Murphy Oil Corporation Announces Third Quarter 2018 Financial and Operating Results
Financial highlights for the third quarter include:
- Generated net income of
$94 million , or$0.54 per diluted share - Achieved oil price realization of over
$69 per barrel, which is the highest quarterly year-to-date realization - Realized EBITDA of over
$28 per barrel of oil equivalent sold - Registered annualized year-to-date EBITDA to average capital employed of 21 percent
- Returned 12 percent of operating cash flow to shareholders through long-standing dividend
- Preserved balance sheet strength with approximately 30 percent net debt to total capital employed
Operating highlights for the third quarter include:
- Produced 169 thousand barrels of oil equivalent per day, with 58 percent liquids
- Increased production in the profitable Kaybob Duvernay by over 2.5 times, year-over-year
- Delineated Samurai-2 sidetrack accumulation and confirmed the presence of high-quality reservoir sands leading to increased discovered resource
In early October, announced the following:
- Entered into accretive oil-weighted Gulf of
Mexico joint venture with Petrobras - Received upgrade to ‘BB+’ with a ‘Stable Outlook’ from
Fitch Ratings - Amended Credit Agreement with less restrictive covenants
THIRD QUARTER 2018 RESULTS
Murphy recorded net income of
Earnings before interest, taxes, depreciation and amortization (EBITDA) totaled
In the third quarter 2018, the company produced 169 thousand barrels of oil equivalent per day (MBOEPD). Production exceeded the high end of guidance primarily driven by outperformance in the Tupper Montney onshore
“Now with three-quarters of the year behind us, we continue to successfully implement our 2018 plan with third quarter production exceeding the high end of our guidance range. We continue to benefit from a diverse, oil-weighted portfolio that generates high cash flow per barrel metrics, driving over a 20 percent return on cash flow to capital employed. Our high price realizations, competitive cash returns, long-standing dividend policy and successful exploration program along with our recently announced accretive Gulf of
FINANCIAL POSITION
As of
REGIONAL OPERATIONS SUMMARY
North American Onshore
The North American onshore business produced over 98 MBOEPD in the third quarter, a 15 percent increase year-over-year.
Tupper Montney – Natural gas production in the quarter averaged over 240 million cubic feet per day (MMCFD).
Kaybob Duvernay – During the quarter, the company achieved record production averaging 10 MBOEPD with 61 percent liquids. Murphy has increased production in this profitable play for six consecutive quarters. As planned, the company brought ten operated wells online across the Kaybob Duvernay acreage: a five well pad in Kaybob West, a three well pad in Kaybob North and a two well pad in Kaybob East. All these wells are performing at or above pre-drill estimates with average initial gross production rates over 30 days (IP30 rate) ranging from approximately 725 to over 1,200 barrels of oil equivalent per day (BOEPD). With these wells being brought online, the company has advanced the appraisal of the play, with the exception of the Two Creeks area, which is expected to occur next year.
“As part of our long-term strategy, we plan to continue increasing production, while spending within cash flow, across our North American onshore assets. In the
Global Offshore
The offshore business produced over 70 MBOEPD for the third quarter, with 71 percent liquids.
In the Gulf of
EXPLORATION
Gulf of Mexico Exploration – During the third quarter, Murphy continued drilling the Samurai-2 appraisal sidetrack (
Mexico Exploration – During the third quarter, Murphy submitted the drilling permit to the Comisión Nacional de Hidrocarburos (“CNH”) for the Deepwater Block 5 Exploration Plan. Following the CNH approval, the company plans to spud the exploration prospect in the first quarter of 2019.
Vietnam Exploration – Murphy expects to spud the LDT-1X well, in Block 15-01/05 in the
SUBSEQUENT TO QUARTER END
On
In conjunction with the joint venture, the company entered into an amendment of its existing Credit Agreement. In addition to permitting the contribution of assets to the joint venture, the amendment, which will be fully effective upon the closing of the joint venture transaction, removes certain covenants and increases financial flexibility.
Also, subsequent to quarter end,
“As we anticipated, the announcement of our joint venture formation with Petrobras has been well received. This transaction ties directly to our long-term strategy. The improvement in our bond rating is reflective of our increased high-value oil production growth, accretive cash flow and long-standing, strong balance sheet,” stated Jenkins.
PRODUCTION AND CAPITAL EXPENDITURE GUIDANCE
The company is maintaining full year 2018 production guidance to be in the range of 168,500 to 170,500 BOEPD. In addition, full year capital expenditures are being maintained at
“Several recent events across many of our assets are affecting our fourth quarter production. The Gulf of
CONFERENCE CALL AND WEBCAST SCHEDULED FOR
Murphy will host a conference call to discuss third quarter 2018 financial and operating results on
FINANCIAL DATA
Summary financial data and operating statistics for third quarter 2018, 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 fourth quarter and full year 2018.
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
RESERVES REPORTING TO THE SECURITIES AND EXCHANGE COMMISSION
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) |
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Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2018 |
2017 1 |
2018 |
2017 1 |
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Revenues | |||||||||||||||||
Revenue from sales to customers | $ | 659,806 | 511,192 | 1,921,910 | 1,498,093 | ||||||||||||
(Loss) gain on crude contracts | (2,223 | ) | (13,573 | ) | (69,349 | ) | 50,365 | ||||||||||
Gain on sale of assets and other income | 17,214 | 700 | 26,035 | 134,780 | |||||||||||||
Total revenues | 674,797 | 498,319 | 1,878,596 | 1,683,238 | |||||||||||||
Costs and expenses | |||||||||||||||||
Lease operating expenses | 133,141 | 112,751 | 406,226 | 346,072 | |||||||||||||
Severance and ad valorem taxes | 15,067 | 10,816 | 40,100 | 32,771 | |||||||||||||
Exploration expenses, including undeveloped |
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lease amortization |
21,838 | 28,492 | 69,911 | 77,356 | |||||||||||||
Selling and general expenses | 64,107 | 51,374 | 173,324 | 155,438 | |||||||||||||
Depreciation, depletion and amortization | 241,833 | 243,636 | 710,563 | 714,782 | |||||||||||||
Accretion of asset retirement obligations | 11,099 | 10,654 | 32,041 | 31,638 | |||||||||||||
Redetermination expense | 11,332 | - | 11,332 | - | |||||||||||||
Other expense (benefit) | (34,387 | ) | 2,454 | (44,776 | ) | 10,988 | |||||||||||
Total costs and expenses | 464,030 | 460,177 | 1,398,721 | 1,369,045 | |||||||||||||
Operating income from continuing operations | 210,767 | 38,142 | 479,875 | 314,193 | |||||||||||||
Other income (loss) | |||||||||||||||||
Interest and other income (loss) | (19,478 | ) | (53,019 | ) | (19,445 | ) | (106,345 | ) | |||||||||
Interest expense, net | (44,492 | ) | (48,681 | ) | (134,264 | ) | (138,423 | ) | |||||||||
Total other loss | (63,970 | ) | (101,700 | ) | (153,709 | ) | (244,768 | ) | |||||||||
Income (loss) from continuing operations before income taxes | 146,797 | (63,558 | ) | 326,166 | 69,425 | ||||||||||||
Income tax expense (benefit) | 51,038 | 2,760 | 15,801 | 95,602 | |||||||||||||
Income (loss) from continuing operations | 95,759 | (66,318 | ) | 310,365 | (26,177 | ) | |||||||||||
Income (loss) from discontinued operations, | |||||||||||||||||
net of income taxes | (1,815 | ) | 425 | (2,650 | ) | 1,177 | |||||||||||
NET INCOME (LOSS) | $ | 93,944 | (65,893 | ) | 307,715 | (25,000 | ) | ||||||||||
INCOME (LOSS) PER COMMON SHARE – BASIC | |||||||||||||||||
Continuing operations | $ | 0.55 | (0.38 | ) | 1.79 | (0.15 | ) | ||||||||||
Discontinued operations | (0.01 | ) | - | (0.01 | ) | 0.01 | |||||||||||
Net Income (Loss) | $ | 0.54 | (0.38 | ) | 1.78 | (0.14 | ) | ||||||||||
INCOME (LOSS) PER COMMON SHARE – DILUTED | |||||||||||||||||
Continuing operations | $ | 0.55 | (0.38 | ) | 1.78 | (0.15 | ) | ||||||||||
Discontinued operations | (0.01 | ) | - | (0.01 | ) | 0.01 | |||||||||||
Net Income (Loss) | $ | 0.54 | (0.38 | ) | 1.77 | (0.14 | ) | ||||||||||
Cash dividends per Common share | 0.25 | 0.25 | 0.75 | 0.75 | |||||||||||||
Average Common shares outstanding (thousands) | |||||||||||||||||
Basic | 173,047 | 172,573 | 172,949 | 172,509 | |||||||||||||
Diluted | 174,175 | 172,573 | 174,202 | 172,509 | |||||||||||||
1 Reclassified to conform to current presentation. |
MURPHY OIL CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (Thousands of dollars) |
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Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Operating Activities | |||||||||||||||
Net income (loss) | $ | 93,944 | (65,893 | ) | 307,715 | (25,000 | ) | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by continuing operations activities: | |||||||||||||||
Loss (Income) from discontinued operations | 1,815 | (425 | ) | 2,650 | (1,177 | ) | |||||||||
Depreciation, depletion and amortization | 241,833 | 243,636 | 710,563 | 714,782 | |||||||||||
Dry hole costs (credits) | 4,537 | (3,043 | ) | 4,526 | (1,139 | ) | |||||||||
Amortization of undeveloped leases | 8,770 | 20,553 | 31,544 | 40,859 | |||||||||||
Accretion of asset retirement obligations | 11,099 | 10,654 | 32,041 | 31,638 | |||||||||||
Deferred income tax (benefit) charge | 17,734 | (36,697 | ) | (138,755 | ) | (3,567 | ) | ||||||||
Pretax (gain) loss from disposition of assets | (124 | ) | (117 | ) | (6 | ) | (130,765 | ) | |||||||
Net (increase) decrease in noncash operating working capital | (87,990 | ) | (41,511 | ) | (2,550 | ) | 1,070 | ||||||||
Other operating activities, net | 80,781 | 100,179 | 49,217 | 192,097 | |||||||||||
Net cash provided by continuing operations activities | 372,399 | 227,336 | 996,945 | 818,798 | |||||||||||
Investing Activities | |||||||||||||||
Property additions and dry hole costs | (243,212 | ) | (274,763 | ) | (858,356 | ) | (706,417 | ) | |||||||
Proceeds from sales of property, plant and equipment | 505 | 4,843 | 1,128 | 69,146 | |||||||||||
Purchases of investment securities 1 | – | – | – | (212,661 | ) | ||||||||||
Proceeds from maturity of investment securities 1 | – | 36,635 | – | 320,828 | |||||||||||
Net cash required by investing activities | (242,707 | ) | (233,285 | ) | (857,228 | ) | (529,104 | ) | |||||||
Financing Activities | |||||||||||||||
Borrowings of debt, net of issuance costs | – | 541,772 | – | 541,772 | |||||||||||
Repayments of debt | – | (550,000 | ) | – | (550,000 | ) | |||||||||
Capital lease obligation payments | (2,516 | ) | (2,704 | ) | (7,164 | ) | (14,687 | ) | |||||||
Withholding tax on stock-based incentive awards | – | (70 | ) | (6,922 | ) | (7,151 | ) | ||||||||
Cash dividends paid | (43,263 | ) | (43,143 | ) | (129,780 | ) | (129,421 | ) | |||||||
Net cash required by financing activities | (45,779 | ) | (54,145 | ) | (143,866 | ) | (159,487 | ) | |||||||
Effect of exchange rate changes on cash and cash equivalents | (37,489 | ) | (1,186 | ) | (13,107 | ) | (5,797 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | 46,424 | (61,280 | ) | (17,256 | ) | 124,410 | |||||||||
Cash and cash equivalents at beginning of period | 901,308 | 1,058,487 | 964,988 | 872,797 | |||||||||||
Cash and cash equivalents at end of period | $ | 947,732 | 997,207 | 947,732 | 997,207 | ||||||||||
1 Investments are Canadian government securities with maturities greater than 90 days at the date of acquisition. |
MURPHY OIL CORPORATION SCHEDULE OF ADJUSTED INCOME (LOSS) (unaudited) (Millions of dollars, except per share amounts) |
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Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income (loss) | $ | 93.9 | (65.9 | ) | 307.7 | (25.0 | ) | ||||||||
Discontinued operations loss (income) | 1.8 | (0.4 | ) | 2.7 | (1.2 | ) | |||||||||
Income from continuing operations | 95.7 | (66.3 | ) | 310.4 | (26.2 | ) | |||||||||
Adjustments: | |||||||||||||||
Mark-to-market (gain) loss on crude oil derivative contracts | (20.6 | ) | 11.8 | 0.8 | (28.9 | ) | |||||||||
Foreign exchange losses (gains) | 17.6 | 43.9 | 14.1 | 86.6 | |||||||||||
Impact of tax reform | – | – | (120.0 | ) | – | ||||||||||
Seal insurance proceeds | (7.0 | ) | – | (15.2 | ) | – | |||||||||
Ecuador arbitration settlement | (20.5 | ) | – | (20.5 | ) | – | |||||||||
Brunei working interest income | (16.0 | ) | – | (16.0 | ) | – | |||||||||
Malaysia/ Brunei unitization/ redetermination expense | 7.0 | – | 7.0 | – | |||||||||||
Write-off of previously suspended exploration wells | 4.5 | – | 4.5 | – | |||||||||||
Deferred tax on undistributed foreign earnings | – | 4.7 | – | 65.2 | |||||||||||
Tax benefits on investments in foreign areas | – | – | – | (32.9 | ) | ||||||||||
Gain on sale of assets | – | – | – | (96.0 | ) | ||||||||||
Oil Insurance Limited dividends | – | – | – | (2.8 | ) | ||||||||||
Total adjustments after taxes | (35.0 | ) | 60.4 | (145.3 | ) | (8.8 | ) | ||||||||
Adjusted income (loss) | $ | 60.7 | (5.9 | ) | 165.1 | (35.0 | ) | ||||||||
Adjusted income (loss) per diluted share | $ | 0.35 | (0.03 | ) | 0.95 | (0.20 | ) | ||||||||
Non-GAAP Financial Measures
Presented above is a reconciliation of Net income (loss) to Adjusted income (loss). 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
Note: | Amounts shown above as reconciling items between Net income (loss) 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. |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, 2018 | September 30, 2018 | ||||||||||||||||||||
Pretax | Tax | Net | Pretax | Tax | Net | ||||||||||||||||
Exploration & Production: | |||||||||||||||||||||
Canada | (9.7 | ) | 2.7 | (7.0 | ) | (21.0 | ) | 5.8 | (15.2 | ) | |||||||||||
Malaysia | 11.3 | (4.3 | ) | 7.0 | 11.3 | (4.3 | ) | 7.0 | |||||||||||||
Other International | (11.5 | ) | – | (11.5 | ) | (11.5 | ) | – | (11.5 | ) | |||||||||||
Total E&P | (9.9 | ) | (1.6 | ) | (11.5 | ) | (21.2 | ) | 1.5 | (19.7 | ) | ||||||||||
Corporate 1: | (34.1 | ) | 10.6 | (23.5 | ) | (11.6 | ) | (114.0 | ) | (125.6 | ) | ||||||||||
Total adjustments | $ | (44.0 | ) | 9.0 | (35.0 | ) | (32.8 | ) | (112.5 | ) | (145.3 | ) |
1 | In 2018, the Company reported realized and unrealized gains and losses on crude oil contracts in the Corporate segment to reflect how segments are currently evaluated, how resources are allocated and how risk is managed by the Company. The 2017 amounts have been reclassified from the Exploration and Production business for comparable disclosure. |
MURPHY OIL CORPORATION SCHEDULE OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA) AND EXPLORATION EXPENSES (EBITDAX) (unaudited) (Millions of dollars, except per barrel of oil equivalents sold) |
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Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income (loss) (GAAP) | $ | 93.9 | (65.9 | ) | 307.7 | (25.0 | ) | ||||||||
Discontinued operations loss (income) | 1.8 | (0.4 | ) | 2.7 | (1.2 | ) | |||||||||
Income tax expense (benefit) | 51.0 | 2.8 | 15.8 | 95.6 | |||||||||||
Interest expense, net | 44.5 | 48.7 | 134.3 | 138.4 | |||||||||||
Depreciation, depletion and amortization expense | 241.8 | 243.6 | 710.6 | 714.8 | |||||||||||
EBITDA (Non-GAAP) | $ | 433.0 | 228.8 | 1,171.1 | 922.6 | ||||||||||
Foreign exchange losses (gains) | 17.9 | 50.3 | 13.3 | 99.1 | |||||||||||
Mark-to-market (gain) loss on crude oil derivative contracts | (26.0 | ) | 18.1 | 1.1 | (44.5 | ) | |||||||||
Gain on sale of assets | – | – | – | (130.8 | ) | ||||||||||
Accretion of asset retirement obligations | 11.1 | 10.7 | 32.0 | 31.6 | |||||||||||
Seal insurance proceeds | (9.7 | ) | – | (21.0 | ) | – | |||||||||
Ecuador arbitration settlement | (26.0 | ) | – | (26.0 | ) | – | |||||||||
Brunei working interest income | (16.0 | ) | – | (16.0 | ) | – | |||||||||
Malaysia/ Brunei unitization/ redetermination expense | 11.3 | – | 11.3 | – | |||||||||||
Write-off of previously suspended exploration wells | 4.5 | – | 4.5 | – | |||||||||||
Oil Insurance Limited dividends | – | – | – | (4.4 | ) | ||||||||||
Adjusted EBITDA (Non-GAAP) | $ | 400.1 | 307.9 | 1,170.3 | 873.6 | ||||||||||
Memo: | |||||||||||||||
Adjusted EBITDA (Non-GAAP) | 400.1 | 307.9 | 1,170.3 | 873.6 | |||||||||||
Exploration expense included in Adjusted EBITDA | (4.5 | ) | – | (4.5 | ) | – | |||||||||
Exploration expenses | 21.8 | 28.5 | 69.9 | 77.4 | |||||||||||
Adjusted EBITDAX (Non-GAAP) | 417.4 | 336.4 | 1,235.7 | 951.0 | |||||||||||
Total barrels of oil equivalents sold (thousands of barrels) | 15,336.8 | 14,879.2 | 45,912.0 | 44,215.1 | |||||||||||
EBITDA per barrel of oil equivalents sold | $ | 28.23 | 15.38 | 25.51 | 20.87 | ||||||||||
Adjusted EBITDA per barrel of oil equivalents sold | $ | 26.09 | 20.69 | 25.49 | 19.76 | ||||||||||
Adjusted EBITDAX per barrel of oil equivalents sold | $ | 27.22 | 22.61 | 26.91 | 21.51 | ||||||||||
Non-GAAP Financial Measures
Presented above is a reconciliation of Net income (loss) to Earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA, and adjusted earnings before interest, taxes, depreciation, amortization, and exploration expenses (EBITDAX). Management believes EBITDA, adjusted EBITDA, 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. EBITDA, adjusted EBITDA, 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 EBITDA per barrel of oil equivalent sold, adjusted EBITDA per barrel of oil equivalent sold, adjusted EBITDAX per barrel of oil equivalents sold. Management believes EBITDA per barrel of oil equivalent sold, adjusted EBITDA per barrel of oil equivalent sold, and adjusted EBITDAX per barrel of oil equivalents 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, adjusted EBITDA per barrel of oil equivalent sold, and adjusted EBITDAX per barrel of oil equivalent sold are non-GAAP financial metrics.
MURPHY OIL CORPORATION FUNCTIONAL RESULTS OF OPERATIONS (unaudited) (Millions of dollars) |
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Three Months Ended |
Three Months Ended |
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Revenues | Income (Loss) |
Revenues | Income (Loss) |
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Exploration and production | |||||||||||||||
United States 1 | $ | 348.7 | 91.6 | 209.4 | (11.2 | ) | |||||||||
Canada | 107.1 | 12.5 | 81.9 | (3.2 | ) | ||||||||||
Malaysia | 201.2 | 54.1 | 220.5 | 67.7 | |||||||||||
Other | 19.9 | 1.3 | – | (11.0 | ) | ||||||||||
Total exploration and production | 676.9 | 159.5 | 511.8 | 42.3 | |||||||||||
Corporate 1 | (2.1 | ) | (63.8 | ) | (13.5 | ) | (108.6 | ) | |||||||
Revenue/income from continuing operations | 674.8 | 95.7 | 498.3 | (66.3 | ) | ||||||||||
Discontinued operations, net of tax | – | (1.8 | ) | – | 0.4 | ||||||||||
Total revenues/net income (loss) | $ | 674.8 | 93.9 | 498.3 | (65.9 | ) | |||||||||
Nine Months Ended |
Nine Months Ended |
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Revenues | Income (Loss) |
Revenues | Income (Loss) |
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Exploration and production | |||||||||||||||
United States | $ | 945.6 | 200.3 | 646.3 | (21.8 | ) | |||||||||
Canada 2 | 333.8 | 46.7 | 388.1 | 102.6 | |||||||||||
Malaysia | 640.7 | 208.4 | 594.4 | 173.9 | |||||||||||
Other | 19.9 | (28.8 | ) | – | (10.9 | ) | |||||||||
Total exploration and production | 1,940.0 | 426.6 | 1,628.8 | 243.8 | |||||||||||
Corporate 3 | (61.4 | ) | (116.2 | ) | 54.4 | (270.0 | ) | ||||||||
Revenue/income from continuing operations | 1,878.6 | 310.4 | 1,683.2 | (26.2 | ) | ||||||||||
Discontinued operations, net of tax | – | (2.7 | ) | – | 1.2 | ||||||||||
Total revenues/net income (loss) | $ | 1,878.6 | 307.7 | 1,683.2 | (25.0 | ) |
1 | In 2018, the Company reported realized and unrealized gains and losses on crude oil contracts in the Corporate segment to reflect how segments are currently evaluated, how resources are allocated and how risk is managed by the Company. The 2017 amounts have been reclassified from the U.S. Exploration and production business to reflect comparable disclosure. Realized and unrealized (losses) of ($2.2) million and ($13.6) million are included in the Corporate segment for the three months ended September 30, 2018 and 2017, respectively. Realized and unrealized gains (losses) of ($69.3) million and $50.4 million are included in the Corporate segment for the nine months ended September 30, 2018 and 2017, respectively. Corporate segment loss for the three-month periods ended September 30, 2018 and 2017 included foreign exchange losses of $16.8 million and $50.3 million, respectively. Corporate segment loss for the nine-month periods ended September 30, 2018 and 2017 included foreign exchange losses of $14.0 million and $99.1 million, respectively. | |
2 | 2017 revenue includes a pretax gain of $132.4 million ($96.0 million after-tax) related to the sale of the Seal heavy oil asset in Canada. | |
3 | Income for the nine-month period ended September 30, 2018 included a credit to income tax expense of $120.0 million related to an IRS interpretation of the Tax Cuts and Jobs Act. |
MURPHY OIL CORPORATION |
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United | |||||||||||||||||||||
(Millions of dollars) | States 1 | Canada | Malaysia | Other | Total | ||||||||||||||||
Three Months Ended September 30, 2018 | |||||||||||||||||||||
Oil and gas sales and other revenues | $ | 348.7 | 107.1 | 201.2 | 19.9 | 676.9 | |||||||||||||||
Lease operating expenses | 52.0 | 31.5 | 49.4 | 0.2 | 133.1 | ||||||||||||||||
Severance and ad valorem taxes | 14.8 | 0.3 | – | – | 15.1 | ||||||||||||||||
Depreciation, depletion and amortization | 132.6 | 58.6 | 44.3 | 1.0 | 236.5 | ||||||||||||||||
Accretion of asset retirement obligations | 4.5 | 1.9 | 4.7 | – | 11.1 | ||||||||||||||||
Redetermination expense | – | – | 11.3 | – | 11.3 | ||||||||||||||||
Exploration expenses | |||||||||||||||||||||
Dry holes | – | – | – | 4.5 | 4.5 | ||||||||||||||||
Geological and geophysical | 0.4 | – | 0.1 | 0.7 | 1.2 | ||||||||||||||||
Other exploration | 1.6 | 0.2 | – | 5.5 | 7.3 | ||||||||||||||||
2.0 | 0.2 | 0.1 | 10.7 | 13.0 | |||||||||||||||||
Undeveloped lease amortization | 7.8 | 0.2 | – | 0.8 | 8.8 | ||||||||||||||||
Total exploration expenses | 9.8 | 0.4 | 0.1 | 11.5 | 21.8 | ||||||||||||||||
Selling and general expenses | 14.0 | 6.4 | 3.4 | 6.2 | 30.0 | ||||||||||||||||
Other | 4.5 | (9.5 | ) | 0.6 | 0.6 | (3.8 | ) | ||||||||||||||
Results of operations before taxes | 116.5 | 17.5 | 87.4 | 0.4 | 221.8 | ||||||||||||||||
Income tax provisions (benefits) | 24.9 | 5.0 | 33.3 | (0.9 | ) | 62.3 | |||||||||||||||
Results of operations (excluding | |||||||||||||||||||||
corporate overhead and interest) | $ | 91.6 | 12.5 | 54.1 | 1.3 | 159.5 | |||||||||||||||
Three Months Ended September 30, 2017 | |||||||||||||||||||||
Oil and gas sales and other revenues | $ | 209.4 | 81.9 | 220.5 | – | 511.8 | |||||||||||||||
Lease operating expenses | 43.5 | 28.7 | 40.6 | – | 112.8 | ||||||||||||||||
Severance and ad valorem taxes | 10.5 | 0.3 | – | – | 10.8 | ||||||||||||||||
Depreciation, depletion and amortization | 128.5 | 45.9 | 63.7 | 1.0 | 239.1 | ||||||||||||||||
Accretion of asset retirement obligations | 4.3 | 2.0 | 4.4 | – | 10.7 | ||||||||||||||||
Exploration expenses | |||||||||||||||||||||
Dry holes | (0.6 | ) | – | (2.5 | ) | – | (3.1 | ) | |||||||||||||
Geological and geophysical | 0.1 | – | – | 1.5 | 1.6 | ||||||||||||||||
Other exploration | 1.5 | 0.2 | – | 7.7 | 9.4 | ||||||||||||||||
1.0 | 0.2 | (2.5 | ) | 9.2 | 7.9 | ||||||||||||||||
Undeveloped lease amortization | 20.4 | 0.2 | – | – | 20.6 | ||||||||||||||||
Total exploration expenses | 21.4 | 0.4 | (2.5 | ) | 9.2 | 28.5 | |||||||||||||||
Selling and general expenses | 13.2 | 7.3 | 4.6 | 5.1 | 30.2 | ||||||||||||||||
Other | 4.2 | 0.1 | 1.4 | – | 5.7 | ||||||||||||||||
Results of operations before taxes | (16.2 | ) | (2.8 | ) | 108.3 | (15.3 | ) | 74.0 | |||||||||||||
Income tax provisions (benefits) | (5.0 | ) | 0.4 | 40.6 | (4.3 | ) | 31.7 | ||||||||||||||
Results of operations (excluding | |||||||||||||||||||||
corporate overhead and interest) | $ | (11.2 | ) | (3.2 | ) | 67.7 | (11.0 | ) | 42.3 |
1 | In 2018, the Company reported realized and unrealized gains and losses on crude oil contracts in the Corporate segment to reflect how segments are currently evaluated, how resources are allocated and how risk is managed by the Company. The 2017 amounts have been reclassified from the Exploration and Production business for comparable disclosure. |
MURPHY OIL CORPORATION OIL AND GAS OPERATING RESULTS (unaudited) NINE MONTHS ENDED SEPTEMBER 30, 2018 AND 2017 |
|||||||||||||||||||||
United | |||||||||||||||||||||
(Millions of dollars) | States 1 | Canada 2 | Malaysia | Other | Total | ||||||||||||||||
Nine Months Ended September 30, 2018 | |||||||||||||||||||||
Oil and gas sales and other revenues | $ | 945.6 | 333.8 | 640.7 | 19.9 | 1,940.0 | |||||||||||||||
Lease operating expenses | 162.6 | 91.0 | 152.4 | 0.2 | 406.2 | ||||||||||||||||
Severance and ad valorem taxes | 39.2 | 0.9 | – | – | 40.1 | ||||||||||||||||
Depreciation, depletion and amortization | 382.4 | 171.1 | 141.9 | 2.4 | 697.8 | ||||||||||||||||
Accretion of asset retirement obligations | 13.4 | 5.8 | 12.8 | – | 32.0 | ||||||||||||||||
Redetermination expense | – | – | 11.3 | – | 11.3 | ||||||||||||||||
Exploration expenses | |||||||||||||||||||||
Dry holes | – | – | – | 4.5 | 4.5 | ||||||||||||||||
Geological and geophysical | 6.5 | – | 0.6 | 4.3 | 11.4 | ||||||||||||||||
Other exploration | 5.1 | 0.3 | – | 17.0 | 22.4 | ||||||||||||||||
11.6 | 0.3 | 0.6 | 25.8 | 38.3 | |||||||||||||||||
Undeveloped lease amortization | 29.2 | 0.6 | – | 1.7 | 31.5 | ||||||||||||||||
Total exploration expenses | 40.8 | 0.9 | 0.6 | 27.5 | 69.8 | ||||||||||||||||
Selling and general expenses | 39.0 | 20.7 | 8.3 | 18.1 | 86.1 | ||||||||||||||||
Other | 12.4 | (20.9 | ) | (0.8 | ) | 1.2 | (8.1 | ) | |||||||||||||
Results of operations before taxes | 255.8 | 64.3 | 314.2 | (29.5 | ) | 604.8 | |||||||||||||||
Income tax provisions (benefits) | 55.5 | 17.6 | 105.8 | (0.7 | ) | 178.2 | |||||||||||||||
Results of operations (excluding | |||||||||||||||||||||
corporate overhead and interest) | $ | 200.3 | 46.7 | 208.4 | (28.8 | ) | 426.6 | ||||||||||||||
Nine Months Ended September 30, 2017 | |||||||||||||||||||||
Oil and gas sales and other revenues | $ | 646.3 | 388.1 | 594.4 | – | 1,628.8 | |||||||||||||||
Lease operating expenses | 135.7 | 76.8 | 133.6 | – | 346.1 | ||||||||||||||||
Severance and ad valorem taxes | 31.6 | 1.2 | – | – | 32.8 | ||||||||||||||||
Depreciation, depletion and amortization | 402.3 | 136.6 | 160.0 | 2.9 | 701.8 | ||||||||||||||||
Accretion of asset retirement obligations | 12.8 | 5.9 | 12.9 | – | 31.6 | ||||||||||||||||
Exploration expenses | |||||||||||||||||||||
Dry holes | (1.9 | ) | – | 0.8 | – | (1.1 | ) | ||||||||||||||
Geological and geophysical | 1.0 | 0.1 | – | 6.0 | 7.1 | ||||||||||||||||
Other exploration | 5.5 | 0.3 | – | 24.8 | 30.6 | ||||||||||||||||
4.6 | 0.4 | 0.8 | 30.8 | 36.6 | |||||||||||||||||
Undeveloped lease amortization | 39.4 | 1.4 | – | – | 40.8 | ||||||||||||||||
Total exploration expenses | 44.0 | 1.8 | 0.8 | 30.8 | 77.4 | ||||||||||||||||
Selling and general expenses | 38.7 | 20.9 | 10.2 | 15.0 | 84.8 | ||||||||||||||||
Other | 11.5 | 0.7 | 9.4 | – | 21.6 | ||||||||||||||||
Results of operations before taxes | (30.3 | ) | 144.2 | 267.5 | (48.7 | ) | 332.7 | ||||||||||||||
Income tax provisions (benefits) | (8.5 | ) | 41.6 | 93.6 | (37.8 | ) | 88.9 | ||||||||||||||
Results of operations (excluding | |||||||||||||||||||||
corporate overhead and interest) | $ | (21.8 | ) | 102.6 | 173.9 | (10.9 | ) | 243.8 |
1 | In 2018, the Company reported realized and unrealized gains and losses on crude oil contracts in the Corporate segment to reflect how segments are currently evaluated, how resources are allocated and how risk is managed by the Company. The 2017 amounts have been reclassified from the Exploration and Production business for comparable disclosure. | |
2 | 2017 revenue includes a pretax gain of $132.4 million related to the sale of Seal heavy oil assets in Canada. |
MURPHY OIL CORPORATION PRODUCTION-RELATED EXPENSES (unaudited) (Dollars per barrel of oil equivalents sold) |
|||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
September 30, | September 30, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
United States – Eagle Ford Shale | |||||||||||
Lease operating expense | $ | 8.26 | 6.93 | 8.23 | 7.60 | ||||||
Severance and ad valorem taxes | 3.48 | 2.56 | 3.22 | 2.54 | |||||||
Depreciation, depletion and amortization (DD&A) expense | 24.43 | 25.42 | 24.59 | 25.74 | |||||||
United States – Gulf of Mexico | |||||||||||
Lease operating expense | $ | 10.29 | 12.48 | 12.79 | 10.61 | ||||||
DD&A expense | 17.57 | 20.07 | 17.25 | 21.13 | |||||||
Canada – Onshore | |||||||||||
Lease operating expense | $ | 4.33 | 5.49 | 4.69 | 5.11 | ||||||
Severance and ad valorem taxes | 0.07 | 0.08 | 0.07 | 0.11 | |||||||
DD&A expense | 10.69 | 10.03 | 10.47 | 9.97 | |||||||
Canada – Offshore | |||||||||||
Lease operating expense | $ | 22.42 | 13.25 | 13.36 | 9.76 | ||||||
DD&A expense | 14.76 | 13.66 | 13.47 | 12.96 | |||||||
Malaysia – Sarawak | |||||||||||
Lease operating expense | $ | 7.29 | 5.28 | 8.07 | 5.49 | ||||||
DD&A expense | 8.19 | 8.53 | 8.55 | 8.09 | |||||||
Malaysia – Block K | |||||||||||
Lease operating expense | $ | 19.98 | 10.50 | 17.77 | 14.07 | ||||||
DD&A expense | 15.16 | 16.20 | 14.72 | 14.65 | |||||||
Total oil and gas operations | |||||||||||
Lease operating expense | $ | 8.68 | 7.58 | 8.85 | 7.83 | ||||||
Severance and ad valorem taxes | 0.98 | 0.73 | 0.87 | 0.74 | |||||||
DD&A expense | 15.77 | 16.07 | 15.48 | 15.87 |
MURPHY OIL CORPORATION OTHER FINANCIAL DATA (unaudited) (Millions of dollars) |
||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||
Capital expenditures | ||||||||||||
Exploration and production | ||||||||||||
United States | $ | 128.2 | 204.7 | 454.6 | 427.5 | |||||||
Canada | 89.0 | 68.7 | 291.3 | 204.6 | ||||||||
Malaysia | 41.3 | (3.4 | ) | 85.8 | 7.7 | |||||||
Other | 21.2 | 13.6 | 38.9 | 54.9 | ||||||||
Total | 279.7 | 283.6 | 870.6 | 694.7 | ||||||||
Corporate | 12.2 | 3.1 | 22.4 | 6.9 | ||||||||
Total capital expenditures | 291.9 | 286.7 | 893.0 | 701.6 | ||||||||
Charged to exploration expenses 1 | ||||||||||||
United States | 2.0 | 1.0 | 11.6 | 4.6 | ||||||||
Canada | 0.2 | 0.2 | 0.3 | 0.4 | ||||||||
Malaysia | 0.1 | (2.5 | ) | 0.6 | 0.8 | |||||||
Other | 10.7 | 9.2 | 25.8 | 30.8 | ||||||||
Total charged to exploration expenses | 13.0 | 7.9 | 38.3 | 36.6 | ||||||||
Total capitalized | $ | 278.9 | 278.8 | 854.7 | 665.0 |
1 | Excludes amortization of undeveloped leases of $8.8 million and $20.6 million for the three months ended September 30, 2018 and 2017, respectively, and $31.5 million and $40.9 million for the nine months ended September 30, 2018 and 2017, respectively. |
MURPHY OIL CORPORATION | |||||||
CONDENSED BALANCE SHEETS (unaudited) | |||||||
(Millions of dollars) | |||||||
September 30, 2018 | December 31, 2017 | ||||||
Assets |
|||||||
Cash and cash equivalents | $ | 947.7 | 965.0 | ||||
Other current assets | 433.6 | 406.6 | |||||
Property, plant and equipment – net | 8,244.2 | 8,220.0 | |||||
Other long-term assets | 401.2 | 269.3 | |||||
Total assets | $ | 10,026.7 | 9,860.9 | ||||
Liabilities and Stockholders' Equity |
|||||||
Current maturities of long-term debt | $ | 10.5 | 9.9 | ||||
Other current liabilities | 865.1 | 824.3 | |||||
Long-term debt 1 | 2,903.9 | 2,906.5 | |||||
Other long-term liabilities | 1,480.3 | 1,500.0 | |||||
Total stockholders' equity | 4,766.9 | 4,620.2 | |||||
Total liabilities and stockholders' equity | $ | 10,026.7 | 9,860.9 |
1 | Includes a capital lease on production equipment of $128.4 million at September 30, 2018 and $134.0 million at December 31, 2017. |
MURPHY OIL CORPORATION STATISTICAL SUMMARY (unaudited) |
||||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | |||||||||
2018 | 2017 | 2018 | 2017 | |||||||
Net crude oil and condensate produced – barrels per day | 87,755 | 84,230 | 88,781 | 89,580 | ||||||
United States – Eagle Ford Shale | 33,757 | 33,070 | 32,347 | 33,281 | ||||||
– Gulf of Mexico | 14,530 | 10,240 | 14,253 | 11,309 | ||||||
Canada – Onshore | 6,096 | 3,240 | 5,242 | 2,729 | ||||||
– Offshore | 5,570 | 6,225 | 7,237 | 8,100 | ||||||
– Heavy 1 | – | – | – | 201 | ||||||
Malaysia – Sarawak | 11,608 | 11,508 | 11,936 | 12,727 | ||||||
– Block K | 15,661 | 19,947 | 17,200 | 21,233 | ||||||
Brunei | 533 | – | 566 | – | ||||||
Net crude oil and condensate sold – barrels per day | 85,598 | 92,033 | 87,745 | 89,597 | ||||||
United States – Eagle Ford Shale | 33,757 | 33,070 | 32,347 | 33,281 | ||||||
– Gulf of Mexico | 14,530 | 10,240 | 14,253 | 11,309 | ||||||
Canada – Onshore | 6,096 | 3,240 | 5,242 | 2,729 | ||||||
– Offshore | 5,116 | 6,533 | 7,197 | 7,812 | ||||||
– Heavy 1 | – | – | – | 201 | ||||||
Malaysia – Sarawak | 9,469 | 13,083 | 12,080 | 13,350 | ||||||
– Block K | 16,169 | 25,867 | 16,471 | 20,915 | ||||||
Brunei | 461 | – | 155 | – | ||||||
Net natural gas liquids produced – barrels per day | 9,556 | 9,128 | 9,525 | 9,140 | ||||||
United States – Eagle Ford Shale | 6,663 | 6,669 | 6,735 | 6,812 | ||||||
– Gulf of Mexico | 1,109 | 910 | 1,112 | 967 | ||||||
Canada – Onshore | 1,095 | 510 | 1,005 | 410 | ||||||
Malaysia – Sarawak | 689 | 1,039 | 673 | 951 | ||||||
Net natural gas liquids sold – barrels per day | 9,641 | 9,213 | 9,642 | 9,165 | ||||||
United States – Eagle Ford Shale | 6,663 | 6,669 | 6,735 | 6,812 | ||||||
– Gulf of Mexico | 1,109 | 910 | 1,112 | 967 | ||||||
Canada – Onshore | 1,095 | 510 | 1,005 | 410 | ||||||
Malaysia – Sarawak | 774 | 1,124 | 790 | 976 | ||||||
Net natural gas sold – thousands of cubic feet per day | 428,790 | 362,901 | 424,733 | 379,182 | ||||||
United States – Eagle Ford Shale | 32,718 | 29,476 | 32,172 | 32,862 | ||||||
– Gulf of Mexico | 14,798 | 11,232 | 13,968 | 11,654 | ||||||
Canada – Onshore | 272,061 | 223,032 | 266,077 | 220,121 | ||||||
Malaysia – Sarawak | 106,183 | 90,181 | 106,016 | 106,481 | ||||||
– Block K | 3,030 | 8,980 | 6,500 | 8,064 | ||||||
Total net hydrocarbons produced – equivalent barrels per day 2 | 168,776 | 153,842 | 169,095 | 161,917 | ||||||
Total net hydrocarbons sold – equivalent barrels per day 2 | 166,704 | 161,730 | 168,176 | 161,959 | ||||||
1 The Company sold the Seal area heavy oil field in January 2017. |
||||||||||
2 Natural gas converted on an energy equivalent basis of 6:1. |
MURPHY OIL CORPORATION STATISTICAL SUMMARY (Continued) (unaudited) |
|||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Weighted average Exploration and Production sales prices | |||||||||||||||
Crude oil and condensate – dollars per barrel | |||||||||||||||
United States 1 – Eagle Ford Shale | $ | 72.08 | 48.49 | $ | 68.29 | 48.42 | |||||||||
– Gulf of Mexico | 70.46 | 47.82 | 67.41 | 47.48 | |||||||||||
Canada 2 – Onshore | 58.52 | 43.15 | 57.67 | 43.64 | |||||||||||
– Offshore | 73.92 | 51.26 | 69.94 | 50.35 | |||||||||||
Malaysia – Sarawak 3 | 63.82 | 52.62 | 66.25 | 52.07 | |||||||||||
– Block K 3 | 68.67 | 51.36 | 66.35 | 50.95 | |||||||||||
Brunei | 74.37 | – | 74.37 | – | |||||||||||
Natural gas liquids – dollars per barrel | |||||||||||||||
United States – Eagle Ford Shale | $ | 27.65 | 17.89 | $ | 22.96 | 16.12 | |||||||||
– Gulf of Mexico |
34.49 | 19.00 | 26.85 | 17.84 | |||||||||||
Canada 2 – Onshore | 41.06 | 22.77 | 40.28 | 22.48 | |||||||||||
Malaysia – Sarawak 3 | 69.64 | 49.66 | 70.26 | 49.94 | |||||||||||
Natural gas – dollars per thousand cubic feet | |||||||||||||||
United States – Eagle Ford Shale | $ | 2.27 | 2.44 | $ | 2.26 | 2.53 | |||||||||
– Gulf of Mexico | 2.48 | 2.49 | 2.40 | 2.56 | |||||||||||
Canada 2 – Onshore | 1.41 | 1.84 | 1.42 | 1.99 | |||||||||||
Malaysia – Sarawak 3 | 3.91 | 3.60 | 3.72 | 3.50 | |||||||||||
– Block K 3 | 0.24 | 0.25 | 0.24 | 0.24 |
1 | In 2018, the Company reported realized and unrealized gains and losses on crude oil contracts in the Corporate segment to reflect how segments are currently evaluated, how resources are allocated and how risk is managed by the Company. The 2017 amounts have been reclassified from the Exploration and Production business for comparable disclosure. | |
2 | U.S. dollar equivalent. | |
3 | Prices are net of payments under the terms of the respective production sharing contracts. |
MURPHY OIL CORPORATION | |||||||||||||||||||||
COMMODITY HEDGE POSITIONS (unaudited) | |||||||||||||||||||||
AS OF SEPTEMBER 30, 2018 | |||||||||||||||||||||
Volumes | Price | Remaining Period | |||||||||||||||||||
Area | Commodity | Type | (Bbl/d) | (USD/Bbl) | Start Date | End Date | |||||||||||||||
United States | WTI | Fixed price derivative swap 1 | 21,000 | $54.88 | 10/1/2018 | 12/31/2018 | |||||||||||||||
Volumes | Price | Remaining Period | |||||||||||||||||||
Area | Commodity | Type | (MMcf/d) | (Mcf) | Start Date | End Date | |||||||||||||||
Montney | Natural Gas | Fixed price forward sales | 59 | C$2.81 | 10/1/2018 | 12/31/2020 |
1 | Realized and unrealized gains and losses on Fixed price derivatives swaps are reported in the Corporate segment to reflect how segments are currently evaluated, how resources are allocated and how risk is managed by the Company. |
MURPHY OIL CORPORATION FOURTH QUARTER 2018 GUIDANCE |
||||||||
Liquids | Gas | |||||||
BOPD | MCFD | |||||||
Production – net | ||||||||
U.S. – Eagle Ford Shale |
36,000 |
29,100 |
||||||
– Gulf of Mexico |
18,500 |
14,300 |
||||||
Canada – Tupper Montney | – | 230,400 | ||||||
– Kaybob Duvernay and Placid Montney |
8,500 |
37,600 | ||||||
– Offshore | 6,200 | – | ||||||
Malaysia – Sarawak | 11,900 |
101,600 |
||||||
– Block K / Brunei | 17,000 | 6,400 | ||||||
Total net production (BOEPD) |
167,000 - 169,000 |
|||||||
Total net sales (BOEPD) | 173,000 - 175,000 | |||||||
Realized oil prices (dollars per barrel): | ||||||||
Malaysia – Sarawak | $69.50 | |||||||
– Block K | $76.80 | |||||||
Realized natural gas price ($ per MCF): | ||||||||
Malaysia – Sarawak | $4.00 | |||||||
Exploration expense ($ millions) | $42 | |||||||
FULL YEAR 2018 GUIDANCE | ||||||||
Total production (BOEPD) | 168,500 to 170,500 | |||||||
Capital expenditures ($ billions) | $1.18 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20181107005930/en/
Source:
Murphy Oil Corporation
Investor Contacts:
Kelly Whitley, 281-675-9107
kelly_whitley@murphyoilcorp.com
or
Bryan Arciero, 832-319-5374
bryan_arciero@murphyoilcorp.com
or
Emily McElroy, 870-864-6324
emily_mcelroy@murphyoilcorp.com