Le Lézard
Classified in: Business, Covid-19 virus
Subjects: EARNINGS, Conference Call, Webcast

Murphy Oil Corporation Announces Third Quarter 2023 Financial and Operating Results, Advances Capital Allocation Framework, Increases Share Repurchase Authorization, Raises Full Year 2023 Production Guidance


Murphy Oil Corporation (NYSE: MUR) today announced its financial and operating results for the third quarter ended September 30, 2023, including net income attributable to Murphy of $255 million, or $1.63 net income per diluted share. Excluding discontinued operations and other items affecting comparability between periods, adjusted net income attributable to Murphy was $249 million, or $1.59 adjusted net income per diluted share.

Unless otherwise noted, the financial and operating highlights and metrics discussed in this news release exclude noncontrolling interest (NCI). 1

Highlights for the third quarter include:

Subsequent to the third quarter:

"Murphy had another great quarter with strong execution across our assets, resulting in significant free cash flow that we dedicated to paying down debt and repurchasing stock in accordance with our capital allocation framework. We also utilized part of the proceeds from the divestiture of a non-core portion of our Canadian assets to support our new country entry in Côte d'Ivoire and advance our Lac Da Vang field development project in Vietnam," said Roger W. Jenkins, President and Chief Executive Officer. "I am delighted we are progressing our strategy of Delever, Execute, Explore, Return as we close out 2023, and I look forward to Murphy's many opportunities in the new year."

THIRD QUARTER 2023 RESULTS

The company recorded net income attributable to Murphy of $255 million, or $1.63 net income per diluted share, for the third quarter 2023. Adjusted net income, which excludes both the results of discontinued operations and certain other items that affect comparability of results between periods, was $249 million, or $1.59 adjusted net income per diluted share for the same period. The only adjustment to net income this quarter was foreign exchange gain totaling $9 million before tax. 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 $595 million. Earnings before interest, tax, depreciation, amortization and exploration expenses (EBITDAX) attributable to Murphy were $618 million. Adjusted EBITDA attributable to Murphy was $597 million. Adjusted EBITDAX attributable to Murphy was $620 million. Reconciliations for third quarter EBITDA, EBITDAX, adjusted EBITDA and adjusted EBITDAX can be found in the attached schedules.

Third quarter production averaged 202 MBOEPD and consisted of 51 percent oil volumes, or 103 MBOPD. Production for the quarter exceeded the upper end of the guidance range due to several factors, including strong well performance across onshore assets, lower realized royalty rates in the Tupper Montney natural gas asset and outperformance in the Gulf of Mexico due to an absence of hurricane downtime. Details for third quarter production can be found in the attached schedules.

FINANCIAL POSITION

Murphy had approximately $1.1 billion of liquidity on September 30, 2023, with no borrowings on the $800 million credit facility and $328 million of cash and cash equivalents, inclusive of NCI.

On September 15, 2023, the company announced the redemption of its remaining $249 million of 5.75 percent Senior Notes due 2025. Murphy funded the redemption during the third quarter and the obligation was satisfied. As a result, at the end of the third quarter, Murphy's total debt was reduced to $1.6 billion, and consisted of long-term, fixed-rate notes with a weighted average maturity of 7.8 years and a weighted average coupon of 6.2 percent. Overall, Murphy has achieved a 47 percent, or $1.4 billion, reduction in total debt since year-end 2020.

SHARE REPURCHASE PROGRAM

During the third quarter, Murphy repurchased $75 million, or 1.7 million shares outstanding, at an average price of $44.53 per share. Subsequent to the quarter, the share repurchase authorization was increased by $300 million, and Murphy now has $525 million remaining.

"I am pleased that the adjusted free cash flow generated allowed us to execute the senior notes redemption and share repurchases under Murphy 2.0 of our capital allocation framework. With continued operational success next year, we will further strengthen our balance sheet and enhance shareholder returns through the allocations established in our framework," said Jenkins.

OPERATIONS SUMMARY

Onshore

In the third quarter of 2023, the onshore business produced approximately 113 MBOEPD, which included 33 percent liquids volumes.

Eagle Ford Shale ? Production averaged 38 MBOEPD with 74 percent oil volumes and 88 percent liquids volumes. As planned, Murphy brought online four operated wells in Catarina and three operated wells in Tilden during the quarter.

Tupper Montney ? Natural gas production averaged 414 million cubic feet per day (MMCFD) in the third quarter. Production exceeded guidance by 35 MMCFD, of which 17 MMCFD was due to record high initial production rates, and 18 MMCFD was the result of a lower realized royalty rate of 3.9 percent.

Kaybob Duvernay ? During the third quarter, production averaged 5 MBOEPD with 67 percent liquids volumes. As previously announced, in the third quarter Murphy closed the divestment of certain non-core operated Kaybob Duvernay and all of its non-operated Placid Montney assets for cash proceeds of $103 million, with an effective date of March 1, 2023. As a result of this transaction, Murphy no longer holds working interests in Placid Montney.

Offshore

Excluding NCI, the offshore business produced approximately 89 MBOEPD for the third quarter, which included 81 percent oil.

Gulf of Mexico ? Production averaged approximately 86 MBOEPD, consisting of 80 percent oil during the third quarter. While production was positively impacted by the absence of Gulf of Mexico storms in the quarter, a mechanical issue developed at a well in the operated Neidermeyer field, causing production from that well to be shut in late in the quarter. In addition, a well in the operated Dalmatian field remains offline due to a mechanical issue that occurred earlier in the year. Workovers are planned for both wells in 2024.

Canada ? In the third quarter, production averaged 3 MBOEPD, consisting of 100 percent oil, all from the Hibernia field. The asset life extension project is progressing for the non-operated Terra Nova floating, production, storage and offloading vessel, which Murphy anticipates will return to production by year-end 2023.

Vietnam ? Subsequent to the third quarter, the Board of Directors sanctioned the Lac Da Vang field development project in Block 15-1/05 of the Cuu Long Basin. Murphy as operator holds a 40 percent working interest in the block. This project is expected to achieve first oil in 2026, with development phased through 2029. Overall, the field has an estimated ultimate recovery of 100 million barrels of oil equivalent (MMBOE) gross resources, with peak gross production of 30 to 40 MBOEPD.

Côte d'Ivoire ? During the quarter, Murphy commenced initial work, including a review of commerciality and field development concepts for the Paon discovery in Block CI-103.

EXPLORATION

Gulf of Mexico ? The company advanced preparations to resume drilling the Oso #1 (Atwater Valley 138) exploration well.

Côte d'Ivoire ? Murphy commenced seismic reprocessing during the third quarter.

2023 CAPITAL EXPENDITURE AND PRODUCTION GUIDANCE

Third quarter accrued CAPEX of $162 million was lower than guidance primarily due to timing of non-operated projects. Murphy maintains its 2023 accrued CAPEX range of $950 million to $1.025 billion, which excludes $49 million in acquisition-related CAPEX for Côte d'Ivoire and Vietnam.

The company is raising its full year 2023 production range to 185 to 187 MBOEPD, consisting of approximately 53 percent oil and 59 percent liquids volumes. This represents a 3 MBOEPD increase in the midpoint from the previous range.

Production for fourth quarter 2023 is estimated to be in the range of 181.5 to 189.5 MBOEPD with 95 MBOPD, or 51 percent, oil volumes. This range includes planned downtime of 500 BOEPD in the Gulf of Mexico and 1.5 MBOEPD onshore. Production is also impacted by mechanical issues in two operated Gulf of Mexico wells, with plans in place for workovers in 2024.

Both production and CAPEX guidance ranges exclude NCI. Detailed guidance for the fourth quarter and full year 2023 is contained in the attached schedules.

FIXED PRICE FORWARD SALES CONTRACTS

Murphy maintains fixed price forward sales contracts in Canada to lessen its dependence on variable 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 2, 2023

Murphy will host a conference call to discuss third quarter 2023 financial and operating results on Thursday, November 2, 2023, at 9:00 a.m. EDT. 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 1-888-886-7786, reservation number 10064350.

FINANCIAL DATA

Summary financial data and operating statistics for third quarter 2023, with comparisons to the same period from the previous year, are contained in the following 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 2023, are also included.

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.

CAPITAL ALLOCATION FRAMEWORK

This news release contains references to the company's capital allocation framework and adjusted free cash flow. As previously disclosed, the capital allocation framework defines Murphy 1.0 as when long-term debt exceeds $1.8 billion. At such time, adjusted free cash flow is allocated to long-term debt reduction while the company continues to support the quarterly dividend. The company reaches Murphy 2.0 when long-term debt is between $1.0 billion and $1.8 billion. At such time, approximately 75 percent of adjusted free cash flow is allocated to debt reduction, with the remaining 25 percent distributed to shareholders through share buybacks and potential dividend increases. When long-term debt is at or below $1.0 billion, the company is in Murphy 3.0 and begins allocating 50 percent of adjusted free cash flow to the balance sheet, with a minimum of 50 percent of adjusted free cash flow allocated to share buybacks and potential dividend increases.

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; 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 U.S. or global capital markets, credit markets, banking system or economies in general. 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 U.S. 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.

MURPHY OIL CORPORATION

SUMMARIZED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

 
 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

(Thousands of dollars, except per share amounts)

2023

 

2022

 

2023

 

2022

Revenues and other income

 

 

 

 

 

 

 

Revenue from production

$

945,889

 

 

1,120,909

 

 

$

2,541,956

 

 

3,101,736

 

Sales of purchased natural gas

 

7,877

 

 

45,500

 

 

 

64,628

 

 

132,285

 

Total revenue from sales to customers

 

953,766

 

 

1,166,409

 

 

 

2,606,584

 

 

3,234,021

 

Gain (loss) on derivative instruments

 

?

 

 

115,191

 

 

 

?

 

 

(308,654

)

Gain on sale of assets and other income

 

5,879

 

 

21,825

 

 

 

9,365

 

 

32,076

 

Total revenues and other income

 

959,645

 

 

1,303,425

 

 

 

2,615,949

 

 

2,957,443

 

Costs and expenses

 

 

 

 

 

 

 

Lease operating expenses

 

193,402

 

 

198,710

 

 

 

587,678

 

 

482,887

 

Severance and ad valorem taxes

 

10,937

 

 

15,140

 

 

 

35,142

 

 

47,340

 

Transportation, gathering and processing

 

61,518

 

 

55,348

 

 

 

175,308

 

 

152,219

 

Costs of purchased natural gas

 

5,467

 

 

43,622

 

 

 

47,393

 

 

125,258

 

Exploration expenses, including undeveloped lease amortization

 

26,514

 

 

9,491

 

 

 

152,489

 

 

72,208

 

Selling and general expenses

 

30,745

 

 

29,348

 

 

 

74,398

 

 

90,007

 

Depreciation, depletion and amortization

 

237,493

 

 

214,521

 

 

 

648,830

 

 

574,501

 

Accretion of asset retirement obligations

 

11,675

 

 

11,286

 

 

 

34,196

 

 

34,725

 

Other operating expense (benefit)

 

4,385

 

 

(27,129

)

 

 

21,333

 

 

115,726

 

Total costs and expenses

 

582,136

 

 

550,337

 

 

 

1,776,767

 

 

1,694,871

 

Operating income from continuing operations

 

377,509

 

 

753,088

 

 

 

839,182

 

 

1,262,572

 

Other loss

 

 

 

 

 

 

 

Other income

 

8,811

 

 

18,301

 

 

 

1,044

 

 

21,114

 

Interest expense, net

 

(29,984

)

 

(37,440

)

 

 

(88,695

)

 

(116,102

)

Total other loss

 

(21,173

)

 

(19,139

)

 

 

(87,651

)

 

(94,988

)

Income from continuing operations before income taxes

 

356,336

 

 

733,949

 

 

 

751,531

 

 

1,167,584

 

Income tax expense

 

78,111

 

 

159,451

 

 

 

166,813

 

 

247,574

 

Income from continuing operations

 

278,225

 

 

574,498

 

 

 

584,718

 

 

920,010

 

Loss from discontinued operations, net of income taxes

 

(421

)

 

(422

)

 

 

(744

)

 

(1,916

)

Net income including noncontrolling interest

 

277,804

 

 

574,076

 

 

 

583,974

 

 

918,094

 

Less: Net income attributable to noncontrolling interest

 

22,462

 

 

45,648

 

 

 

38,701

 

 

152,445

 

NET INCOME ATTRIBUTABLE TO MURPHY

$

255,342

 

 

528,428

 

 

$

545,273

 

 

765,649

 

 

 

 

 

 

 

 

 

INCOME (LOSS) PER COMMON SHARE ? BASIC

 

 

 

 

 

 

 

Continuing operations

$

1.64

 

 

3.40

 

 

$

3.50

 

 

4.94

 

Discontinued operations

 

?

 

 

?

 

 

 

?

 

 

(0.01

)

Net income

$

1.64

 

 

3.40

 

 

$

3.50

 

 

4.93

 

 

 

 

 

 

 

 

 

INCOME (LOSS) PER COMMON SHARE ? DILUTED

 

 

 

 

 

 

 

Continuing operations

$

1.63

 

 

3.36

 

 

$

3.47

 

 

4.87

 

Discontinued operations

 

?

 

 

?

 

 

 

?

 

 

(0.01

)

Net income

$

1.63

 

 

3.36

 

 

$

3.47

 

 

4.86

 

Cash dividends per common share

$

0.275

 

 

0.250

 

 

$

0.827

 

 

0.575

 

Average common shares outstanding (thousands)

 

 

 

 

 

 

 

Basic

 

155,454

 

 

155,446

 

 

 

155,749

 

 

155,221

 

Diluted

 

156,829

 

 

157,336

 

 

 

157,135

 

 

157,407

 

MURPHY OIL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

 

 

Three Months Ended
September 30,

 

Nine Months Ended

September 30,

(Thousands of dollars)

2023

 

2022

 

2023

 

2022

Operating Activities

 

 

 

 

 

 

 

Net income including noncontrolling interest

$

277,804

 

 

574,076

 

 

$

583,974

 

 

918,094

 

Adjustments to reconcile net income to net cash provided by continuing operations activities

 

 

 

 

 

 

 

Loss from discontinued operations

 

421

 

 

422

 

 

 

744

 

 

1,916

 

Depreciation, depletion and amortization

 

237,493

 

 

214,521

 

 

 

648,830

 

 

574,501

 

Unsuccessful exploration well costs and previously suspended exploration costs

 

11,292

 

 

1,122

 

 

 

107,825

 

 

35,224

 

Amortization of undeveloped leases

 

2,846

 

 

2,671

 

 

 

8,215

 

 

10,651

 

Accretion of asset retirement obligations

 

11,675

 

 

11,286

 

 

 

34,196

 

 

34,725

 

Deferred income tax expense

 

59,547

 

 

140,414

 

 

 

152,104

 

 

207,105

 

Contingent consideration payment

 

?

 

 

?

 

 

 

(139,574

)

 

?

 

Mark-to-market (gain) loss on contingent consideration

 

?

 

 

(31,367

)

 

 

7,113

 

 

98,451

 

Mark-to-market (gain) loss on derivative instruments

 

?

 

 

(239,050

)

 

 

?

 

 

(138,707

)

Long-term non-cash compensation

 

20,426

 

 

17,145

 

 

 

42,502

 

 

57,612

 

Gain from sale of assets

 

(12

)

 

(18,836

)

 

 

(12

)

 

(18,871

)

Net (increase) decrease in non-cash working capital

 

(127,447

)

 

61,724

 

 

 

(142,788

)

 

(59,874

)

Other operating activities, net

 

(37,978

)

 

(14,643

)

 

 

(97,395

)

 

(42,101

)

Net cash provided by continuing operations activities

 

456,067

 

 

719,485

 

 

 

1,205,734

 

 

1,678,726

 

Investing Activities

 

 

 

 

 

 

 

Property additions and dry hole costs

 

(207,542

)

 

(248,043

)

 

 

(902,295

)

 

(800,868

)

Acquisition of oil and natural gas properties

 

(22,773

)

 

(79,111

)

 

 

(22,773

)

 

(125,602

)

Proceeds from sales of property, plant and equipment

 

102,913

 

 

(2,176

)

 

 

102,913

 

 

(2,129

)

Net cash required by investing activities

 

(127,402

)

 

(329,330

)

 

 

(822,155

)

 

(928,599

)

Financing Activities

 

 

 

 

 

 

 

Borrowings on revolving credit facility

 

100,000

 

 

200,000

 

 

 

300,000

 

 

300,000

 

Repayment of revolving credit facility

 

(100,000

)

 

(200,000

)

 

 

(300,000

)

 

(300,000

)

Retirement of debt

 

(248,675

)

 

(246,032

)

 

 

(248,675

)

 

(446,032

)

Early redemption of debt cost

 

?

 

 

(1,981

)

 

 

?

 

 

(5,419

)

Repurchase of common stock

 

(75,023

)

 

?

 

 

 

(75,023

)

 

?

 

Contingent consideration payment

 

?

 

 

?

 

 

 

(60,243

)

 

(81,742

)

Cash dividends paid

 

(42,790

)

 

(38,863

)

 

 

(128,657

)

 

(89,354

)

Distributions to noncontrolling interest

 

(4,069

)

 

(50,419

)

 

 

(20,052

)

 

(145,273

)

Withholding tax on stock-based incentive awards

 

(12

)

 

(641

)

 

 

(14,232

)

 

(17,338

)

Capital lease obligation payments

 

(161

)

 

(155

)

 

 

(457

)

 

(475

)

Issue costs of debt facility

 

?

 

 

?

 

 

 

(20

)

 

?

 

Net cash required by financing activities

 

(370,730

)

 

(338,091

)

 

 

(547,359

)

 

(785,633

)

Net cash required by discontinued operations

 

?

 

 

(14,500

)

 

 

?

 

 

(14,500

)

Effect of exchange rate changes on cash and cash equivalents

 

479

 

 

(3,585

)

 

 

(414

)

 

(5,180

)

Net (decrease) increase in cash and cash equivalents

 

(41,586

)

 

33,979

 

 

 

(164,194

)

 

(55,186

)

Cash and cash equivalents at beginning of period

 

369,355

 

 

432,019

 

 

 

491,963

 

 

521,184

 

Cash and cash equivalents at end of period

$

327,769

 

 

465,998

 

 

$

327,769

 

 

465,998

 

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)

2023

 

2022

 

2023

 

2022

Net income attributable to Murphy (GAAP) 1

$

255.3

 

 

528.4

 

 

$

545.3

 

 

765.6

 

Discontinued operations loss

 

0.4

 

 

0.4

 

 

 

0.7

 

 

1.9

 

Net income from continuing operations attributable to Murphy

 

255.7

 

 

528.8

 

 

 

546.0

 

 

767.5

 

Adjustments 2:

 

 

 

 

 

 

 

Write-off of previously suspended exploration well

 

?

 

 

?

 

 

 

17.1

 

 

?

 

Foreign exchange (gain)

 

(8.6

)

 

(20.7

)

 

 

(0.3

)

 

(28.7

)

Mark-to-market (gain) loss on contingent consideration

 

?

 

 

(31.3

)

 

 

7.1

 

 

98.5

 

Mark-to-market (gain) on derivative instruments

 

?

 

 

(239.0

)

 

 

?

 

 

(138.7

)

(Gain) on sale of assets

 

?

 

 

(15.2

)

 

 

?

 

 

(15.2

)

Early redemption of debt cost

 

?

 

 

2.4

 

 

 

?

 

 

6.8

 

Total adjustments, before taxes

 

(8.6

)

 

(303.8

)

 

 

23.9

 

 

(77.3

)

Income tax expense (benefit) related to adjustments

 

2.2

 

 

64.7

 

 

 

(1.4

)

 

17.3

 

Total adjustments after taxes

 

(6.4

)

 

(239.1

)

 

 

22.5

 

 

(60.0

)

Adjusted net income from continuing operations attributable to Murphy (Non-GAAP)

$

249.3

 

 

289.7

 

 

$

568.5

 

 

707.5

 

 

 

 

 

 

 

 

 

Adjusted net income from continuing operations per average diluted share (Non-GAAP)

$

1.59

 

 

1.84

 

 

$

3.62

 

 

4.49

 

 

1 Excludes results attributable to a noncontrolling interest in MP GOM.

2 Certain prior-period amounts have been reclassified to conform to the current period presentation.

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 shown above are as follows by area of operations and exclude the share attributable to non-controlling interests.

 

Three Months Ended
September 30, 2023

 

Nine Months Ended
September 30, 2023

(Millions of dollars)

Pretax

 

Tax

 

Net

 

Pretax

 

Tax

 

Net

Exploration & Production:

 

 

 

 

 

 

 

 

 

 

 

United States

$

?

 

 

?

 

?

 

 

$

7.1

 

 

(1.5

)

 

5.6

 

Other

 

?

 

 

?

 

?

 

 

 

17.1

 

 

?

 

 

17.1

 

Corporate

 

(8.6

)

 

2.2

 

(6.4

)

 

 

(0.3

)

 

0.1

 

 

(0.3

)

Total adjustments

$

(8.6

)

 

2.2

 

(6.4

)

 

$

23.9

 

 

(1.4

)

 

22.5

 

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)

2023

 

2022

 

2023

 

2022

Net income attributable to Murphy (GAAP) 1

$

255.3

 

 

528.4

 

 

$

545.3

 

 

765.6

 

Income tax expense

 

78.1

 

 

159.5

 

 

 

166.8

 

 

247.6

 

Interest expense, net

 

30.0

 

 

37.4

 

 

 

88.7

 

 

116.1

 

Depreciation, depletion and amortization expense 2

 

231.5

 

 

207.7

 

 

 

630.8

 

 

552.5

 

EBITDA attributable to Murphy (Non-GAAP)

$

594.9

 

 

933.0

 

 

$

1,431.6

 

 

1,681.8

 

Write-off of previously suspended exploration well

 

?

 

 

?

 

 

 

17.1

 

 

?

 

Accretion of asset retirement obligations 2

 

10.4

 

 

10.0

 

 

 

30.4

 

 

30.7

 

Foreign exchange (gain)

 

(8.6

)

 

(20.7

)

 

 

(0.3

)

 

(28.7

)

Mark-to-market (gain) loss on contingent consideration

 

?

 

 

(31.4

)

 

 

7.1

 

 

98.5

 

Discontinued operations loss

 

0.4

 

 

0.4

 

 

 

0.7

 

 

1.9

 

Mark-to-market (gain) on derivative instruments

 

?

 

 

(239.1

)

 

 

?

 

 

(138.7

)

(Gain) on sale of assets 2

 

?

 

 

(15.2

)

 

 

?

 

 

(15.2

)

Adjusted EBITDA attributable to Murphy (Non-GAAP)

$

597.1

 

 

637.1

 

 

$

1,486.6

 

 

1,630.3

 

 

1 Excludes results attributable to a noncontrolling interest in MP GOM.

2 Depreciation, depletion, and amortization expense, gain on sale of assets, and accretion of asset retirement obligations used in the computation of Adjusted EBITDA exclude the portion attributable to the non-controlling interest (NCI).

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)

2023

 

2022

 

2023

 

2022

Net income attributable to Murphy (GAAP) 1

$

255.3

 

 

 

528.4

 

 

$

545.3

 

 

 

765.6

 

Income tax expense

 

78.1

 

 

 

159.5

 

 

 

166.8

 

 

 

247.6

 

Interest expense, net

 

30.0

 

 

 

37.4

 

 

 

88.7

 

 

 

116.1

 

Depreciation, depletion and amortization expense 2

 

231.5

 

 

 

207.7

 

 

 

630.8

 

 

 

552.5

 

EBITDA attributable to Murphy (Non-GAAP)

 

594.9

 

 

 

933.0

 

 

 

1,431.6

 

 

 

1,681.8

 

Exploration expenses 2

 

23.0

 

 

 

9.5

 

 

 

122.6

 

 

 

72.2

 

EBITDAX attributable to Murphy (Non-GAAP)

 

617.9

 

 

 

942.5

 

 

 

1,554.2

 

 

 

1,754.0

 

Accretion of asset retirement obligations 2

 

10.4

 

 

 

10.0

 

 

 

30.4

 

 

 

30.7

 

Foreign exchange (gain)

 

(8.6

)

 

 

(20.7

)

 

 

(0.3

)

 

 

(28.7

)

Mark-to-market (gain) loss on contingent consideration

 

?

 

 

 

(31.4

)

 

 

7.1

 

 

 

98.5

 

Discontinued operations loss

 

0.4

 

 

 

0.4

 

 

 

0.7

 

 

 

1.9

 

Mark-to-market (gain) on derivative instruments

 

?

 

 

 

(239.1

)

 

 

?

 

 

 

(138.7

)

(Gain) on sale of assets 2

 

?

 

 

 

(15.2

)

 

 

?

 

 

 

(15.2

)

Adjusted EBITDAX attributable to Murphy (Non-GAAP)

$

620.1

 

 

$

646.6

 

 

$

1,592.1

 

 

$

1,702.5

 

 

1 Excludes results attributable to a noncontrolling interest in MP GOM.

2 Depreciation, depletion, and amortization expense, accretion of asset retirement obligations, gain on sale of assets, and exploration expenses used in the computation of adjusted EBITDAX exclude the portion attributable to the non-controlling interest (NCI).

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, 2023

Three Months Ended

September 30, 2022

(Millions of dollars)

Revenues

Income

(Loss)

Revenues

Income

(Loss)

Exploration and production

 

 

 

 

United States 1

$

823.7

310.3

 

$

973.8

481.5

 

Canada

 

129.3

10.5

 

 

209.6

41.4

 

Other

 

3.4

(12.5

)

 

4.8

(5.8

)

Total exploration and production

 

956.4

308.3

 

 

1,188.2

517.1

 

Corporate

 

3.2

(30.1

)

 

115.2

57.4

 

Continuing operations

 

959.6

278.2

 

 

1,303.4

574.5

 

Discontinued operations, net of tax

 

?

(0.4

)

 

?

(0.4

)

Total including noncontrolling interest

$

959.6

277.8

 

$

1,303.4

574.1

 

Net income attributable to Murphy

 

255.3

 

 

528.4

 

 

Nine Months Ended

September 30, 2023

Nine Months Ended

September 30, 2022

(Millions of dollars)

Revenues

Income

(Loss)

Revenues

Income

(Loss)

Exploration and production

 

 

 

 

United States 1

$

2,202.2

705.2

 

$

2,659.2

 

1,225.9

 

Canada

 

403.3

34.9

 

 

582.3

 

111.3

 

Other

 

7.1

(50.0

)

 

18.5

 

(53.5

)

Total exploration and production

 

2,612.6

690.1

 

 

3,260.0

 

1,283.7

 

Corporate

 

3.3

(105.4

)

 

(302.6

)

(363.7

)

Continuing operations

 

2,615.9

584.7

 

 

2,957.4

 

920.0

 

Discontinued operations, net of tax

 

?

(0.7

)

 

?

 

(1.9

)

Total including noncontrolling interest

$

2,615.9

584.0

 

$

2,957.4

 

918.1

 

Net income attributable to Murphy

 

545.3

 

 

765.6

 

 

1 Includes results attributable to a noncontrolling interest in MP GOM.

MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (unaudited)

THREE MONTHS ENDED SEPTEMBER 30, 2023, AND 2022

 

(Millions of dollars)

United

States 1

Canada

Other

Total

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

 

 

 

15.6

 

?

8.0

 

23.6

 

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

 

 

 

 

 

 

Three Months Ended September 30, 2022

 

 

 

 

Oil and gas sales and other operating revenues

$

973.8

 

164.1

4.8

 

1,142.7

 

Sales of purchased natural gas

 

?

 

45.5

?

 

45.5

 

Lease operating expenses

 

158.8

 

39.6

0.3

 

198.7

 

Severance and ad valorem taxes

 

14.9

 

0.3

?

 

15.2

 

Transportation, gathering and processing

 

38.5

 

16.9

?

 

55.4

 

Costs of purchased natural gas

 

?

 

43.7

?

 

43.7

 

Depreciation, depletion and amortization

 

169.4

 

40.9

0.9

 

211.2

 

Accretion of asset retirement obligations

 

8.8

 

2.4

?

 

11.2

 

Exploration expenses

 

 

 

 

Dry holes and previously suspended exploration costs

 

0.2

 

?

0.9

 

1.1

 

Geological and geophysical

 

1.1

 

0.1

0.4

 

1.6

 

Other exploration

 

1.5

 

?

2.6

 

4.1

 

 

 

2.8

 

0.1

3.9

 

6.8

 

Undeveloped lease amortization

 

2.0

 

0.1

0.6

 

2.7

 

Total exploration expenses

 

4.8

 

0.2

4.5

 

9.5

 

Selling and general expenses

 

2.6

 

5.2

2.0

 

9.8

 

Other

 

(27.7

)

3.7

0.6

 

(23.4

)

Results of operations before taxes

 

603.7

 

56.7

(3.5

)

656.9

 

Income tax provisions

 

122.2

 

15.3

2.3

 

139.8

 

Results of operations (excluding Corporate segment)

$

481.5

 

41.4

(5.8

)

517.1

 

 

1 Includes results attributable to a noncontrolling interest in MP GOM.

MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (unaudited)

NINE MONTHS ENDED SEPTEMBER 30, 2023, AND 2022

 

(Millions of dollars)

United

States 1

Canada

Other

Total

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

 

 

99.2

 

0.3

44.8

 

144.3

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

 

 

 

 

 

Nine Months Ended September 30, 2022

 

 

 

 

Oil and gas sales and other operating revenues

$

2,659.0

 

450.2

18.5

 

3,127.7

Sales of purchased natural gas

 

0.2

 

132.1

?

 

132.3

Lease operating expenses

 

368.2

 

113.4

1.2

 

482.8

Severance and ad valorem taxes

 

46.4

 

1.0

?

 

47.4

Transportation, gathering and processing

 

100.0

 

52.2

?

 

152.2

Costs of purchased natural gas

 

0.2

 

125.1

?

 

125.3

Depreciation, depletion and amortization

 

449.6

 

110.7

4.4

 

564.7

Accretion of asset retirement obligations

 

27.3

 

7.3

0.1

 

34.7

Exploration expenses

 

 

 

 

Dry holes and previously suspended exploration costs

 

(0.5

)

?

35.7

 

35.2

Geological and geophysical

 

3.7

 

0.2

1.4

 

5.3

Other exploration

 

5.9

 

0.4

14.7

 

21.0

 

 

9.1

 

0.6

51.8

 

61.5

Undeveloped lease amortization

 

6.7

 

0.2

3.8

 

10.7

Total exploration expenses

 

15.8

 

0.8

55.6

 

72.2

Selling and general expenses

 

14.1

 

14.1

6.5

 

34.7

Other

 

110.4

 

6.5

1.0

 

117.9

Results of operations before taxes

 

1,527.2

 

151.2

(50.3

)

1,628.1

Income tax provisions

 

301.3

 

39.9

3.2

 

344.4

Results of operations (excluding Corporate segment)

$

1,225.9

 

111.3

(53.5

)

1,283.7

 

1 Includes results 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)

2023

 

2022

 

2023

 

2022

United States ? Eagle Ford Shale

 

 

 

 

 

 

 

Lease operating expense

$

11.38

 

9.31

 

$

12.42

 

10.87

Severance and ad valorem taxes

 

2.91

 

3.97

 

 

3.54

 

4.67

Depreciation, depletion and amortization (DD&A) expense

 

26.35

 

25.57

 

 

26.35

 

25.63

 

 

 

 

 

 

 

 

United States ? Gulf of Mexico1

 

 

 

 

 

 

 

Lease operating expense

$

13.42

 

15.92

 

$

14.27

 

12.62

Severance and ad valorem taxes

 

0.06

 

0.06

 

 

0.07

 

0.08

DD&A expense

 

12.05

 

9.82

 

 

11.57

 

9.75

 

 

 

 

 

 

 

 

Canada ? Onshore

 

 

 

 

 

 

 

Lease operating expense

$

5.33

 

5.48

 

$

5.97

 

6.46

Severance and ad valorem taxes

 

0.05

 

0.05

 

 

0.06

 

0.06

DD&A expense

 

5.53

 

5.73

 

 

5.70

 

6.36

 

 

 

 

 

 

 

 

Canada ? Offshore

 

 

 

 

 

 

 

Lease operating expense

$

12.12

 

15.43

 

$

12.45

 

14.19

DD&A expense

 

10.02

 

14.39

 

 

9.59

 

12.72

 

 

 

 

 

 

 

 

Total E&P continuing operations

 

 

 

 

 

 

 

Lease operating expense

$

10.12

 

10.88

 

$

11.16

 

10.22

Severance and ad valorem taxes

 

0.57

 

0.83

 

 

0.67

 

1.00

DD&A expense

 

12.43

 

11.75

 

 

12.33

 

12.15

 

 

 

 

 

 

 

 

Total oil and gas continuing operations ? excluding noncontrolling interest

 

 

 

 

 

 

 

Lease operating expense

$

9.94

 

10.64

 

$

10.98

 

10.07

Severance and ad valorem taxes

 

0.59

 

0.86

 

 

0.69

 

1.05

DD&A expense

 

12.50

 

11.85

 

 

12.41

 

12.29

 

1 Includes results attributable to a noncontrolling interest in MP GOM.

MURPHY OIL CORPORATION

CAPITAL EXPENDITURES

(unaudited)

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

(Millions of dollars)

2023

 

2022

 

2023

 

2022

Exploration and production

 

 

 

 

 

 

 

United States1

$

143.9

 

259.5

 

$

644.0

 

677.7

Canada

 

27.1

 

25.0

 

 

170.6

 

175.9

Other

 

11.0

 

8.2

 

 

55.7

 

50.5

Total

 

182.0

 

292.7

 

 

870.3

 

904.1

 

 

 

 

 

 

 

 

Corporate

 

5.5

 

3.4

 

 

15.4

 

13.9

Total capital expenditures - continuing operations2

 

187.5

 

296.1

 

 

885.7

 

918.0

 

 

 

 

 

 

 

 

Charged to exploration expenses3

 

 

 

 

 

 

 

United States1

 

15.5

 

2.8

 

 

99.2

 

9.1

Canada

 

0.1

 

0.1

 

 

0.3

 

0.6

Other

 

8.0

 

3.9

 

 

44.8

 

51.8

Total charged to exploration expenses - continuing operations

 

23.6

 

6.8

 

 

144.3

 

61.5

 

 

 

 

 

 

 

 

Total capitalized

$

163.9

 

289.3

 

$

741.4

 

856.5

 

1 Includes results attributable to a noncontrolling interest in MP GOM.

2 For the three months ended September 30, 2023, total capital expenditures excluding acquisition-related costs of $7.5 million (Côte d'Ivoire and Vietnam) (2022: $79.1 million) and noncontrolling interest (NCI) of $18.4 million (2022: $8.0 million) is $161.6 million (2022: $209.0 million). For the nine months ended September 30, 2023, total capital expenditures excluding acquisition-related costs of $39.8 million (Côte d'Ivoire and Vietnam) (2022:$125.6 million) and noncontrolling interest (NCI) of $57.2 million (2022: $16.6 million) is $788.7 million (2022: $775.8 million).

3 For the three and nine months ended September 30, 2023, charges to exploration expense excludes amortization of undeveloped leases of $2.8 million (2022: $2.7 million) and $8.2 million (2022 $10.7 million), respectively. For the three months ended September 30, 2023, charges to exploration expense excluding NCI of $3.6 million (2022: $0) is $20 million. For the nine months ended September 30, 2023, charges to exploration expense excluding previously suspended exploration costs of $17.1 million (2022: $0) and NCI of $29.9 million (2022: $0) is $97.3 million.

MURPHY OIL CORPORATION

CONSOLIDATED BALANCE SHEETS

(unaudited)

 

(Thousands of dollars)

September 30,
2023

 

December 31,
2022

ASSETS

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

327,769

 

 

491,963

 

Accounts receivable, net

 

460,630

 

 

391,152

 

Inventories

 

60,435

 

 

54,513

 

Prepaid expenses

 

38,177

 

 

34,697

 

Total current assets

 

887,011

 

 

972,325

 

Property, plant and equipment, at cost less accumulated depreciation, depletion and amortization

 

8,218,015

 

 

8,228,016

 

Operating lease assets

 

792,149

 

 

946,406

 

Deferred income taxes

 

1,111

 

 

117,889

 

Deferred charges and other assets

 

44,292

 

 

44,316

 

Total assets

$

9,942,578

 

 

10,308,952

 

LIABILITIES AND EQUITY

 

 

 

Current liabilities

 

 

 

Current maturities of long-term debt, finance lease

$

714

 

 

687

 

Accounts payable

 

449,960

 

 

543,786

 

Income taxes payable

 

24,000

 

 

26,544

 

Other taxes payable

 

34,335

 

 

22,819

 

Operating lease liabilities

 

245,884

 

 

220,413

 

Other accrued liabilities

 

137,500

 

 

443,585

 

Total current liabilities

 

892,393

 

 

1,257,834

 

Long-term debt, including finance lease obligation

 

1,576,279

 

 

1,822,452

 

Asset retirement obligations

 

859,123

 

 

817,268

 

Deferred credits and other liabilities

 

289,962

 

 

304,948

 

Non-current operating lease liabilities

 

561,254

 

 

742,654

 

Deferred income taxes

 

250,768

 

 

214,903

 

Total liabilities

 

4,429,779

 

 

5,160,059

 

Equity

 

 

 

Common Stock, par $1.00

 

195,101

 

 

195,101

 

Capital in excess of par value

 

869,132

 

 

893,578

 

Retained earnings

 

6,472,114

 

 

6,055,498

 

Accumulated other comprehensive loss

 

(533,940

)

 

(534,686

)

Treasury stock

 

(1,662,376

)

 

(1,614,717

)

Murphy Shareholders' Equity

 

5,340,031

 

 

4,994,774

 

Noncontrolling interest

 

172,768

 

 

154,119

 

Total equity

 

5,512,799

 

 

5,148,893

 

Total liabilities and equity

$

9,942,578

 

 

10,308,952

 

MURPHY OIL CORPORATION

PRODUCTION SUMMARY

(unaudited)

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

(Barrels per day unless otherwise noted)

2023

 

2022

 

2023

 

2022

Net crude oil and condensate

 

 

 

 

 

 

 

United States - Onshore

27,772

 

 

28,522

 

 

24,674

 

 

25,082

 

United States - Gulf of Mexico 1

74,843

 

 

68,315

 

 

74,185

 

 

62,380

 

Canada - Onshore

2,935

 

 

3,891

 

 

3,104

 

 

4,228

 

Canada - Offshore

2,956

 

 

2,171

 

 

2,778

 

 

2,869

 

Other

262

 

 

487

 

 

247

 

 

716

 

Total net crude oil and condensate

108,768

 

 

103,386

 

 

104,988

 

 

95,275

 

Net natural gas liquids

 

 

 

 

 

 

 

United States - Onshore

5,272

 

 

5,782

 

 

4,590

 

 

5,268

 

United States - Gulf of Mexico 1

5,882

 

 

4,780

 

 

6,170

 

 

4,411

 

Canada - Onshore

732

 

 

986

 

 

705

 

 

942

 

Total net natural gas liquids

11,886

 

 

11,548

 

 

11,465

 

 

10,621

 

Net natural gas ? thousands of cubic feet per day

 

 

 

 

 

 

 

United States - Onshore

28,312

 

 

30,054

 

 

25,571

 

 

29,032

 

United States - Gulf of Mexico 1

70,240

 

 

65,319

 

 

71,764

 

 

61,727

 

Canada - Onshore

426,725

 

 

392,483

 

 

361,852

 

 

313,422

 

Total net natural gas

525,277

 

 

487,856

 

 

459,187

 

 

404,181

 

Total net hydrocarbons - including NCI 2,3

208,200

 

 

196,243

 

 

192,984

 

 

173,260

 

Noncontrolling interest

 

 

 

 

 

 

 

Net crude oil and condensate ? barrels per day

(5,989

)

 

(7,125

)

 

(6,181

)

 

(7,735

)

Net natural gas liquids ? barrels per day

(191

)

 

(264

)

 

(209

)

 

(290

)

Net natural gas ? thousands of cubic feet per day

(1,887

)

 

(2,202

)

 

(1,996

)

 

(2,628

)

Total noncontrolling interest 2,3

(6,495

)

 

(7,756

)

 

(6,723

)

 

(8,463

)

Total net hydrocarbons - excluding NCI 2,3

201,705

 

 

188,487

 

 

186,261

 

 

164,797

 

 

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,

 

2023

 

2022

 

2023

 

2022

Crude oil and condensate ? dollars per barrel

 

 

 

 

 

 

 

United States - Onshore

$

81.19

 

94.33

 

$

76.40

 

$

99.92

United States - Gulf of Mexico 1

 

82.94

 

92.96

 

 

76.73

 

 

99.04

Canada - Onshore 2

 

76.33

 

82.25

 

 

73.01

 

 

92.31

Canada - Offshore 2

 

94.85

 

111.76

 

 

84.13

 

 

112.93

Other 2

 

77.19

 

117.18

 

 

82.87

 

 

92.91

Natural gas liquids ? dollars per barrel

 

 

 

 

 

 

 

United States - Onshore

 

20.52

 

34.33

 

 

19.76

 

 

36.83

United States - Gulf of Mexico 1

 

20.16

 

36.56

 

 

22.01

 

 

39.99

Canada - Onshore 2

 

37.72

 

54.40

 

 

39.08

 

 

57.53

Natural gas ? dollars per thousand cubic feet

 

 

 

 

 

 

 

United States - Onshore

 

2.32

 

7.62

 

 

2.24

 

 

6.49

United States - Gulf of Mexico 1

 

2.84

 

8.68

 

 

2.82

 

 

7.23

Canada - Onshore 2

 

1.93

 

2.75

 

 

2.07

 

 

2.70

 

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 (unaudited)

AS OF OCTOBER 31, 2023

 

 

 

 

 

 

 

Volumes

(MMcf/d)

 

Price/MCF

 

Remaining Period

Area

 

Commodity

 

Type 1

 

 

 

Start Date

 

End Date

Canada

 

Natural Gas

 

Fixed price forward sales

 

250

 

C$2.35

 

10/1/2023

 

12/31/2023

Canada

 

Natural Gas

 

Fixed price forward sales

 

25

 

US$1.98

 

10/1/2023

 

10/31/2024

Canada

 

Natural Gas

 

Fixed price forward sales

 

162

 

C$2.39

 

1/1/2024

 

12/31/2024

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.

MURPHY OIL CORPORATION

FOURTH QUARTER 2023 GUIDANCE

 

 

Oil

BOPD

 

NGLs

BOPD

 

Gas

MCFD

 

Total

BOEPD

Production ? net

 

 

 

 

 

 

 

U.S. ? Eagle Ford Shale

22,800

 

5,000

 

27,300

 

32,400

? Gulf of Mexico excluding NCI

66,300

 

4,800

 

64,000

 

81,800

Canada ? Tupper Montney

?

 

?

 

380,300

 

63,400

? Kaybob Duvernay and Placid Montney

2,000

 

500

 

7,700

 

3,800

? Offshore

3,800

 

?

 

?

 

3,800

Other

300

 

?

 

?

 

300

 

 

 

 

 

 

 

 

Total net production (BOEPD) - excluding NCI 1

181,500 to 189,500

 

 

 

 

 

 

 

 

Exploration expense ($ millions)

$53

 

 

 

 

 

 

 

 

FULL YEAR 2023 GUIDANCE

Total net production (BOEPD) - excluding NCI 2

185,000 to 187,000

Capital expenditures ? excluding NCI ($ millions) 3

$950 to $1,025

 

 

¹ Excludes noncontrolling interest of MP GOM of 6,400 BOPD of oil, 200 BOPD of NGLs, and 2,700 MCFD gas.

² Excludes noncontrolling interest of MP GOM of 6,200 BOPD of oil, 200 BOPD of NGLs, and 2,200 MCFD gas.

³ Excludes noncontrolling interest of MP GOM of $70 million and acquisition-related costs of $49 million.

 


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