Murphy Oil Corporation Announces Third Quarter 2022 Results, Production Above Upper End of Guidance Range
Produced 188.5 Thousand Barrels of Oil Equivalent Per Day, Generated Net Income Attributable to
Unless otherwise noted, the financial and operating highlights and metrics discussed in this commentary exclude noncontrolling interest (NCI).1
THIRD QUARTER HIGHLIGHTS:
- Exceeded upper end of guidance range with production of 188.5 thousand barrels of oil equivalent per day (MBOEPD), with more than 96 thousand barrels of oil per day (MBOPD)
-
Continued producing above expectations from the Khaleesi, Mormont, Samurai field development project in the
Gulf of Mexico while achieving industry-leading uptime of 96 percent at the operated King’s Quay floating production system (FPS) -
Reduced long-term debt by
$248 million and increased dividend to$1.00 per share annualized, in accordance with the previously announced capital allocation framework
SUBSEQUENT TO QUARTER-END HIGHLIGHTS:
-
Commenced production from the sixth well in the Khaleesi, Mormont, Samurai field development project in the
Gulf of Mexico , with combined gross production of 120 MBOEPD. Completion work continues on the remaining well in the initial seven-well program -
Added Samurai #5 well to the fourth quarter operated
Gulf of Mexico drilling program, as a result of the previously announced discovery of additional pay zones in the field -
Announced the redemption of
$200 million of 5.75 percent senior notes due 2025, which when completed will achieve the top-end 2022 debt reduction goal of$650 million
“I am very pleased with our outstanding performance this quarter, which led to exceptional financial results, and we continue to focus on our key priorities of Delever, Execute and Explore. We are on track to achieve our 2022 debt reduction goal by the end of the year, and since establishing our delevering priority two years ago, will have repaid
THIRD QUARTER 2022 RESULTS
The company recorded net income attributable to
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) attributable to
Production for the third quarter averaged 188.5 MBOEPD with 51 percent oil and 57 percent liquids. Production was above the top end of guidance due to several factors, including a less active
FINANCIAL POSITION
As established in
As of
Subsequent to quarter end,
“By the end of this year, we will have reduced our total debt to approximately
OPERATIONS SUMMARY
Onshore
The onshore business produced approximately 110 MBOEPD in the third quarter of 2022, including 36 percent liquids volumes.
Kaybob Duvernay – During the third quarter, production averaged 6 MBOEPD with 78 percent liquids volumes. As previously stated, the three-well 2022 operated program was completed in the first quarter.
Offshore
Excluding NCI, the offshore business produced 78 MBOEPD during the third quarter, which included 81 percent oil.
As of the end of the third quarter, five wells from the Khaleesi and Mormont fields were flowing into the
Completion work continues, with the remaining well in the initial seven-well program expected to be online by year-end.
EXPLORATION
REVISED 2022 CAPITAL EXPENDITURE AND PRODUCTION GUIDANCE
Third quarter accrued capital expenditures (CAPEX) of
2022 Revised CAPEX by Quarter ($ MMs) |
|||||||||
1Q 2022A |
|
2Q 2022A |
|
3Q 2022A |
|
4Q 2022E |
|
FY 2022E |
|
|
|
|
|
|
|
|
|
|
Accrual CAPEX, based on midpoint of guidance range and excluding NCI and acquisitions
“Following review of our operational success throughout the year, we elected to commit additional capital to key high-returning, oil-weighted assets. A significant portion of the CAPEX guidance increase is to fund drilling of the new Samurai #5 well after discovering additional pay zones earlier this year. Building on our successful onshore operations, we also elected to participate in additional non-operated
Full year 2022 production guidance is being revised to a range of 164 to 172 MBOEPD, with a production mix of approximately 54 percent oil and 60 percent total liquids volumes.
Fourth quarter 2022 production is estimated to be in the range of 173.5 to 181.5 MBOEPD with 55 percent oil volumes. This range is impacted by 9.5 MBOEPD of total offshore downtime, including 1.6 MBOEPD for downstream weather impacts associated with Hurricane Ian, as well as an estimated 10.5 MBOEPD for forecasted
“We have increased oil volumes throughout the year. However, our natural gas volumes going forward will be impacted in the Tupper Montney due to significant royalty increases caused by faster well payouts and higher AECO natural gas prices. While this has a production impact, it is reflected minimally in our cash flow, and we anticipate it will not affect the timing of our capital allocation framework,” stated Jenkins.
“With regards to the
COMMODITY HEDGES
The company also utilizes swaps to protect 20 MBOPD of full-year 2022 production with an average fixed price of
CONFERENCE CALL AND WEBCAST SCHEDULED FOR
FINANCIAL DATA
Summary financial data and operating statistics for third quarter 2022, with comparisons to the same period from the previous year, are contained in the following schedules. Additionally, a schedule indicating the impacts of items affecting comparability of results between periods, a reconciliation of EBITDA and EBITDAX between periods, as well as guidance for the fourth quarter and full year 2022, are also included.
1In accordance with GAAP,
2Adjusted free cash flow is defined as cash flow from operations before working capital change, less capital expenditures, distributions to NCI and projected payments, quarterly dividend and accretive acquisitions.
ABOUT
As an independent oil and natural gas exploration and production company,
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified through the inclusion of words such as “aim”, “anticipate”, “believe”, “drive”, “estimate”, “expect”, “expressed confidence”, “forecast”, “future”, “goal”, “guidance”, “intend”, “may”, “objective”, “outlook”, “plan”, “position”, “potential”, “project”, “seek”, “should”, “strategy”, “target”, “will” or variations of such words and other similar expressions. These statements, which express management’s current views concerning future events, results and plans, are subject to inherent risks, uncertainties and assumptions (many of which are beyond our control) and are not guarantees of performance. In particular, statements, express or implied, concerning the company’s future operating results or activities and returns or the company's ability and decisions to replace or increase reserves, increase production, generate returns and rates of return, replace or increase drilling locations, reduce or otherwise control operating costs and expenditures, generate cash flows, pay down or refinance indebtedness, achieve, reach or otherwise meet initiatives, plans, goals, ambitions or targets with respect to emissions, safety matters or other ESG (environmental/social/governance) matters, or pay and/or increase dividends or make share repurchases and other capital allocation decisions are forward-looking statements. Factors that could cause one or more of these future events, results or plans not to occur as implied by any forward-looking statement, which consequently could cause actual results or activities to differ materially from the expectations expressed or implied by such forward-looking statements, include, but are not limited to: macro conditions in the oil and gas industry, including supply/demand levels, actions taken by major oil exporters and the resulting impacts on commodity prices; increased volatility or deterioration in the success rate of our exploration programs or in our ability to maintain production rates and replace reserves; reduced customer demand for our products due to environmental, regulatory, technological or other reasons; adverse foreign exchange movements; political and regulatory instability in the markets where we do business; the impact on our operations or market of health pandemics such as COVID-19 and related government responses; other natural hazards impacting our operations or markets; any other deterioration in our business, markets or prospects; any failure to obtain necessary regulatory approvals; any inability to service or refinance our outstanding debt or to access debt markets at acceptable prices; or adverse developments in the
NON-GAAP FINANCIAL MEASURES
This news release contains certain non-GAAP financial measures that management believes are useful tools for internal use and the investment community in evaluating Murphy Oil Corporation’s overall financial performance. These non-GAAP financial measures are broadly used to value and compare companies in the crude oil and natural gas industry. Not all companies define these measures in the same way. In addition, these non-GAAP financial measures are not a substitute for financial measures prepared in accordance with GAAP and should therefore be considered only as supplemental to such GAAP financial measures. Please see the attached schedules for reconciliations of the differences between the non-GAAP financial measures used in this news release and the most directly comparable GAAP financial measures.
SUMMARIZED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
|||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||
(Thousands of dollars, except per share amounts) |
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||
Revenues and other income |
|
|
|
|
|
|
|
||||||
Revenue from production |
$ |
1,120,909 |
|
|
687,549 |
|
|
$ |
3,101,736 |
|
|
2,038,905 |
|
Sales of purchased natural gas |
|
45,500 |
|
|
— |
|
|
|
132,285 |
|
|
— |
|
Total revenue from sales to customers |
|
1,166,409 |
|
|
687,549 |
|
|
|
3,234,021 |
|
|
2,038,905 |
|
Gain (Loss) on derivative instruments |
|
115,191 |
|
|
(59,164 |
) |
|
|
(308,654 |
) |
|
(499,794 |
) |
Gain on sale of assets and other income |
|
21,825 |
|
|
2,315 |
|
|
|
32,076 |
|
|
21,217 |
|
Total revenues and other income |
|
1,303,425 |
|
|
630,700 |
|
|
|
2,957,443 |
|
|
1,560,328 |
|
Costs and expenses |
|
|
|
|
|
|
|
||||||
Lease operating expenses |
|
198,710 |
|
|
130,131 |
|
|
|
482,887 |
|
|
403,708 |
|
Severance and ad valorem taxes |
|
15,140 |
|
|
11,670 |
|
|
|
47,340 |
|
|
32,215 |
|
Transportation, gathering and processing |
|
55,348 |
|
|
44,588 |
|
|
|
152,219 |
|
|
137,196 |
|
Costs of purchased natural gas |
|
43,622 |
|
|
— |
|
|
|
125,258 |
|
|
— |
|
Exploration expenses, including undeveloped lease amortization |
|
9,491 |
|
|
24,517 |
|
|
|
72,208 |
|
|
49,840 |
|
Selling and general expenses |
|
29,348 |
|
|
27,210 |
|
|
|
90,007 |
|
|
85,826 |
|
Depreciation, depletion and amortization |
|
214,521 |
|
|
189,806 |
|
|
|
574,501 |
|
|
615,372 |
|
Accretion of asset retirement obligations |
|
11,286 |
|
|
12,198 |
|
|
|
34,725 |
|
|
34,854 |
|
Other operating (income) expense |
|
(27,129 |
) |
|
(32,791 |
) |
|
|
115,726 |
|
|
58,616 |
|
Impairment of assets |
|
— |
|
|
— |
|
|
|
— |
|
|
171,296 |
|
Total costs and expenses |
|
550,337 |
|
|
407,329 |
|
|
|
1,694,871 |
|
|
1,588,923 |
|
Operating income (loss) from continuing operations |
|
753,088 |
|
|
223,371 |
|
|
|
1,262,572 |
|
|
(28,595 |
) |
Other income (loss) |
|
|
|
|
|
|
|
||||||
Other income (expense) |
|
18,301 |
|
|
(1,593 |
) |
|
|
21,114 |
|
|
(11,459 |
) |
Interest expense, net |
|
(37,440 |
) |
|
(46,925 |
) |
|
|
(116,102 |
) |
|
(178,399 |
) |
Total other loss |
|
(19,139 |
) |
|
(48,518 |
) |
|
|
(94,988 |
) |
|
(189,858 |
) |
Income (loss) from continuing operations before income taxes |
|
733,949 |
|
|
174,853 |
|
|
|
1,167,584 |
|
|
(218,453 |
) |
Income tax expense (benefit) |
|
159,451 |
|
|
36,838 |
|
|
|
247,574 |
|
|
(62,498 |
) |
Income (loss) from continuing operations |
|
574,498 |
|
|
138,015 |
|
|
|
920,010 |
|
|
(155,955 |
) |
Loss from discontinued operations, net of income taxes |
|
(422 |
) |
|
(706 |
) |
|
|
(1,916 |
) |
|
(600 |
) |
Net income (loss) including noncontrolling interest |
|
574,076 |
|
|
137,309 |
|
|
|
918,094 |
|
|
(156,555 |
) |
Less: Net income attributable to noncontrolling interest |
|
45,648 |
|
|
28,853 |
|
|
|
152,445 |
|
|
85,509 |
|
NET INCOME (LOSS) ATTRIBUTABLE TO |
$ |
528,428 |
|
|
108,456 |
|
|
$ |
765,649 |
|
|
(242,064 |
) |
|
|
|
|
|
|
|
|
||||||
INCOME (LOSS) PER COMMON SHARE – BASIC |
|
|
|
|
|
|
|
||||||
Continuing operations |
$ |
3.40 |
|
|
0.70 |
|
|
$ |
4.94 |
|
|
(1.57 |
) |
Discontinued operations |
|
— |
|
|
— |
|
|
|
(0.01 |
) |
|
— |
|
Net income (loss) |
$ |
3.40 |
|
|
0.70 |
|
|
$ |
4.93 |
|
|
(1.57 |
) |
|
|
|
|
|
|
|
|
||||||
INCOME (LOSS) PER COMMON SHARE – DILUTED |
|
|
|
|
|
|
|
||||||
Continuing operations |
$ |
3.36 |
|
|
0.70 |
|
|
$ |
4.87 |
|
|
(1.57 |
) |
Discontinued operations |
|
— |
|
|
— |
|
|
|
(0.01 |
) |
|
— |
|
Net income (loss) |
$ |
3.36 |
|
|
0.70 |
|
|
$ |
4.86 |
|
|
(1.57 |
) |
Cash dividends per Common share |
$ |
0.250 |
|
|
0.125 |
|
|
|
0.575 |
|
|
0.375 |
|
Average Common shares outstanding (thousands) |
|
|
|
|
|
|
|
||||||
Basic |
|
155,446 |
|
|
154,439 |
|
|
|
155,221 |
|
|
154,239 |
|
Diluted |
|
157,336 |
|
|
155,932 |
|
|
|
157,407 |
|
|
154,239 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) |
|||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||
(Thousands of dollars) |
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||
Operating Activities |
|
|
|
|
|
|
|
||||||
Net income (loss) including noncontrolling interest |
$ |
574,076 |
|
|
137,309 |
|
|
$ |
918,094 |
|
|
(156,555 |
) |
Adjustments to reconcile net income (loss) to net cash provided by continuing operations activities |
|
|
|
|
|
|
|
||||||
Loss from discontinued operations |
|
422 |
|
|
706 |
|
|
|
1,916 |
|
|
600 |
|
Depreciation, depletion and amortization |
|
214,521 |
|
|
189,806 |
|
|
|
574,501 |
|
|
615,372 |
|
Unsuccessful exploration well costs and previously suspended exploration costs |
|
1,122 |
|
|
17,266 |
|
|
|
35,224 |
|
|
17,899 |
|
Amortization of undeveloped leases |
|
2,671 |
|
|
4,990 |
|
|
|
10,651 |
|
|
13,872 |
|
Accretion of asset retirement obligations |
|
11,286 |
|
|
12,198 |
|
|
|
34,725 |
|
|
34,854 |
|
Deferred income tax (benefit) expense |
|
140,414 |
|
|
36,046 |
|
|
|
207,105 |
|
|
(65,149 |
) |
Mark to market (gain) loss on contingent consideration |
|
(31,367 |
) |
|
28,434 |
|
|
|
98,451 |
|
|
105,111 |
|
Mark to market (gain) loss on crude contracts |
|
(239,050 |
) |
|
(55,863 |
) |
|
|
(138,707 |
) |
|
228,497 |
|
Long-term non-cash compensation |
|
17,145 |
|
|
16,762 |
|
|
|
57,612 |
|
|
42,080 |
|
Impairment of assets |
|
— |
|
|
— |
|
|
|
— |
|
|
171,296 |
|
(Gain) from sale of assets |
|
(18,836 |
) |
|
— |
|
|
|
(18,871 |
) |
|
— |
|
Net decrease (increase) in noncash working capital |
|
61,724 |
|
|
90,765 |
|
|
|
(59,874 |
) |
|
117,330 |
|
Other operating activities, net |
|
(14,643 |
) |
|
(73,418 |
) |
|
|
(42,101 |
) |
|
(33,924 |
) |
Net cash provided by continuing operations activities |
|
719,485 |
|
|
405,001 |
|
|
|
1,678,726 |
|
|
1,091,283 |
|
Investing Activities |
|
|
|
|
|
|
|
||||||
Property additions and dry hole costs 1 |
|
(248,043 |
) |
|
(118,483 |
) |
|
|
(800,868 |
) |
|
(541,324 |
) |
Acquisition of oil and gas properties 1 |
|
(79,111 |
) |
|
(433 |
) |
|
|
(125,602 |
) |
|
(22,906 |
) |
Proceeds from sales of property, plant and equipment |
|
(2,176 |
) |
|
675 |
|
|
|
(2,129 |
) |
|
270,038 |
|
Property additions for King's Quay FPS |
|
— |
|
|
— |
|
|
|
— |
|
|
(17,734 |
) |
Net cash (required) by investing activities |
|
(329,330 |
) |
|
(118,241 |
) |
|
|
(928,599 |
) |
|
(311,926 |
) |
Financing Activities |
|
|
|
|
|
|
|
||||||
Borrowings on revolving credit facility |
|
200,000 |
|
|
— |
|
|
|
300,000 |
|
|
165,000 |
|
Repayment of revolving credit facility |
|
(200,000 |
) |
|
— |
|
|
|
(300,000 |
) |
|
(365,000 |
) |
Retirement of debt |
|
(246,032 |
) |
|
(150,000 |
) |
|
|
(446,032 |
) |
|
(726,358 |
) |
Debt issuance, net of cost |
|
— |
|
|
(61 |
) |
|
|
— |
|
|
541,913 |
|
Early redemption of debt cost |
|
(1,981 |
) |
|
(2,579 |
) |
|
|
(5,419 |
) |
|
(36,756 |
) |
Distributions to noncontrolling interest |
|
(50,419 |
) |
|
(25,642 |
) |
|
|
(145,273 |
) |
|
(100,880 |
) |
Contingent consideration payment |
|
— |
|
|
|
|
|
(81,742 |
) |
|
— |
|
|
Cash dividends paid |
|
(38,863 |
) |
|
(19,306 |
) |
|
|
(89,354 |
) |
|
(57,896 |
) |
Withholding tax on stock-based incentive awards |
|
(641 |
) |
|
(1,078 |
) |
|
|
(17,338 |
) |
|
(4,973 |
) |
Capital lease obligation payments |
|
(155 |
) |
|
(272 |
) |
|
|
(475 |
) |
|
(643 |
) |
Net cash (required) by financing activities |
|
(338,091 |
) |
|
(198,938 |
) |
|
|
(785,633 |
) |
|
(585,593 |
) |
Cash Flows from Discontinued Operations |
|
|
|
|
|
|
|
||||||
Operating activities |
|
(14,500 |
) |
|
— |
|
|
|
(14,500 |
) |
|
— |
|
Net cash (required) by discontinued operations |
|
(14,500 |
) |
|
— |
|
|
|
(14,500 |
) |
|
— |
|
Effect of exchange rate changes on cash and cash equivalents |
|
(3,585 |
) |
|
(855 |
) |
|
|
(5,180 |
) |
|
697 |
|
Net increase (decrease) in cash and cash equivalents |
|
33,979 |
|
|
86,967 |
|
|
|
(55,186 |
) |
|
194,461 |
|
Cash and cash equivalents at beginning of period |
|
432,019 |
|
|
418,100 |
|
|
|
521,184 |
|
|
310,606 |
|
Cash and cash equivalents at end of period |
$ |
465,998 |
|
|
505,067 |
|
|
$ |
465,998 |
|
|
505,067 |
|
¹ Certain prior-period amounts have been reclassified to conform to the current period presentation. |
SCHEDULE OF ADJUSTED INCOME (LOSS) (unaudited) |
|||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||
(Millions of dollars, except per share amounts) |
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||
Net income (loss) attributable to |
$ |
528.4 |
|
|
108.5 |
|
|
$ |
765.6 |
|
|
(242.1 |
) |
Discontinued operations loss |
|
0.4 |
|
|
0.7 |
|
|
|
1.9 |
|
|
0.6 |
|
Income (loss) from continuing operations |
|
528.8 |
|
|
109.2 |
|
|
|
767.5 |
|
|
(241.5 |
) |
Adjustments (after tax): |
|
|
|
|
|
|
|
||||||
Mark-to-market (gain) loss on derivative instruments |
|
(188.8 |
) |
|
(44.1 |
) |
|
|
(109.5 |
) |
|
180.5 |
|
Mark-to-market (gain) loss on contingent consideration |
|
(24.8 |
) |
|
22.4 |
|
|
|
77.5 |
|
|
83.0 |
|
Foreign exchange gain |
|
(15.5 |
) |
|
(2.0 |
) |
|
|
(21.4 |
) |
|
(1.1 |
) |
Gain on sale of assets |
|
(11.9 |
) |
|
— |
|
|
|
(11.9 |
) |
|
— |
|
Early redemption of debt cost |
|
1.9 |
|
|
2.7 |
|
|
|
5.3 |
|
|
31.9 |
|
Impairment of assets |
|
— |
|
|
— |
|
|
|
— |
|
|
128.0 |
|
Charges related to Kings Quay transaction |
|
— |
|
|
— |
|
|
|
— |
|
|
3.9 |
|
Unutilized rig charges |
|
— |
|
|
2.5 |
|
|
|
— |
|
|
6.7 |
|
Asset retirement obligation gains |
|
— |
|
|
(53.6 |
) |
|
|
— |
|
|
(53.6 |
) |
Total adjustments after taxes |
|
(239.1 |
) |
|
(72.1 |
) |
|
|
(60.0 |
) |
|
379.3 |
|
Adjusted income from continuing operations attributable to |
$ |
289.7 |
|
|
37.1 |
|
|
$ |
707.5 |
|
|
137.8 |
|
|
|
|
|
|
|
|
|
||||||
Adjusted income from continuing operations per average diluted share |
$ |
1.84 |
|
|
0.24 |
|
|
$ |
4.49 |
|
|
0.89 |
|
Non-GAAP Financial Measures
Presented above is a reconciliation of Net income (loss) to Adjusted income from continuing operations attributable to
Amounts shown above as reconciling items between Net income (loss) and Adjusted income 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 and exclude the share attributable to non-controlling interests.
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||||
(Millions of dollars) |
Pretax |
|
Tax |
|
Net |
|
Pretax |
|
Tax |
|
Net |
|||||||
Exploration & Production: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
$ |
(46.6 |
) |
|
9.9 |
|
(36.7 |
) |
|
$ |
83.2 |
|
|
(17.6 |
) |
|
65.6 |
|
Corporate |
|
(257.4 |
) |
|
55.0 |
|
(202.4 |
) |
|
|
(160.6 |
) |
|
35.0 |
|
|
(125.6 |
) |
Total adjustments |
$ |
(304.0 |
) |
|
64.9 |
|
(239.1 |
) |
|
$ |
(77.4 |
) |
|
17.4 |
|
|
(60.0 |
) |
SCHEDULE OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA) (unaudited) |
|||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||
(Millions of dollars, except per barrel of oil equivalents sold) |
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||
Net income (loss) attributable to |
$ |
528.4 |
|
|
108.5 |
|
|
$ |
765.6 |
|
|
(242.1 |
) |
Income tax expense (benefit) |
|
159.5 |
|
|
36.8 |
|
|
|
247.6 |
|
|
(62.5 |
) |
Interest expense, net |
|
37.4 |
|
|
46.9 |
|
|
|
116.1 |
|
|
178.4 |
|
Depreciation, depletion and amortization expense ¹ |
|
207.7 |
|
|
182.8 |
|
|
|
552.5 |
|
|
588.4 |
|
EBITDA attributable to |
$ |
933.0 |
|
|
375.0 |
|
|
$ |
1,681.8 |
|
|
462.2 |
|
Mark-to-market (gain) loss on derivative instruments |
|
(239.1 |
) |
|
(55.9 |
) |
|
|
(138.7 |
) |
|
228.5 |
|
Mark-to-market (gain) loss on contingent consideration |
|
(31.4 |
) |
|
28.4 |
|
|
|
98.5 |
|
|
105.1 |
|
Foreign exchange gain |
|
(20.7 |
) |
|
(2.8 |
) |
|
|
(28.7 |
) |
|
(1.5 |
) |
Gain on sale of assets ¹ |
|
(15.2 |
) |
|
— |
|
|
|
(15.2 |
) |
|
— |
|
Accretion of asset retirement obligations ¹ |
|
10.0 |
|
|
10.8 |
|
|
|
30.7 |
|
|
30.8 |
|
Discontinued operations loss |
|
0.4 |
|
|
0.7 |
|
|
|
1.9 |
|
|
0.6 |
|
Impairment of assets |
|
— |
|
|
— |
|
|
|
— |
|
|
171.3 |
|
Unutilized rig charges |
|
— |
|
|
3.2 |
|
|
|
— |
|
|
8.5 |
|
Asset retirement obligation gains |
|
— |
|
|
(71.8 |
) |
|
|
— |
|
|
(71.8 |
) |
Adjusted EBITDA attributable to |
$ |
637.1 |
|
|
287.6 |
|
|
$ |
1,630.3 |
|
|
933.7 |
|
|
|
|
|
|
|
|
|
||||||
Total barrels of oil equivalents sold from continuing operations attributable to |
|
17,525 |
|
|
14,219 |
|
|
|
44,973 |
|
|
43,536 |
|
|
|
|
|
|
|
|
|
||||||
Adjusted EBITDA per barrel of oil equivalents sold |
$ |
36.35 |
|
|
20.23 |
|
|
$ |
36.25 |
|
|
21.45 |
|
¹ Depreciation, depletion, and amortization expense, gain on sale of assets and accretion of asset retirement obligations used in the computation of Adjusted EBITDA exclude the portion attributable to the non-controlling interest (NCI). |
Non-GAAP Financial Measures
Presented above is a reconciliation of Net income (loss) 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 adjusted EBITDA per barrel of oil equivalent sold. Management believes adjusted EBITDA per barrel of oil equivalent sold is important information because it is used by management to evaluate the Company’s profitability of one barrel of oil equivalent sold in that period. Adjusted EBITDA per barrel of oil equivalent sold is a non-GAAP financial metric.
SCHEDULE OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION AND EXPLORATION (EBITDAX) (unaudited) |
|||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||
(Millions of dollars, except per barrel of oil equivalents sold) |
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||
Net income (loss) attributable to |
$ |
528.4 |
|
|
108.5 |
|
|
$ |
765.6 |
|
|
(242.1 |
) |
Income tax expense (benefit) |
|
159.5 |
|
|
36.8 |
|
|
|
247.6 |
|
|
(62.5 |
) |
Interest expense, net |
|
37.4 |
|
|
46.9 |
|
|
|
116.1 |
|
|
178.4 |
|
Depreciation, depletion and amortization expense ¹ |
|
207.7 |
|
|
182.8 |
|
|
|
552.5 |
|
|
588.4 |
|
EBITDA attributable to |
|
933.0 |
|
|
375.0 |
|
|
|
1,681.8 |
|
|
462.2 |
|
Exploration expenses |
|
9.5 |
|
|
24.5 |
|
|
|
72.2 |
|
|
49.8 |
|
EBITDAX attributable to |
|
942.5 |
|
|
399.5 |
|
|
|
1,754.0 |
|
|
512.0 |
|
Mark-to-market (gain) loss on derivative instruments |
|
(239.1 |
) |
|
(55.9 |
) |
|
|
(138.7 |
) |
|
228.5 |
|
Mark-to-market (gain) loss on contingent consideration |
|
(31.4 |
) |
|
28.4 |
|
|
|
98.5 |
|
|
105.1 |
|
Foreign exchange gain |
|
(20.7 |
) |
|
(2.8 |
) |
|
|
(28.7 |
) |
|
(1.5 |
) |
Gain on sale of assets ¹ |
|
(15.2 |
) |
|
— |
|
|
|
(15.2 |
) |
|
— |
|
Accretion of asset retirement obligations ¹ |
|
10.0 |
|
|
10.8 |
|
|
|
30.7 |
|
|
30.8 |
|
Discontinued operations loss |
|
0.4 |
|
|
0.7 |
|
|
|
1.9 |
|
|
0.6 |
|
Impairment of assets |
|
— |
|
|
— |
|
|
|
— |
|
|
171.3 |
|
Unutilized rig charges |
|
— |
|
|
3.2 |
|
|
|
— |
|
|
8.5 |
|
Asset retirement obligation gains |
|
— |
|
|
(71.8 |
) |
|
|
— |
|
|
(71.8 |
) |
Adjusted EBITDAX attributable to |
$ |
646.6 |
|
|
312.1 |
|
|
$ |
1,702.5 |
|
|
983.5 |
|
|
|
|
|
|
|
|
|
||||||
Total barrels of oil equivalents sold from continuing operations attributable to |
|
17,525 |
|
|
14,219 |
|
|
|
44,973 |
|
|
43,536 |
|
|
|
|
|
|
|
|
|
||||||
Adjusted EBITDAX per barrel of oil equivalents sold |
$ |
36.90 |
|
|
21.95 |
|
|
$ |
37.86 |
|
|
22.59 |
|
¹ Depreciation, depletion, and amortization expense, gain on sale of assets and accretion of asset retirement obligations used in the computation of adjusted EBITDAX exclude the portion attributable to the non-controlling interest (NCI). |
Non-GAAP Financial Measures
Presented above is a reconciliation of Net income (loss) 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 adjusted EBITDAX per barrel of oil equivalent sold. Management believes adjusted EBITDAX per barrel of oil equivalent sold is important information because it is used by management to evaluate the Company’s profitability of one barrel of oil equivalent sold in that period. Adjusted EBITDAX per barrel of oil equivalent sold is a non-GAAP financial metric.
FUNCTIONAL RESULTS OF OPERATIONS (unaudited) |
|||||||||
|
Three Months Ended
|
Three Months Ended
|
|||||||
(Millions of dollars) |
Revenues |
Income
|
Revenues |
Income
|
|||||
Exploration and production |
|
|
|
|
|||||
|
$ |
973.8 |
481.5 |
|
$ |
565.2 |
|
168.1 |
|
|
|
209.6 |
41.4 |
|
|
124.6 |
|
73.9 |
|
Other |
|
4.8 |
(5.8 |
) |
|
— |
|
(5.2 |
) |
Total exploration and production |
|
1,188.2 |
517.1 |
|
|
689.8 |
|
236.8 |
|
Corporate |
|
115.2 |
57.4 |
|
|
(59.1 |
) |
(98.8 |
) |
Continuing operations |
|
1,303.4 |
574.5 |
|
|
630.7 |
|
138.0 |
|
Discontinued operations, net of tax |
|
— |
(0.4 |
) |
|
— |
|
(0.7 |
) |
Total including noncontrolling interest |
$ |
1,303.4 |
574.1 |
|
$ |
630.7 |
|
137.3 |
|
Net income attributable to |
|
528.4 |
|
|
108.5 |
|
|
Nine Months Ended
|
Nine Months Ended
|
||||||||
(Millions of dollars) |
Revenues |
Income
|
Revenues |
Income
|
||||||
Exploration and production |
|
|
|
|
||||||
|
$ |
2,659.2 |
|
1,225.9 |
|
$ |
1,704.4 |
|
481.8 |
|
|
|
582.3 |
|
111.3 |
|
|
349.2 |
|
(37.7 |
) |
Other |
|
18.5 |
|
(53.5 |
) |
|
— |
|
(22.5 |
) |
Total exploration and production |
|
3,260.0 |
|
1,283.7 |
|
|
2,053.6 |
|
421.6 |
|
Corporate |
|
(302.6 |
) |
(363.7 |
) |
|
(493.3 |
) |
(577.6 |
) |
Continuing operations |
|
2,957.4 |
|
920.0 |
|
|
1,560.3 |
|
(156.0 |
) |
Discontinued operations, net of tax |
|
— |
|
(1.9 |
) |
|
— |
|
(0.6 |
) |
Total including noncontrolling interest |
$ |
2,957.4 |
|
918.1 |
|
$ |
1,560.3 |
|
(156.6 |
) |
Net income (loss) attributable to |
|
765.6 |
|
|
(242.1 |
) |
||||
¹ Includes results attributable to a noncontrolling interest in MP |
OIL AND GAS OPERATING RESULTS (unaudited)
THREE MONTHS ENDED |
|||||||||
(Millions of dollars) |
United
|
|
Other |
Total |
|||||
Three Months Ended |
|
|
|
|
|||||
Oil and gas sales and other operating revenues |
$ |
973.8 |
|
164.1 |
|
4.8 |
|
1,142.7 |
|
Sales of purchased natural gas |
|
— |
|
45.5 |
|
— |
|
45.5 |
|
Lease operating expenses |
|
158.8 |
|
39.6 |
|
0.3 |
|
198.7 |
|
Severance and ad valorem taxes |
|
14.9 |
|
0.3 |
|
— |
|
15.2 |
|
Transportation, gathering and processing |
|
38.5 |
|
16.9 |
|
— |
|
55.4 |
|
Costs of purchased natural gas |
|
— |
|
43.7 |
|
— |
|
43.7 |
|
Depreciation, depletion and amortization |
|
169.4 |
|
40.9 |
|
0.9 |
|
211.2 |
|
Accretion of asset retirement obligations |
|
8.8 |
|
2.4 |
|
— |
|
11.2 |
|
Exploration expenses |
|
|
|
|
|||||
Dry holes and previously suspended exploration costs |
|
0.2 |
|
— |
|
0.9 |
|
1.1 |
|
Geological and geophysical |
|
1.1 |
|
0.1 |
|
0.4 |
|
1.6 |
|
Other exploration |
|
1.5 |
|
— |
|
2.6 |
|
4.1 |
|
|
|
2.8 |
|
0.1 |
|
3.9 |
|
6.8 |
|
Undeveloped lease amortization |
|
2.0 |
|
0.1 |
|
0.6 |
|
2.7 |
|
Total exploration expenses |
|
4.8 |
|
0.2 |
|
4.5 |
|
9.5 |
|
Selling and general expenses |
|
2.6 |
|
5.2 |
|
2.0 |
|
9.8 |
|
Other |
|
(27.7 |
) |
3.7 |
|
0.6 |
|
(23.4 |
) |
Results of operations before taxes |
|
603.7 |
|
56.7 |
|
(3.5 |
) |
656.9 |
|
Income tax provisions |
|
122.2 |
|
15.3 |
|
2.3 |
|
139.8 |
|
Results of operations (excluding Corporate segment) |
$ |
481.5 |
|
41.4 |
|
(5.8 |
) |
517.1 |
|
|
|
|
|
|
|||||
Three Months Ended |
|
|
|
|
|||||
Oil and gas sales and other operating revenues |
$ |
565.2 |
|
124.6 |
|
— |
|
689.8 |
|
Lease operating expenses |
|
96.7 |
|
33.4 |
|
0.1 |
|
130.2 |
|
Severance and ad valorem taxes |
|
10.8 |
|
0.8 |
|
— |
|
11.6 |
|
Transportation, gathering and processing |
|
28.4 |
|
16.2 |
|
— |
|
44.6 |
|
Depreciation, depletion and amortization |
|
147.0 |
|
39.7 |
|
0.1 |
|
186.8 |
|
Accretion of asset retirement obligations |
|
9.3 |
|
2.9 |
|
— |
|
12.2 |
|
Exploration expenses |
|
|
|
|
|||||
Dry holes and previously suspended exploration costs |
|
17.3 |
|
— |
|
— |
|
17.3 |
|
Geological and geophysical |
|
— |
|
— |
|
0.3 |
|
0.3 |
|
Other exploration |
|
1.3 |
|
0.1 |
|
0.5 |
|
1.9 |
|
|
|
18.6 |
|
0.1 |
|
0.8 |
|
19.5 |
|
Undeveloped lease amortization |
|
3.1 |
|
0.1 |
|
1.8 |
|
5.0 |
|
Total exploration expenses |
|
21.7 |
|
0.2 |
|
2.6 |
|
24.5 |
|
Selling and general expenses |
|
4.2 |
|
4.0 |
|
1.2 |
|
9.4 |
|
Other |
|
39.1 |
|
(71.7 |
) |
2.0 |
|
(30.6 |
) |
Results of operations before taxes |
|
208.0 |
|
99.1 |
|
(6.0 |
) |
301.1 |
|
Income tax provisions |
|
39.9 |
|
25.2 |
|
(0.8 |
) |
64.3 |
|
Results of operations (excluding Corporate segment) |
$ |
168.1 |
|
73.9 |
|
(5.2 |
) |
236.8 |
|
¹ Includes results attributable to a noncontrolling interest in MP GOM. |
OIL AND GAS OPERATING RESULTS (unaudited)
NINE MONTHS ENDED |
||||||||
(Millions of dollars) |
United States 1 |
|
Other |
Total |
||||
Nine Months Ended |
|
|
|
|
||||
Oil and gas sales and other operating revenues |
$ |
2,659.0 |
|
450.2 |
|
18.5 |
|
3,127.7 |
Sales of purchased natural gas |
|
0.2 |
|
132.1 |
|
— |
|
132.3 |
Lease operating expenses |
|
368.2 |
|
113.4 |
|
1.2 |
|
482.8 |
Severance and ad valorem taxes |
|
46.4 |
|
1.0 |
|
— |
|
47.4 |
Transportation, gathering and processing |
|
100.0 |
|
52.2 |
|
— |
|
152.2 |
Costs of purchased natural gas |
|
0.2 |
|
125.1 |
|
— |
|
125.3 |
Depreciation, depletion and amortization |
|
449.6 |
|
110.7 |
|
4.4 |
|
564.7 |
Accretion of asset retirement obligations |
|
27.3 |
|
7.3 |
|
0.1 |
|
34.7 |
Exploration expenses |
|
|
|
|
||||
Dry holes and previously suspended exploration costs |
|
(0.5 |
) |
— |
|
35.7 |
|
35.2 |
Geological and geophysical |
|
3.7 |
|
0.2 |
|
1.4 |
|
5.3 |
Other exploration |
|
5.9 |
|
0.4 |
|
14.7 |
|
21.0 |
|
|
9.1 |
|
0.6 |
|
51.8 |
|
61.5 |
Undeveloped lease amortization |
|
6.7 |
|
0.2 |
|
3.8 |
|
10.7 |
Total exploration expenses |
|
15.8 |
|
0.8 |
|
55.6 |
|
72.2 |
Selling and general expenses |
|
14.1 |
|
14.1 |
|
6.5 |
|
34.7 |
Other |
|
110.4 |
|
6.5 |
|
1.0 |
|
117.9 |
Results of operations before taxes |
|
1,527.2 |
|
151.2 |
|
(50.3 |
) |
1,628.1 |
Income tax provisions |
|
301.3 |
|
39.9 |
|
3.2 |
|
344.4 |
Results of operations (excluding Corporate segment) |
$ |
1,225.9 |
|
111.3 |
|
(53.5 |
) |
1,283.7 |
|
|
|
|
|
||||
Nine Months Ended |
|
|
|
|
||||
Oil and gas sales and other operating revenues |
$ |
1,704.4 |
|
349.2 |
|
— |
|
2,053.6 |
Lease operating expenses |
|
303.3 |
|
100.0 |
|
0.4 |
|
403.7 |
Severance and ad valorem taxes |
|
30.6 |
|
1.6 |
|
— |
|
32.2 |
Transportation, gathering and processing |
|
90.5 |
|
46.7 |
|
— |
|
137.2 |
Depreciation, depletion and amortization |
|
476.6 |
|
128.0 |
|
1.1 |
|
605.7 |
Accretion of asset retirement obligations |
|
27.5 |
|
7.4 |
|
— |
|
34.9 |
Impairment of assets |
|
— |
|
171.3 |
|
— |
|
171.3 |
Exploration expenses |
|
|
|
|
||||
Dry holes and previously suspended exploration costs |
|
17.9 |
|
— |
|
— |
|
17.9 |
Geological and geophysical |
|
2.7 |
|
— |
|
1.3 |
|
4.0 |
Other exploration |
|
4.2 |
|
0.2 |
|
9.6 |
|
14.0 |
|
|
24.8 |
|
0.2 |
|
10.9 |
|
35.9 |
Undeveloped lease amortization |
|
7.9 |
|
0.2 |
|
5.8 |
|
13.9 |
Total exploration expenses |
|
32.7 |
|
0.4 |
|
16.7 |
|
49.8 |
Selling and general expenses |
|
15.0 |
|
12.0 |
|
4.7 |
|
31.7 |
Other |
|
133.5 |
|
(67.7 |
) |
(1.2 |
) |
64.6 |
Results of operations before taxes |
|
594.7 |
|
(50.5 |
) |
(21.7 |
) |
522.5 |
Income tax provisions (benefits) |
|
112.9 |
|
(12.8 |
) |
0.8 |
|
100.9 |
Results of operations (excluding Corporate segment) |
$ |
481.8 |
|
(37.7 |
) |
(22.5 |
) |
421.6 |
¹ Includes results attributable to a noncontrolling interest in MP GOM. |
PRODUCTION-RELATED EXPENSES (unaudited) |
|||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||
(Dollars per barrel of oil equivalents sold) |
2022 |
|
2021 |
|
2022 |
|
2021 |
||
|
|
|
|
|
|
|
|
||
Lease operating expense |
$ |
9.31 |
|
8.85 |
|
$ |
10.87 |
|
8.50 |
Severance and ad valorem taxes |
|
3.97 |
|
3.00 |
|
|
4.67 |
|
2.95 |
Depreciation, depletion and amortization (DD&A) expense |
|
25.57 |
|
27.01 |
|
|
25.63 |
|
28.02 |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
Lease operating expense |
$ |
15.92 |
|
11.13 |
|
$ |
12.62 |
|
10.55 |
Severance and ad valorem taxes |
|
0.06 |
|
0.08 |
|
|
0.08 |
|
0.08 |
DD&A expense |
|
9.82 |
|
9.16 |
|
|
9.75 |
|
9.63 |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
Lease operating expense |
$ |
5.48 |
|
5.59 |
|
$ |
6.46 |
|
6.02 |
Severance and ad valorem taxes |
|
0.05 |
|
0.17 |
|
|
0.06 |
|
0.11 |
DD&A expense |
|
5.73 |
|
6.87 |
|
|
6.36 |
|
7.93 |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
Lease operating expense |
$ |
15.43 |
|
13.25 |
|
$ |
14.19 |
|
12.72 |
DD&A expense |
|
14.39 |
|
11.53 |
|
|
12.72 |
|
13.08 |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
Lease operating expense |
$ |
10.88 |
|
8.69 |
|
$ |
10.22 |
|
8.74 |
Severance and ad valorem taxes |
|
0.83 |
|
0.78 |
|
|
1.00 |
|
0.70 |
DD&A expense |
|
11.75 |
|
12.67 |
|
|
12.15 |
|
13.33 |
|
|
|
|
|
|
|
|
||
Total oil and gas continuing operations – excluding noncontrolling interest |
|
|
|
|
|
|
|
||
Lease operating expense |
$ |
10.64 |
|
8.51 |
|
$ |
10.07 |
|
8.53 |
Severance and ad valorem taxes |
|
0.86 |
|
0.82 |
|
|
1.05 |
|
0.74 |
DD&A expense |
|
11.85 |
|
12.84 |
|
|
12.29 |
|
13.51 |
CAPITAL EXPENDITURES (unaudited) |
||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||
(Millions of dollars) |
2022 |
|
2021 |
|
2022 |
|
2021 |
|||
Exploration and production |
|
|
|
|
|
|
|
|||
|
$ |
259.5 |
|
111.4 |
|
|
$ |
677.7 |
|
473.8 |
|
|
25.0 |
|
(5.2 |
) |
|
|
175.9 |
|
67.1 |
Other |
|
8.2 |
|
0.4 |
|
|
|
50.5 |
|
15.1 |
Total |
|
292.7 |
|
106.6 |
|
|
|
904.1 |
|
556.0 |
|
|
|
|
|
|
|
|
|||
Corporate |
|
3.4 |
|
3.9 |
|
|
|
13.9 |
|
12.7 |
Total capital expenditures - continuing operations 1 |
|
296.1 |
|
110.5 |
|
|
|
918.0 |
|
568.7 |
|
|
|
|
|
|
|
|
|||
Charged to exploration expenses 2 |
|
|
|
|
|
|
|
|||
|
|
2.8 |
|
18.6 |
|
|
|
9.1 |
|
24.8 |
|
|
0.1 |
|
0.1 |
|
|
|
0.6 |
|
0.2 |
Other |
|
3.9 |
|
0.8 |
|
|
|
51.8 |
|
10.9 |
Total charged to exploration expenses - continuing operations |
|
6.8 |
|
19.5 |
|
|
|
61.5 |
|
35.9 |
|
|
|
|
|
|
|
|
|||
Total capitalized |
$ |
289.3 |
|
91.0 |
|
|
$ |
856.5 |
|
532.8 |
¹ For the three months ended
² For the three and nine months ended |
CONSOLIDATED BALANCE SHEETS (unaudited) |
||||||
(Millions of dollars) |
|
|
|
|||
ASSETS |
|
|
|
|||
Current assets |
|
|
|
|||
Cash and cash equivalents |
$ |
466.0 |
|
|
521.2 |
|
Accounts receivable |
|
385.2 |
|
|
258.2 |
|
Inventories |
|
53.3 |
|
|
54.2 |
|
Prepaid expenses |
|
39.6 |
|
|
31.9 |
|
Assets held for sale |
|
7.5 |
|
|
15.5 |
|
Total current assets |
|
951.6 |
|
|
880.9 |
|
Property, plant and equipment, at cost |
|
8,249.4 |
|
|
8,127.9 |
|
Operating lease assets |
|
798.1 |
|
|
881.4 |
|
Deferred income taxes |
|
196.9 |
|
|
385.5 |
|
Deferred charges and other assets |
|
33.2 |
|
|
29.3 |
|
Total assets |
$ |
10,229.2 |
|
|
10,304.9 |
|
LIABILITIES AND EQUITY |
|
|
|
|||
Current liabilities |
|
|
|
|||
Current maturities of long-term debt, finance lease |
$ |
0.7 |
|
|
0.7 |
|
Accounts payable |
|
539.6 |
|
|
623.1 |
|
Income taxes payable |
|
38.7 |
|
|
20.0 |
|
Other taxes payable |
|
30.9 |
|
|
20.3 |
|
Operating lease liabilities |
|
166.9 |
|
|
139.4 |
|
Other accrued liabilities |
|
435.7 |
|
|
360.9 |
|
Total current liabilities |
|
1,212.5 |
|
|
1,164.3 |
|
Long-term debt, including finance lease obligation |
|
2,023.0 |
|
|
2,465.4 |
|
Asset retirement obligations |
|
848.6 |
|
|
839.8 |
|
Deferred credits and other liabilities |
|
429.2 |
|
|
570.6 |
|
Non-current operating lease liabilities |
|
648.3 |
|
|
761.2 |
|
Deferred income taxes |
|
188.0 |
|
|
182.9 |
|
Total liabilities |
|
5,349.6 |
|
|
5,984.1 |
|
Equity |
|
|
|
|||
Common Stock, par |
|
195.1 |
|
|
195.1 |
|
Capital in excess of par value |
|
887.7 |
|
|
926.7 |
|
Retained earnings |
|
5,895.0 |
|
|
5,218.7 |
|
Accumulated other comprehensive loss |
|
(653.8 |
) |
|
(527.7 |
) |
|
|
(1,615.0 |
) |
|
(1,655.4 |
) |
Murphy Shareholders' Equity |
|
4,708.9 |
|
|
4,157.3 |
|
Noncontrolling interest |
|
170.7 |
|
|
163.5 |
|
Total equity |
|
4,879.6 |
|
|
4,320.8 |
|
Total liabilities and equity |
$ |
10,229.2 |
|
|
10,304.9 |
|
PRODUCTION SUMMARY (unaudited) |
||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
Barrels per day unless otherwise noted |
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||
Net crude oil and condensate |
|
|
|
|
|
|
|
|||||
|
Onshore |
28,522 |
|
|
26,193 |
|
|
25,082 |
|
|
26,552 |
|
|
|
68,315 |
|
|
53,011 |
|
|
62,380 |
|
|
61,905 |
|
|
Onshore |
3,891 |
|
|
4,963 |
|
|
4,228 |
|
|
5,598 |
|
|
Offshore |
2,171 |
|
|
3,779 |
|
|
2,869 |
|
|
4,016 |
|
Other |
|
487 |
|
|
299 |
|
|
716 |
|
|
243 |
|
Total net crude oil and condensate - continuing operations |
103,386 |
|
|
88,245 |
|
|
95,275 |
|
|
98,314 |
|
|
Net natural gas liquids |
|
|
|
|
|
|
|
|
||||
|
Onshore |
5,782 |
|
|
5,847 |
|
|
5,268 |
|
|
5,043 |
|
|
|
4,780 |
|
|
3,459 |
|
|
4,411 |
|
|
4,296 |
|
|
Onshore |
986 |
|
|
1,085 |
|
|
942 |
|
|
1,159 |
|
Total net natural gas liquids - continuing operations |
11,548 |
|
|
10,391 |
|
|
10,621 |
|
|
10,498 |
|
|
Net natural gas – thousands of cubic feet per day |
|
|
|
|
|
|
|
|||||
|
Onshore |
30,054 |
|
|
31,478 |
|
|
29,032 |
|
|
27,750 |
|
|
|
65,319 |
|
|
46,339 |
|
|
61,727 |
|
|
63,557 |
|
|
Onshore |
392,483 |
|
|
309,709 |
|
|
313,422 |
|
|
277,077 |
|
Total net natural gas - continuing operations |
487,856 |
|
|
387,526 |
|
|
404,181 |
|
|
368,384 |
|
|
Total net hydrocarbons - continuing operations including NCI 2,3 |
196,243 |
|
|
163,224 |
|
|
173,260 |
|
|
170,209 |
|
|
Noncontrolling interest |
|
|
|
|
|
|
|
|
||||
Net crude oil and condensate – barrels per day |
(7,125 |
) |
|
(7,546 |
) |
|
(7,735 |
) |
|
(8,834 |
) |
|
Net natural gas liquids – barrels per day |
(264 |
) |
|
(243 |
) |
|
(290 |
) |
|
(322 |
) |
|
Net natural gas – thousands of cubic feet per day 2 |
(2,202 |
) |
|
(2,331 |
) |
|
(2,628 |
) |
|
(3,498 |
) |
|
Total noncontrolling interest |
(7,756 |
) |
|
(8,178 |
) |
|
(8,463 |
) |
|
(9,739 |
) |
|
Total net hydrocarbons - continuing operations excluding NCI 2,3 |
188,487 |
|
|
155,046 |
|
|
164,797 |
|
|
160,470 |
|
|
¹ Includes net volumes attributable to a noncontrolling interest in MP GOM. ² Natural gas converted on an energy equivalent basis of 6:1. ³ NCI – noncontrolling interest in MP GOM. |
WEIGHTED AVERAGE PRICE SUMMARY (unaudited) |
|||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
|||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||
Crude oil and condensate – dollars per barrel |
|
|
|
|
|
|
|
|
|||
|
Onshore |
$ |
94.33 |
|
69.30 |
|
$ |
99.92 |
|
$ |
64.16 |
|
|
|
92.96 |
|
68.93 |
|
|
99.04 |
|
|
64.44 |
|
Onshore |
|
82.25 |
|
63.76 |
|
|
92.31 |
|
|
58.70 |
|
Offshore |
|
111.76 |
|
72.64 |
|
|
112.93 |
|
|
68.93 |
Other |
|
|
117.18 |
|
— |
|
|
92.91 |
|
|
— |
Natural gas liquids – dollars per barrel |
|
|
|
|
|
|
|
|
|||
|
Onshore |
|
34.33 |
|
30.37 |
|
|
36.83 |
|
|
24.29 |
|
|
|
36.56 |
|
34.71 |
|
|
39.99 |
|
|
27.17 |
|
Onshore |
|
54.40 |
|
45.12 |
|
|
57.53 |
|
|
37.05 |
Natural gas – dollars per thousand cubic feet |
|
|
|
|
|
|
|
|
|||
|
Onshore |
|
7.62 |
|
3.85 |
|
|
6.49 |
|
|
3.23 |
|
|
|
8.68 |
|
4.09 |
|
|
7.23 |
|
|
3.28 |
|
Onshore |
|
2.75 |
|
2.47 |
|
|
2.70 |
|
|
2.33 |
¹ Prices include the effect of noncontrolling interest in MP GOM.
² |
FIXED PRICE FORWARD SALES AND COMMODITY HEDGE POSITIONS (unaudited)
AS OF |
||||||||||||
|
|
|
|
|
|
Volumes (MMcf/d) |
|
Price/Mcf |
|
Remaining Period |
||
Area |
|
Commodity |
|
Type 1 |
|
|
|
Start Date |
|
End Date |
||
|
|
Natural Gas |
|
Fixed price forward sales |
|
247 |
|
|
|
|
|
|
|
|
Natural Gas |
|
Fixed price forward sales |
|
266 |
|
|
|
|
|
|
|
|
Natural Gas |
|
Fixed price forward sales |
|
269 |
|
|
|
|
|
|
|
|
Natural Gas |
|
Fixed price forward sales |
|
250 |
|
|
|
|
|
|
|
|
Natural Gas |
|
Fixed price forward sales |
|
162 |
|
|
|
|
|
|
|
|
Natural Gas |
|
Fixed price forward sales |
|
45 |
|
|
|
|
|
|
|
|
Natural Gas |
|
Fixed price forward sales |
|
25 |
|
|
|
|
|
|
|
|
Natural Gas |
|
Fixed price forward sales |
|
15 |
|
|
|
|
|
|
¹ Fixed price forward sale contracts are accounted for as normal sales and purchases for accounting purposes. |
|
|
Commodity |
|
Type |
|
Volumes
|
|
Price
|
|
Remaining Period |
||
Area |
|
|
|
|
|
Start Date |
|
End Date |
||||
|
|
WTI² |
|
Fixed price derivative swap |
|
20,000 |
|
|
|
|
|
|
|
|
|
|
|
|
Volumes
|
|
Average
|
|
Average
|
|
Remaining Period |
||
Area |
|
Commodity |
|
Type |
|
|
|
|
Start Date |
|
End Date |
|||
|
|
WTI² |
|
Derivative collars |
|
25,000 |
|
|
|
|
|
|
|
|
² West Texas Intermediate |
FOURTH QUARTER 2022 GUIDANCE |
|||||||
|
Oil
|
|
NGLs
|
|
Gas
|
|
Total
|
Production – net |
|
|
|
|
|
|
|
|
23,500 |
|
5,100 |
|
27,800 |
|
33,200 |
– |
68,000 |
|
5,600 |
|
70,500 |
|
85,400 |
|
— |
|
— |
|
296,100 |
|
49,400 |
– Kaybob Duvernay and |
3,500 |
|
700 |
|
12,600 |
|
6,300 |
– Offshore |
2,500 |
|
— |
|
— |
|
2,500 |
Other |
700 |
|
— |
|
— |
|
700 |
|
|
|
|
|
|
|
|
Total net production (BOEPD) - excluding NCI 1 |
173,500 to 181,500 |
||||||
|
|
|
|
|
|
|
|
Exploration expense ($ millions) |
|
||||||
|
|
|
|
|
|
|
|
FULL YEAR 2022 GUIDANCE |
|||||||
Total net production (BOEPD) - excluding NCI 2 |
164,000 to 172,000 |
||||||
Capital expenditures – excluding NCI ($ millions) 3 |
|
||||||
|
|
||||||
¹ Excludes noncontrolling interest of MP GOM of 7,300 BOPD of oil, 400 BOPD of NGLs, and 2,600 MCFD gas. |
|||||||
² Excludes noncontrolling interest of MP GOM of 7,600 BOPD of oil, 300 BOPD of NGLs, and 2,700 MCFD gas. |
|||||||
³ Excludes acquisitions of approximately |
View source version on businesswire.com: https://www.businesswire.com/news/home/20221101006396/en/
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