Murphy Oil Corporation Announces Second Quarter Financial and Operating Results
Closed Gulf of Mexico Acquisition for
The recently divested
Operating highlights for the second quarter:
- Produced 159 thousand barrels of oil equivalent per day, exceeding production guidance
Increased Eagle Ford Shale production over 23 percent as compared to first quarter 2019- Closed accretive deep water Gulf of
Mexico transaction, which included the addition of over 73 million barrels of oil equivalent of proved reserves 2 - Sanctioned three Gulf of
Mexico projects that drive oil-weighted production growth - Divested non-core
North Midland Basin acreage in Dawson County for approximate$20 million , with acreage still remaining in Andrews County
Financial highlights for the second quarter:
- Repurchased approximately seven percent of outstanding shares for
$300 million , resulting in cumulative share repurchases of more than$1.6 billion since 2012 - Realized high-value EBITDA per barrel of oil equivalent sold of
$35 for theEagle Ford Shale and$38 for North America Offshore at the field level - Reduced lease operating expenses to below
$9 per barrel of oil equivalent
Highlights subsequent to quarter end:
- Closed the divestiture of
Malaysia portfolio for$2.0 billion in cash proceeds - Drilled successful
Hoffe Park #2 well in the Gulf ofMexico - Entered into additional crude oil commodity hedge contracts with combined average prices above
$60 per barrel WTI for 2019 and 2020, underpinning multi-year capital program - Repaid
$1.9 billion of debt on the balance sheet at quarter end, resulting in liquidity of more than$2.0 billion as ofJuly 31, 2019
SECOND QUARTER 2019 RESULTS
The company recorded net income, attributable to Murphy, of
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations attributable to Murphy totaled
Second quarter production from continuing operations averaged 159 thousand barrels of oil equivalent per day (MBOEPD) with 67 percent liquids. Overall, production was above guidance due to reduced downtime and better performance from the company’s newly acquired Gulf of
“2019 is proving to be an excellent year for Murphy. We closed our Gulf of
FINANCIAL POSITION
As of
As previously announced, Murphy completed
As of
“I am very pleased with our financial position. We have completed the execution of a year-long business development plan that resulted in a transformed company with a strong liquidity position. Furthermore, I am most proud of setting up the company with an improved asset base capable of generating fourth quarter 2019 production of approximately 200,000 barrels of oil equivalent per day with more oil production and reserves, all while reducing share count and providing a leading dividend yield to our shareholders,” stated Jenkins.
REGIONAL OPERATIONS SUMMARY
North American Onshore
The North American onshore business produced approximately 93 MBOEPD in the second quarter.
Additionally, the company advanced its 2019 drilling program ahead of schedule, bringing online an additional 12 Tilden wells in late June. The Tilden wells have achieved strong results, as eight Central Tilden wells exceeded expectations in the area with average IP30 rates over 1,350 BOEPD, and four East Tilden wells averaged 700 BOEPD IP30.
“Our
Kaybob Duvernay – During the quarter, production averaged approximately 9 MBOEPD, comprised of 61 percent liquids. Murphy brought online two wells in Kaybob North and four wells in Two Creeks, with average facility-constrained IP30 rates of more than 1,050 BOEPD for Kaybob North and 750 BOEPD for Two Creeks. Drilling in this area will resume in the third quarter as part of ongoing re-risking along with satisfying lease maintenance requirements. These wells are expected to be brought online in 2020.
Global Offshore
The offshore business produced 65 MBOEPD for the second quarter, comprised of 91 percent liquids. This excludes production from discontinued operations. Gulf of
Gulf of
In the second quarter, Murphy successfully drilled and completed the Dalmatian #2 well (
In support of longer-term development, the company has sanctioned three additional Gulf of
- King’s Quay floating production system (FPS) facility to receive and process up to 80 MBOPD of production anchored by the Khaleesi/Mormont and Samurai developments.
Khaleesi/Mormont Field Development , with seven subsea wells, of which four were previously drilled, and infrastructure tie-back to King’s Quay.Samurai Field Development , with four subsea wells and tie-back to King’s Quay.
“Our planned execution on our new Gulf of
EXPLORATION
Mexico Exploration – During the second quarter, Murphy entered an agreement to acquire a proportionate share of Ophir’s interest in Block 5 for approximately
Gulf of Mexico Exploration – Subsequent to the end of the second quarter, Murphy drilled a successful well at
COMMODITY HEDGE POSITIONS
The company employs derivative commodity instruments to manage certain risks associated with commodity prices and to underpin capital spending associated with certain assets. Subsequent to quarter end, Murphy entered into additional 2019 and 2020 WTI based fixed price derivative swaps. Details for the current hedge positions can be found in the attached schedules.
2019 CAPITAL EXPENDITURE AND PRODUCTION GUIDANCE
Following the closing of significant Gulf of
“It is important to note that the mid-point of our modified capex range is within our original guidance for 2019, even after all the significant portfolio changes we have completed. We plan to spend approximately
Full year production is expected to be in the range of 174 to 178 MBOEPD, excluding noncontrolling interest. For the third quarter, Murphy estimates total production of 192 to 196 MBOEPD, comprised of 66 percent liquids.
“Murphy is positioned to achieve free cash flow growth over the long-term as we focus on investing in meaningful, high-returning, multi-year projects in the Gulf of
The operated onshore well cadence for the year is updated to include the advanced drilling schedule, which moved Eagle Ford and Kabob Duvernay wells into the second quarter from the third quarter, as well as three wells in Simonette coming back online in the third quarter after the third-party midstream specification constraint prevented the wells from flowing to sales in the first half of the year.
2019 Operated Onshore Wells Online |
||||||||||
|
1Q 2019A |
2Q 2019A |
3Q 2019E |
4Q 2019E |
2019 TotalE |
|||||
Eagle Ford Shale |
13 |
35 |
25 |
18 |
91 |
|||||
Kaybob Duvernay |
1 |
6 |
3 |
0 |
10 |
|||||
Tupper Montney |
3 |
5 |
0 |
0 |
8 |
Details for third quarter and full year guidance can be found in the attached schedules.
CONFERENCE CALL AND WEBCAST SCHEDULED FOR
Murphy will host a conference call to discuss second quarter 2019 financial and operating results on
FINANCIAL DATA
Summary financial data and operating statistics for second quarter 2019, 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, as well as a reconciliation of adjusted net income, EBITDA and EBITDAX between periods and guidance for the third quarter 2019, are also included.
1With the close of the previously announced Gulf of
2Transaction reserves are based on external third party engineering estimates by
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 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.
MURPHY OIL CORPORATION SUMMARIZED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
||||||||||||||
(Thousands of dollars, except per share amounts) |
Three Months Ended |
|
Six Months Ended |
|||||||||||
|
2019 |
|
2018 1 |
|
2019 |
|
2018 1 |
|||||||
Revenues |
|
|
|
|
|
|
|
|||||||
Revenue from sales to customers |
$ |
646,114 |
|
|
426,767 |
|
|
1,236,664 |
|
|
823,096 |
|
||
Gain (loss) on crude contracts |
57,916 |
|
|
(37,624 |
) |
|
57,916 |
|
|
(67,126 |
) |
|||
Gain on sale of assets and other income |
5,019 |
|
|
437 |
|
|
5,473 |
|
|
8,400 |
|
|||
Total revenues |
709,049 |
|
|
389,580 |
|
|
1,300,053 |
|
|
764,370 |
|
|||
Costs and expenses |
|
|
|
|
|
|
|
|||||||
Lease operating expenses |
137,132 |
|
|
81,236 |
|
|
268,828 |
|
|
170,069 |
|
|||
Severance and ad valorem taxes |
13,072 |
|
|
12,876 |
|
|
23,169 |
|
|
25,033 |
|
|||
Exploration expenses, including undeveloped lease amortization |
30,674 |
|
|
18,889 |
|
|
63,212 |
|
|
47,627 |
|
|||
Selling and general expenses |
57,532 |
|
|
56,295 |
|
|
120,892 |
|
|
104,391 |
|
|||
Depreciation, depletion and amortization |
264,302 |
|
|
190,751 |
|
|
493,708 |
|
|
373,494 |
|
|||
Accretion of asset retirement obligations |
9,897 |
|
|
6,396 |
|
|
19,237 |
|
|
12,768 |
|
|||
Other expense (benefit) |
25,437 |
|
|
658 |
|
|
55,442 |
|
|
(10,387 |
) |
|||
Total costs and expenses |
538,046 |
|
|
367,101 |
|
|
1,044,488 |
|
|
722,995 |
|
|||
Operating income from continuing operations |
171,003 |
|
|
22,479 |
|
|
255,565 |
|
|
41,375 |
|
|||
Other income (loss) |
|
|
|
|
|
|
|
|||||||
Interest and other income (loss) |
(8,968 |
) |
|
(717 |
) |
|
(13,716 |
) |
|
3,870 |
|
|||
Interest expense, net |
(54,096 |
) |
|
(44,325 |
) |
|
(100,165 |
) |
|
(88,866 |
) |
|||
Total other loss |
(63,064 |
) |
|
(45,042 |
) |
|
(113,881 |
) |
|
(84,996 |
) |
|||
Income (loss) from continuing operations before income taxes |
107,939 |
|
|
(22,563 |
) |
|
141,684 |
|
|
(43,621 |
) |
|||
Income tax expense (benefit) |
9,115 |
|
|
2,622 |
|
|
19,937 |
|
|
(109,017 |
) |
|||
Income (loss) from continuing operations |
98,824 |
|
|
(25,185 |
) |
|
121,747 |
|
|
65,396 |
|
|||
Income from discontinued operations, net of income taxes |
24,418 |
|
|
70,704 |
|
|
74,264 |
|
|
148,376 |
|
|||
Net income including noncontrolling interest |
123,242 |
|
|
45,519 |
|
|
196,011 |
|
|
213,772 |
|
|||
Less: Net income attributable to noncontrolling interest |
30,970 |
|
|
— |
|
|
63,557 |
|
|
— |
|
|||
NET INCOME ATTRIBUTABLE TO MURPHY |
$ |
92,272 |
|
|
45,519 |
|
|
132,454 |
|
|
213,772 |
|
||
|
|
|
|
|
|
|
|
|||||||
INCOME (LOSS) PER COMMON SHARE – BASIC |
|
|
|
|
|
|
|
|||||||
Continuing operations |
$ |
0.40 |
|
|
(0.14 |
) |
|
0.34 |
|
|
0.38 |
|
||
Discontinued operations |
0.15 |
|
|
0.41 |
|
|
0.44 |
|
|
0.86 |
|
|||
Net Income |
$ |
0.55 |
|
|
0.27 |
|
|
0.78 |
|
|
1.24 |
|
||
|
|
|
|
|
|
|
|
|||||||
INCOME (LOSS) PER COMMON SHARE – DILUTED |
|
|
|
|
|
|
|
|||||||
Continuing operations |
$ |
0.40 |
|
|
(0.15 |
) |
|
$ |
0.34 |
|
|
$ |
0.37 |
|
Discontinued operations |
0.14 |
|
|
0.40 |
|
|
0.43 |
|
|
0.85 |
|
|||
Net Income |
$ |
0.54 |
|
|
0.25 |
|
|
$ |
0.77 |
|
|
$ |
1.22 |
|
Cash dividends per Common share |
0.25 |
|
|
0.25 |
|
|
0.50 |
|
|
0.50 |
|
|||
Average Common shares outstanding (thousands) |
|
|
|
|
|
|
|
|||||||
Basic |
168,538 |
|
|
173,043 |
|
|
170,556 |
|
|
172,908 |
|
|||
Diluted |
169,272 |
|
|
173,983 |
|
|
171,433 |
|
|
174,927 |
|
|||
1 Reclassified to conform to current presentation. |
MURPHY OIL CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) |
|||||||||||||
(Thousands of dollars) |
Three Months Ended |
|
Six Months Ended |
||||||||||
|
2019 |
|
2018 1 |
|
2019 |
|
2018 1 |
||||||
Operating Activities |
|
|
|
|
|
|
|
||||||
Net income including noncontrolling interest |
$ |
123,242 |
|
|
45,519 |
|
|
196,011 |
|
|
213,772 |
|
|
Adjustments to reconcile net income to net cash provided by continuing operations activities: |
|
|
|
|
|
|
|
||||||
(Income) loss from discontinued operations |
(24,418 |
) |
|
(70,704 |
) |
|
(74,264 |
) |
|
(148,376 |
) |
||
Depreciation, depletion and amortization |
264,302 |
|
|
190,751 |
|
|
493,708 |
|
|
373,494 |
|
||
Previously suspended exploration costs (credits) |
(350 |
) |
|
(3 |
) |
|
12,901 |
|
|
(8 |
) |
||
Amortization of undeveloped leases |
7,105 |
|
|
9,606 |
|
|
15,150 |
|
|
22,774 |
|
||
Accretion of asset retirement obligations |
9,897 |
|
|
6,396 |
|
|
19,237 |
|
|
12,768 |
|
||
Deferred income tax charge (benefit) |
2,412 |
|
|
(937 |
) |
|
18,001 |
|
|
(148,653 |
) |
||
Pretax (gain) loss from sale of assets |
— |
|
|
(221 |
) |
|
(12 |
) |
|
118 |
|
||
Mark to market and revaluation of contingent consideration |
15,360 |
|
|
— |
|
|
28,890 |
|
|
— |
|
||
Mark to market of crude contracts |
(50,831 |
) |
|
12,738 |
|
|
(50,831 |
) |
|
27,088 |
|
||
Long-term non-cash compensation |
22,367 |
|
|
14,953 |
|
|
44,755 |
|
|
29,010 |
|
||
Net (increase) decrease in noncash operating working capital |
93,139 |
|
|
26,051 |
|
|
(5,366 |
) |
|
22,498 |
|
||
Other operating activities, net |
(23,991 |
) |
|
(13,355 |
) |
|
(42,749 |
) |
|
(72,804 |
) |
||
Net cash provided by continuing operations activities |
438,234 |
|
|
220,794 |
|
|
655,431 |
|
|
331,681 |
|
||
Investing Activities |
|
|
|
|
|
|
|
||||||
Acquisition of oil and gas properties |
(1,226,261 |
) |
|
— |
|
|
(1,226,261 |
) |
— |
|
|||
Property additions and dry hole costs |
(374,831 |
) |
|
(318,183 |
) |
|
(645,169 |
) |
|
(565,237 |
) |
||
Proceeds from sales of property, plant and equipment |
16,816 |
|
|
361 |
|
|
16,816 |
|
|
621 |
|
||
Net cash required by investing activities |
(1,584,276 |
) |
|
(317,822 |
) |
|
(1,854,614 |
) |
|
(564,616 |
) |
||
Financing Activities |
|
|
|
|
|
|
|
||||||
Borrowings on revolving credit facility |
1,075,000 |
|
|
— |
|
|
1,075,000 |
|
|
— |
|
||
Proceeds from term loan |
500,000 |
|
|
— |
|
|
500,000 |
|
|
— |
|
||
Repurchase of common stock |
(299,924 |
) |
|
— |
|
|
(299,924 |
) |
|
— |
|
||
Capital lease obligation payments |
(175 |
) |
|
— |
|
|
(335 |
) |
|
— |
|
||
Withholding tax on stock-based incentive awards |
— |
|
|
(280 |
) |
|
(6,991 |
) |
|
(6,922 |
) |
||
Distribution to noncontrolling interest |
(50,339 |
) |
|
— |
|
|
(68,776 |
) |
|
— |
|
||
Cash dividends paid |
(42,105 |
) |
|
(43,259 |
) |
|
(85,503 |
) |
|
(86,517 |
) |
||
Net cash provided (required) by financing activities |
1,182,457 |
|
|
(43,539 |
) |
|
1,113,471 |
|
|
(93,439 |
) |
||
Cash Flows from Discontinued Operations 2 |
|
|
|
|
|
|
|
||||||
Operating activities |
(1,197 |
) |
|
123,463 |
|
|
122,272 |
|
|
290,849 |
|
||
Investing activities |
(23,360 |
) |
|
(23,062 |
) |
|
(49,798 |
) |
|
(49,910 |
) |
||
Financing activities |
(2,367 |
) |
|
(2,243 |
) |
|
(4,914 |
) |
|
(4,648 |
) |
||
Net cash provided by discontinued operations |
(26,924 |
) |
|
98,158 |
|
|
67,560 |
|
|
236,291 |
|
||
Cash transferred from discontinued operations to continuing operations |
2,485 |
|
|
92,602 |
|
|
48,565 |
|
|
464,258 |
|
||
Effect of exchange rate changes on cash and cash equivalents |
863 |
|
|
3,331 |
|
|
3,268 |
|
|
24,382 |
|
||
Net increase (decrease) in cash and cash equivalents |
39,763 |
|
|
(44,634 |
) |
|
(33,879 |
) |
|
162,266 |
|
||
Cash and cash equivalents at beginning of period |
286,281 |
|
|
837,333 |
|
|
359,923 |
|
|
630,433 |
|
||
Cash and cash equivalents at end of period |
$ |
326,044 |
|
|
792,699 |
|
|
326,044 |
|
|
792,699 |
|
|
1 Reclassified to current presentation. 2 Cash flows from discontinued operations are not part of the cash flow reconciliation. |
MURPHY OIL CORPORATION SCHEDULE OF ADJUSTED INCOME (LOSS) (unaudited) |
||||||||||||||
(Millions of dollars, except per share amounts) |
Three Months Ended |
|
Six Months Ended |
|||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|||||||
Net income attributable to Murphy (GAAP) |
$ |
92.3 |
|
|
45.5 |
|
|
$ |
132.5 |
|
|
$ |
213.8 |
|
Discontinued operations loss (income) |
(24.4 |
) |
|
(70.7 |
) |
|
(74.3 |
) |
|
(148.4 |
) |
|||
Income (loss) from continuing operations |
67.9 |
|
|
(25.2 |
) |
|
58.2 |
|
|
65.4 |
|
|||
Adjustments: |
|
|
|
|
|
|
|
|||||||
Mark-to-market (gain) loss on crude oil derivative contracts |
(40.2 |
) |
|
10.1 |
|
|
(40.2 |
) |
|
21.4 |
|
|||
Mark-to-market (gain) loss on contingent consideration |
12.1 |
|
|
— |
|
|
22.8 |
|
|
— |
|
|||
Business development transaction costs |
6.2 |
|
|
— |
|
|
16.0 |
|
|
— |
|
|||
Impact of tax reform |
(13.0 |
) |
|
— |
|
|
(13.0 |
) |
|
(120.0 |
) |
|||
Write-off of previously suspended exploration wells |
— |
|
|
— |
|
|
13.2 |
|
|
— |
|
|||
Foreign exchange losses (gains) |
2.7 |
|
|
7.1 |
|
|
5.1 |
|
|
(4.8 |
) |
|||
Seal insurance proceeds |
— |
|
|
— |
|
|
— |
|
|
(8.2 |
) |
|||
Total adjustments after taxes |
(32.2 |
) |
|
17.2 |
|
|
3.9 |
|
|
(111.6 |
) |
|||
Adjusted income (loss) from continuing operations attributable to Murphy |
$ |
35.7 |
|
|
(8.0 |
) |
|
$ |
62.1 |
|
|
$ |
(46.2 |
) |
|
|
|
|
|
|
|
|
|||||||
Adjusted income (loss) from continuing operations per average diluted share |
$ |
0.21 |
|
|
(0.05 |
) |
|
$ |
0.36 |
|
|
$ |
(0.26 |
) |
Non-GAAP Financial Measures
Presented above is a reconciliation of Net income to Adjusted income (loss) from continuing operations attributable to Murphy. Adjusted income (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 income (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
Amounts shown above as reconciling items between Net income and Adjusted income (loss) are presented net of applicable income taxes based on the estimated statutory rate in the applicable tax jurisdiction. The pretax and income tax impacts for adjustments shown above are as follows by area of operations.
(Millions of dollars) |
Three Months Ended June 30, 2019 |
|
Six Months Ended June 30, 2019 |
||||||||||||||||||
|
Pretax |
|
Tax |
|
Net |
|
Pretax |
|
Tax |
|
Net |
||||||||||
Exploration & Production: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
United States |
$ |
21.7 |
|
|
(4.6 |
) |
|
17.1 |
|
|
$ |
47.7 |
|
|
$ |
(10.0 |
) |
|
$ |
37.7 |
|
Canada |
— |
|
|
(13.0 |
) |
|
(13.0 |
) |
|
— |
|
|
(13.0 |
) |
|
(13.0 |
) |
||||
Other International |
— |
|
|
— |
|
|
— |
|
|
13.2 |
|
|
— |
|
|
13.2 |
|
||||
Total E&P |
21.7 |
|
|
(17.6 |
) |
|
4.1 |
|
|
60.9 |
|
|
(23.0 |
) |
|
37.9 |
|
||||
Corporate: |
(46.3 |
) |
|
10.0 |
|
|
(36.3 |
) |
|
(43.8 |
) |
|
9.8 |
|
|
(34.0 |
) |
||||
Total adjustments |
$ |
(24.6 |
) |
|
(7.6 |
) |
|
(32.2 |
) |
|
$ |
17.1 |
|
|
$ |
(13.2 |
) |
|
$ |
3.9 |
|
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 |
|
Six Months Ended |
|||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|||||
Net income attributable to Murphy (GAAP) |
$ |
92.3 |
|
|
45.5 |
|
|
132.5 |
|
|
213.8 |
|
Discontinued operations loss (income) |
(24.4 |
) |
|
(70.7 |
) |
|
(74.3 |
) |
|
(148.4 |
) |
|
Income tax expense (benefit) |
9.1 |
|
|
2.6 |
|
|
19.9 |
|
|
(109.0 |
) |
|
Interest expense, net |
54.1 |
|
|
44.3 |
|
|
100.2 |
|
|
88.9 |
|
|
Depreciation, depletion and amortization expense 1 |
246.0 |
|
|
190.8 |
|
|
458.1 |
|
|
373.5 |
|
|
EBITDA attributable to Murphy (Non-GAAP) |
$ |
377.1 |
|
|
212.5 |
|
|
636.4 |
|
|
418.8 |
|
Mark-to-market (gain) loss on crude oil derivative contracts |
(50.8 |
) |
|
(12.7 |
) |
|
(50.8 |
) |
|
(27.1 |
) |
|
Mark-to-market (gain) loss on contingent consideration |
15.4 |
|
|
— |
|
|
28.9 |
|
|
— |
|
|
Business development transaction costs |
7.8 |
|
|
— |
|
|
20.3 |
|
|
— |
|
|
Accretion of asset retirement obligations |
9.9 |
|
|
6.4 |
|
|
19.2 |
|
|
12.8 |
|
|
Write-off of previously suspended exploration wells |
— |
|
|
— |
|
|
13.2 |
|
|
— |
|
|
Foreign exchange losses (gains) |
3.0 |
|
|
(12.2 |
) |
|
5.6 |
|
|
4.4 |
|
|
Seal insurance proceeds |
— |
|
|
— |
|
|
— |
|
|
(8.2 |
) |
|
Adjusted EBITDA attributable to Murphy (Non-GAAP) |
$ |
362.4 |
|
|
194.0 |
|
|
672.8 |
|
|
400.7 |
|
|
|
|
|
|
|
|
|
|||||
Total barrels of oil equivalents sold from continuing operations attributable to Murphy (thousands of barrels) |
14,268.9 |
|
|
11,019.0 |
|
|
27,766.0 |
|
|
21,550.7 |
|
|
|
|
|
|
|
|
|
|
|||||
EBITDA per barrel of oil equivalents sold |
$ |
26.43 |
|
|
19.28 |
|
|
22.92 |
|
|
19.43 |
|
Adjusted EBITDA per barrel of oil equivalents sold |
$ |
25.40 |
|
|
17.61 |
|
|
24.23 |
|
|
18.59 |
|
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 (loss) or Cash provided by operating activities as determined in accordance with accounting principles generally accepted in
Presented above is EBITDA per barrel of oil equivalent sold and adjusted EBITDA per barrel of oil equivalent sold. Management believes EBITDA per barrel of oil equivalent sold and adjusted EBITDA per barrel of oil equivalent sold are important information because they are used by management to evaluate the Company’s profitability of one barrel of oil equivalent sold in that period. EBITDA per barrel of oil equivalent sold and adjusted EBITDA per barrel of oil equivalent sold are non-GAAP financial metrics.
1 Depreciation, depletion, and amortization expense used in the computation of EBITDA excludes the portion attributable to the non-controlling interest.
MURPHY OIL CORPORATION SCHEDULE OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION AND EXPLORATION (EBITDAX) (unaudited) |
||||||||||||
(Millions of dollars, except per barrel of oil equivalents sold) |
Three Months Ended |
|
Six Months Ended |
|||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|||||
Net income attributable to Murphy (GAAP) |
$ |
92.3 |
|
|
45.5 |
|
|
132.5 |
|
|
213.8 |
|
Discontinued operations loss (income) |
(24.4 |
) |
|
(70.7 |
) |
|
(74.3 |
) |
|
(148.4 |
) |
|
Income tax expense (benefit) |
9.1 |
|
|
2.6 |
|
|
19.9 |
|
|
(109.0 |
) |
|
Interest expense, net |
54.1 |
|
|
44.3 |
|
|
100.2 |
|
|
88.9 |
|
|
Depreciation, depletion and amortization expense 1 |
246.0 |
|
|
190.8 |
|
|
458.1 |
|
|
373.5 |
|
|
EBITDA attributable to Murphy (Non-GAAP) |
377.1 |
|
|
212.5 |
|
|
636.4 |
|
|
418.8 |
|
|
Exploration expenses |
30.7 |
|
|
18.9 |
|
|
63.2 |
|
|
47.6 |
|
|
EBITDAX attributable to Murphy (Non-GAAP) |
$ |
407.8 |
|
|
231.4 |
|
|
699.6 |
|
|
466.4 |
|
Mark-to-market (gain) loss on crude oil derivative contracts |
(50.8 |
) |
|
(12.7 |
) |
|
(50.8 |
) |
|
(27.1 |
) |
|
Mark-to-market (gain) loss on contingent consideration |
15.4 |
|
|
— |
|
|
28.9 |
|
|
— |
|
|
Business development transaction costs |
7.8 |
|
|
— |
|
|
20.3 |
|
|
— |
|
|
Accretion of asset retirement obligations |
9.9 |
|
|
6.4 |
|
|
19.2 |
|
|
12.8 |
|
|
Foreign exchange losses (gains) |
3.0 |
|
|
(12.2 |
) |
|
5.6 |
|
|
4.4 |
|
|
Seal insurance proceeds |
— |
|
|
— |
|
|
— |
|
|
(8.2 |
) |
|
Adjusted EBITDAX attributable to Murphy (Non-GAAP) |
$ |
393.1 |
|
|
212.9 |
|
|
722.8 |
|
|
448.3 |
|
|
|
|
|
|
|
|
|
|||||
Total barrels of oil equivalents sold from continuing operations attributable to Murphy (thousands of barrels) |
14,268.9 |
|
|
11,019.0 |
|
|
27,766.0 |
|
|
21,550.7 |
|
|
|
|
|
|
|
|
|
|
|||||
EBITDAX per barrel of oil equivalents sold |
$ |
28.58 |
|
|
21.00 |
|
|
25.20 |
|
|
21.64 |
|
Adjusted EBITDAX per barrel of oil equivalents sold |
$ |
27.55 |
|
|
19.32 |
|
|
26.03 |
|
|
20.80 |
|
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 (loss) or Cash provided by operating activities as determined in accordance with accounting principles generally accepted in
Presented above is EBITDAX per barrel of oil equivalent sold and adjusted EBITDAX per barrel of oil equivalent sold. Management believes EBITDAX per barrel of oil equivalent sold and adjusted EBITDAX per barrel of oil equivalent sold are important information because they are used by management to evaluate the Company’s profitability of one barrel of oil equivalent sold in that period. EBITDAX per barrel of oil equivalent sold and adjusted EBITDAX per barrel of oil equivalent sold are non-GAAP financial metrics.
1 Depreciation, depletion, and amortization expense used in the computation of EBITDA excludes the portion attributable to the non-controlling interest.
MURPHY OIL CORPORATION FUNCTIONAL RESULTS OF OPERATIONS (unaudited) |
|||||||||
|
Three Months Ended |
Three Months Ended |
|||||||
(Millions of dollars) |
Revenues |
Income (Loss) |
Revenues |
Income (Loss) |
|||||
Exploration and production |
|
|
|
|
|||||
United States1 |
$ |
549.0 |
|
133.0 |
|
318.8 |
|
72.6 |
|
Canada |
94.8 |
|
(5.9 |
) |
108.4 |
|
9.7 |
|
|
Other |
3.1 |
|
(3.4 |
) |
— |
|
(15.0 |
) |
|
Total exploration and production |
646.9 |
|
123.7 |
|
427.2 |
|
67.3 |
|
|
Corporate |
62.1 |
|
(24.9 |
) |
(37.6 |
) |
(92.5 |
) |
|
Revenue/income from continuing operations |
709.0 |
|
98.8 |
|
389.6 |
|
(25.2 |
) |
|
Discontinued operations, net of tax 2 |
— |
|
24.4 |
|
— |
|
70.7 |
|
|
Total revenues/net income (loss) |
$ |
709.0 |
|
123.2 |
|
389.6 |
|
45.5 |
|
|
Six Months Ended |
Six Months Ended |
|||||||
(Millions of dollars) |
Revenues |
Income |
Revenues |
Income |
|||||
Exploration and production |
|
|
|
|
|||||
United States1 |
$ |
1,018.2 |
|
249.2 |
|
596.9 |
|
108.7 |
|
Canada |
213.7 |
|
1.6 |
|
226.7 |
|
34.3 |
|
|
Other |
6.0 |
|
(31.7 |
) |
— |
|
(30.5 |
) |
|
Total exploration and production |
1,237.9 |
|
219.1 |
|
823.6 |
|
112.5 |
|
|
Corporate |
62.2 |
|
(97.4 |
) |
(59.2 |
) |
(47.1 |
) |
|
Revenue/income from continuing operations |
1,300.1 |
|
121.7 |
|
764.4 |
|
65.4 |
|
|
Discontinued operations, net of tax 2 |
— |
|
74.3 |
|
— |
|
148.4 |
|
|
Total revenues/net income (loss) |
$ |
1,300.1 |
|
196.0 |
|
764.4 |
|
213.8 |
|
1 2019 includes results attributable to a noncontrolling interest in MP Gulf of Mexico, LLC (MP GOM). 2 Malaysia is reported as discontinued operations effective January 1, 2019. |
MURPHY OIL CORPORATION OIL AND GAS OPERATING RESULTS (unaudited) THREE MONTHS ENDED JUNE 30, 2019, AND 2018 |
|||||||||
(Millions of dollars) |
United States 1 |
Canada |
Other |
Total |
|||||
Three Months Ended June 30, 2019 |
|
|
|
|
|||||
Oil and gas sales and other operating revenues |
549.0 |
|
94.8 |
|
3.1 |
|
646.9 |
|
|
Lease operating expenses |
99.7 |
|
36.9 |
|
0.6 |
|
137.2 |
|
|
Severance and ad valorem taxes |
12.8 |
|
0.3 |
|
— |
|
13.1 |
|
|
Depreciation, depletion and amortization |
201.2 |
|
56.8 |
|
1.3 |
|
259.3 |
|
|
Accretion of asset retirement obligations |
8.4 |
|
1.5 |
|
— |
|
9.9 |
|
|
Exploration expenses |
|
|
|
|
|||||
Dry holes and previously suspended exploration costs |
(0.2 |
) |
— |
|
— |
|
(0.2 |
) |
|
Geological and geophysical |
15.4 |
|
— |
|
2.4 |
|
17.8 |
|
|
Other exploration |
2.8 |
|
0.1 |
|
3.1 |
|
6.0 |
|
|
|
18.0 |
|
0.1 |
|
5.5 |
|
23.6 |
|
|
Undeveloped lease amortization |
5.9 |
|
0.4 |
|
0.9 |
|
7.2 |
|
|
Total exploration expenses |
23.9 |
|
0.5 |
|
6.4 |
|
30.8 |
|
|
Selling and general expenses |
12.9 |
|
6.1 |
|
6.1 |
|
25.1 |
|
|
Other |
27.9 |
|
0.2 |
|
0.1 |
|
28.2 |
|
|
Results of operations before taxes |
162.2 |
|
(7.5 |
) |
(11.4 |
) |
143.3 |
|
|
Income tax provisions (benefits) |
29.2 |
|
(1.6 |
) |
(8.0 |
) |
19.6 |
|
|
Results of operations (excluding corporate overhead and interest) |
133.0 |
|
(5.9 |
) |
(3.4 |
) |
123.7 |
|
|
|
|
|
|
|
|||||
Three Months Ended June 30, 2018 |
|
|
|
|
|||||
Oil and gas sales and other operating revenues |
$ |
318.8 |
|
108.4 |
|
— |
|
427.2 |
|
Lease operating expenses |
52.0 |
|
29.2 |
|
— |
|
81.2 |
|
|
Severance and ad valorem taxes |
12.7 |
|
0.2 |
|
— |
|
12.9 |
|
|
Depreciation, depletion and amortization |
128.3 |
|
56.8 |
|
0.7 |
|
185.8 |
|
|
Accretion of asset retirement obligations |
4.5 |
|
1.9 |
|
— |
|
6.4 |
|
|
Exploration expenses |
|
|
|
|
|||||
Geological and geophysical |
0.2 |
|
— |
|
0.7 |
|
0.9 |
|
|
Other exploration |
2.4 |
|
— |
|
5.9 |
|
8.3 |
|
|
|
2.6 |
|
— |
|
6.6 |
|
9.2 |
|
|
Undeveloped lease amortization |
8.7 |
|
0.2 |
|
0.7 |
|
9.6 |
|
|
Total exploration expenses |
11.3 |
|
0.2 |
|
7.3 |
|
18.8 |
|
|
Selling and general expenses |
10.5 |
|
6.6 |
|
5.9 |
|
23.0 |
|
|
Other |
6.9 |
|
0.3 |
|
1.1 |
|
8.3 |
|
|
Results of operations before taxes |
92.6 |
|
13.2 |
|
(15.0 |
) |
90.8 |
|
|
Income tax provisions (benefits) |
20.0 |
|
3.5 |
|
— |
|
23.5 |
|
|
Results of operations (excluding corporate overhead and interest) |
72.6 |
|
9.7 |
|
(15.0 |
) |
67.3 |
|
|
1 2019 includes results attributable to a noncontrolling interest in MP GOM. |
MURPHY OIL CORPORATION OIL AND GAS OPERATING RESULTS (unaudited) SIX MONTHS ENDED JUNE 30, 2019, AND 2018 |
|||||||||
(Millions of dollars) |
United States 1 |
Canada |
Other |
Total |
|||||
Six Months Ended June 30, 2019 |
|
|
|
|
|||||
Oil and gas sales and other operating revenues |
$ |
1,018.2 |
|
213.7 |
|
6.0 |
|
1,237.9 |
|
Lease operating expenses |
192.1 |
|
75.9 |
|
0.9 |
|
268.9 |
|
|
Severance and ad valorem taxes |
22.6 |
|
0.6 |
|
— |
|
23.2 |
|
|
Depreciation, depletion and amortization |
365.1 |
|
116.3 |
|
2.3 |
|
483.7 |
|
|
Accretion of asset retirement obligations |
16.2 |
|
3.0 |
|
— |
|
19.2 |
|
|
Exploration expenses |
|
|
|
|
|||||
Dry holes and previously suspended exploration costs |
(0.1 |
) |
— |
|
13.1 |
|
13.0 |
|
|
Geological and geophysical |
15.9 |
|
— |
|
7.9 |
|
23.8 |
|
|
Other exploration |
4.0 |
|
0.2 |
|
7.1 |
|
11.3 |
|
|
|
19.8 |
|
0.2 |
|
28.1 |
|
48.1 |
|
|
Undeveloped lease amortization |
12.8 |
|
0.7 |
|
1.7 |
|
15.2 |
|
|
Total exploration expenses |
32.6 |
|
0.9 |
|
29.8 |
|
63.3 |
|
|
Selling and general expenses |
30.2 |
|
13.7 |
|
11.7 |
|
55.6 |
|
|
Other |
58.5 |
|
0.4 |
|
0.4 |
|
59.3 |
|
|
Results of operations before taxes |
300.9 |
|
2.9 |
|
(39.1 |
) |
264.7 |
|
|
Income tax provisions (benefits) |
51.7 |
|
1.3 |
|
(7.4 |
) |
45.6 |
|
|
Results of operations (excluding corporate overhead and interest) |
$ |
249.2 |
|
1.6 |
|
(31.7 |
) |
219.1 |
|
|
|
|
|
|
|||||
Six Months Ended June 30, 2018 |
|
|
|
|
|||||
Oil and gas sales and other operating revenues |
$ |
596.9 |
|
226.7 |
|
— |
|
823.6 |
|
Lease operating expenses |
110.5 |
|
59.5 |
|
— |
|
170.0 |
|
|
Severance and ad valorem taxes |
24.5 |
|
0.5 |
|
— |
|
25.0 |
|
|
Depreciation, depletion and amortization |
249.9 |
|
112.5 |
|
1.5 |
|
363.9 |
|
|
Accretion of asset retirement obligations |
8.9 |
|
3.9 |
|
— |
|
12.8 |
|
|
Exploration expenses |
|
|
|
|
|||||
Geological and geophysical |
6.2 |
|
— |
|
3.6 |
|
9.8 |
|
|
Other exploration |
3.6 |
|
0.1 |
|
11.3 |
|
15.0 |
|
|
|
9.8 |
|
0.1 |
|
14.9 |
|
24.8 |
|
|
Undeveloped lease amortization |
21.4 |
|
0.4 |
|
1.0 |
|
22.8 |
|
|
Total exploration expenses |
31.2 |
|
0.5 |
|
15.9 |
|
47.6 |
|
|
Selling and general expenses |
24.9 |
|
14.3 |
|
11.9 |
|
51.1 |
|
|
Other |
7.7 |
|
(11.4 |
) |
1.0 |
|
(2.7 |
) |
|
Results of operations before taxes |
139.3 |
|
46.9 |
|
(30.3 |
) |
155.9 |
|
|
Income tax provisions (benefits) |
30.6 |
|
12.6 |
|
0.2 |
|
43.4 |
|
|
Results of operations (excluding corporate overhead and interest) |
$ |
108.7 |
|
34.3 |
|
(30.5 |
) |
112.5 |
|
1 2019 includes results attributable to a noncontrolling interest in MP GOM. |
|
|
|
|
|
|
|
|
|
MURPHY OIL CORPORATION PRODUCTION-RELATED EXPENSES (unaudited) |
||||||||||||
(Dollars per barrel of oil equivalents sold) |
Three Months Ended |
|
Six Months Ended |
|||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|||||
Continuing operations |
|
|
|
|
|
|
|
|||||
United States – Eagle Ford Shale |
|
|
|
|
|
|
|
|||||
Lease operating expense |
$ |
8.26 |
|
|
8.09 |
|
|
10.33 |
|
|
8.22 |
|
Severance and ad valorem taxes |
3.16 |
|
|
3.15 |
|
|
3.10 |
|
|
3.08 |
|
|
Depreciation, depletion and amortization (DD&A) expense |
23.56 |
|
|
24.50 |
|
|
23.71 |
|
|
24.67 |
|
|
|
|
|
|
|
|
|
|
|||||
United States – Gulf of Mexico |
|
|
|
|
|
|
|
|||||
Lease operating expense |
$ |
10.63 |
|
|
11.02 |
|
|
9.37 |
|
|
14.10 |
|
DD&A expense |
17.03 |
|
|
16.86 |
|
|
15.45 |
|
|
17.08 |
|
|
|
|
|
|
|
|
|
|
|||||
Canada – Onshore |
|
|
|
|
|
|
|
|||||
Lease operating expense |
$ |
6.15 |
|
|
4.92 |
|
|
6.02 |
|
|
4.88 |
|
Severance and ad valorem taxes |
0.07 |
|
|
0.03 |
|
|
0.07 |
|
|
0.06 |
|
|
DD&A expense |
10.87 |
|
|
10.55 |
|
|
10.95 |
|
|
10.36 |
|
|
|
|
|
|
|
|
|
|
|||||
Canada – Offshore |
|
|
|
|
|
|
|
|||||
Lease operating expense |
$ |
15.91 |
|
|
9.94 |
|
|
16.73 |
|
|
10.50 |
|
DD&A expense |
14.31 |
|
|
12.57 |
|
|
13.98 |
|
|
13.06 |
|
|
|
|
|
|
|
|
|
|
|||||
Total oil and gas continuing operations |
|
|
|
|
|
|
|
|||||
Lease operating expense |
$ |
8.93 |
|
|
7.37 |
|
|
8.93 |
|
|
7.89 |
|
Severance and ad valorem taxes |
0.85 |
|
|
1.17 |
|
|
0.77 |
|
|
1.16 |
|
|
DD&A expense |
17.21 |
|
|
17.31 |
|
|
16.40 |
|
|
17.33 |
|
|
|
|
|
|
|
|
|
|
|||||
Total oil and gas continuing operations – excluding noncontrolling interest |
|
|
|
|
|
|
|
|||||
Lease operating expense |
$ |
8.86 |
|
|
7.37 |
|
|
8.94 |
|
|
7.89 |
|
Severance and ad valorem taxes |
0.92 |
|
|
1.17 |
|
|
0.83 |
|
|
1.16 |
|
|
DD&A expense |
17.24 |
|
|
17.31 |
|
|
16.50 |
|
|
17.33 |
|
MURPHY OIL CORPORATION OTHER FINANCIAL DATA (unaudited) |
||||||||||||||
(Millions of dollars) |
Three Months Ended |
|
Six Months Ended |
|||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|||||||
Capital expenditures for continuing operations |
|
|
|
|
|
|
|
|||||||
Exploration and production |
|
|
|
|
|
|
|
|||||||
United States 1 |
$ |
1,541.3 |
|
|
178.9 |
|
|
$ |
1,746.8 |
|
|
$ |
326.4 |
|
Canada |
60.0 |
|
|
83.3 |
|
|
155.7 |
|
|
202.3 |
|
|||
Other |
23.1 |
|
|
8.0 |
|
|
64.4 |
|
|
17.7 |
|
|||
Total |
1,624.4 |
|
|
270.2 |
|
|
1,966.9 |
|
|
546.4 |
|
|||
|
|
|
|
|
|
|
|
|||||||
Corporate |
3.1 |
|
|
5.1 |
|
|
5.6 |
|
|
7.9 |
|
|||
Total capital expenditures - continuing operations |
1,627.5 |
|
|
275.3 |
|
|
1,972.5 |
|
|
554.3 |
|
|||
|
|
|
|
|
|
|
|
|||||||
Charged to exploration expenses 2 |
|
|
|
|
|
|
|
|||||||
United States |
18.0 |
|
|
2.6 |
|
|
19.8 |
|
|
9.8 |
|
|||
Canada |
0.1 |
|
|
— |
|
|
0.2 |
|
|
0.1 |
|
|||
Other |
5.5 |
|
|
6.6 |
|
|
28.1 |
|
|
14.9 |
|
|||
Total charged to exploration expenses - continuing operations |
23.6 |
|
|
9.2 |
|
|
48.1 |
|
|
24.8 |
|
|||
|
|
|
|
|
|
|
|
|||||||
Total capitalized 3 |
$ |
1,603.9 |
|
|
266.1 |
|
|
$ |
1,924.4 |
|
|
$ |
529.5 |
|
Memo: Capital expenditures on discontinued operations |
38.0 |
|
|
25.1 |
|
|
59.6 |
|
|
44.0 |
|
|||
1 Includes $1,226.3 million for acquisition of exploration and production properties in the US Gulf of Mexico in the three-months and six-months ended June 30, 2019. 2 Excludes amortization of undeveloped leases of $7.2 million and $15.2 million for the three-month and six months ended June 30, 2019 and $9.6 million and $22.8 million for the three-month and six months ended June 30, 2018. 3 Includes noncontrolling interest capital expenditures of $10.1 million and $23.2 million for the three-month and six months ended June 30, 2019. |
MURPHY OIL CORPORATION CONDENSED BALANCE SHEETS (unaudited) |
||||||
(Millions of dollars) |
June 30, 2019 |
|
December 31, 2018 1 |
|||
Assets |
|
|
|
|||
Cash and cash equivalents |
$ |
326.0 |
|
|
359.9 |
|
Other current assets 2 |
2,425.8 |
|
|
520.0 |
|
|
Property, plant and equipment – net |
10,041.2 |
|
|
8,432.1 |
|
|
Other long-term assets |
742.9 |
|
|
1,740.6 |
|
|
Total assets |
$ |
13,535.9 |
|
|
11,052.6 |
|
|
|
|
|
|||
Liabilities and Stockholders' Equity |
|
|
|
|||
Current maturities of long-term debt |
$ |
0.7 |
|
|
0.7 |
|
Short-term loan payable |
500.0 |
|
|
— |
|
|
Other current liabilities 2 |
1,702.1 |
|
|
845.4 |
|
|
Long-term debt |
4,185.9 |
|
|
3,109.3 |
|
|
Other long-term liabilities |
2,048.7 |
|
|
1,899.6 |
|
|
Total equity 3,4 |
5,098.5 |
|
|
5,197.6 |
|
|
Total liabilities and stockholders' equity |
$ |
13,535.9 |
|
|
11,052.6 |
|
1 Reclassified to conform to current presentation. 2 Includes $1,863.8 million and $772.8 million in 2019 in Other current assets and Other current liabilities, respectively, classified as held for sale and related to Malaysia. 3 Includes noncontrolling interest of $358.5 million and $368.3 million as of June 30, 2019 and December 31, 2018, respectively. 4 Number of shares of Common Stock, $1.00 par value, outstanding at June 30, 2019 was 162,250,593. |
MURPHY OIL CORPORATION PRODUCTION SUMMARY (unaudited) |
||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||
Barrels per day unless otherwise noted |
2019 |
|
2018 |
|
2019 |
|
2018 |
|||||
Continuing operations |
|
|
|
|
|
|
|
|
||||
Net crude oil and condensate |
|
|
|
|
|
|
|
|||||
United States |
Onshore |
33,145 |
|
|
31,936 |
|
|
29,532 |
|
|
31,630 |
|
|
Gulf of Mexico 1 |
61,062 |
|
|
15,365 |
|
|
61,055 |
|
|
14,113 |
|
Canada |
Onshore |
5,943 |
|
|
5,254 |
|
|
6,199 |
|
|
4,809 |
|
|
Offshore |
6,685 |
|
|
7,982 |
|
|
7,304 |
|
|
8,085 |
|
Other |
|
448 |
|
|
580 |
|
|
477 |
|
|
582 |
|
Total net crude oil and condensate - continuing operations |
107,283 |
|
|
61,117 |
|
|
104,567 |
|
|
59,219 |
|
|
Net natural gas liquids |
|
|
|
|
|
|
|
|
||||
United States |
Onshore |
5,977 |
|
|
6,824 |
|
|
5,641 |
|
|
6,772 |
|
|
Gulf of Mexico 1 |
3,118 |
|
|
1,391 |
|
|
2,940 |
|
|
1,114 |
|
Canada |
Onshore |
1,073 |
|
|
1,033 |
|
|
1,083 |
|
|
959 |
|
Total net natural gas liquids - continuing operations |
10,168 |
|
|
9,248 |
|
|
9,664 |
|
|
8,845 |
|
|
Net natural gas – thousands of cubic feet per day |
|
|
|
|
|
|
|
|||||
United States |
Onshore |
32,209 |
|
|
32,679 |
|
|
30,752 |
|
|
31,894 |
|
|
Gulf of Mexico 1 |
39,029 |
|
|
14,284 |
|
|
29,356 |
|
|
13,548 |
|
Canada |
Onshore |
249,367 |
|
|
264,748 |
|
|
252,120 |
|
|
263,036 |
|
Total net natural gas - continuing operations |
320,605 |
|
|
311,711 |
|
|
312,228 |
|
|
308,478 |
|
|
Total net hydrocarbons - continuing operations including NCI 2,3 |
170,885 |
|
|
122,317 |
|
|
166,269 |
|
|
119,477 |
|
|
Noncontrolling interest |
|
|
|
|
|
|
|
|
||||
Net crude oil and condensate – barrels per day |
(11,160 |
) |
|
— |
|
|
(11,669 |
) |
|
— |
|
|
Net natural gas liquids – barrels per day |
(458 |
) |
|
— |
|
|
(506 |
) |
|
— |
|
|
Net natural gas – thousands of cubic feet per day |
(4,507 |
) |
|
— |
|
|
(4,203 |
) |
|
— |
|
|
Total noncontrolling interest |
(12,369 |
) |
|
— |
|
|
(12,876 |
) |
|
— |
|
|
Total net hydrocarbons - continuing operations excluding NCI 2,3 |
158,516 |
|
|
122,317 |
|
|
153,394 |
|
|
119,477 |
|
|
Discontinued operations |
|
|
|
|
|
|
|
|
||||
Net crude oil and condensate – barrels per day |
21,556 |
|
|
28,950 |
|
|
23,744 |
|
|
30,084 |
|
|
Net natural gas liquids – barrels per day |
529 |
|
|
872 |
|
|
636 |
|
|
665 |
|
|
Net natural gas – thousands of cubic feet per day 2 |
93,382 |
|
|
113,125 |
|
|
97,465 |
|
|
114,195 |
|
|
Total discontinued operations |
37,649 |
|
|
48,676 |
|
|
40,624 |
|
|
49,782 |
|
|
Total net hydrocarbons produced excluding NCI 2,3 |
196,165 |
|
|
170,993 |
|
|
194,018 |
|
|
169,259 |
|
|
1 2019 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 |
||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||
Barrels per day unless otherwise noted |
2019 |
|
2018 |
|
2019 |
|
2018 |
|||||
Continuing operations |
|
|
|
|
|
|
|
|
||||
Net crude oil and condensate |
|
|
|
|
|
|
|
|||||
United States |
Onshore |
33,145 |
|
|
31,936 |
|
|
29,532 |
|
|
31,630 |
|
|
Gulf of Mexico 1 |
58,842 |
|
|
15,365 |
|
|
61,053 |
|
|
14,113 |
|
Canada |
Onshore |
5,943 |
|
|
5,254 |
|
|
6,199 |
|
|
4,809 |
|
|
Offshore |
6,723 |
|
|
7,333 |
|
|
7,324 |
|
|
8,255 |
|
Other |
|
470 |
|
|
— |
|
|
468 |
|
|
— |
|
Total net crude oil and condensate - continuing operations |
105,123 |
|
|
59,888 |
|
|
104,576 |
|
|
58,807 |
|
|
Net natural gas liquids |
|
|
|
|
|
|
|
|||||
United States |
Onshore |
5,977 |
|
|
6,824 |
|
|
5,641 |
|
|
6,772 |
|
|
Gulf of Mexico 1 |
3,118 |
|
|
1,391 |
|
|
2,940 |
|
|
1,114 |
|
Canada |
Onshore |
1,073 |
|
|
1,033 |
|
|
1,083 |
|
|
959 |
|
Total net natural gas liquids - continuing operations |
10,168 |
|
|
9,248 |
|
|
9,664 |
|
|
8,845 |
|
|
Net natural gas – thousands of cubic feet per day |
|
|
|
|
|
|
|
|||||
United States |
Onshore |
32,209 |
|
|
32,679 |
|
|
30,752 |
|
|
31,894 |
|
|
Gulf of Mexico 1 |
39,029 |
|
|
14,284 |
|
|
29,356 |
|
|
13,548 |
|
Canada |
Onshore |
249,367 |
|
|
264,748 |
|
|
252,120 |
|
|
263,036 |
|
Total net natural gas - continuing operations |
320,605 |
|
|
311,711 |
|
|
312,228 |
|
|
308,478 |
|
|
Total net hydrocarbons - continuing operations including NCI 2,3 |
168,725 |
|
|
121,088 |
|
|
166,278 |
|
|
119,065 |
|
|
Noncontrolling interest |
|
|
|
|
|
|
|
|
||||
Net crude oil and condensate – barrels per day |
(10,715 |
) |
|
— |
|
|
(11,669 |
) |
|
— |
|
|
Net natural gas liquids – barrels per day |
(458 |
) |
|
— |
|
|
(506 |
) |
|
— |
|
|
Net natural gas – thousands of cubic feet per day 2 |
(4,507 |
) |
|
— |
|
|
(4,203 |
) |
|
— |
|
|
Total noncontrolling interest |
(11,924 |
) |
|
— |
|
|
(12,876 |
) |
|
— |
|
|
Total net hydrocarbons - continuing operations excluding NCI 2,3 |
156,801 |
|
|
121,088 |
|
|
153,403 |
|
|
119,065 |
|
|
|
|
|
|
|
|
|
|
|
||||
Discontinued operations |
|
|
|
|
|
|
|
|
||||
Net crude oil and condensate – barrels per day |
21,121 |
|
|
30,107 |
|
|
23,676 |
|
|
30,031 |
|
|
Net natural gas liquids – barrels per day |
498 |
|
|
632 |
|
|
580 |
|
|
798 |
|
|
Net natural gas – thousands of cubic feet per day 2 |
93,382 |
|
|
113,125 |
|
|
97,465 |
|
|
114,195 |
|
|
Total discontinued operations |
37,183 |
|
|
49,593 |
|
|
40,500 |
|
|
49,862 |
|
|
Total net hydrocarbons sold excluding NCI 2,3 |
193,984 |
|
|
170,681 |
|
|
193,903 |
|
|
168,927 |
|
|
1 2019 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 |
|||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
|||||||||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|||||||
Weighted average Exploration and Production sales prices |
|
|
|
|
|
|
|
||||||||
Continuing operations |
|
|
|
|
|
|
|
|
|||||||
Crude oil and condensate – dollars per barrel |
|
|
|
|
|
|
|
|
|||||||
United States |
Onshore |
$ |
63.72 |
|
|
68.14 |
|
|
$ |
60.95 |
|
|
$ |
66.24 |
|
|
Gulf of Mexico 1 |
62.41 |
|
|
68.11 |
|
|
58.84 |
|
|
65.81 |
|
|||
Canada 2 |
Onshore |
48.94 |
|
|
59.45 |
|
|
47.97 |
|
|
57.12 |
|
|||
|
Offshore |
67.86 |
|
|
72.40 |
|
|
64.39 |
|
|
68.69 |
|
|||
Other |
|
73.05 |
|
|
— |
|
|
70.50 |
|
|
— |
|
|||
Natural gas liquids – dollars per barrel |
|
|
|
|
|
|
|
|
|||||||
United States |
Onshore |
11.73 |
|
|
21.29 |
|
|
12.29 |
|
|
20.62 |
|
|||
|
Gulf of Mexico 1 |
10.53 |
|
|
23.27 |
|
|
13.46 |
|
|
23.01 |
|
|||
Canada 2 |
Onshore |
28.37 |
|
|
36.66 |
|
|
31.78 |
|
|
39.83 |
|
|||
Natural gas – dollars per thousand cubic feet |
|
|
|
|
|
|
|
|
|||||||
United States |
Onshore |
1.89 |
|
|
2.11 |
|
|
2.04 |
|
|
2.25 |
|
|||
|
Gulf of Mexico 1 |
1.87 |
|
|
2.18 |
|
|
1.72 |
|
|
2.36 |
|
|||
Canada 2 |
Onshore |
1.07 |
|
|
1.17 |
|
|
1.51 |
|
|
1.42 |
|
|||
Discontinued operations |
|
|
|
|
|
|
|
|
|||||||
Crude oil and condensate – dollars per barrel |
|
|
|
|
|
|
|
|
|
|
|||||
Malaysia 3 |
Sarawak |
78.25 |
|
|
69.72 |
|
|
70.32 |
|
|
67.13 |
|
|||
|
Block K |
65.79 |
|
|
67.20 |
|
|
65.56 |
|
|
65.20 |
|
|||
Natural gas liquids – dollars per barrel |
|
|
|
|
|
|
|
|
|||||||
Malaysia 3 |
Sarawak |
40.81 |
|
|
69.61 |
|
|
47.42 |
|
|
70.57 |
|
|||
Natural gas – dollars per thousand cubic feet |
|
|
|
|
|
|
|
|
|||||||
Malaysia 3 |
Sarawak |
2.57 |
|
|
3.86 |
|
|
3.60 |
|
|
3.62 |
|
|||
|
Block K |
0.24 |
|
|
0.25 |
|
|
0.24 |
|
|
0.24 |
|
|||
1 Prices include the effect of noncontrolling interest share for MP GOM. |
|||||||||||||||
2 U.S. dollar equivalent. |
|||||||||||||||
3 Prices are net of certain payments under the terms of the respective production sharing contracts. |
MURPHY OIL CORPORATION |
|||||||||||||
|
|
Commodity |
|
Type |
|
Volumes |
|
Price |
|
Remaining Period |
|||
Area |
|
|
|
|
|
Start Date |
|
End Date |
|||||
United States |
|
WTI |
|
Fixed price derivative swap |
|
20,000 |
|
|
$63.64 |
|
7/1/2019 |
|
7/31/2019 |
United States |
|
WTI |
|
Fixed price derivative swap |
|
23,000 |
|
|
$63.17 |
|
8/1/2019 |
|
12/31/2019 |
United States |
|
WTI |
|
Fixed price derivative swap |
|
24,000 |
|
|
$59.67 |
|
1/1/2020 |
|
12/31/2020 |
|
|
|
|
|
|
Volumes |
|
Price |
|
Remaining Period |
|||
Area |
|
Commodity |
|
Type |
|
|
|
Start Date |
|
End Date |
|||
Montney |
|
Natural Gas |
|
Fixed price forward sales at AECO |
|
59 |
|
|
C$2.81 |
|
7/1/2019 |
|
12/31/2020 |
MURPHY OIL CORPORATION |
|||||||||
|
Liquids BOPD |
|
Gas MCFD |
|
BOEPD |
||||
Production – net |
|
|
|
|
|
||||
U.S. |
– Eagle Ford Shale |
45,700 |
|
|
33,900 |
|
|
51,300 |
|
– Gulf of Mexico excluding NCI |
67,300 |
|
|
69,400 |
|
|
78,900 |
|
|
– Gulf of Mexico including NCI 1 |
78,200 |
|
|
74,100 |
|
|
90,500 |
|
|
Canada – Tupper Montney |
— |
|
|
267,400 |
|
|
44,600 |
|
|
– Kaybob Duvernay and Placid Montney |
7,700 |
|
|
25,900 |
|
|
12,000 |
|
|
– Offshore |
6,800 |
|
|
— |
|
|
6,800 |
|
|
Other |
400 |
|
|
— |
|
|
400 |
|
|
|
|
|
|
|
|
||||
Total net production (BOEPD) - excluding NCI |
192,000 to 196,000 |
||||||||
Total net production (BOEPD) - including NCI 1 |
203,600 to 207,600 |
||||||||
|
|
|
|
|
|
||||
Exploration expense ($ millions) |
$31 |
||||||||
|
|
|
|
|
|
||||
1 Includes noncontrolling interest of MP GOM of 10,900 BOPD liquids and 4,700 MCFD gas. | |||||||||
|
|
|
|
|
|
||||
FULL YEAR 2019 GUIDANCE |
|||||||||
Total net production (BOEPD) - excluding NCI |
174,000 to 178,000 |
||||||||
Total net production (BOEPD) - including NCI2 |
186,600 to 190,600 |
||||||||
Capital expenditures – excluding NCI ($ billions) 3 |
$1.35 - $1.45 |
||||||||
2Includes noncontrolling interest of MP GOM of 12,600 BOEPD | |||||||||
3Excludes noncontrolling interest of MP GOM of $48 MM and $20 MM for assets held for sale. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20190808005250/en/
Source:
Investor Contacts:
Kelly Whitley, kelly_whitley@murphyoilcorp.com, 281-675-9107
Bryan Arciero, bryan_arciero@murphyoilcorp.com, 281-675-9339
Megan Larson, megan_larson@murphyoilcorp.com, 281-675-9470