Repurchased $194 Million of Shares Outstanding, Initiated Vietnam Exploration Program
Murphy Oil Corporation has 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.
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.
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Source: Murphy Oil Corp
