MUR Murphy Oil Corp

Repurchased $194 Million of Shares Outstanding, Initiated Vietnam Exploration Program

Murphy Oil Corporation (NYSE: MUR) today announced its financial and operating results for the third quarter ended September 30, 2024, including net income attributable to Murphy of $139 million, or $0.93 net income per diluted share. Excluding discontinued operations and other items affecting comparability between periods, adjusted net income attributable to Murphy was $111 million, or $0.74 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 third quarter include:

• Produced 185 thousand barrels of oil equivalent per day (MBOEPD), with 88 thousand barrels of oil per day (MBOPD)
• Repurchased $194 million of stock, or 5.4 million shares, at an average price of $36.12 per share
• Initiated a two-well Vietnam exploration program, drilling the Hai Su Vang-1X exploration well in Block 15/2-17
• Maintained quarterly dividend of $0.30 per share or $1.20 per share annualized

Subsequent to the third quarter:

• Issued $600 million aggregate principal amount of 6.000 percent senior notes due 2032, and used proceeds to tender an aggregate $521 million of senior notes due 2027, 2028 and 2029
• Entered into new five-year, $1.2 billion senior unsecured credit facility, representing a 50 percent increase from previous facility size
• Commenced platform construction for the Lac Da Vang field development project in Vietnam
• Announced Chief Executive Officer transition, effective January 1, 2025

“The company has gone through an incredible transformation since we first established our strategy of Delever, Execute, Explore, Return,” said Roger W. Jenkins, Chief Executive Officer. “Most recently, we improved our balance sheet by securing a highly competitive rate on our new senior notes and significantly upsizing our unsecured credit facility. Further, we continue to reward our shareholders through a long-standing dividend and ongoing meaningful share repurchases, and our exploration opportunities in Vietnam and Côte d’Ivoire provide upside to our portfolio.”

THIRD QUARTER 2024 RESULTS

The company recorded net income attributable to Murphy of $139 million, or $0.93 net income per diluted share, for the third 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 $111 million, or $0.74 adjusted net income per diluted share for the same period. Details for third 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 $378 million. Earnings before interest, tax, depreciation, amortization and exploration expenses (EBITDAX) attributable to Murphy were $410 million. Adjusted EBITDA attributable to Murphy was $397 million. Adjusted EBITDAX attributable to Murphy was $429 million. Reconciliations for third quarter EBITDA, EBITDAX, adjusted EBITDA and adjusted EBITDAX can be found in the attached schedules.

Third quarter production averaged 185 MBOEPD, which included 88 MBOPD. Onshore production was approximately 2.1 MBOEPD above guidance primarily due to stronger well performance in Tupper Montney. This partially offset 1.4 MBOEPD of unplanned downtime in the Gulf of Mexico, primarily due to temporary outages at third-party downstream facilities, and 1.7 MBOEPD of additional downtime at non-operated Terra Nova.

Accrued capital expenditures (CAPEX) for third quarter 2024 totaled $211 million, excluding NCI. Details for third quarter production and CAPEX can be found in the attached schedules.

CAPITAL ALLOCATION FRAMEWORK

Share Repurchases

During the third quarter, Murphy repurchased $194 million of stock, or 5.4 million shares, at an average price of $36.12 per share.

In the first nine months of 2024, Murphy repurchased $300 million of stock, or 8.0 million shares, at an average price of $37.46 per share. Murphy currently has $650 million remaining under its share repurchase authorization and 145.8 million shares outstanding.

Liquidity and Debt Transactions

Murphy had approximately $1.1 billion of liquidity on September 30, 2024, with no borrowings on the $800 million senior unsecured credit facility and $271 million of cash and cash equivalents, inclusive of NCI.

As of September 30, 2024, Murphy’s total debt was $1.28 billion, and consisted of long-term, fixed-rate notes with a weighted average maturity of 7.5 years and a weighted average coupon of 6.2 percent.

As previously announced, subsequent to the third quarter Murphy issued $600 million of 6.000 percent senior notes due 2032. Proceeds were used to redeem $259 million of senior notes due 2027, $200 million of senior notes due 2028 and $62 million of senior notes due 2029, totaling $521 million. Murphy plans to call the remaining $79 million of senior notes in fourth quarter 2024 to achieve a debt-neutral transaction.

Also subsequent to the third quarter, Murphy entered into a new five-year, $1.2 billion senior unsecured credit facility, representing a 50 percent increase from the previous facility size, or $400 million of additional liquidity.

OPERATIONS SUMMARY

Onshore

In the third quarter of 2024, the onshore business produced approximately 109 MBOEPD, which included 29 percent liquids volumes.

Eagle Ford Shale – Production averaged 32 MBOEPD with 72 percent oil volumes and 86 percent liquids volumes in the third quarter. Murphy brought online five operated Tilden wells as planned, in addition to three non-operated Karnes wells and nine non-operated Tilden wells during the quarter.

Tupper Montney – During the third quarter, natural gas production averaged 429 million cubic feet per day (MMCFD), which exceeded guidance by approximately 11 MMCFD primarily due to stronger well performance.

Kaybob Duvernay – Production averaged 5 MBOEPD with 73 percent liquids volumes in the third quarter.

Offshore

Excluding NCI, in the third quarter of 2024, the offshore business produced approximately 75 MBOEPD, which included 81 percent oil.

Gulf of Mexico – Production averaged approximately 67 MBOEPD, consisting of 79 percent oil during the third quarter. As previously announced, Murphy brought online the operated Mormont #3 (Green Canyon 478) well and concluded workovers in the Neidermeyer, Dalmatian and non-operated Kodiak fields. Also during the quarter, the company spud the operated Mormont #4 (Green Canyon 478) well, and Murphy’s operating partner began water injection at the St. Malo waterflood project.

Canada – In the third quarter, production averaged 8 MBOEPD, consisting of 100 percent oil.

EXPLORATION

Gulf of Mexico – During the third quarter, Murphy drilled the Sebastian #1 (Mississippi Canyon 387) exploration well. The well encountered non-commercial hydrocarbons and has been plugged and abandoned. Approximately $12 million of the net well cost was expensed in the third quarter. Murphy holds a 26.8 percent working interest in the well.

Vietnam – Murphy as operator spud the Hai Su Vang-1X (Block 15-2/17) exploration well during the third quarter, initiating its two-well Vietnam exploration program. Murphy holds a 40 percent working interest in the well. Following this well, the company will spud the Lac Da Hong-1X (Block 15-1/05) exploration well as operator with a 40 percent working interest.

CHIEF EXECUTIVE OFFICER TRANSITION

As previously announced, the Board of Directors has appointed Eric M. Hambly, Murphy’s current President and Chief Operating Officer, to succeed Roger W. Jenkins as the company's President and Chief Executive Officer, effective January 1, 2025. In addition, Mr. Hambly will become a member of the Board of Directors. Mr. Jenkins will retire from the Board on December 31, 2024. He will remain with Murphy in a non-executive role as an advisor until his retirement on December 31, 2025.

2024 CAPITAL EXPENDITURE AND PRODUCTION GUIDANCE

Murphy maintains its 2024 accrued CAPEX range of $920 million to $1.02 billion. The company is tightening its full year 2024 production range to 180 to 182 MBOEPD, consisting of approximately 50 percent oil and 55 percent liquids volumes. As previously disclosed, the company expects to be at the lower end of the production range due to operational impacts in the Gulf of Mexico and at non-operated Terra Nova.

Production for fourth quarter 2024 is estimated to be in the range of 181.5 to 189.5 MBOEPD with 94 MBOPD, or approximately 51 percent, oil volumes. This includes 1.5 MBOEPD of planned onshore downtime and 1.0 MBOEPD of planned downtime for maintenance at non-op Terra Nova. Both production and CAPEX guidance ranges exclude NCI.

“We achieved a significant milestone this year as we reached Murphy 3.0 of our capital allocation framework. This allowed us to increase our shareholder returns through additional share repurchases after previously raising our dividend in first quarter 2024. Additionally, we extended the maturity profile of our debt and enhanced our liquidity position with a 50 percent increase in our senior unsecured credit facility,” said Eric M. Hambly, President and Chief Operating Officer. “As we look to 2025, I am excited to increase shareholder returns, progress our Vietnam development project and announce exploration results – all of which we expect to accomplish while maintaining a strong balance sheet.”

Detailed guidance for the fourth quarter and full year 2024 is contained in the attached schedules.

FIXED PRICE CONTRACTS

The company employs derivative commodity instruments to manage certain risks associated with commodity price volatility and underpin capital spending associated with certain assets. During the third quarter, Murphy executed NYMEX natural gas swaps of 20 MMCFD of full-year 2025 production at an average price of $3.20 per thousand cubic feet.

Murphy also maintains fixed price forward sales contracts in Canada to mitigate volatility of 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 NOVEMBER 7, 2024

Murphy will host a conference call to discuss third quarter 2024 financial and operating results on Thursday, November 7, 2024, at 9:00 a.m. EST. 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 41884. For additional information, please refer to the Third 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 third 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 fourth quarter and full year 2024, are also included.

CAPITAL ALLOCATION FRAMEWORK

This news release contains references to the company’s capital allocation framework and adjusted free cash flow. As previously disclosed, Murphy now allocates capital pursuant to Murphy 3.0 of the company’s capital allocation framework, under which the company allocates a minimum of 50 percent of adjusted free cash flow to shareholder returns, primarily through buybacks. Murphy will continue to assess the appropriate shareholder return allocation under the framework, including potential dividend increases. The remainder of adjusted free cash flow will be 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 US 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 US 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.

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.

 

MURPHY OIL CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

(Thousands of dollars, except per share amounts)

2024

 

2023

 

2024

 

2023

Revenues and other income

 

 

 

 

 

 

 

Revenue from production

$

753,169

 

 

$

945,889

 

 

$

2,345,282

 

 

$

2,541,956

 

Sales of purchased natural gas

 

—

 

 

 

7,877

 

 

 

3,742

 

 

 

64,628

 

Total revenue from sales to customers

 

753,169

 

 

 

953,766

 

 

 

2,349,024

 

 

 

2,606,584

 

(Loss) on derivative instruments

 

(1,344

)

 

 

—

 

 

 

(1,344

)

 

 

—

 

Gain on sale of assets and other income

 

6,506

 

 

 

5,879

 

 

 

9,834

 

 

 

9,365

 

Total revenues and other income

 

758,331

 

 

 

959,645

 

 

 

2,357,514

 

 

 

2,615,949

 

Costs and expenses

 

 

 

 

 

 

 

Lease operating expenses

 

222,886

 

 

 

193,402

 

 

 

716,778

 

 

 

587,678

 

Severance and ad valorem taxes

 

10,503

 

 

 

10,937

 

 

 

31,006

 

 

 

35,142

 

Transportation, gathering and processing

 

47,438

 

 

 

61,518

 

 

 

157,461

 

 

 

175,308

 

Costs of purchased natural gas

 

—

 

 

 

5,467

 

 

 

3,147

 

 

 

47,393

 

Exploration expenses, including undeveloped lease amortization

 

31,284

 

 

 

26,514

 

 

 

118,390

 

 

 

152,489

 

Selling and general expenses

 

24,871

 

 

 

30,745

 

 

 

78,925

 

 

 

74,398

 

Depreciation, depletion and amortization

 

223,632

 

 

 

237,493

 

 

 

650,309

 

 

 

648,830

 

Accretion of asset retirement obligations

 

13,241

 

 

 

11,675

 

 

 

39,068

 

 

 

34,196

 

Other operating expense

 

5,450

 

 

 

4,385

 

 

 

10,497

 

 

 

21,333

 

Impairment of assets

 

—

 

 

 

—

 

 

 

34,528

 

 

 

—

 

Total costs and expenses

 

579,305

 

 

 

582,136

 

 

 

1,840,109

 

 

 

1,776,767

 

Operating income from continuing operations

 

179,026

 

 

 

377,509

 

 

 

517,405

 

 

 

839,182

 

Other income (loss)

 

 

 

 

 

 

 

Other (loss) income

 

(3,926

)

 

 

8,811

 

 

 

33,870

 

 

 

1,044

 

Interest expense, net

 

(21,258

)

 

 

(29,984

)

 

 

(62,265

)

 

 

(88,695

)

Total other loss

 

(25,184

)

 

 

(21,173

)

 

 

(28,395

)

 

 

(87,651

)

Income from continuing operations before income taxes

 

153,842

 

 

 

356,336

 

 

 

489,010

 

 

 

751,531

 

Income tax expense

 

2,122

 

 

 

78,111

 

 

 

64,855

 

 

 

166,813

 

Income from continuing operations

 

151,720

 

 

 

278,225

 

 

 

424,155

 

 

 

584,718

 

Loss from discontinued operations, net of income taxes

 

(608

)

 

 

(421

)

 

 

(2,123

)

 

 

(744

)

Net income including noncontrolling interest

 

151,112

 

 

 

277,804

 

 

 

422,032

 

 

 

583,974

 

Less: Net income attributable to noncontrolling interest

 

12,018

 

 

 

22,462

 

 

 

65,197

 

 

 

38,701

 

NET INCOME ATTRIBUTABLE TO MURPHY

$

139,094

 

 

$

255,342

 

 

$

356,835

 

 

$

545,273

 

 

 

 

 

 

 

 

 

INCOME (LOSS) PER COMMON SHARE – BASIC

 

 

 

 

 

 

 

Continuing operations

$

0.93

 

 

$

1.64

 

 

$

2.37

 

 

$

3.50

 

Discontinued operations

 

—

 

 

 

—

 

 

 

(0.01

)

 

 

—

 

Net income

$

0.93

 

 

$

1.64

 

 

$

2.36

 

 

$

3.50

 

 

 

 

 

 

 

 

 

INCOME (LOSS) PER COMMON SHARE – DILUTED

 

 

 

 

 

 

 

Continuing operations

$

0.93

 

 

$

1.63

 

 

$

2.35

 

 

$

3.47

 

Discontinued operations

 

—

 

 

 

—

 

 

 

(0.01

)

 

 

—

 

Net income

$

0.93

 

 

$

1.63

 

 

$

2.34

 

 

$

3.47

 

Cash dividends per common share

$

0.300

 

 

$

0.275

 

 

$

0.900

 

 

$

0.827

 

Average common shares outstanding (thousands)

 

 

 

 

 

 

 

Basic

 

149,384

 

 

 

155,454

 

 

 

151,401

 

 

 

155,749

 

Diluted

 

150,353

 

 

 

156,829

 

 

 

152,437

 

 

 

157,135

 

 

MURPHY OIL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

(Thousands of dollars)

2024

 

2023

 

2024

 

2023

Operating Activities

 

 

 

 

 

 

 

Net income including noncontrolling interest

$

151,112

 

 

$

277,804

 

 

$

422,032

 

 

$

583,974

 

Adjustments to reconcile net income to net cash provided by continuing operations activities

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

223,632

 

 

 

237,493

 

 

 

650,309

 

 

 

648,830

 

Impairment of assets

 

—

 

 

 

—

 

 

 

34,528

 

 

 

—

 

Unsuccessful exploration well costs and previously suspended exploration costs

 

11,268

 

 

 

11,292

 

 

 

69,548

 

 

 

107,825

 

Deferred income tax (benefit) expense

 

(8,792

)

 

 

59,547

 

 

 

45,136

 

 

 

152,104

 

Accretion of asset retirement obligations

 

13,241

 

 

 

11,675

 

 

 

39,068

 

 

 

34,196

 

Long-term non-cash compensation

 

8,237

 

 

 

20,426

 

 

 

30,060

 

 

 

42,502

 

Amortization of undeveloped leases

 

1,929

 

 

 

2,846

 

 

 

7,707

 

 

 

8,215

 

Mark-to-market loss on derivative instruments

 

1,344

 

 

 

—

 

 

 

1,344

 

 

 

—

 

Loss from discontinued operations

 

608

 

 

 

421

 

 

 

2,123

 

 

 

744

 

Contingent consideration payment

 

—

 

 

 

—

 

 

 

—

 

 

 

(139,574

)

Mark-to-market loss on contingent consideration

 

—

 

 

 

—

 

 

 

—

 

 

 

7,113

 

Other operating activities, net

 

(4,301

)

 

 

(37,990

)

 

 

(38,260

)

 

 

(97,407

)

Net decrease (increase) in non-cash working capital

 

30,709

 

 

 

(127,447

)

 

 

31,835

 

 

 

(142,788

)

Net cash provided by continuing operations activities

 

428,987

 

 

 

456,067

 

 

 

1,295,430

 

 

 

1,205,734

 

Investing Activities

 

 

 

 

 

 

 

Property additions and dry hole costs

 

(216,413

)

 

 

(207,542

)

 

 

(733,289

)

 

 

(902,295

)

Acquisition of oil and natural gas properties

 

—

 

 

 

(22,773

)

 

 

—

 

 

 

(22,773

)

Proceeds from sales of property, plant and equipment

 

—

 

 

 

102,913

 

 

 

—

 

 

 

102,913

 

Net cash required by investing activities

 

(216,413

)

 

 

(127,402

)

 

 

(733,289

)

 

 

(822,155

)

Financing Activities

 

 

 

 

 

 

 

Borrowings on revolving credit facility

 

150,000

 

 

 

100,000

 

 

 

350,000

 

 

 

300,000

 

Repayment of revolving credit facility

 

(150,000

)

 

 

(100,000

)

 

 

(350,000

)

 

 

(300,000

)

Retirement of debt

 

—

 

 

 

(248,675

)

 

 

(50,000

)

 

 

(248,675

)

Repurchase of common stock

 

(194,245

)

 

 

(75,023

)

 

 

(300,132

)

 

 

(75,023

)

Cash dividends paid

 

(44,663

)

 

 

(42,790

)

 

 

(136,208

)

 

 

(128,657

)

Withholding tax on stock-based incentive awards

 

(12

)

 

 

(12

)

 

 

(25,310

)

 

 

(14,232

)

Distributions to noncontrolling interest

 

(35,408

)

 

 

(4,069

)

 

 

(96,618

)

 

 

(20,052

)

Finance lease obligation payments

 

(171

)

 

 

(161

)

 

 

(502

)

 

 

(457

)

Contingent consideration payment

 

—

 

 

 

—

 

 

 

—

 

 

 

(60,243

)

Issue costs of debt facility

 

—

 

 

 

—

 

 

 

—

 

 

 

(20

)

Net cash required by financing activities

 

(274,499

)

 

 

(370,730

)

 

 

(608,770

)

 

 

(547,359

)

Effect of exchange rate changes on cash and cash equivalents

 

(471

)

 

 

479

 

 

 

778

 

 

 

(414

)

Net decrease in cash and cash equivalents

 

(62,396

)

 

 

(41,586

)

 

 

(45,851

)

 

 

(164,194

)

Cash and cash equivalents at beginning of period

 

333,619

 

 

 

369,355

 

 

 

317,074

 

 

 

491,963

 

Cash and cash equivalents at end of period

$

271,223

 

 

$

327,769

 

 

$

271,223

 

 

$

327,769

 

 

MURPHY OIL CORPORATION

SCHEDULE OF ADJUSTED NET INCOME (LOSS) (unaudited)

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

(Millions of dollars, except per share amounts)

2024

 

2023

 

2024

 

2023

Net income attributable to Murphy (GAAP) 1

$

139.1

 

 

$

255.3

 

 

$

356.8

 

 

$

545.3

 

Discontinued operations loss

 

0.6

 

 

 

0.4

 

 

 

2.1

 

 

 

0.7

 

Net income from continuing operations attributable to Murphy

 

139.7

 

 

 

255.7

 

 

 

358.9

 

 

 

546.0

 

Adjustments:

 

 

 

 

 

 

 

Impairment of assets

 

—

 

 

 

—

 

 

 

34.5

 

 

 

—

 

Write-off of previously suspended exploration well

 

—

 

 

 

—

 

 

 

26.1

 

 

 

17.1

 

Foreign exchange loss (gain)

 

5.4

 

 

 

(8.6

)

 

 

(10.6

)

 

 

(0.3

)

Mark-to-market loss on derivative instruments

 

1.3

 

 

 

—

 

 

 

1.3

 

 

 

—

 

Mark-to-market loss on contingent consideration

 

—

 

 

 

—

 

 

 

—

 

 

 

7.1

 

Total adjustments, before taxes

 

6.7

 

 

 

(8.6

)

 

 

51.3

 

 

 

23.9

 

Income tax (benefit) expense related to adjustments

 

(1.7

)

 

 

2.2

 

 

 

(10.5

)

 

 

(1.4

)

Tax benefits on investments in foreign areas

 

(34.0

)

 

 

—

 

 

 

(34.0

)

 

 

—

 

Total adjustments after taxes

 

(29.0

)

 

 

(6.4

)

 

 

6.8

 

 

 

22.5

 

Adjusted net income from continuing operations attributable to Murphy (Non-GAAP)

$

110.7

 

 

$

249.3

 

 

$

365.7

 

 

$

568.5

 

Adjusted net income from continuing operations per average diluted share (Non-GAAP)

$

0.74

 

 

$

1.59

 

 

$

2.40

 

 

$

3.62

 

 

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 September 30, 2024

 

Nine Months Ended September 30, 2024

(Millions of dollars)

Pretax

 

Tax

 

Net

 

Pretax

 

Tax

 

Net

Exploration & Production:

 

 

 

 

 

 

 

 

 

 

 

United States

$

—

 

$

—

 

 

$

—

 

 

$

60.6

 

 

$

(12.9

)

 

$

47.7

 

Other International

 

—

 

 

(34.0

)

 

 

(34.0

)

 

 

—

 

 

 

(34.0

)

 

 

(34.0

)

Corporate

 

6.7

 

 

(1.7

)

 

 

5.0

 

 

 

(9.3

)

 

 

2.4

 

 

 

(6.9

)

Total adjustments

$

6.7

 

$

(35.7

)

 

$

(29.0

)

 

$

51.3

 

 

$

(44.5

)

 

$

6.8

 

 

MURPHY OIL CORPORATION

SCHEDULE OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION

AND AMORTIZATION (EBITDA)

(unaudited)

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

(Millions of dollars)

2024

 

2023

 

2024

 

2023

Net income attributable to Murphy (GAAP) 1

$

139.1

 

$

255.3

 

 

$

356.8

 

 

$

545.3

 

Income tax expense

 

2.2

 

 

78.1

 

 

 

64.9

 

 

 

166.8

 

Interest expense, net

 

21.3

 

 

30.0

 

 

 

62.3

 

 

 

88.7

 

Depreciation, depletion and amortization expense 1

 

215.7

 

 

231.5

 

 

 

625.8

 

 

 

630.8

 

EBITDA attributable to Murphy (Non-GAAP)

$

378.3

 

$

594.9

 

 

$

1,109.8

 

 

$

1,431.6

 

Impairment of asset

 

—

 

 

—

 

 

 

34.5

 

 

 

—

 

Write-off of previously suspended exploration well

 

—

 

 

—

 

 

 

26.1

 

 

 

17.1

 

Accretion of asset retirement obligations 1

 

11.7

 

 

10.4

 

 

 

34.9

 

 

 

30.4

 

Foreign exchange loss (gain)

 

5.4

 

 

(8.6

)

 

 

(10.6

)

 

 

(0.3

)

Mark-to-market loss on derivative instruments

 

1.3

 

 

—

 

 

 

1.3

 

 

 

—

 

Mark-to-market loss on contingent consideration

 

—

 

 

—

 

 

 

—

 

 

 

7.1

 

Discontinued operations loss

 

0.6

 

 

0.4

 

 

 

2.1

 

 

 

0.7

 

Adjusted EBITDA attributable to Murphy (Non-GAAP)

$

397.3

 

$

597.1

 

 

$

1,198.1

 

 

$

1,486.6

 

 

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 September 30,

 

Nine Months Ended September 30,

(Millions of dollars)

2024

 

2023

 

2024

 

2023

Net income attributable to Murphy (GAAP) 1

$

139.1

 

$

255.3

 

 

$

356.8

 

 

$

545.3

 

Income tax expense

 

2.2

 

 

78.1

 

 

 

64.9

 

 

 

166.8

 

Interest expense, net

 

21.3

 

 

30.0

 

 

 

62.3

 

 

 

88.7

 

Depreciation, depletion and amortization expense 1

 

215.7

 

 

231.5

 

 

 

625.8

 

 

 

630.8

 

EBITDA attributable to Murphy (Non-GAAP)

 

378.3

 

 

594.9

 

 

 

1,109.8

 

 

 

1,431.6

 

Exploration expenses 1

 

31.3

 

 

23.0

 

 

 

118.4

 

 

 

122.6

 

EBITDAX attributable to Murphy (Non-GAAP)

 

409.6

 

 

617.9

 

 

 

1,228.2

 

 

 

1,554.2

 

Impairment of asset

 

—

 

 

—

 

 

 

34.5

 

 

 

—

 

Accretion of asset retirement obligations 1

 

11.7

 

 

10.4

 

 

 

34.9

 

 

 

30.4

 

Foreign exchange loss (gain)

 

5.4

 

 

(8.6

)

 

 

(10.6

)

 

 

(0.3

)

Mark-to-market loss on derivative instruments

 

1.3

 

 

—

 

 

 

1.3

 

 

 

—

 

Mark-to-market loss on contingent consideration

 

—

 

 

—

 

 

 

—

 

 

 

7.1

 

Discontinued operations loss

 

0.6

 

 

0.4

 

 

 

2.1

 

 

 

0.7

 

Adjusted EBITDAX attributable to Murphy (Non-GAAP)

$

428.6

 

$

620.1

 

 

$

1,290.4

 

 

$

1,592.1

 

 

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 September 30, 2024

 

Three Months Ended September 30, 2023

(Millions of dollars)

Revenues

 

Income (Loss)

 

Revenues

 

Income (Loss)

Exploration and production

 

 

 

 

 

 

 

United States 1

$

597.0

 

 

$

138.8

 

 

$

823.7

 

$

310.3

 

Canada

 

157.9

 

 

 

24.2

 

 

 

129.3

 

 

10.5

 

Other

 

(0.8

)

 

 

22.4

 

 

 

3.4

 

 

(12.5

)

Total exploration and production

 

754.1

 

 

 

185.4

 

 

 

956.4

 

 

308.3

 

Corporate

 

4.2

 

 

 

(33.7

)

 

 

3.2

 

 

(30.1

)

Income from continuing operations

 

758.3

 

 

 

151.7

 

 

 

959.6

 

 

278.2

 

Discontinued operations, net of tax

 

—

 

 

 

(0.6

)

 

 

—

 

 

(0.4

)

Net income including noncontrolling interest

$

758.3

 

 

$

151.1

 

 

$

959.6

 

$

277.8

 

Net income attributable to Murphy

 

 

$

139.1

 

 

 

 

$

255.3

 

 

 

Nine Months Ended September 30, 2024

 

Nine Months Ended September 30, 2023

(Millions of dollars)

Revenues

 

Income (Loss)

 

Revenues

 

Income (Loss)

Exploration and production

 

 

 

 

 

 

 

United States 1

$

1,936.1

 

$

459.0

 

 

$

2,202.2

 

$

705.2

 

Canada

 

413.8

 

 

52.5

 

 

 

403.3

 

 

34.9

 

Other

 

3.4

 

 

1.5

 

 

 

7.1

 

 

(50.0

)

Total exploration and production

 

2,353.3

 

 

513.0

 

 

 

2,612.6

 

 

690.1

 

Corporate

 

4.2

 

 

(88.9

)

 

 

3.3

 

 

(105.4

)

Income from continuing operations

 

2,357.5

 

 

424.1

 

 

 

2,615.9

 

 

584.7

 

Discontinued operations, net of tax

 

—

 

 

(2.1

)

 

 

—

 

 

(0.7

)

Net income including noncontrolling interest

$

2,357.5

 

$

422.0

 

 

$

2,615.9

 

$

584.0

 

Net income attributable to Murphy

 

 

$

356.8

 

 

 

 

$

545.3

 

 

1 Includes amounts attributable to a noncontrolling interest in MP GOM.

 

MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (unaudited)

THREE MONTHS ENDED SEPTEMBER 30, 2024, AND 2023

 

 

 

 

 

(Millions of dollars)

United States 1

Canada

Other

Total

Three Months Ended September 30, 2024

 

 

 

 

Oil and gas sales and other operating revenues

$

597.0

 

$

157.9

$

(0.8

)

$

754.1

Sales of purchased natural gas

 

—

 

 

—

 

—

 

 

—

Lease operating expenses

 

168.8

 

 

53.8

 

0.3

 

 

222.9

Severance and ad valorem taxes

 

10.2

 

 

0.3

 

—

 

 

10.5

Transportation, gathering and processing

 

26.3

 

 

21.2

 

—

 

 

47.5

Costs of purchased natural gas

 

—

 

 

—

 

—

 

 

—

Depreciation, depletion and amortization

 

179.3

 

 

42.8

 

—

 

 

222.1

Accretion of asset retirement obligations

 

10.9

 

 

2.1

 

0.2

 

 

13.2

Exploration expenses

 

 

 

 

Dry holes and previously suspended exploration costs

 

10.8

 

 

—

 

0.4

 

 

11.2

Geological and geophysical

 

9.8

 

 

0.1

 

2.8

 

 

12.7

Other exploration

 

1.5

 

 

0.1

 

3.8

 

 

5.4

Undeveloped lease amortization

 

1.1

 

 

—

 

0.8

 

 

1.9

Total exploration expenses

 

23.2

 

 

0.2

 

7.8

 

 

31.2

Selling and general expenses

 

(1.6

)

 

4.7

 

1.9

 

 

5.0

Other

 

5.9

 

 

0.2

 

0.6

 

 

6.7

Results of operations before taxes

 

174.0

 

 

32.6

 

(11.6

)

 

195.0

Income tax provisions (benefits)

 

35.2

 

 

8.4

 

(34.0

)

 

9.6

Results of operations (excluding Corporate segment)

$

138.8

 

$

24.2

$

22.4

 

$

185.4

 

 

 

 

 

Three Months Ended September 30, 2023

 

 

 

 

Oil and gas sales and other operating revenues

$

823.7

 

$

121.4

$

3.4

 

$

948.5

Sales of purchased natural gas

 

—

 

 

7.9

 

—

 

 

7.9

Lease operating expenses

 

153.2

 

 

39.5

 

0.7

 

 

193.4

Severance and ad valorem taxes

 

10.6

 

 

0.3

 

—

 

 

10.9

Transportation, gathering and processing

 

41.9

 

 

19.6

 

—

 

 

61.5

Costs of purchased natural gas

 

—

 

 

5.5

 

—

 

 

5.5

Depreciation, depletion and amortization

 

193.6

 

 

40.4

 

0.7

 

 

234.7

Accretion of asset retirement obligations

 

9.6

 

 

2.0

 

0.1

 

 

11.7

Exploration expenses

 

 

 

 

Dry holes and previously suspended exploration costs

 

11.3

 

 

—

 

—

 

 

11.3

Geological and geophysical

 

1.9

 

 

—

 

2.4

 

 

4.3

Other exploration

 

2.4

 

 

—

 

5.6

 

 

8.0

Undeveloped lease amortization

 

2.1

 

 

—

 

0.7

 

 

2.8

Total exploration expenses

 

17.7

 

 

—

 

8.7

 

 

26.4

Selling and general expenses

 

3.4

 

 

4.3

 

3.0

 

 

10.7

Other

 

4.1

 

 

3.4

 

0.3

 

 

7.8

Results of operations before taxes

 

389.6

 

 

14.3

 

(10.1

)

 

393.8

Income tax provisions

 

79.3

 

 

3.8

 

2.4

 

 

85.5

Results of operations (excluding Corporate segment)

$

310.3

 

$

10.5

$

(12.5

)

$

308.3

 

1 Includes amounts attributable to a noncontrolling interest in MP GOM.

 

MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (unaudited)

NINE MONTHS ENDED SEPTEMBER 30, 2024, AND 2023

 

 

 

 

 

(Millions of dollars)

United States 1

Canada

Other

Total

Nine Months Ended September 30, 2024

 

 

 

 

Oil and gas sales and other operating revenues

$

1,936.1

 

$

410.1

$

3.4

 

$

2,349.6

Sales of purchased natural gas

 

—

 

 

3.7

 

—

 

 

3.7

Lease operating expenses

 

567.7

 

 

148.1

 

1.0

 

 

716.8

Severance and ad valorem taxes

 

30.0

 

 

1.0

 

—

 

 

31.0

Transportation, gathering and processing

 

97.1

 

 

60.4

 

—

 

 

157.5

Costs of purchased natural gas

 

—

 

 

3.1

 

—

 

 

3.1

Depreciation, depletion and amortization

 

528.3

 

 

114.1

 

0.9

 

 

643.3

Impairment of assets

 

34.5

 

 

—

 

—

 

 

34.5

Accretion of asset retirement obligations

 

32.0

 

 

6.4

 

0.6

 

 

39.0

Exploration expenses

 

 

 

 

Dry holes and previously suspended exploration costs

 

67.9

 

 

—

 

1.6

 

 

69.5

Geological and geophysical

 

13.5

 

 

0.2

 

8.6

 

 

22.3

Other exploration

 

4.5

 

 

0.2

 

14.2

 

 

18.9

Undeveloped lease amortization

 

5.2

 

 

—

 

2.5

 

 

7.7

Total exploration expenses

 

91.1

 

 

0.4

 

26.9

 

 

118.4

Selling and general expenses

 

(5.2

)

 

14.3

 

4.9

 

 

14.0

Other

 

(8.2

)

 

2.4

 

1.1

 

 

(4.7)

Results of operations before taxes

 

568.8

 

 

63.6

 

(32.0

)

 

600.4

Income tax provisions (benefits)

 

109.8

 

 

11.1

 

(33.5

)

 

87.4

Results of operations (excluding Corporate segment)

$

459.0

 

$

52.5

$

1.5

 

$

513.0

 

 

 

 

 

Nine Months Ended September 30, 2023

 

 

 

 

Oil and gas sales and other operating revenues

$

2,202.2

 

$

338.7

$

7.1

 

$

2,548.0

Sales of purchased natural gas

 

—

 

 

64.6

 

—

 

 

64.6

Lease operating expenses

 

472.4

 

 

113.8

 

1.4

 

 

587.6

Severance and ad valorem taxes

 

34.1

 

 

1.0

 

—

 

 

35.1

Transportation, gathering and processing

 

119.1

 

 

56.2

 

—

 

 

175.3

Costs of purchased natural gas

 

—

 

 

47.4

 

—

 

 

47.4

Depreciation, depletion and amortization

 

531.8

 

 

107.0

 

1.6

 

 

640.4

Accretion of asset retirement obligations

 

28.0

 

 

5.8

 

0.3

 

 

34.1

Exploration expenses

 

 

 

 

Dry holes and previously suspended exploration costs

 

90.9

 

 

—

 

16.9

 

 

107.8

Geological and geophysical

 

2.6

 

 

0.1

 

12.9

 

 

15.6

Other exploration

 

5.7

 

 

0.2

 

15.0

 

 

20.9

Undeveloped lease amortization

 

6.2

 

 

0.1

 

1.9

 

 

8.2

Total exploration expenses

 

105.4

 

 

0.4

 

46.7

 

 

152.5

Selling and general expenses

 

7.9

 

 

11.3

 

5.8

 

 

25.0

Other

 

14.1

 

 

13.2

 

1.7

 

 

29.0

Results of operations before taxes

 

889.4

 

 

47.2

 

(50.4

)

 

886.2

Income tax provisions (benefits)

 

184.2

 

 

12.3

 

(0.4

)

 

196.1

Results of operations (excluding Corporate segment)

$

705.2

 

$

34.9

$

(50.0

)

$

690.1

 

1 Includes amounts attributable to a noncontrolling interest in MP GOM.

 

MURPHY OIL CORPORATION

PRODUCTION-RELATED EXPENSES

(unaudited)

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

(Dollars per barrel of oil equivalents sold)

2024

 

2023

 

2024

 

2023

United States – Onshore

 

 

 

 

 

 

 

Lease operating expense

$

11.03

 

$

11.38

 

$

13.00

 

$

12.42

Severance and ad valorem taxes

 

3.30

 

 

2.91

 

 

3.53

 

 

3.54

Depreciation, depletion and amortization expense

 

29.60

 

 

26.35

 

 

29.25

 

 

26.35

 

 

 

 

 

 

 

 

United States – Offshore 1

 

 

 

 

 

 

 

Lease operating expense

$

20.54

 

$

13.42

 

$

21.52

 

$

14.27

Severance and ad valorem taxes

 

0.06

 

 

0.06

 

 

0.06

 

 

0.07

Depreciation, depletion and amortization expense

 

13.78

 

 

12.05

 

 

13.55

 

 

11.57

 

 

 

 

 

 

 

 

Canada – Onshore

 

 

 

 

 

 

 

Lease operating expense

$

4.96

 

$

5.33

 

$

5.28

 

$

5.97

Severance and ad valorem taxes

 

0.05

 

 

0.05

 

 

0.05

 

 

0.06

Depreciation, depletion and amortization expense

 

4.87

 

 

5.53

 

 

4.87

 

 

5.70

 

 

 

 

 

 

 

 

Canada – Offshore

 

 

 

 

 

 

 

Lease operating expense

$

18.51

 

$

12.12

 

$

21.67

 

$

12.45

Depreciation, depletion and amortization expense

 

8.27

 

 

10.02

 

 

9.58

 

 

9.59

 

 

 

 

 

 

 

 

Total E&P continuing operations 1

 

 

 

 

 

 

 

Lease operating expense

$

12.60

 

$

10.12

 

$

14.05

 

$

11.16

Severance and ad valorem taxes

 

0.59

 

 

0.57

 

 

0.61

 

 

0.67

Depreciation, depletion and amortization expense 2

 

12.56

 

 

12.43

 

 

12.61

 

 

12.33

 

 

 

 

 

 

 

 

Total oil and gas continuing operations – excluding noncontrolling interest

 

 

 

 

 

 

 

Lease operating expense 3

$

11.99

 

$

9.94

 

$

13.75

 

$

10.98

Severance and ad valorem taxes

 

0.61

 

 

0.59

 

 

0.63

 

 

0.69

Depreciation, depletion and amortization expense 2

 

12.54

 

 

12.50

 

 

12.61

 

 

12.41

 

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 $9.70 and $9.56 for the three months ended September 30, 2024 and 2023, respectively and $10.28 and $10.26 for the nine months ended September 30, 2024 and 2023, respectively.

 

MURPHY OIL CORPORATION

CAPITAL EXPENDITURES

(unaudited)

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

(Millions of dollars)

2024

 

2023

 

2024

 

2023

Exploration and production

 

 

 

 

 

 

 

United States 1

$

160.8

 

$

143.9

 

$

575.1

 

$

644.0

Canada

 

13.5

 

 

27.1

 

 

123.0

 

 

170.6

Other

 

29.6

 

 

11.0

 

 

62.1

 

 

55.7

Total

 

203.9

 

 

182.0

 

 

760.2

 

 

870.3

Corporate

 

8.0

 

 

5.5

 

 

16.4

 

 

15.4

Total capital expenditures - continuing operations 1

 

211.9

 

 

187.5

 

 

776.6

 

 

885.7

 

 

 

 

 

 

 

 

Less: capital expenditures attributable to noncontrolling interest

 

0.7

 

 

18.4

 

 

9.6

 

 

57.2

Total capital expenditures - continuing operations attributable to Murphy 2

 

211.2

 

 

169.1

 

 

767.0

 

 

828.5

 

 

 

 

 

 

 

 

Charged to exploration expenses 3

 

 

 

 

 

 

 

United States 1

 

22.1

 

 

15.5

 

 

85.9

 

 

99.2

Canada

 

0.2

 

 

0.1

 

 

0.4

 

 

0.3

Other

 

7.0

 

 

8.0

 

 

24.4

 

 

44.8

Total charged to exploration expenses - continuing operations 1,3

 

29.3

 

 

23.6

 

 

110.7

 

 

144.3

 

 

 

 

 

 

 

 

Less: charged to exploration expenses attributable to noncontrolling interest

 

—

 

 

3.6

 

 

—

 

 

29.9

Total charged to exploration expenses - continuing operations attributable to Murphy 4

 

29.3

 

 

20.0

 

 

110.7

 

 

114.4

 

 

 

 

 

 

 

 

Total capitalized - continuing operations attributable to Murphy

$

181.9

 

$

149.1

 

$

656.3

 

$

714.1

 

1 Includes amounts attributable to a noncontrolling interest in MP GOM.

2 For the three months ended September 30, 2024, total capital expenditures attributable to Murphy, excluding acquisition-related costs of nil (2023: $7.5 million), is $211.2 million (2023: $161.6 million). For the nine months ended September 30, 2024, total capital expenditures attributable to Murphy, excluding acquisition-related costs of nil (2023: $39.8 million), is $767.0 million (2023: $788.7 million).

3 For the three-month and nine-month ended September 30, 2024, total charged to exploration expense attributable to Murphy, excludes amortization of undeveloped leases of $1.9 million (2023: $2.8 million) and $7.7 million (2023 $8.2 million), respectively.

4 For the three months ended September 30, 2024, total charged to exploration expense attributable to Murphy, excluding previously suspended exploration costs of nil (2023: nil), is $29.3 million (2023: $20.0 million). For the nine months ended September 30, 2024, total charged to exploration expense excluding previously suspended exploration costs of $26.1 million (2023: $17.1 million), is $84.6 million (2023: $97.3 million).

 

MURPHY OIL CORPORATION

CONSOLIDATED BALANCE SHEETS

(unaudited)

 

 

 

 

(Thousands of dollars)

September 30, 2024

 

December 31, 2023

ASSETS

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

271,223

 

 

$

317,074

 

Accounts receivable, net

 

263,110

 

 

 

343,992

 

Inventories

 

51,048

 

 

 

54,454

 

Prepaid expenses

 

44,234

 

 

 

36,674

 

Total current assets

 

629,615

 

 

 

752,194

 

Property, plant and equipment, at cost less accumulated depreciation, depletion and amortization

 

8,189,942

 

 

 

8,225,197

 

Operating lease assets

 

859,706

 

 

 

745,185

 

Deferred income taxes

 

—

 

 

 

435

 

Deferred charges and other assets

 

37,156

 

 

 

43,686

 

Total assets

$

9,716,419

 

 

$

9,766,697

 

LIABILITIES AND EQUITY

 

 

 

Current liabilities

 

 

 

Current maturities of long-term debt, finance lease

$

748

 

 

$

723

 

Accounts payable

 

429,832

 

 

 

446,891

 

Income taxes payable

 

21,778

 

 

 

21,007

 

Other taxes payable

 

34,321

 

 

 

29,339

 

Operating lease liabilities

 

253,336

 

 

 

207,840

 

Other accrued liabilities

 

144,818

 

 

 

140,745

 

Total current liabilities

 

884,833

 

 

 

846,545

 

Long-term debt, including finance lease obligation

 

1,279,324

 

 

 

1,328,352

 

Asset retirement obligations

 

929,965

 

 

 

904,051

 

Deferred credits and other liabilities

 

278,831

 

 

 

309,605

 

Non-current operating lease liabilities

 

620,058

 

 

 

551,845

 

Deferred income taxes

 

318,233

 

 

 

276,646

 

Total liabilities

$

4,311,244

 

 

$

4,217,044

 

Equity

 

 

 

Common Stock, par $1.00

$

195,101

 

 

$

195,101

 

Capital in excess of par value

 

835,655

 

 

 

880,297

 

Retained earnings

 

6,766,706

 

 

 

6,546,079

 

Accumulated other comprehensive loss

 

(552,707

)

 

 

(521,117

)

Treasury stock

 

(1,995,018

)

 

 

(1,737,566

)

Murphy Shareholders' Equity

 

5,249,737

 

 

 

5,362,794

 

Noncontrolling interest

 

155,438

 

 

 

186,859

 

Total equity

 

5,405,175

 

 

 

5,549,653

 

Total liabilities and equity

$

9,716,419

 

 

$

9,766,697

 

 

MURPHY OIL CORPORATION

PRODUCTION SUMMARY

(unaudited)

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

(Barrels per day unless otherwise noted)

2024

 

2023

 

2024

 

2023

Net crude oil and condensate

 

 

 

 

 

 

 

United States - Onshore

23,320

 

 

27,772

 

 

21,199

 

 

24,674

 

United States - Offshore 1

59,282

 

 

74,843

 

 

64,042

 

 

74,185

 

Canada - Onshore

3,425

 

 

2,935

 

 

2,888

 

 

3,104

 

Canada - Offshore

7,880

 

 

2,956

 

 

7,219

 

 

2,778

 

Other

171

 

 

262

 

 

221

 

 

247

 

Total net crude oil and condensate

94,078

 

 

108,768

 

 

95,569

 

 

104,988

 

Net natural gas liquids

 

 

 

 

 

 

 

United States - Onshore

4,640

 

 

5,272

 

 

4,312

 

 

4,590

 

United States - Offshore 1

4,739

 

 

5,882

 

 

4,644

 

 

6,170

 

Canada - Onshore

768

 

 

732

 

 

572

 

 

705

 

Total net natural gas liquids

10,147

 

 

11,886

 

 

9,528

 

 

11,465

 

Net natural gas – thousands of cubic feet per day

 

 

 

 

 

 

 

United States - Onshore

26,223

 

 

28,312

 

 

24,556

 

 

25,571

 

United States - Offshore 1

58,747

 

 

70,240

 

 

56,565

 

 

71,764

 

Canada - Onshore

437,316

 

 

426,725

 

 

400,012

 

 

361,852

 

Total net natural gas

522,286

 

 

525,277

 

 

481,133

 

 

459,187

 

Total net hydrocarbons - including NCI 2,3

191,273

 

 

208,200

 

 

185,286

 

 

192,984

 

Noncontrolling interest

 

 

 

 

 

 

 

Net crude oil and condensate – barrels per day

(6,188

)

 

(5,989

)

 

(6,467

)

 

(6,181

)

Net natural gas liquids – barrels per day

(193

)

 

(191

)

 

(207

)

 

(209

)

Net natural gas – thousands of cubic feet per day

(1,947

)

 

(1,887

)

 

(2,008

)

 

(1,996

)

Total noncontrolling interest 2,3

(6,706

)

 

(6,495

)

 

(7,009

)

 

(6,723

)

Total net hydrocarbons - excluding NCI 2,3

184,567

 

 

201,705

 

 

178,277

 

 

186,261

 

 

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 September 30,

 

Nine Months Ended September 30,

 

2024

 

2023

 

2024

 

2023

Crude oil and condensate – dollars per barrel

 

 

 

 

 

 

 

United States - Onshore

$

75.49

 

$

81.19

 

$

77.55

 

$

76.40

United States - Offshore 1

 

75.65

 

 

82.94

 

 

78.42

 

 

76.73

Canada - Onshore 2

 

66.18

 

 

76.33

 

 

68.62

 

 

73.01

Canada - Offshore 2

 

80.06

 

 

94.85

 

 

82.83

 

 

84.13

Other 2

 

—

 

 

77.19

 

 

78.20

 

 

82.87

Natural gas liquids – dollars per barrel

 

 

 

 

 

 

 

United States - Onshore

 

19.05

 

 

20.52

 

 

19.71

 

 

19.76

United States - Offshore 1

 

22.50

 

 

20.16

 

 

23.20

 

 

22.01

Canada - Onshore 2

 

34.00

 

 

37.72

 

 

34.64

 

 

39.08

Natural gas – dollars per thousand cubic feet

 

 

 

 

 

 

 

United States - Onshore

 

1.77

 

 

2.32

 

 

1.77

 

 

2.24

United States - Offshore 1

 

2.28

 

 

2.84

 

 

2.30

 

 

2.82

Canada - Onshore 2

 

1.34

 

 

1.93

 

 

1.56

 

 

2.07

 

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 NOVEMBER 5, 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

 

10/1/2024

 

12/31/2024

Canada

 

Natural Gas

 

Fixed price forward sales

 

40

 

C$2.75

 

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

 

10/1/2024

 

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.

 

 

 

 

 

 

Volumes (MMCF/d)

 

Price/MCF

 

Remaining Period

Area

 

Commodity

 

Type

 

 

 

Start Date

 

End Date

United States

 

Natural Gas

 

Fixed price derivative swap

 

20

 

US$3.20

 

1/1/2025

 

12/31/2025

 

MURPHY OIL CORPORATION

FOURTH QUARTER 2024 GUIDANCE

 

 

Oil BOPD

 

NGLs BOPD

 

Gas MCFD

 

Total BOEPD

Production – net

 

 

 

 

 

 

 

United States – Eagle Ford Shale

24,200

 

4,800

 

27,300

 

33,600

– Gulf of Mexico excluding NCI

59,900

 

4,900

 

60,500

 

74,900

Canada – Tupper Montney

400

 

—

 

388,800

 

65,200

– Kaybob Duvernay

2,400

 

600

 

9,400

 

4,600

– Offshore

7,000

 

—

 

—

 

7,000

Other

200

 

—

 

—

 

200

 

 

 

 

 

 

 

 

Total net production (BOEPD) - excluding NCI 1

181,500 to 189,500

 

 

 

 

 

 

 

 

Exploration expense ($ millions)

$38

 

 

 

 

 

 

 

 

FULL YEAR 2024 GUIDANCE

Total net production (BOEPD) - excluding NCI 2

180,000 to 182,000

Capital expenditures – excluding NCI ($ millions) 3

$920 to $1,020

 

 

1 Excludes noncontrolling interest of MP GOM of 7,500 BOPD of oil, 300 BOPD of NGLs, and 2,900 MCFD gas.

2 Excludes noncontrolling interest of MP GOM of 6,700 BOPD of oil, 200 BOPD of NGLs, and 2,200 MCFD gas.

3 Excludes noncontrolling interest of MP GOM of $17 million.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241106851496/en/

Investor Contacts: InvestorRelations@murphyoilcorp.com Kelly Whitley, 281-675-9107 Megan Larson, 281-675-9470 Beth Heller, 832-506-6831