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|MURPHY OIL ANNOUNCES PRELIMINARY FIRST QUARTER 2015 EARNINGS|
EL DORADO, Arkansas, April 29, 2015 - Murphy Oil Corporation (NYSE: MUR) announced today a net loss of $14.4 million ($0.08 per diluted share) in the 2015 first quarter, down from net income of $155.3 million ($0.85 per diluted share) in the first quarter a year ago. Income from continuing operations in the 2015 first quarter was $3.5 million ($0.02 per diluted share) compared to $169.3 million ($0.93 per diluted share) earned in the first quarter a year ago. Results in the 2015 quarter included a $199.5 million after tax gain on a 10% sale in Malaysia.
Adjusted earnings (loss), which excludes both the results of discontinued operations and certain other items that affect comparability of results between periods, in the first quarter of 2015 showed a loss of $198.5 million ($1.11 per diluted share). This was a decrease of $373.3 million ($2.07 per diluted share) compared to the prior year's quarter primarily attributed to approximately a 50% decline in both Brent and West Texas Intermediate benchmark crude prices and a 44% decline in the Henry Hub natural gas price.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for continuing operations totaled $391.4 million in the first quarter 2015, down from $754.4 million in the first quarter of 2014. EBITDA per barrel of oil equivalent (boe) sold was $18.90 in the 2015 quarter compared to $41.81 in the 2014 quarter. Earnings before interest, taxes, depreciation, amortization and exploration expenses (EBITDAX) for continuing operations totaled $520.1 million in the first quarter 2015, down from $892.9 million in the first quarter of 2014. EBITDAX per barrel of oil equivalent (boe) sold was $25.11 in the 2015 quarter compared to $49.48 in the 2014 quarter. Both of these 2015 measures include the effect of the gain on the sale of 10% interest in Malaysia.
First quarter 2015 highlights were as follows:
Roger W. Jenkins, President and Chief Executive Officer, commented, "We continue to progress the optimization of our portfolio, reaching closure on the final phase of the sell-down of our Malaysia assets and signing a sales agreement for our remaining U.K. downstream assets. We remain focused on allocating capital and reducing operating expenditures. Looking ahead, Murphy is well positioned with a solid balance sheet and cash positions to carry out our capital plans and evaluate opportunities that will enhance our business."
North America Onshore
In Western Canada, natural gas production from the Montney in the first quarter of 2015 was 187 million cubic feet per day (mmcfd), relatively flat with the fourth quarter of 2014. We completed eight new wells in the first quarter and as planned, released all of our rigs in February. We continue to see above plan sub-surface performance from our new wells in the Montney where we are completing the wells with larger sand concentrations. Results to date indicate higher cumulative production and well pressures pointing to higher estimated ultimate recovery from the wells.
The Company recorded an after-tax expense of $32.5 million in the first quarter associated with the estimated cost to remediate a leak or leaks at an infield condensate transfer pipeline at the Seal field in a remote area of northern Alberta.
In the GOM, production for the quarter was over 24,400 boepd with 61% liquids. We continue to progress our two-well expansion project at Medusa in Mississippi Canyon. Both wells have been drilled to plan, and subsea installations are complete with one well scheduled to flow first oil in early May. At the non-operated Kodiak development, a two-well tie-back to Devil's Tower, the first well has been drilled to plan and we anticipate first oil in the first quarter of 2016.
In Malaysia offshore of Sarawak, Murphy farmed into deepwater Block 2C at a 50% working interest. We are targeting gas/condensate in the Oligocene delta-plain sandstones with plans to drill a well in the third quarter.
In Australia, the seismic program across Block EPP43 in the Ceduna basin is now complete and Murphy and our partner will begin processing and evaluating the data. In the Vulcan Sub-Basin offshore northern Australia, we acquired a new block at a 50% working interest in this oil prone basin without well commitments. The Munia prospect, the last of a three-well exploratory drilling program in the Perth Basin, was plugged and abandoned as a dry hole. Including the first two wells in the program, Koel and Cisticola, we recorded a dry hole expense of $31.8 million in the first quarter.
Production & Guidance
Earnings Conference Call
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express management's current views concerning future events or results are subject to inherent risks and uncertainties. Factors that could cause one or more of these forecasted events not to occur include, but are not limited to, a failure to obtain necessary regulatory approvals, a deterioration in the business or prospects of Murphy, adverse developments in Murphy business' markets, and adverse developments in the U.S. or global capital markets, credit markets or economies in general. Factors that could cause actual results to differ materially from those expressed or implied in our forward-looking statements include, but are not limited to, the volatility and level of crude oil and natural gas prices, the level and success rate of our exploration programs, our ability to maintain production rates and replace reserves, customer demand for our products, adverse foreign exchange movements, political and regulatory instability, and uncontrollable natural hazards. For further discussion of risk factors, see Murphy's 2014 Annual Report on Form 10-K on file with the U.S. Securities and Exchange Commission. Murphy undertakes no duty to publicly update or revise any forward-looking statements.
This news release also contains certain historical non-GAAP measures of financial performance that management believes are good tools for internal use and the investment community in evaluating Murphy Oil Corporation's overall financial performance. These non-GAAP measures are broadly used to value and compare companies in the crude oil and natural gas industry. Please see the attached schedules for reconciliations of the differences between non-GAAP measures used in this news release and the most directly comparable GAAP financial measures.
The Securities and Exchange Commission requires oil and gas companies, in their filings with the SEC, to disclose proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. The SEC permits the optional disclosure of probable and possible reserves; however, we have not disclosed the Company's probable and possible reserves in our filings with the SEC. We use the term "net recoverable resource" in this news release. These estimates are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of being actually realized. The SEC guidelines strictly prohibit us from including these estimates in filings with the SEC. Investors are urged to consider closely the disclosures and risk factors in our most recent annual report on Form 10-K and in other reports on file with the SEC, available from Murphy Oil Corporation's offices or website at http://ir.murphyoilcorp.com.
For further information contact Barry Jeffery, Vice President, Investor Relations at 870-864-6501.
First Quarter Schedules Accessible at Link Below.