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
Murphy Oil (NYSE:MUR)
Gráfico Histórico do Ativo
De Nov 2024 até Dez 2024
Murphy Oil (NYSE:MUR)
Gráfico Histórico do Ativo
De Dez 2023 até Dez 2024