Murphy Oil Corporation Announces Preliminary First Quarter 2017 Financial and Operating Results
Operating and financial highlights for the first quarter 2017 include:
- Produced volumes of 169 Mboepd, on track to achieve full year production guidance
- Spent
$215 million on capital expenditures, in line with planned annual capital budget of$890 million for full year 2017 - Reduced selling and general expenses by approximately 17 percent year-over-year, excluding severance expense in the prior year
- Closed the divestiture of Canadian heavy oil asset generating a
$132 million pre-tax gain - Executed planned quarterly Kaybob Duvernay appraisal program by drilling five wells, including the longest lateral to date of 9,500 feet, and brought three wells online
FIRST QUARTER 2017 FINANCIAL RESULTS
Murphy recorded net income of
Earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations totaled
“Murphy had strong first quarter results as we exceeded production guidance with high uptime performance across all our assets. Our production is outstanding considering that we brought online fewer wells than planned in our
FINANCIAL POSITION
As of
REGIONAL OPERATIONS SUMMARY
North American Onshore
The North American onshore business produced over 85 Mboepd in the first quarter with 51 percent liquids. First quarter 2017 operating expenses were
Tupper Montney – Murphy averaged 207 million cubic feet per day (Mmcfd) of natural gas production in the quarter. There was one well drilled in the first quarter and four wells previously drilled that were completed early in the second quarter. Strong production results from these wells, in addition to wells completed in 2016, are yielding projected ultimate recoveries exceeding 17 billion cubic feet equivalent (Bcfe) per well. This exceeds the previously projected recovery range of 10 to 14 Bcfe per well. The exceptional well results continue to support the company’s new well designs of longer laterals that are approaching 10,000 feet, as well as higher sand concentration of up to 2,000 pounds per foot.
Kaybob Duvernay – Production for the quarter averaged almost 3 Mboepd, comprised of 53 percent liquids. During the quarter, five wells were drilled and three wells brought online including a two well pad in the condensate window and a one well pad in the oil window. All three wells are performing above or in line with pre-drill expectations. As the company continues executing on its appraisal plans in the second quarter, for the first-time Murphy is beginning to drill wells with optimal azimuth and lateral lengths exceeding 9,100 feet. For the remainder of 2017, the company expects to drill and bring online 11 wells, including five in the second quarter, two located in the oil window and three in the condensate window.
Offshore
The offshore business produced 84 Mboepd for the first quarter with 73 percent liquids.
PRODUCTION AND CAPITAL EXPENDITURE GUIDANCE
Production for the second quarter 2017 is estimated in the range of 160 to 164 Mboepd. Second quarter guidance includes the previously announced redetermination in the non-operated Kakap field, which reduces the company’s net production by approximately 2,900 boepd from the first quarter 2017. Also, in accordance with the Production Sharing Contracts in
Full year 2017 production is being reaffirmed in the range of 162 to 168 Mboepd. Full year capital expenditure guidance is being maintained at
“As we progress through the second quarter, we are experiencing a previously announced redetermination and an anticipated entitlement change associated with our Malaysian offshore business. Also in the second quarter, we will experience offshore planned maintenance and a brief shut-in at our Tupper Montney asset associated with a plant turnaround. Our full year production remains within the previously announced guidance range. Our base production in the
CONFERENCE CALL AND WEBCAST SCHEDULED FOR
Murphy will host a conference call to discuss first quarter 2017 financial and operating results on
FINANCIAL DATA
Summary financial data, operating statistics and a summary balance sheet for the first quarter 2017 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 and schedules comparing EBITDA and EBITDAX between periods are included with these schedules as well as guidance for the second quarter.
ABOUT
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 or results, are subject to inherent risks and uncertainties. Factors that could cause one or more of these future events or results not to occur as implied by any forward-looking statement include, but are not limited to, increased volatility or deterioration in the level of crude oil and natural gas prices, 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, natural hazards impacting our operations, 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, and adverse developments in the U.S. or global capital markets, credit markets 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
NON-GAAP FINANCIAL MEASURES
This news release contains certain non-GAAP financial measures 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 financial measures are broadly used to value and compare companies in the crude oil and natural gas industry, although 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.
RESERVE REPORTING TO THE SECURITIES EXCHANGE COMMISSION
The
MURPHY OIL CORPORATION SUMMARIZED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Thousands of dollars, except per share amounts) |
||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2017 | 2016 | |||||||
Revenues | ||||||||
Sales and other operating revenues | $ | 544,658 |
429,094 |
|||||
Gain on sale of assets | 131,982 | 22 | ||||||
Interest and other income (loss) | (12,021 | ) |
1,179 |
|||||
Total revenues | 664,619 | 430,295 | ||||||
Costs and expenses | ||||||||
Lease operating expenses | 122,142 | 159,103 | ||||||
Severance and ad valorem taxes | 11,213 | 12,637 | ||||||
Exploration expenses | 28,663 | 26,916 | ||||||
Selling and general expenses | 54,255 | 73,507 | ||||||
Depreciation, depletion and amortization | 236,154 | 286,149 | ||||||
Accretion of asset retirement obligations | 10,556 | 12,125 | ||||||
Impairment of assets | – | 95,088 | ||||||
Interest expense | 45,690 | 32,061 | ||||||
Interest capitalized | (1,093 | ) | (1,841 | ) | ||||
Other expense (benefit) | 2,157 | (416 | ) | |||||
509,737 | 695,329 | |||||||
Income (loss) from continuing operations before income taxes | 154,882 | (265,034 | ) | |||||
Income tax expense (benefit) | 97,387 | (65,549 | ) | |||||
Income (loss) from continuing operations | 57,495 | (199,485 | ) | |||||
Income from discontinued operations, net of income taxes | 969 | 683 | ||||||
Net income (loss) | $ | 58,464 | (198,802 | ) | ||||
Income (loss) per Common share – Basic | ||||||||
Continuing operations | $ | 0.33 | (1.16 | ) | ||||
Discontinued operations | 0.01 | – | ||||||
Net income (loss) | $ | 0.34 | (1.16 | ) | ||||
Income (loss) per Common share – Diluted | ||||||||
Continuing operations | $ | 0.33 | (1.16 | ) | ||||
Discontinued operations | 0.01 | – | ||||||
Net income (loss) | $ | 0.34 | (1.16 | ) | ||||
Cash dividends per Common share | 0.25 | 0.35 | ||||||
Average Common shares outstanding (thousands) | ||||||||
Basic | 172,422 | 172,114 | ||||||
Diluted | 173,089 | 172,114 |
MURPHY OIL CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Thousands of dollars) |
||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2017 | 2016 | |||||||
Operating Activities | ||||||||
Net income (loss) | $ | 58,464 | (198,802 | ) | ||||
Adjustments to reconcile net loss to net cash provided by continuing operations activities: |
||||||||
Income from discontinued operations | (969 | ) | (683 | ) | ||||
Depreciation, depletion and amortization | 236,154 | 286,149 | ||||||
Impairment of assets | – | 95,088 | ||||||
Amortization of deferred major repair costs | – | 2,002 | ||||||
Dry hole costs | 2,904 | (69 | ) | |||||
Amortization of undeveloped leases | 9,957 | 10,469 | ||||||
Accretion of asset retirement obligations | 10,556 | 12,125 | ||||||
Deferred income tax expense (benefit) |
58,533 |
(85,683 | ) | |||||
Pretax gains from disposition of assets | (131,982 | ) | (22 | ) | ||||
Net (increase) decrease in noncash operating working capital1 |
43,418 |
(104,347 | ) | |||||
Other operating activities, net | 18,478 | 27,085 | ||||||
Net cash provided by continuing operations activities | 305,513 | 43,312 | ||||||
Investing Activities | ||||||||
Property additions and dry hole costs | (211,631 | ) | (210,029 | ) | ||||
Proceeds from sales of property, plant and equipment | 64,097 | 33 | ||||||
Purchases of investment securities2 | (212,661 | ) | (49,277 | ) | ||||
Proceeds from maturity of investment securities2 | 113,210 | 86,983 | ||||||
Other investing activities, net | – | (21,658 | ) | |||||
Net cash required by investing activities | (246,985 | ) | (193,948 | ) | ||||
Financing Activities | ||||||||
Borrowings of debt | – | 371,000 | ||||||
Capital lease obligation payments | (9,660 | ) | (2,690 | ) | ||||
Withholding tax on stock-based incentive awards | (5,808 | ) | (1,052 | ) | ||||
Cash dividends paid | (43,136 | ) | (60,267 | ) | ||||
Net cash (required) provided by financing activities | (58,604 | ) | 306,991 | |||||
Cash Flows from Discontinued Operations | ||||||||
Operating activities | – | 2,312 | ||||||
Investing activities | – | – | ||||||
Changes in cash included in current assets held for sale | – | (2,312 | ) | |||||
Net change in cash and cash equivalents of discontinued operations | – | – | ||||||
Effect of exchange rate changes on cash and cash equivalents | 3,132 | (16,475 | ) | |||||
Net increase in cash and cash equivalents | 3,056 | 139,880 | ||||||
Cash and cash equivalents at beginning of period | 872,797 | 283,183 | ||||||
Cash and cash equivalents at end of period | $ | 875,853 | 423,063 |
1 | 2016 balance includes payments for deepwater rig contract exit of $253.2 million. | |
2 | Investments are Canadian government securities with maturities greater than 90 days at the date of acquisition. |
MURPHY OIL CORPORATION SCHEDULE OF ADJUSTED LOSS (Unaudited) (Millions of dollars, except per share amounts) |
||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2017 | 2016 | |||||||
Net income (loss) | $ | 58.5 | (198.8 | ) | ||||
Discontinued operation earnings |
(1.0 |
) |
(0.7 |
) |
||||
Income (loss) from continuing operations | 57.5 | (199.5 | ) | |||||
Adjustments: | ||||||||
Mark-to-market (gain) loss on crude oil derivative contracts | (26.0 | ) | 13.3 | |||||
Foreign exchange (gains) losses | 11.6 | (1.7 | ) | |||||
Gain on sale of Seal | (96.0 | ) | – | |||||
Deferred tax on undistributed foreign earnings | 54.6 | – | ||||||
Tax benefits on investments in foreign areas | (11.9 | ) | – | |||||
Impairments of assets | – | 68.9 | ||||||
Restructuring charges | – | 6.2 | ||||||
Total adjustments after taxes | (67.7 | ) | 86.7 | |||||
Adjusted loss | (10.2 | ) | (112.8 | ) | ||||
Adjusted loss per diluted share | $ | (0.06 | ) | (0.66 | ) | |||
Non-GAAP Financial Measures
Presented above is a reconciliation of Net income (loss) to Adjusted loss. Adjusted loss 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 loss is a non-GAAP financial measure and should not be considered a substitute for Net income (loss) as determined in accordance with accounting principles generally accepted in
Note: |
Amounts shown above as reconciling items between Net income (loss) and Adjusted loss are presented net of applicable income taxes based on the statutory rate applicable by jurisdiction. The 2017 and 2016 pretax and income tax impacts for adjustments shown above are as follows by area of operations. |
Three Months Ended | Three Months Ended | |||||||||||||||||||||||
March 31, 2017 | March 31, 2016 | |||||||||||||||||||||||
Pretax | Tax | Net | Pretax | Tax | Net | |||||||||||||||||||
Exploration & Production: | ||||||||||||||||||||||||
United States | (40.0 | ) | 14.0 | (26.0 | ) | 23.9 | (8.4 | ) | 15.5 | |||||||||||||||
Canada | (132.4 | ) | 36.4 | (96.0 | ) | 96.4 | (26.5 | ) | 69.9 | |||||||||||||||
Malaysia | – | – | – | 1.5 | (0.5 | ) | 1.0 | |||||||||||||||||
Other International | – | (11.9 | ) | (11.9 | ) | 2.2 | (0.6 | ) | 1.6 | |||||||||||||||
Total E&P | (172.4 | ) | 38.5 | (133.9 | ) | 124.0 | (36.0 | ) | 88.0 | |||||||||||||||
Corporate: | 13.2 | 53.0 | 66.2 | 0.6 | (1.9 | ) | (1.3 | ) | ||||||||||||||||
Total adjustments | (159.2 | ) | 91.5 | (67.7 | ) | 124.6 | (37.9 | ) | 86.7 | |||||||||||||||
Income taxes are presented based on the estimated statutory tax effect each adjustment item had on taxes in the applicable tax jurisdiction.
MURPHY OIL CORPORATION | ||||||||
SCHEDULE OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION | ||||||||
AND AMORTIZATION (EBITDA) | ||||||||
(Unaudited) | ||||||||
(Millions of dollars, except per barrel of oil equivalents sold) | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2017 | 2016 | |||||||
Income (loss) from continuing operations | $ | 57.5 | (199.5 | ) | ||||
Income tax expense (benefit) | 97.4 | (65.5 | ) | |||||
Interest expense | 45.7 | 32.1 | ||||||
Interest capitalized | (1.1 | ) | (1.8 | ) | ||||
Depreciation, depletion and amortization expense | 236.2 | 286.1 | ||||||
Impairments of long-lived assets | – | 95.1 | ||||||
Earnings before interest, taxes, depreciation and amortization (EBITDA) |
$ | 435.7 | * | 146.5 | ||||
Total barrels of oil equivalents sold (thousands of barrels) | 14,757.5 | 17,546.2 | ||||||
EBITDA per barrel of oil equivalents sold | $ | 29.52 | 8.35 | |||||
Non-GAAP Financial Measures
Presented above is a reconciliation of Income (loss) from continuing operations to Earnings before interest, taxes, depreciation and amortization (EBITDA). Management believes EBITDA 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. EBITDA is a non-GAAP financial measure and should not be considered a substitute for Net income (loss) or Cash provided by operating activities as determined in accordance with accounting principles generally accepted in
* Includes
MURPHY OIL CORPORATION SCHEDULE OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AMORTIZATION AND EXPLORATION (EBITDAX) (Unaudited) (Millions of dollars, except per barrel of oil equivalents sold) |
||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2017 | 2016 | |||||||
Income (loss) from continuing operations | $ | 57.5 | (199.5 | ) | ||||
Income tax expense (benefit) | 97.4 | (65.5 | ) | |||||
Interest expense | 45.7 | 32.1 | ||||||
Interest capitalized | (1.1 | ) | (1.8 | ) | ||||
Depreciation, depletion and amortization expense | 236.2 | 286.1 | ||||||
Exploration expenses | 28.7 | 26.9 | ||||||
Impairment of long-lived assets | – | 95.1 | ||||||
Earnings before interest, taxes, depreciation, amortization and exploration expenses (EBITDAX) |
$ | 464.4 | * | 173.4 | ||||
Total barrels of oil equivalents sold (thousands of barrels) | 14,757.5 | 17,546.2 | ||||||
EBITDAX per barrel of oil equivalents sold | $ | 31.47 | 9.88 | |||||
Non-GAAP Financial Measures
Presented above is a reconciliation of Income (loss) from continuing operations to Earnings before interest, taxes, depreciation, amortization and exploration (EBITDAX). Management believes EBITDAX 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. EBITDAX is a non-GAAP financial measure and should not be considered a substitute for Net income (loss) or Cash provided by operating activities as determined in accordance with accounting principles generally accepted in
* Includes
MURPHY OIL CORPORATION FUNCTIONAL RESULTS OF OPERATIONS (Unaudited) (Millions of dollars) |
||||||||||||||
Three Months Ended |
Three Months Ended |
|||||||||||||
Revenues |
Income |
Revenues | Income (Loss) |
|||||||||||
Exploration and production | ||||||||||||||
United States | $ | 261.3 | 23.0 | 174.7 | (65.6 | ) | ||||||||
Canada | 218.0 | 100.6 | 106.1 | (87.3 | ) | |||||||||
Malaysia | 197.3 | 58.6 | 148.2 | 22.3 | ||||||||||
Other | – | (7.1 | ) | 0.1 | (26.2 | ) | ||||||||
Total exploration and production | 676.6 | 175.1 | 429.1 | (156.8 | ) | |||||||||
Corporate and other | (12.0 | ) | (117.6 | ) | 1.2 | (42.7 | ) | |||||||
Revenue/income from continuing operations | 664.6 | 57.5 | 430.3 | (199.5 | ) | |||||||||
Discontinued operations, net of tax | – | 1.0 | – | 0.7 | ||||||||||
Total revenues/net income (loss) | $ | 664.6 | 58.5 | 430.3 | (198.8 | ) |
MURPHY OIL CORPORATION OIL AND GAS OPERATING RESULTS (Unaudited) THREE MONTHS ENDED MARCH 31, 2017 AND 2016 |
|||||||||||||||||||||||||
Canada | |||||||||||||||||||||||||
United | Conven- | Syn- | |||||||||||||||||||||||
(Millions of dollars) | States | tional | thetic | Malaysia | Other | Total | |||||||||||||||||||
Three Months Ended March 31, 2017 | |||||||||||||||||||||||||
Oil and gas sales and other revenues | $ | 261.3 | 218.0 | – | 197.3 | – | 676.6 | ||||||||||||||||||
Lease operating expenses | 48.0 | 22.6 | – | 51.5 | – | 122.1 | |||||||||||||||||||
Severance and ad valorem taxes | 10.7 | 0.5 | – | – | – | 11.2 | |||||||||||||||||||
Depreciation, depletion and amortization | 138.3 | 44.7 | – | 47.9 | 1.0 | 231.9 | |||||||||||||||||||
Accretion of asset retirement obligations | 4.2 | 2.0 | – | 4.4 | – | 10.6 | |||||||||||||||||||
Exploration expenses | |||||||||||||||||||||||||
Dry holes | (0.3 | ) | – | – | 3.2 | – | 2.9 | ||||||||||||||||||
Geological and geophysical | 0.3 | 0.1 | – | – | 4.4 | 4.8 | |||||||||||||||||||
Other | 2.0 | 0.1 | – | – | 8.9 | 11.0 | |||||||||||||||||||
2.0 | 0.2 | – | 3.2 | 13.3 | 18.7 | ||||||||||||||||||||
Undeveloped lease amortization | 8.9 | 1.1 | – | – | – | 10.0 | |||||||||||||||||||
Total exploration expenses | 10.9 | 1.3 | – | 3.2 | 13.3 | 28.7 | |||||||||||||||||||
Selling and general expenses | 15.5 | 7.2 | – | 2.3 | 4.9 | 29.9 | |||||||||||||||||||
Other expenses (benefits) | (3.0 | ) | – | – | 5.1 | – | 2.1 | ||||||||||||||||||
Results of operations before taxes | 36.7 | 139.7 | – | 82.9 | (19.2 | ) | 240.1 | ||||||||||||||||||
Income tax provisions (benefits) | 13.7 | 39.1 | – | 24.3 | (12.1 | ) | 65.0 | ||||||||||||||||||
Results of operations (excluding | |||||||||||||||||||||||||
corporate overhead and interest) | $ | 23.0 | 100.6 | – | 58.6 | (7.1 | ) | 175.1 | |||||||||||||||||
Three Months Ended March 31, 2016 | |||||||||||||||||||||||||
Oil and gas sales and other revenues | $ | 174.7 | 57.6 | 48.5 | 148.2 | 0.1 | 429.1 | ||||||||||||||||||
Lease operating expenses | 55.5 | 17.6 | 38.1 | 47.9 | – | 159.1 | |||||||||||||||||||
Severance and ad valorem taxes | 10.4 | 1.1 | 1.1 | – | – | 12.6 | |||||||||||||||||||
Depreciation, depletion and amortization | 168.8 | 45.0 | 13.4 | 54.1 | 1.4 | 282.7 | |||||||||||||||||||
Accretion of asset retirement obligations | 4.2 | 2.6 | 1.2 | 4.1 | – | 12.1 | |||||||||||||||||||
Impairment of assets | – | 95.1 | – | – | – | 95.1 | |||||||||||||||||||
Exploration expenses | |||||||||||||||||||||||||
Dry holes | 0.3 | – | – | (0.4 | ) | – | (0.1 | ) | |||||||||||||||||
Geological and geophysical | 0.3 | 2.9 | – | 0.3 | 4.3 | 7.8 | |||||||||||||||||||
Other | 1.1 | 0.3 | – | – | 7.3 | 8.7 | |||||||||||||||||||
1.7 | 3.2 | – | (0.1 | ) | 11.6 | 16.4 | |||||||||||||||||||
Undeveloped lease amortization | 8.9 | 1.3 | – | – | 0.3 | 10.5 | |||||||||||||||||||
Total exploration expenses | 10.6 | 4.5 | – | (0.1 | ) | 11.9 | 26.9 | ||||||||||||||||||
Selling and general expenses | 22.5 | 7.6 | 0.2 | 3.4 | 10.1 | 43.8 | |||||||||||||||||||
Other expenses (benefits) | 0.2 | (1.5 | ) | – | – | 1.0 | (0.3 | ) | |||||||||||||||||
Results of operations before taxes | (97.5 | ) | (114.4 | ) | (5.5 | ) | 38.8 | (24.3 | ) | (202.9 | ) | ||||||||||||||
Income tax provisions (benefits) | (31.9 | ) | (31.0 | ) | (1.6 | ) | 16.5 | 1.9 | (46.1 | ) | |||||||||||||||
Results of operations (excluding | |||||||||||||||||||||||||
corporate overhead and interest) | $ | (65.6 | ) | (83.4 | ) | (3.9 | ) | 22.3 | (26.2 | ) | (156.8 | ) |
MURPHY OIL CORPORATION PRODUCTION-RELATED EXPENSES (Dollars per barrel of oil equivalents sold) |
||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2017 | 2016 | |||||||
United States – Eagle Ford Shale | ||||||||
Lease operating expense | $ | 7.90 | 7.92 | |||||
Severance and ad valorem taxes | 2.57 | 2.02 | ||||||
Depreciation, depletion and amortization (DD&A) expense | 26.33 | 24.82 | ||||||
United States – Gulf of Mexico | ||||||||
Lease operating expense | $ | 10.86 | 8.58 | |||||
DD&A expense | 20.69 | 23.56 | ||||||
Canada – Conventional operations | ||||||||
Lease operating expense | $ | 5.36 | 4.07 | |||||
Severance and ad valorem taxes | 0.13 | 0.24 | ||||||
DD&A expense | 10.59 | 10.32 | ||||||
Canada – Synthetic oil operations* | ||||||||
Lease operating expense | $ | – | 26.90 | |||||
Severance and ad valorem taxes | – | 0.86 | ||||||
DD&A expense | – | 9.49 | ||||||
Malaysia – Sarawak |
|
|||||||
Lease operating expense |
$ |
6.31 | 7.81 | |||||
DD&A expense | 7.78 | 9.68 | ||||||
Malaysia – Block K | ||||||||
Lease operating expense | $ | 16.78 | 12.40 | |||||
DD&A expense | 12.54 | 12.49 | ||||||
Total oil and gas operations | ||||||||
Lease operating expense | $ | 8.28 | 9.07 | |||||
Severance and ad valorem taxes | 0.76 | 0.72 | ||||||
DD&A expense | 15.71 | 16.11 | ||||||
Total oil and gas operations – excluding synthetic oil operations | ||||||||
Lease operating expense | $ | 8.28 | 7.50 | |||||
Severance and ad valorem taxes | 0.76 | 0.71 | ||||||
DD&A expense | 15.71 | 16.69 | ||||||
* The Company sold its 5% non-operated interest in Syncrude Canada Ltd. on June 23, 2016. |
MURPHY OIL CORPORATION OTHER FINANCIAL DATA (Unaudited) (Millions of dollars) |
|||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2017 | 2016 | ||||||||
Capital expenditures | |||||||||
Exploration and production | |||||||||
United States | $ | 98.4 | 65.6 | ||||||
Canada | 88.2 | 32.5 | |||||||
Malaysia | 1.7 | 27.6 | |||||||
Other | 25.3 | 10.8 | |||||||
Total | 213.6 | 136.5 | |||||||
Corporate | 0.9 | 8.4 | |||||||
Total capital expenditures | 214.5 | 144.9 | |||||||
Charged to exploration expenses1 | |||||||||
United States | 2.0 | 1.7 | |||||||
Canada | 0.2 | 3.2 | |||||||
Malaysia | 3.2 | (0.1 | ) | ||||||
Other | 13.3 | 11.6 | |||||||
Total charged to exploration expenses | 18.7 | 16.4 | |||||||
Total capitalized | $ | 195.8 | 128.5 | ||||||
1 Excludes amortization of undeveloped leases of | $ | 10.0 | 10.5 |
MURPHY OIL CORPORATION CONDENSED BALANCE SHEET (Unaudited) (Millions of dollars) |
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March 31, 2017 |
December 31, 2016 |
|||||||
Assets |
||||||||
Cash and cash equivalents | $ | 875.9 | 872.8 | |||||
Canadian government securities | 211.5 | 111.5 | ||||||
Other current assets | 522.5 | 574.8 | ||||||
Property, plant and equipment – net | 8,253.1 | 8,316.2 | ||||||
Other long-term assets |
409.0 |
420.6 | ||||||
Total assets | $ |
10,272.0 |
10,295.9 | |||||
Liabilities and Stockholders' Equity |
||||||||
Current maturities of long-term debt | $ | 562.4 | 569.8 | |||||
Other current liabilities |
906.3 |
932.6 | ||||||
Long-term debt* | 2,421.6 | 2,422.8 | ||||||
Other long-term liabilities | 1,423.2 | 1,454.0 | ||||||
Total stockholders' equity | 4,958.5 | 4,916.7 | ||||||
Total liabilities and stockholders' equity | $ |
10,272.0 |
10,295.9 | |||||
* | Includes a capital lease on production equipment of $193.5 million at March 31, 2017 and $195.8 million at December 31, 2016. |
MURPHY OIL CORPORATION STATISTICAL SUMMARY |
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Three Months Ended | |||||||
March 31, | |||||||
2017 | 2016 | ||||||
Net crude oil and condensate produced – barrels per day | 95,604 | 123,475 | |||||
United States – Eagle Ford Shale | 33,603 | 42,538 | |||||
– Gulf of Mexico | 12,364 | 14,098 | |||||
Canada – light | 1,882 | 131 | |||||
– heavy1 | 610 | 3,319 | |||||
– offshore | 9,916 | 8,821 | |||||
– synthetic1 | – | 15,559 | |||||
Malaysia – Sarawak | 13,518 | 13,035 | |||||
– Block K | 23,712 | 25,974 | |||||
Net crude oil and condensate sold – barrels per day | 89,887 | 119,195 | |||||
United States – Eagle Ford Shale | 33,603 | 42,537 | |||||
– Gulf of Mexico | 12,364 | 14,098 | |||||
Canada – light | 1,882 | 131 | |||||
– heavy1 | 610 | 3,319 | |||||
– offshore | 7,982 | 9,382 | |||||
– synthetic1 | – | 15,559 | |||||
Malaysia – Sarawak | 13,476 | 13,759 | |||||
– Block K | 19,970 | 20,410 | |||||
Net natural gas liquids produced – barrels per day | 8,916 | 9,235 | |||||
United States – Eagle Ford Shale | 6,848 | 7,225 | |||||
– Gulf of Mexico | 1,113 | 1,227 | |||||
Canada | 260 | 12 | |||||
Malaysia – Sarawak | 695 | 771 | |||||
Net natural gas liquids sold – barrels per day | 9,382 | 9,762 | |||||
United States – Eagle Ford Shale | 6,848 | 7,225 | |||||
– Gulf of Mexico | 1,113 | 1,227 | |||||
Canada | 260 | 12 | |||||
Malaysia – Sarawak | 1,160 | 1,298 | |||||
Net natural gas sold – thousands of cubic feet per day | 388,224 | 383,150 | |||||
United States – Eagle Ford Shale | 34,328 | 38,294 | |||||
– Gulf of Mexico | 12,115 | 23,409 | |||||
Canada | 217,095 | 209,823 | |||||
Malaysia – Sarawak | 116,560 | 98,255 | |||||
– Block K | 8,125 | 13,369 | |||||
Total net hydrocarbons produced – equivalent barrels per day2 | 169,224 | 196,568 | |||||
Total net hydrocarbons sold – equivalent barrels per day2 | 163,972 | 192,815 |
1 | The Company sold the Seal area heavy oil field in January 2017 and its 5% non-operated interest in Syncrude Canada Ltd. in June 2016. | |
2 | Natural gas converted on an energy equivalent basis of 6:1. |
MURPHY OIL CORPORATION STATISTICAL SUMMARY (Continued) |
||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2017 | 2016 | |||||||
Weighted average sales prices | ||||||||
Crude oil and condensate – dollars per barrel | ||||||||
United States – Eagle Ford Shale | $ | 48.65 | $ | 34.81 | ||||
– Gulf of Mexico |
47.24 | 35.18 | ||||||
Canada1 – light | 47.16 | 30.28 | ||||||
– heavy2 | 25.12 | 6.89 | ||||||
– offshore | 51.92 | 30.70 | ||||||
– synthetic2 | – | 33.81 | ||||||
Malaysia – Sarawak3 | 55.01 | 37.89 | ||||||
– Block K3 | 51.33 | 36.03 | ||||||
Natural gas liquids – dollars per barrel | ||||||||
United States – Eagle Ford Shale | $ | 16.45 | $ | 8.20 | ||||
– Gulf of Mexico | 19.24 | 9.31 | ||||||
Canada1 | 22.09 | 28.63 | ||||||
Malaysia – Sarawak3 | 47.52 | 41.21 | ||||||
Natural gas – dollars per thousand cubic feet | ||||||||
United States – Eagle Ford Shale | $ | 2.54 | $ | 1.47 | ||||
– Gulf of Mexico | 2.56 |
1.74 |
||||||
Canada1 | 2.09 | 1.55 | ||||||
Malaysia – Sarawak3 | 3.50 | 3.67 | ||||||
– Block K3 | 0.25 | 0.24 |
1 | U.S. dollar equivalent. | |
2 | The Company sold the Seal area heavy oil field in January 2017 and its 5% non-operated interest in Syncrude Canada Ltd. in June 2016. | |
3 | Prices are net of payments under the terms of the respective production sharing contracts. |
MURPHY OIL CORPORATION COMMODITY HEDGE POSITIONS AS OF MARCH 31, 2017 |
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|
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Volumes | Price | Remaining Period | |||||||||||||||||
Area | Commodity | Type | (Bbl/d) | (USD/Bbl) | Start Date | End Date | |||||||||||||
United States | WTI | Fixed price derivative swap | 22,000 | $ | 50.41 | 4/1/2017 | 12/31/2017 | ||||||||||||
Volumes | Price | Remaining Period | |||||||||||||||||
Area | Commodity | Type | (MMcf/d) | (CAD/Mcf) | Start Date | End Date | |||||||||||||
Montney | Natural Gas | Fixed price forward sales | 124 | C$2.97 | 4/1/2017 | 12/31/2017 | |||||||||||||
Montney | Natural Gas | Fixed price forward sales | 59 | C$2.81 | 1/1/2018 | 12/31/2020 |
MURPHY OIL CORPORATION SECOND QUARTER 2017 GUIDANCE |
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Liquids | Gas | |||||
BOPD | MCFD | |||||
Production – net | ||||||
U.S. – Eagle Ford Shale | 41,500 | 32,000 | ||||
– Gulf of Mexico | 12,000 | 11,000 | ||||
Canada – Tupper Montney | – | 200,000 | ||||
– Kaybob Duvernay and Placid Montney | 4,000 | 16,500 | ||||
– Offshore | 9,000 |
- |
||||
Malaysia – Sarawak | 13,000 | 109,000 | ||||
– Block K | 20,000 | 6,500 | ||||
Total net production (BOEPD) | 160,000 – 164,000 | |||||
Total net sales (BOEPD) | 156,000 – 160,000 | |||||
Realized oil prices ($ per barrel): | ||||||
Malaysia – Sarawak | $ | 52.78 | ||||
– Block K | $ | 50.88 | ||||
Realized natural gas price ($ per MCF): | ||||||
Malaysia – Sarawak | $ | 3.75 | ||||
Exploration expense ($ millions) | $ | 50.2 | ||||
FULL YEAR 2017 GUIDANCE | ||||||
Total production (BOEPD) | 162,000 – 168,000 | |||||
Capital expenditures ($ millions) | $ | 890.0 |
View source version on businesswire.com: http://www.businesswire.com/news/home/20170503006718/en/
Source:
Murphy Oil Corporation
Investor Contacts:
Kelly Whitley, 281-675-9107
kelly_whitley@murphyoilcorp.com
or
Emily McElroy, 870-864-6324
emily_mcelroy@murphyoilcorp.com