CORPORATION
SCHEDULE OF EARNINGS BEFORE
INTEREST, TAXES, DEPRECIATION
AND AMORTIZATION (EBITDA)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(Millions of
dollars)
2024
2023
2024
2023
Net income attributable to Murphy (GAAP)
1
$
127.7
$
98.3
$
217.7
$
289.9
Income tax expense
32.6
34.9
62.7
88.7
Interest expense, net
21.0
29.9
41.0
58.7
Depreciation, depletion and amortization
expense 1
207.4
210.1
410.1
399.3
EBITDA attributable to Murphy
(Non-GAAP)
$
388.7
$
373.2
$
731.5
$
836.6
Impairment of asset
—
—
34.5
—
Write-off of previously suspended
exploration well
—
17.1
26.1
17.1
Accretion of asset retirement obligations
1
11.7
10.1
23.1
20.0
Foreign exchange (gain) loss
(5.4
)
7.9
(15.9
)
8.3
Mark-to-market loss on contingent
consideration
—
3.2
—
7.1
Discontinued operations loss
0.6
0.6
1.5
0.3
Adjusted EBITDA attributable to Murphy
(Non-GAAP)
$
395.6
$
412.1
$
800.8
$
889.4
1 Excludes amounts attributable to a
noncontrolling interest in MP GOM.
Non-GAAP Financial Measures
Presented above is a reconciliation of Net income to Earnings
before interest, taxes, depreciation and amortization (EBITDA) and
Adjusted EBITDA. Management believes EBITDA and Adjusted EBITDA are
important information to provide because they are used by
management to evaluate the Company’s operational performance and
trends between periods and relative to its industry competitors.
Management also believes this information may be useful to
investors and analysts to gain a better understanding of the
Company’s financial results. EBITDA and Adjusted EBITDA are
non-GAAP financial measures and should not be considered a
substitute for Net income or Cash provided by operating activities
as determined in accordance with accounting principles generally
accepted in the United States of America.
MURPHY OIL CORPORATION
SCHEDULE OF EARNINGS BEFORE
INTEREST, TAXES, DEPRECIATION
AND AMORTIZATION AND EXPLORATION
(EBITDAX)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(Millions of
dollars)
2024
2023
2024
2023
Net income attributable to Murphy (GAAP)
1
$
127.7
$
98.3
$
217.7
$
289.9
Income tax expense
32.6
34.9
62.7
88.7
Interest expense, net
21.0
29.9
41.0
58.7
Depreciation, depletion and amortization
expense 1
207.4
210.1
410.1
399.3
EBITDA attributable to Murphy
(Non-GAAP)
388.7
373.2
731.5
836.6
Exploration expenses 1
42.7
89.5
87.1
99.7
EBITDAX attributable to Murphy
(Non-GAAP)
431.4
462.7
818.6
936.3
Impairment of asset
—
—
34.5
—
Accretion of asset retirement obligations
1
11.7
10.1
23.1
20.0
Foreign exchange (gain) loss
(5.4
)
7.9
(15.9
)
8.3
Mark-to-market loss on contingent
consideration
—
3.2
—
7.1
Discontinued operations loss
0.6
0.6
1.5
0.3
Adjusted EBITDAX attributable to Murphy
(Non-GAAP)
$
438.3
$
484.5
$
861.8
$
972.0
1 Excludes amounts attributable to a
noncontrolling interest in MP GOM.
Non-GAAP Financial Measures
Presented above is a reconciliation of Net income to Earnings
before interest, taxes, depreciation and amortization, and
exploration expenses (EBITDAX) and Adjusted EBITDAX. Management
believes EBITDAX and Adjusted EBITDAX are important information to
provide because they are used by management to evaluate the
Company’s operational performance and trends between periods and
relative to its industry competitors. Management also believes this
information may be useful to investors and analysts to gain a
better understanding of the Company’s financial results. EBITDAX
and Adjusted EBITDAX are non-GAAP financial measures and should not
be considered a substitute for Net income or Cash provided by
operating activities as determined in accordance with accounting
principles generally accepted in the United States of America.
MURPHY OIL CORPORATION
FUNCTIONAL RESULTS OF OPERATIONS
(unaudited)
Three Months Ended
June 30, 2024
Three Months Ended
June 30, 2023
(Millions of
dollars)
Revenues
Income
(Loss)
Revenues
Income
(Loss)
Exploration and production
United States 1
$
679.5
$
185.7
$
696.2
$
168.9
Canada
119.0
8.9
118.3
2.5
Other
4.3
(10.1
)
—
(32.3
)
Total exploration and production
802.8
184.5
814.5
139.1
Corporate
—
(27.7
)
0.1
(46.6
)
Income from continuing operations
802.8
156.8
814.6
92.5
Discontinued operations, net of tax
—
(0.6
)
—
(0.6
)
Net income including noncontrolling
interest
$
802.8
$
156.2
$
814.6
$
91.9
Net income attributable to Murphy
$
127.7
$
98.3
Six Months Ended
June 30, 2024
Six Months Ended
June 30, 2023
(Millions of
dollars)
Revenues
Income
(Loss)
Revenues
Income
(Loss)
Exploration and production
United States 1
$
1,339.1
$
320.2
$
1,378.5
$
394.9
Canada
255.9
28.3
274.1
24.4
Other
4.2
(20.9
)
3.6
(37.6
)
Total exploration and production
1,599.2
327.6
1,656.2
381.7
Corporate
—
(55.2
)
0.1
(75.2
)
Income from continuing operations
1,599.2
272.4
1,656.3
306.5
Discontinued operations, net of tax
—
(1.5
)
—
(0.3
)
Net income including noncontrolling
interest
$
1,599.2
$
270.9
$
1,656.3
$
306.2
Net income attributable to Murphy
$
217.7
$
289.9
1 Includes amounts attributable to a
noncontrolling interest in MP GOM.
MURPHY OIL CORPORATION
OIL AND GAS OPERATING RESULTS
(unaudited)
THREE MONTHS ENDED JUNE 30, 2024,
AND 2023
(Millions of
dollars)
United
States1
Canada
Other
Total
Three Months Ended June 30,
2024
Oil and gas sales and other operating
revenues
$
679.5
$
115.5
$
4.3
$
799.3
Sales of purchased natural gas
—
3.5
—
3.5
Lease operating expenses
212.3
46.8
0.5
259.6
Severance and ad valorem taxes
10.0
0.4
—
10.4
Transportation, gathering and
processing
34.2
19.3
—
53.5
Costs of purchased natural gas
—
2.9
—
2.9
Depreciation, depletion and
amortization
175.0
37.0
0.9
212.9
Accretion of asset retirement
obligations
10.7
2.2
0.2
13.1
Exploration expenses
Dry holes and previously suspended
exploration costs
25.9
—
—
25.9
Geological and geophysical
3.1
0.1
5.0
8.2
Other exploration
1.6
—
4.1
5.7
Undeveloped lease amortization
2.1
—
0.9
3.0
Total exploration expenses
32.7
0.1
10.0
42.8
Selling and general expenses
(3.4
)
4.5
1.8
2.9
Other
(21.5
)
1.1
0.2
(20.2
)
Results of operations before taxes
229.5
4.7
(9.3
)
224.9
Income tax provisions (benefits)
43.8
(4.2
)
0.8
40.4
Results of operations (excluding Corporate
segment)
$
185.7
$
8.9
$
(10.1
)
$
184.5
Three Months Ended June 30, 2023
Oil and gas sales and other operating
revenues
$
696.2
$
105.3
$
—
$
801.5
Sales of purchased natural gas
—
13.0
—
13.0
Lease operating expenses
156.5
37.5
0.1
194.1
Severance and ad valorem taxes
12.4
0.4
—
12.8
Transportation, gathering and
processing
39.9
20.1
—
60.0
Costs of purchased natural gas
—
9.7
—
9.7
Depreciation, depletion and
amortization
178.0
35.0
—
213.0
Accretion of asset retirement
obligations
9.3
1.9
0.1
11.3
Exploration expenses
Dry holes and previously suspended
exploration costs
79.8
—
15.8
95.6
Geological and geophysical
0.4
0.1
10.0
10.5
Other exploration
1.7
—
5.3
7.0
Undeveloped lease amortization
2.1
—
0.6
2.7
Total exploration expenses
84.0
0.1
31.7
115.8
Selling and general expenses
(1.9
)
4.7
2.6
5.4
Other
0.5
5.4
1.4
7.3
Results of operations before taxes
217.5
3.5
(35.9
)
185.1
Income tax provisions (benefits)
48.6
1.0
(3.6
)
46.0
Results of operations (excluding Corporate
segment)
$
168.9
$
2.5
$
(32.3
)
$
139.1
1 Includes amounts attributable to a
noncontrolling interest in MP GOM.
MURPHY OIL CORPORATION
OIL AND GAS OPERATING RESULTS
(unaudited)
SIX MONTHS ENDED JUNE 30, 2024,
AND 2023
(Millions of
dollars)
United
States1
Canada
Other
Total
Six Months Ended June 30, 2024
Oil and gas sales and other operating
revenues
$
1,339.1
$
252.2
$
4.2
$
1,595.5
Sales of purchased natural gas
—
3.7
—
3.7
Lease operating expenses
398.9
94.3
0.7
493.9
Severance and ad valorem taxes
19.8
0.7
—
20.5
Transportation, gathering and
processing
70.8
39.2
—
110.0
Costs of purchased natural gas
—
3.1
—
3.1
Depreciation, depletion and
amortization
349.0
71.3
0.9
421.2
Impairment of assets
34.5
—
—
34.5
Accretion of asset retirement
obligations
21.1
4.3
0.4
25.8
Exploration expenses
Dry holes and previously suspended
exploration costs
57.1
—
1.2
58.3
Geological and geophysical
3.7
0.1
5.8
9.6
Other exploration
3.0
0.1
10.4
13.5
Undeveloped lease amortization
4.1
—
1.7
5.8
Total exploration expenses
67.9
0.2
19.1
87.2
Selling and general expenses
(3.6
)
9.6
3.0
9.0
Other
(14.1
)
2.2
0.5
(11.4
)
Results of operations before taxes
394.8
31.0
(20.4
)
405.4
Income tax provisions
74.6
2.7
0.5
77.8
Results of operations (excluding Corporate
segment)
$
320.2
$
28.3
$
(20.9
)
$
327.6
Six Months Ended June 30, 2023
Oil and gas sales and other operating
revenues
$
1,378.5
$
217.2
$
3.6
$
1,599.3
Sales of purchased natural gas
—
56.8
—
56.8
Lease operating expenses
319.2
74.3
0.7
394.2
Severance and ad valorem taxes
23.5
0.7
—
24.2
Transportation, gathering and
processing
77.3
36.5
—
113.8
Costs of purchased natural gas
—
41.9
—
41.9
Depreciation, depletion and
amortization
338.2
66.7
0.9
405.8
Accretion of asset retirement
obligations
18.4
3.9
0.2
22.5
Exploration expenses
Dry holes and previously suspended
exploration costs
79.6
—
16.9
96.5
Geological and geophysical
0.7
0.1
10.5
11.3
Other exploration
3.3
0.1
9.4
12.8
Undeveloped lease amortization
4.1
0.1
1.2
5.4
Total exploration expenses
87.7
0.3
38.0
126.0
Selling and general expenses
4.5
7.1
2.8
14.4
Other
9.9
9.7
1.4
21.0
Results of operations before taxes
499.8
32.9
(40.4
)
492.3
Income tax provisions (benefits)
104.9
8.5
(2.8
)
110.6
Results of operations (excluding Corporate
segment)
$
394.9
$
24.4
$
(37.6
)
$
381.7
1 Includes amounts attributable to a
noncontrolling interest in MP GOM.
MURPHY OIL CORPORATION
PRODUCTION-RELATED EXPENSES
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(Dollars per barrel
of oil equivalents sold)
2024
2023
2024
2023
United States – Onshore
Lease operating expense
$
14.61
$
11.45
$
14.14
$
13.03
Severance and ad valorem taxes
3.73
3.68
3.66
3.92
Depreciation, depletion and amortization
expense
29.64
26.44
29.04
26.30
United States – Offshore1
Lease operating expense
$
23.58
$
14.72
$
21.96
$
14.71
Severance and ad valorem taxes
0.07
0.07
0.06
0.08
Depreciation, depletion and amortization
expense
13.44
11.44
13.45
11.33
Canada – Onshore
Lease operating expense
$
5.43
$
6.01
$
5.46
$
6.38
Severance and ad valorem taxes
0.06
0.07
0.06
0.07
Depreciation, depletion and amortization
expense
4.76
5.65
4.86
5.82
Canada – Offshore
Lease operating expense
$
22.60
$
10.96
$
24.43
$
12.60
Depreciation, depletion and amortization
expense
12.00
9.48
10.71
9.40
Total E&P continuing operations1
Lease operating expense
$
15.27
$
11.21
$
14.83
$
11.76
Severance and ad valorem taxes
0.61
0.74
0.62
0.72
Depreciation, depletion and amortization
expense 2
12.52
12.28
12.64
12.10
Total oil and gas continuing operations –
excluding noncontrolling interest
Lease operating expense 3
$
15.09
$
11.02
$
14.69
$
11.58
Severance and ad valorem taxes
0.64
0.76
0.64
0.75
Depreciation, depletion and amortization
expense 2
12.52
12.37
12.65
12.19
1
Includes amounts attributable to a
noncontrolling interest in MP GOM.
2
Excludes expenses attributable to the
Corporate segment.
3
Lease operating expense per barrel of oil
equivalent sold for total oil and gas continuing operations,
excluding NCI and workover costs, was $10.42 and $10.02 for the
three months ended June 30, 2024 and 2023, respectively and $10.58
and $10.66 for the six months ended June 30, 2024 and 2023.
MURPHY OIL CORPORATION
CAPITAL EXPENDITURES
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(Millions of
dollars)
2024
2023
2024
2023
Exploration and production
United States 1
$
225.8
$
245.5
$
414.3
$
500.2
Canada
42.2
75.4
109.5
143.5
Other
21.2
37.8
32.5
44.7
Total
289.2
358.7
556.3
688.4
Corporate
4.2
3.6
8.4
9.9
Total capital expenditures - continuing
operations 1
293.4
362.3
564.7
698.3
Less: capital expenditures attributable to
noncontrolling interest
1.6
29.9
8.9
38.8
Total capital expenditures - continuing
operations attributable to Murphy 2
291.8
332.4
555.8
659.5
Charged to exploration expenses 3
United States 1
30.6
81.9
63.8
83.6
Canada
0.1
0.1
0.2
0.2
Other
9.1
31.2
17.4
36.8
Total charged to exploration expenses -
continuing operations 1,3
39.8
113.2
81.4
120.6
Less: charged to exploration expenses
attributable to noncontrolling interest
—
26.3
—
26.3
Total charged to exploration expenses -
continuing operations attributable to Murphy 4
39.8
86.9
81.4
94.3
Total capitalized - continuing operations
attributable to Murphy
$
252.0
$
245.5
$
474.4
$
565.2
1
Includes amounts attributable to a
noncontrolling interest in MP GOM.
2
For the three months ended June 30, 2024,
total capital expenditures attributable to Murphy, excluding
acquisition-related costs of nil (2023: $32.3 million), is $291.8
million (2023: $300.1 million). For the six months ended June 30,
2024, total capital expenditures attributable to Murphy, excluding
acquisition-related costs of nil (2023: $32.3 million), is $555.8
million (2023: $627.2 million).
3
For the three-month and six-month ended
June 30, 2024, total charged to exploration expense attributable to
Murphy, excludes amortization of undeveloped leases of $3.0 million
(2023: $2.7 million) and $5.8 million (2023 $5.4 million),
respectively.
4
For the three months ended June 30, 2024,
total charged to exploration expense attributable to Murphy,
excluding previously suspended exploration costs of nil (2023:
$17.1 million), is $39.8 million (2023: $69.8 million). For the six
months ended June 30, 2024, total charged to exploration expense
excluding previously suspended exploration costs of $26.1 million
(2023: $17.1 million), is $55.3 million (2023: $77.2 million).
MURPHY OIL CORPORATION
CONSOLIDATED BALANCE SHEETS
(unaudited)
(Thousands of
dollars)
June 30, 2024
December 31, 2023
ASSETS
Current assets
Cash and cash equivalents
$
333,619
$
317,074
Accounts receivable, net
336,965
343,992
Inventories
51,811
54,454
Prepaid expenses
35,053
36,674
Total current assets
757,448
752,194
Property, plant and equipment, at cost
less accumulated depreciation, depletion and amortization
8,214,554
8,225,197
Operating lease assets
885,582
745,185
Deferred income taxes
—
435
Deferred charges and other assets
36,134
43,686
Total assets
$
9,893,718
$
9,766,697
LIABILITIES AND EQUITY
Current liabilities
Current maturities of long-term debt,
finance lease
$
739
$
723
Accounts payable
507,753
446,891
Income taxes payable
20,001
21,007
Other taxes payable
29,669
29,339
Operating lease liabilities
254,780
207,840
Other accrued liabilities
114,690
140,745
Total current liabilities
927,632
846,545
Long-term debt, including finance lease
obligation
1,279,310
1,328,352
Asset retirement obligations
923,696
904,051
Deferred credits and other liabilities
291,110
309,605
Non-current operating lease
liabilities
645,043
551,845
Deferred income taxes
324,379
276,646
Total liabilities
$
4,391,170
$
4,217,044
Equity
Common Stock, par $1.00
$
195,101
$
195,101
Capital in excess of par value
826,861
880,297
Retained earnings
6,672,275
6,546,079
Accumulated other comprehensive loss
(571,645
)
(521,117
)
Treasury stock
(1,798,872
)
(1,737,566
)
Murphy Shareholders' Equity
5,323,720
5,362,794
Noncontrolling interest
178,828
186,859
Total equity
5,502,548
5,549,653
Total liabilities and equity
$
9,893,718
$
9,766,697
MURPHY OIL CORPORATION
PRODUCTION SUMMARY
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(Barrels per day
unless otherwise noted)
2024
2023
2024
2023
Net crude oil and condensate
United States - Onshore
19,873
26,880
20,127
23,100
United States - Offshore 1
66,818
72,022
66,448
73,850
Canada - Onshore
2,978
3,097
2,617
3,190
Canada - Offshore
7,506
2,913
6,885
2,687
Other
245
212
245
240
Total net crude oil and condensate
97,420
105,124
96,322
103,067
Net natural gas liquids
United States - Onshore
4,125
4,328
4,145
4,243
United States - Offshore 1
4,505
6,291
4,596
6,316
Canada - Onshore
494
558
474
691
Total net natural gas liquids
9,124
11,177
9,215
11,250
Net natural gas – thousands of cubic feet
per day
United States - Onshore
23,197
24,195
23,714
24,178
United States - Offshore 1
57,762
69,904
55,462
72,539
Canada - Onshore
406,856
352,265
381,155
328,878
Total net natural gas
487,815
446,364
460,331
425,595
Total net hydrocarbons - including NCI
2,3
187,847
190,695
182,259
185,250
Noncontrolling interest
Net crude oil and condensate – barrels per
day
(6,717
)
(5,949
)
(6,608
)
(6,279
)
Net natural gas liquids – barrels per
day
(217
)
(204
)
(214
)
(218
)
Net natural gas – thousands of cubic feet
per day
(2,003
)
(1,751
)
(2,039
)
(2,051
)
Total noncontrolling interest 2,3
(7,268
)
(6,445
)
(7,162
)
(6,839
)
Total net hydrocarbons - excluding NCI
2,3
180,579
184,250
175,097
178,411
1
Includes net volumes attributable to a
noncontrolling interest in MP GOM.
2
Natural gas converted on an energy
equivalent basis of 6:1.
3
NCI – noncontrolling interest in MP
GOM.
MURPHY OIL CORPORATION
WEIGHTED AVERAGE PRICE
SUMMARY
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Crude oil and condensate – dollars per
barrel
United States - Onshore
$
80.71
$
72.39
$
78.76
$
73.47
United States - Offshore 1
81.67
73.82
79.61
73.54
Canada - Onshore 2
72.25
68.50
70.24
71.46
Canada - Offshore 2
84.34
80.14
85.25
79.26
Other 2
100.92
—
96.43
89.05
Natural gas liquids – dollars per
barrel
United States - Onshore
19.48
16.60
20.08
19.28
United States - Offshore 1
22.77
20.16
23.56
22.89
Canada - Onshore 2
35.46
29.90
35.16
39.82
Natural gas – dollars per thousand cubic
feet
United States - Onshore
1.59
1.88
1.77
2.19
United States - Offshore 1
2.00
2.33
2.32
2.81
Canada - Onshore 2
1.37
1.85
1.68
2.17
1 Prices include the effect of
noncontrolling interest in MP GOM.
2 U.S. dollar equivalent.
MURPHY OIL CORPORATION
FIXED PRICE FORWARD SALES AND
COMMODITY HEDGE POSITIONS
AS OF AUGUST 6, 2024
(unaudited)
Volumes
(MMcf/d)
Price/MCF
Remaining Period
Area
Commodity
Type 1
Start Date
End Date
Canada
Natural Gas
Fixed price forward sales
162
C$2.39
7/1/2024
12/31/2024
Canada
Natural Gas
Fixed price forward sales
28
C$2.76
1/1/2025
12/31/2025
Canada
Natural Gas
Fixed price forward sales
50
C$3.03
1/1/2026
12/31/2026
Canada
Natural Gas
Fixed price forward sales
25
US$1.98
7/1/2024
10/31/2024
Canada
Natural Gas
Fixed price forward sales
15
US$1.98
11/1/2024
12/31/2024
1 Fixed price forward sale contracts are
accounted for as normal sales and purchases for accounting
purposes.
MURPHY OIL CORPORATION
THIRD QUARTER 2024 GUIDANCE
Oil
BOPD
NGLs
BOPD
Gas
MCFD
Total
BOEPD
Production – net
United States – Eagle Ford Shale
23,800
4,400
25,200
32,400
– Gulf of Mexico excluding NCI
54,900
4,300
55,400
68,400
Canada – Tupper Montney
400
—
417,500
70,000
– Kaybob Duvernay
2,700
600
9,600
4,900
– Offshore
9,600
—
—
9,600
Other
200
—
—
200
Total net production (BOEPD) - excluding
NCI 1
181,500 to 189,500
Exploration expense ($ millions)
$34
FULL YEAR 2024
GUIDANCE
Total net production (BOEPD) - excluding
NCI 2
180,000 to 188,000
Capital expenditures – excluding NCI ($
millions) 3
$920 to $1,020
¹ Excludes noncontrolling interest of MP
GOM of 6,300 BOPD of oil, 300 BOPD of NGLs, and 2,400 MCFD gas.
² Excludes noncontrolling interest of MP
GOM of 6,600 BOPD of oil, 300 BOPD of NGLs, and 2,500 MCFD gas.
³ Excludes noncontrolling interest of MP
GOM of $22 million.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240806007741/en/
Investor Contacts: InvestorRelations@murphyoilcorp.com
Kelly Whitley, 281-675-9107 Megan Larson, 281-675-9470 Beth Heller,
832-506-6831
Grafico Azioni Murphy Oil (NYSE:MUR)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni Murphy Oil (NYSE:MUR)
Storico
Da Dic 2023 a Dic 2024
