Murphy Oil Corporation has released its investor update for November 2024, showcasing several key achievements and strategic priorities.
In terms of production, Murphy Oil reported a production rate of 185 thousand barrels of oil equivalent per day (MBOEPD) in the third quarter of 2024, representing a 1.1% increase from the previous period.
The company's proved reserves as of 2023 stood at 724 million barrels of oil equivalent (MMBOE), showing a 6.8% increase from the previous year. In addition, Murphy Oil has a diverse portfolio, with offshore and onshore assets in the US and Canada contributing to its production growth.
In the realm of financial performance, Murphy Oil has demonstrated a strong commitment to reducing debt. The company reduced its debt by $50 million in the year-to-date of 2024 and plans to call $79 million of senior notes in the fourth quarter of 2024. Furthermore, Murphy Oil has initiated a share repurchase program, with $194 million of stock repurchased in the third quarter of 2024, totaling 5.4 million shares.
In terms of capital allocation, the company is committed to achieving its long-term debt goal of approximately $1.0 billion, while also focusing on exploration activities. Murphy Oil announced the spudding of the Hai Su Vang * 1X exploration well in Vietnam in the third quarter of 2024, marking the first of two exploration wells in the region.
From a financial standpoint, the company issued $600 million of 6.000% Senior Notes due 2032 and tendered $521 million of long-term debt, enhancing its financial position through capital markets transactions.
In terms of shareholder returns, Murphy Oil has demonstrated a consistent focus on reducing debt while generating shareholder returns. The company has returned over $4.1 billion to shareholders since 2012, with more than 11 million shares repurchased since the initiation of Murphy 2.0 in the third quarter of 2023.
In terms of environmental stewardship and governance oversight, Murphy Oil has outlined its commitment to climate goals, including a 15-20% reduction in greenhouse gas (GHG) emissions intensity by 2030 compared to 2019.
Looking ahead, Murphy Oil has provided guidance for the fourth quarter of 2024, projecting a production range of 181.5 – 189.5 MBOEPD, with a focus on maximizing production and adjusted free cash flow.
The market has reacted to these announcements by moving the company's shares 0.2% to a price of $32.58. If you want to know more, read the company's complete 8-K report here.
