Murphy Oil Reports 15% Production Increase

By Bobby Samwell • Wednesday, September 04 06:18 • Permanent Link

Murphy Oil Corporation has released its investor update for September 2024, revealing several key financial and operational highlights.

In the second quarter of 2024, the company achieved a production of 181 MBOEPD, with 91 MBOPD, or 50 percent, coming from oil volumes. This represents a 15% production increase from the previous year.

The company's proved reserves for 2023 stood at 724 MMBOE, with 45% of production coming from the US onshore, 40% from Offshore, and 15% from Canada Onshore.

Murphy Oil Corporation has allocated 85% of its capital for development, aimed at maximizing free cash flow. This includes executing accretive Gulf of Mexico projects and maintaining onshore production in the Eagle Ford Shale and Tupper Montney.

In terms of financial discipline, the company lowered its debt by $50 million through open market repurchases of senior notes in the second quarter of 2024.

In the third quarter of 2024, the company accelerated shareholder returns by revising its capital allocation framework, with $94 million of stock, or 2.5 million shares, repurchased at an average price of $37.93 per share.

Murphy Oil Corporation reported $1.1 billion of liquidity on June 30, 2024, including a $800 million senior unsecured credit facility due November 2027 with no borrowings as of that date.

The company also highlighted its environmental stewardship and sustainability efforts, aiming for a 15-20% reduction in GHG emissions intensity by 2030 compared to 2019.

Looking ahead, Murphy Oil Corporation provided guidance for the third quarter of 2024, with production expected to be between 181.5 – 189.5 MBOEPD, with approximately 50% oil. The company also maintained its guidance for the full year 2024, with production expected to be between 180 – 188 MBOEPD, with 52% oil.

Murphy Oil Corporation's 2024 capital and production plan prioritizes capital to maximize production and adjusted free cash flow, with a focus on maintaining its guidance for the year.

The market has reacted to these announcements by moving the company's shares -4.3% to a price of $35.67. For the full picture, make sure to review Murphy Oil's 8-K report.

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