Murphy Oil Corporation has released its investor update for June 2024, providing a comprehensive overview of its operations and financial performance. The company's production in the first quarter of 2024 stood at 170 thousand barrels of oil equivalent per day (MBOEPD), with 89 thousand barrels of oil per day (MBOPD) accounting for 52% of the production. This is a significant increase from the 2023 production level of 170 MBOEPD.
In terms of financial discipline, the company repurchased $50 million of stock, equivalent to 1.2 million shares, at an average price of $41.19 per share in the second quarter of 2024. Additionally, Murphy Oil Corporation repurchased $50 million of long-term debt through open market transactions. The company also revised its second quarter 2024 exploration expense to $45 million from $65 million, indicating a focus on managing and reducing costs.
With regards to its debt profile, the company has a total of $1.3 billion in senior notes outstanding, with a weighted average fixed coupon of 6.2% and a weighted average maturity of 7.9 years. Moody's and Fitch have both revised their outlooks to positive from stable, affirming the company's corporate ratings of Ba2/BB+.
Murphy Oil Corporation has a strong focus on capital allocation priorities, aiming to reduce long-term debt and increase shareholder returns. The company has also progressed its "Murphy 2.0" capital allocation framework, which allocates approximately 75% of adjusted free cash flow to debt reduction and the remaining 25% to share buybacks and potential dividend increases.
As a result of these announcements, the company's shares have moved 1.1% on the market, and are now trading at a price of $38.71. For more information, read the company's full 8-K submission here.
