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Murphy Oil Corporation Announces Third Quarter Financial and Operating Results

Positioned for Success Following Second Quarter Increase to Gulf of Mexico Position, With Third Quarter Malaysia Portfolio Divestiture, $1.9 Billion Debt Repayment and Completion of $500 Million Share Repurchase Program

EL DORADO, Ark.--(BUSINESS WIRE)--Oct. 31, 2019-- Murphy Oil Corporation (NYSE: MUR) today reported financial and operating results for the quarter ended September 30, 2019, including net income attributable to Murphy of $1.1 billion, or $6.76 per diluted share. Adjusted net income, which excludes discontinued operations and other one-off items, was $57 million, or $0.36 per diluted share.

As previously announced, Murphy closed the Malaysia asset divestiture in the third quarter for $2.0 billion in cash proceeds. These assets were reported as “discontinued operations” and classified as “held for sale” for financial reporting purposes beginning with the first quarter 2019. Unless otherwise noted, the financial and operating highlights and metrics discussed in this commentary exclude discontinued operations and noncontrolling interest.1

Operating highlights for the third quarter:

  • Produced 192 thousand barrels of oil equivalent per day (MBOEPD), which includes 113 thousand barrels of oil per day (MBOPD) – Murphy’s highest oil volumes since first quarter 2015, excluding Syncrude and heavy oil
  • Increased Eagle Ford Shale production by 15 percent from second quarter 2019 to 51 MBOEPD, with oil volumes increasing 22 percent during the same period
  • Reduced lease operating expenses to $7.68 per barrel of oil equivalent (BOE), driven by improvements in the Eagle Ford Shale and the Gulf of Mexico
  • Sanctioned St. Malo waterflood project in the Gulf of Mexico, which is expected to contribute an estimated ultimate recovery of 30 to 35 million barrels of oil equivalent (MMBOE) contingent resources net to Murphy
  • Expanded exploration acreage in Brazil with a farm-in to three blocks in Potiguar Basin and successful bid on three additional blocks in Sergipe-Alagoas Basin, bringing the total in Brazil to 12 blocks

Financial highlights for the third quarter:

  • Generated adjusted EBITDA of $438 million in the quarter, the highest level since fourth quarter 2014
  • Delivered cash flow in excess of property additions and dry hole costs of $134 million
  • Repaid borrowings of $1.4 billion under the $1.6 billion senior unsecured revolving credit facility and $500 million senior unsecured term loan with proceeds from the Malaysia asset divestiture
  • Continued the $500 million share repurchase program, which was completed in the fourth quarter, leading to a total share count reduction since April 2019 of 20.7 million shares, or approximately 12 percent of outstanding shares, to 152.9 million shares as of October 2019
  • Entered into additional crude oil commodity hedge contracts, resulting in 35 MBOPD hedged for fourth quarter 2019 at an average price of $60.51 per BOE, and subsequent to the third quarter, 45 MBOPD hedged for 2020 at an average price of $56.42 per BOE

THIRD QUARTER 2019 RESULTS

The company recorded net income, attributable to Murphy, of $1.1 billion, or $6.76 per diluted share, for the third quarter 2019. The results include a gain on the divestiture of Malaysia assets of $960 million. Adjusted net income, which excludes both the results of discontinued operations and certain other items that affect comparability of results between periods, was $57 million, or $0.36 per diluted share for the same period. The adjusted income from continuing operations excludes both the gain on the Malaysian asset sale and the following primary after-tax items: a $39 million mark-to-market non-cash gain on crude oil derivatives and a $22 million mark-to-market non-cash gain on contingent consideration. Details for third quarter results can be found in the attached schedules.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations attributable to Murphy was $438 million, or $24.65 per barrel of oil equivalent (BOE) sold. Adjusted earnings before interest, tax, depreciation, amortization and exploration expenses (EBITDAX) from continuing operations attributable to Murphy was $450 million, or $25.35 per BOE sold. Details for third quarter EBITDA and EBITDAX reconciliations can be found in the attached schedules.

Beginning with the third quarter 2019, Murphy is disclosing weighted average realized prices excluding transportation, gathering and processing expenses. A separate line item on the income statement reports transportation, gathering and processing expenses. Comparative periods have been conformed to current presentation.

Murphy continued to realize premium pricing in the third quarter 2019, with Eagle Ford Shale oil prices registering above $58 per barrel and North America offshore prices approaching $61 per barrel, both excluding the impact of commodity hedges. In the third quarter, more than 94 percent of the company’s oil volumes were sold at a premium to the average West Texas Intermediate (WTI) price of $56.45 per barrel.

Third quarter production averaged 192 MBOEPD with 66 percent liquids. Overall, production was impacted by non-operated, unplanned downtime of 2,600 BOEPD in offshore Canada and 1,400 BOEPD in the Gulf of Mexico, partially offset by higher than anticipated volumes of 500 BOEPD from operated Gulf of Mexico assets and 1,000 BOEPD in Kaybob Duvernay. Details for third quarter production can be found in the attached schedules.

“Our company is performing exceptionally well. With a significant gain on sale of nearly $1.0 billion, we have the Malaysia divestiture behind us and are pleased to complete our first quarter as a transformed and streamlined Murphy. As an oil-weighted, Western Hemisphere focused company, our primary operations in the Gulf of Mexico and Eagle Ford Shale continue to achieve low operating costs and strong realized prices, driving healthy EBITDA given their prime access to premium markets,” stated Roger W. Jenkins, President and Chief Executive Officer.

FINANCIAL POSITION

Murphy repurchased an additional $106 million of outstanding shares in the third quarter, with the remaining $94 million under the authorized $500 million stock repurchase plan acquired in the fourth quarter, marking completion of the program. Since the beginning of the program on April 30, 2019, the company has reduced its outstanding shares by approximately 12 percent, or 20.7 million shares, from 173.6 million shares to 152.9 million shares outstanding as of October 4, 2019.

The company had $2.8 billion of outstanding long-term, fixed-rate notes at the end of third quarter 2019. The fixed-rate notes had a weighted average maturity of 7 years and a weighted average coupon of 5.5 percent.

As of September 30, 2019, Murphy had approximately $2.0 billion of liquidity, comprised of full availability under the $1.6 billion senior unsecured credit facility and $435 million of cash and cash equivalents.

“Murphy has meaningfully de-levered its balance sheet and improved liquidity this quarter with cash from the Malaysia asset sale as part of ongoing portfolio transformation,” said Jenkins. “As promised, we consistently return cash through our substantial dividend and reliably delivered on our share repurchase program ahead of schedule, supporting Murphy’s tenet of benefitting our shareholders.”

REGIONAL OPERATIONS SUMMARY

North American Onshore

The North American onshore business produced approximately 109 MBOEPD in the third quarter.

Eagle Ford Shale – Production for the quarter averaged approximately 51 MBOEPD, comprised of 80 percent oil. Murphy drilled and completed 10 Tilden wells and 15 Catarina wells during the quarter. The Tilden wells were in the Lower Eagle Ford Shale and had average gross 30-day (IP30) rates of 1,300 BOEPD. The Catarina wells were brought online late in the quarter with production continuing to ramp up.

Tupper Montney – Natural gas production for the quarter averaged 269 million cubic feet per day (MMCFD). No further activity is planned for the remainder of the year.

Kaybob Duvernay – During the quarter, production averaged approximately 11 MBOEPD, comprised of 69 percent liquids. Murphy recommenced drilling in the third quarter to satisfy lease maintenance requirements, with 16 wells expected to be completed and brought online in 2020.

Global Offshore

The offshore business produced 83 MBOEPD for the third quarter, comprised of 79 percent oil. This excludes production from discontinued operations and noncontrolling interest. Gulf of Mexico production in the quarter averaged 78 MBOEPD, consisting of 77 percent oil.

Canada offshore production averaged 4 MBOEPD, comprised of 100 percent oil.

Gulf of Mexico– In the third quarter, Murphy successfully completed the Nearly Headless Nick well (Mississippi Canyon 387), which will be tied back to the Delta House facility, and completed a workover on a Medusa well, with first oil expected in the fourth quarter from both wells. The company also tied-in the new Dalmatian #2 well (Desoto Canyon 4), which began flowing late in the quarter, as well as the non-operated Lucius #3 well (Keathley Canyon 875).

As previously announced, Murphy and its partners sanctioned the St. Malo waterflood project in the resource-rich Wilcox formation in the deepwater Gulf of Mexico. This project is expected to increase total estimated ultimate recovery by 30 to 35 MMBOE contingent resources net to Murphy.

Fourth quarter activity includes the previously announced workover project at the Chinook #5 well (Walker Ridge 425) and the launch of a three-well rig campaign at Front Runner.

Southeast AsiaBrunei production was approximately 350 BOEPD for the quarter. Beginning in the third quarter, these assets are classified as “held for sale” for financial reporting purposes.

EXPLORATION

Gulf of Mexico Exploration – In the third quarter, Murphy successfully bid on Green Canyon 522 block, which provides additional exploration upside given its location near the newly acquired Khaleesi/Mormont field development.

Brazil Exploration – During the quarter, Murphy successfully bid on three additional blocks in the Sergipe-Alagoas Basin (blocks 505, 575 and 637), increasing total gross acreage in the basin to 1.7 million acres across nine total blocks. The company holds a 20 percent WI, with ExxonMobil’s Brazilian subsidiary at 50 percent as operator and Enauta Energia S.A. holding the remaining 30 percent WI.

Murphy also farmed into a 30 percent WI in three blocks spanning approximately 774 thousand total gross acres in the Potiguar Basin (POT-W-857, POT-W-863 and POT-W-865) with Wintershall Dea as operator with 70 percent WI. This expands the company’s focus in Brazil with ownership in a second proven oil basin in close proximity to the Pitu oil discovery.

“In support of Murphy’s future, we remain committed to a portfolio of exploration projects, achieved through low-cost entries with appropriate working interests. The recently added Brazilian blocks reiterate our focus on Western Hemisphere assets near existing discoveries,” said Jenkins.

COMMODITY HEDGE POSITIONS

The company employs derivative commodity instruments to manage certain risks associated with commodity prices and underpin capital spending associated with certain assets. Since second quarter 2019, Murphy has executed additional WTI fixed price swaps for 2019 and 2020, as well as fixed price forward sales at AECO for November 2019 through March 2020.

Details for the current hedge positions can be found in the attached schedules.

2019 PRODUCTION AND CAPITAL EXPENDITURE GUIDANCE

For the fourth quarter, Murphy estimates total production of 198 to 206 MBOEPD, comprised of 69 percent liquids. Full year production is expected to be in the range of 174 to 178 MBOEPD, excluding noncontrolling interest.

Murphy confirms its previously announced 2019 capital program of $1.35 to $1.45 billion.

Details for fourth quarter and full year guidance can be found in the attached schedules.

CONFERENCE CALL AND WEBCAST SCHEDULED FOR OCTOBER 31, 2019

Murphy will host a conference call to discuss third quarter 2019 financial and operating results on Thursday, October 31, 2019, at 9:00 a.m. ET. The call can be accessed either via the Internet through the Investor Relations section of Murphy Oil’s website at http://ir.murphyoilcorp.com or via the telephone by dialing toll free 1-888-886-7786, reservation number 74245947.

FINANCIAL DATA

Summary financial data and operating statistics for third 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 fourth quarter 2019, are also included.

1With the close of the previously announced Gulf of Mexico transaction in the fourth quarter 2018, and in accordance with GAAP, Murphy reports the 100 percent interest, including a 20 percent noncontrolling interest (NCI), in its subsidiary, MP Gulf of Mexico, LLC (MP GOM). The GAAP financials will include the NCI portion of revenue, costs, assets and liabilities and cash flows. Unless otherwise noted, the financial and operating highlights and metrics discussed in this news release, but not the accompanying schedules, will exclude the NCI, thereby representing only the amounts attributable to Murphy.

ABOUT MURPHY OIL CORPORATION

Murphy Oil Corporation is a global independent oil and natural gas exploration and production company. The company’s diverse resource base includes production from North America onshore plays in the Eagle Ford Shale, Kaybob Duvernay, Tupper Montney and Placid Montney, as well as offshore Gulf of Mexico and Canada. Additional information is available on the Company’s website www.murphyoilcorp.com.

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 U.S. Securities and Exchange Commission (“SEC”) and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K that we file, available from the SEC’s website and from Murphy Oil Corporation’s website at http://ir.murphyoilcorp.com. Murphy Oil Corporation undertakes no duty to publicly update or revise any forward-looking statements.

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
September 30,

 

Nine Months Ended
September 30,

 

2019

 

2018 1

 

2019

 

2018 1

Revenues

 

 

 

 

 

 

 

Revenue from sales to customers

$

750,337

 

 

475,458

 

 

2,060,127

 

 

1,330,399

 

Gain (loss) on crude contracts

63,247

 

 

(2,223

)

 

121,163

 

 

(69,349

)

Gain on sale of assets and other income

3,493

 

 

17,276

 

 

10,283

 

 

26,713

 

Total revenues

817,077

 

 

490,511

 

 

2,191,573

 

 

1,287,763

 

Costs and expenses

 

 

 

 

 

 

 

Lease operating expenses

147,632

 

 

83,751

 

 

416,460

 

 

253,820

 

Severance and ad valorem taxes

13,803

 

 

15,066

 

 

36,972

 

 

40,099

 

Transportation, gathering and processing

54,305

 

 

16,945

 

 

128,748

 

 

49,827

 

Exploration expenses, including undeveloped lease amortization

12,358

 

 

21,723

 

 

75,570

 

 

69,350

 

Selling and general expenses

55,366

 

 

60,683

 

 

176,258

 

 

165,074

 

Depreciation, depletion and amortization

325,562

 

 

197,503

 

 

819,270

 

 

570,997

 

Accretion of asset retirement obligations

10,587

 

 

6,466

 

 

29,824

 

 

19,234

 

Other expense (benefit)

(29,000

)

 

(34,386

)

 

26,442

 

 

(44,773

)

Total costs and expenses

590,613

 

 

367,751

 

 

1,709,544

 

 

1,123,628

 

Operating income from continuing operations

226,464

 

 

122,760

 

 

482,029

 

 

164,135

 

Other income (loss)

 

 

 

 

 

 

 

Interest and other income (loss)

(4,418

)

 

(4,583

)

 

(18,134

)

 

(713

)

Interest expense, net

(44,930

)

 

(44,209

)

 

(145,095

)

 

(133,075

)

Total other loss

(49,348

)

 

(48,792

)

 

(163,229

)

 

(133,788

)

Income (loss) from continuing operations before income taxes

177,116

 

 

73,968

 

 

318,800

 

 

30,347

 

Income tax expense (benefit)

18,782

 

 

17,837

 

 

38,719

 

 

(91,180

)

Income (loss) from continuing operations

158,334

 

 

56,131

 

 

280,081

 

 

121,527

 

Income from discontinued operations, net of income taxes 2

953,368

 

 

37,812

 

 

1,027,632

 

 

186,188

 

Net income including noncontrolling interest

1,111,702

 

 

93,943

 

 

1,307,713

 

 

307,715

 

Less: Net income attributable to noncontrolling interest

22,700

 

 

 

 

86,257

 

 

 

NET INCOME ATTRIBUTABLE TO MURPHY

$

1,089,002

 

 

93,943

 

 

1,221,456

 

 

307,715

 

 

 

 

 

 

 

 

 

INCOME (LOSS) PER COMMON SHARE – BASIC

 

 

 

 

 

 

 

Continuing operations

$

0.85

 

 

0.32

 

 

1.16

 

 

0.70

 

Discontinued operations

5.94

 

 

0.22

 

 

6.14

 

 

1.08

 

Net Income

$

6.79

 

 

0.54

 

 

7.30

 

 

1.78

 

 

 

 

 

 

 

 

 

INCOME (LOSS) PER COMMON SHARE – DILUTED

 

 

 

 

 

 

 

Continuing operations

$

0.84

 

 

0.32

 

 

1.16

 

 

0.70

 

Discontinued operations

5.92

 

 

0.22

 

 

6.11

 

 

1.07

 

Net Income

$

6.76

 

 

0.54

 

 

7.27

 

 

1.77

 

Cash dividends per Common share

0.25

 

 

0.25

 

 

0.75

 

 

0.75

 

Average Common shares outstanding (thousands)

 

 

 

 

 

 

 

Basic

160,366

 

 

173,047

 

 

167,310

 

 

172,949

 

Diluted

160,980

 

 

174,175

 

 

168,105

 

 

174,202

 

1 Reclassified to conform to current presentation.2 Current period includes gain on sale of Malaysia operations of $960.0 million.

MURPHY OIL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(Thousands of dollars)

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2019

 

2018 ¹

 

2019

 

2018 ¹

Operating Activities

 

 

 

 

 

 

 

Net income including noncontrolling interest

$

1,111,702

 

 

93,943

 

 

1,307,713

 

 

307,715

 

Adjustments to reconcile net income to net cash provided by continuing operations activities:

 

 

 

 

 

 

 

(Income) loss from discontinued operations

(953,368

)

 

(37,812

)

 

(1,027,632

)

 

(186,188

)

Depreciation, depletion and amortization

325,562

 

 

197,503

 

 

819,270

 

 

570,997

 

Previously suspended exploration costs (credits)

 

 

4,522

 

 

12,901

 

 

4,514

 

Amortization of undeveloped leases

6,530

 

 

8,770

 

 

21,680

 

 

31,544

 

Accretion of asset retirement obligations

10,587

 

 

6,466

 

 

29,824

 

 

19,234

 

Deferred income tax charge (benefit)

32,596

 

 

14,260

 

 

50,597

 

 

(134,393

)

Pretax (gain) loss from sale of assets

(351

)

 

(124

)

 

(363

)

 

(6

)

Mark to market and revaluation of contingent consideration

(28,378

)

 

 

 

512

 

 

 

Mark to market of crude contracts

(49,245

)

 

(26,023

)

 

(100,076

)

 

1,065

 

Long-term non-cash compensation

15,812

 

 

23,299

 

 

60,567

 

 

52,309

 

Net (increase) decrease in noncash operating working capital

45,623

 

 

(31,999

)

 

40,257

 

 

(9,501

)

Other operating activities, net

(19,274

)

 

16,880

 

 

(62,023

)

 

(55,924

)

Net cash provided by continuing operations activities

497,796

 

 

269,685

 

 

1,153,227

 

 

601,366

 

Investing Activities

 

 

 

 

 

 

 

Acquisition of oil and gas properties

13,312

 

 

 

 

(1,212,949

)

 

 

Property additions and dry hole costs

(363,977

)

 

(232,393

)

 

(1,009,146

)

 

(797,630

)

Proceeds from sales of property, plant and equipment

2,256

 

 

300

 

 

19,072

 

 

921

 

Net cash required by investing activities

(348,409

)

 

(232,093

)

 

(2,203,023

)

 

(796,709

)

Financing Activities

 

 

 

 

 

 

 

Borrowings on revolving credit facility and term loan

 

 

 

 

1,575,000

 

 

 

Repayment of revolving credit facility and term loan

(1,900,000

)

 

 

 

(1,900,000

)

 

 

Repurchase of common stock

(106,014

)

 

 

 

(405,938

)

 

 

Capital lease obligation payments

(175

)

 

(154

)

 

(510

)

 

(154

)

Withholding tax on stock-based incentive awards

 

 

 

 

(6,991

)

 

(6,922

)

Distribution to noncontrolling interest

(28,734

)

 

 

 

(97,510

)

 

 

Cash dividends paid

(39,934

)

 

(43,263

)

 

(125,437

)

 

(129,780

)

Net cash provided (required) by financing activities

(2,074,857

)

 

(43,417

)

 

(961,386

)

 

(136,856

)

Cash Flows from Discontinued Operations 2

 

 

 

 

 

 

 

Operating activities

(47,911

)

 

79,494

 

 

74,361

 

 

370,343

 

Investing activities

2,035,000

 

 

(10,805

)

 

1,985,202

 

 

(60,715

)

Financing activities

 

 

(2,365

)

 

(4,914

)

 

(7,013

)

Net cash provided by discontinued operations

1,987,089

 

 

66,324

 

 

2,054,649

 

 

302,615

 

Cash transferred from discontinued operations to continuing operations

2,035,000

 

 

72,234

 

 

2,083,565

 

 

536,492

 

Effect of exchange rate changes on cash and cash equivalents

(675

)

 

(11,275

)

 

2,593

 

 

13,107

 

Net increase (decrease) in cash and cash equivalents

108,855

 

 

55,134

 

 

74,976

 

 

217,400

 

Cash and cash equivalents at beginning of period

326,044

 

 

792,699

 

 

359,923

 

 

630,433

 

Cash and cash equivalents at end of period

$

434,899

 

 

847,833

 

 

434,899

 

 

847,833

 

1 Reclassified to current presentation. 2 Net cash provided by discontinued operations is 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
September 30,

 

Nine Months Ended
September 30,

 

2019

 

2018

 

2019

 

2018

Net income attributable to Murphy (GAAP)

$

1,089.0

 

 

93.9

 

 

1,221.5

 

 

307.7

 

Discontinued operations loss (income)

(953.4

)

 

(37.8

)

 

(1,027.6

)

 

(186.2

)

Income (loss) from continuing operations

135.6

 

 

56.1

 

 

193.9

 

 

121.5

 

Adjustments (after tax):

 

 

 

 

 

 

 

Mark-to-market (gain) loss on crude oil derivative contracts

(38.9

)

 

(20.6

)

 

(79.1

)

 

0.8

 

Mark-to-market (gain) loss on contingent consideration

(22.4

)

 

 

 

0.4

 

 

 

Business development transaction costs

3.3

 

 

 

 

19.3

 

 

 

Tax benefits on investments in foreign areas

(15.0

)

 

 

 

(15.0

)

 

 

Impact of tax reform

 

 

 

 

(13.0

)

 

(120.0

)

Write-off of previously suspended exploration wells

 

 

4.5

 

 

13.2

 

 

4.5

 

Foreign exchange losses (gains)

0.8

 

 

 

 

5.9

 

 

(4.8

)

Ecuador arbitration settlement

 

 

(20.5

)

 

 

 

(20.5

)

Brunei working interest income

 

 

(16.0

)

 

 

 

(16.0

)

Seal insurance proceeds

(6.2

)

 

(7.0

)

 

(6.2

)

 

(15.2

)

Total adjustments after taxes

(78.4

)

 

(59.6

)

 

(74.5

)

 

(171.2

)

Adjusted income (loss) from continuing operations attributable to Murphy

$

57.2

 

 

(3.5

)

 

119.4

 

 

(49.7

)

 

 

 

 

 

 

 

 

Adjusted income (loss) from continuing operations per average diluted share

$

0.36

 

 

(0.02

)

 

$

0.71

 

 

$

(0.29

)

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 the United States of America.

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
September 30, 2019

 

Nine Months Ended
September 30, 2019

 

Pretax

 

Tax

 

Net

 

Pretax

 

Tax

 

Net

Exploration & Production:

 

 

 

 

 

 

 

 

 

 

 

United States

$

(24.3

)

 

5.1

 

 

(19.2

)

 

24.9

 

 

(5.2

)

 

19.7

 

Canada

(8.0

)

 

1.8

 

 

(6.2

)

 

(8.0

)

 

(11.2

)

 

(19.2

)

Other International

 

 

(15.0

)

 

(15.0

)

 

13.2

 

 

(15.0

)

 

(1.8

)

Total E&P

(32.3

)

 

(8.1

)

 

(40.4

)

 

30.1

 

 

(31.4

)

 

(1.3

)

Corporate:

(48.4

)

 

10.4

 

 

(38.0

)

 

(93.7

)

 

20.5

 

 

(73.2

)

Total adjustments

$

(80.7

)

 

2.3

 

 

(78.4

)

 

(63.6

)

 

(10.9

)

 

(74.5

)

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
September 30,

 

Nine Months Ended
September 30,

 

2019

 

2018

 

2019

 

2018

Net income attributable to Murphy (GAAP)

$

1,089.0

 

 

93.9

 

 

1,221.5

 

 

307.7

 

Income tax expense (benefit)

18.8

 

 

17.8

 

 

38.7

 

 

(91.2

)

Interest expense, net

44.9

 

 

44.2

 

 

145.1

 

 

133.1

 

Depreciation, depletion and amortization expense 1

308.3

 

 

197.5

 

 

766.4

 

 

571.0

 

EBITDA attributable to Murphy (Non-GAAP)

$

1,461.0

 

 

353.4

 

 

2,171.7

 

 

920.6

 

Discontinued operations loss (income)

(953.4

)

 

(37.8

)

 

(1,027.6

)

 

(186.2

)

Mark-to-market (gain) loss on crude oil derivative contracts

(49.2

)

 

(26.0

)

 

(100.1

)

 

1.1

 

Accretion of asset retirement obligations

10.6

 

 

6.5

 

 

29.8

 

 

19.2

 

Business development transaction costs

4.1

 

 

 

 

24.4

 

 

 

Write-off of previously suspended exploration wells

 

 

4.5

 

 

13.2

 

 

4.5

 

Seal insurance proceeds

(8.0

)

 

(9.7

)

 

(8.0

)

 

(21.0

)

Foreign exchange losses (gains)

0.8

 

 

(1.0

)

 

6.4

 

 

(5.6

)

Mark-to-market (gain) loss on contingent consideration

(28.4

)

 

 

 

0.5

 

 

 

Ecuador arbitration settlement

 

 

(26.0

)

 

 

 

(26.0

)

Brunei working interest income

 

 

(16.0

)

 

 

 

(16.0

)

Adjusted EBITDA attributable to Murphy (Non-GAAP)

$

437.5

 

 

247.9

 

 

1,110.3

 

 

690.6

 

 

 

 

 

 

 

 

 

Total barrels of oil equivalents sold from continuing operations attributable to Murphy (thousands of barrels)

17,745

 

 

11,232

 

 

45,511

 

 

32,782

 

 

 

 

 

 

 

 

 

EBITDA per barrel of oil equivalents sold

$

82.34

 

 

31.46

 

 

47.72

 

 

28.08

 

Adjusted EBITDA per barrel of oil equivalents sold

$

24.65

 

 

22.07

 

 

24.40

 

 

21.07

 

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 the United States of America.

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
September 30,

 

Nine Months Ended
September 30,

 

2019

 

2018

 

2019

 

2018

Net income attributable to Murphy (GAAP)

$

1,089.0

 

 

93.9

 

 

1,221.5

 

 

307.7

 

Income tax expense (benefit)

18.8

 

 

17.8

 

 

38.7

 

 

(91.2

)

Interest expense, net

44.9

 

 

44.2

 

 

145.1

 

 

133.1

 

Depreciation, depletion and amortization expense 1

308.3

 

 

197.5

 

 

766.4

 

 

571.0

 

EBITDA attributable to Murphy (Non-GAAP)

1,461.0

 

 

353.4

 

 

2,171.7

 

 

920.6

 

Exploration expenses

12.4

 

 

21.7

 

 

75.6

 

 

69.4

 

EBITDAX attributable to Murphy (Non-GAAP)

1,473.4

 

 

375.1

 

 

2,247.3

 

 

990.0

 

Discontinued operations loss (income)

(953.4

)

 

(37.8

)

 

(1,027.6

)

 

(186.2

)

Mark-to-market (gain) loss on crude oil derivative contracts

(49.2

)

 

(26.0

)

 

(100.1

)

 

1.1

 

Accretion of asset retirement obligations

10.6

 

 

6.5

 

 

29.8

 

 

19.2

 

Business development transaction costs

4.1

 

 

 

 

24.4

 

 

 

Seal insurance proceeds

(8.0

)

 

(9.7

)

 

(8.0

)

 

(21.0

)

Foreign exchange losses (gains)

0.8

 

 

(1.0

)

 

6.4

 

 

(5.6

)

Mark-to-market (gain) loss on contingent consideration

(28.4

)

 

 

 

0.5

 

 

 

Ecuador arbitration settlement

 

 

(26.0

)

 

 

 

(26.0

)

Brunei working interest income

 

 

(16.0

)

 

 

 

(16.0

)

Adjusted EBITDAX attributable to Murphy (Non-GAAP)

$

449.9

 

 

265.1

 

 

1,172.7

 

 

755.5

 

 

 

 

 

 

 

 

 

Total barrels of oil equivalents sold from continuing operations attributable to Murphy (thousands of barrels)

17,745

 

 

11,232

 

 

45,511

 

 

32,782

 

 

 

 

 

 

 

 

 

EBITDAX per barrel of oil equivalents sold

$

83.03

 

 

33.39

 

 

49.38

 

 

30.20

 

Adjusted EBITDAX per barrel of oil equivalents sold

$

25.35

 

 

23.60

 

 

25.77

 

 

23.05

 

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 the United States of America.

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
September 30, 2019

Three Months Ended
September 30, 2018

(Millions of dollars)

Revenues

Income

(Loss)

Revenues

Income

(Loss)

Exploration and production

 

 

 

 

United States1

$

656.8

 

170.8

 

357.8

 

91.6

 

Canada

95.0

 

(9.1

)

114.9

 

12.5

 

Other

1.9

 

(3.7

)

19.9

 

1.3

 

Total exploration and production

753.7

 

158.0

 

492.6

 

105.4

 

Corporate

63.4

 

0.3

 

(2.1

)

(49.3

)

Revenue/income from continuing operations

817.1

 

158.3

 

490.5

 

56.1

 

Discontinued operations, net of tax 2

 

953.4

 

 

37.8

 

Total revenues/net income (loss)

$

817.1

 

1,111.7

 

490.5

 

93.9

 

 

Nine Months Ended
September 30, 2019

Nine Months Ended
September 30, 2018

(Millions of dollars)

Revenues

Income
(Loss)

Revenues

Income
(Loss)

Exploration and production

 

 

 

 

United States1

$

1,734.3

 

420.0

 

971.7

 

200.3

 

Canada

323.8

 

(7.5

)

357.6

 

46.7

 

Other

7.9

 

(35.4

)

19.9

 

(28.8

)

Total exploration and production

2,066.0

 

377.1

 

1,349.2

 

218.2

 

Corporate

125.6

 

(97.0

)

(61.4

)

(96.7

)

Revenue/income from continuing operations

2,191.6

 

280.1

 

1,287.8

 

121.5

 

Discontinued operations, net of tax 2

 

1,027.6

 

 

186.2

 

Total revenues/net income (loss)

$

2,191.6

 

1,307.7

 

1,287.8

 

307.7

 

1 2019 includes results attributable to a noncontrolling interest in MP Gulf of Mexico, LLC (MP GOM).

2Malaysia is reported as discontinued operations in current and comparative periods effective January 1, 2019.

MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (unaudited)

THREE MONTHS ENDED SEPTEMBER 30, 2019, AND 2018

 

(Millions of dollars)

United

States 1

Canada

Other

Total

Three Months Ended September 30, 2019

 

 

 

 

Oil and gas sales and other operating revenues

$

656.8

 

95.0

 

1.9

 

753.7

 

Lease operating expenses

 

116.2

 

31.2

 

0.2

 

147.6

 

Severance and ad valorem taxes

 

13.4

 

0.4

 

 

13.8

 

Transportation, gathering and processing

 

44.1

 

10.2

 

 

54.3

 

Depreciation, depletion and amortization

 

253.5

 

65.3

 

0.6

 

319.4

 

Accretion of asset retirement obligations

 

9.0

 

1.6

 

 

10.6

 

Exploration expenses

 

 

 

 

Dry holes and previously suspended exploration costs

 

(0.1

)

 

 

(0.1

)

Geological and geophysical

 

0.2

 

 

0.2

 

0.4

 

Other exploration

 

1.5

 

0.1

 

3.8

 

5.4

 

 

 

1.6

 

0.1

 

4.0

 

5.7

 

Undeveloped lease amortization

 

5.2

 

0.3

 

1.0

 

6.5

 

Total exploration expenses

 

6.8

 

0.4

 

5.0

 

12.2

 

Selling and general expenses

 

22.7

 

7.6

 

5.6

 

35.9

 

Other

 

(21.0

)

(7.3

)

0.5

 

(27.8

)

Results of operations before taxes

 

212.1

 

(14.4

)

(10.0

)

187.7

 

Income tax provisions (benefits)

 

41.3

 

(5.3

)

(6.3

)

29.7

 

Results of operations (excluding corporate overhead and interest)

$

170.8

 

(9.1

)

(3.7

)

158.0

 

 

 

 

 

 

Three Months Ended September 30, 2018

 

 

 

 

Oil and gas sales and other operating revenues

$

357.8

 

114.9

 

19.9

 

492.6

 

Lease operating expenses

 

52.0

 

31.5

 

0.2

 

83.7

 

Severance and ad valorem taxes

 

14.8

 

0.3

 

 

15.1

 

Transportation, gathering and processing

 

9.1

 

7.8

 

 

16.9

 

Depreciation, depletion and amortization

 

132.6

 

58.6

 

1.0

 

192.2

 

Accretion of asset retirement obligations

 

4.5

 

1.9

 

 

6.4

 

Exploration expenses

 

 

 

 

Dry holes and previously suspended exploration costs

 

 

4.5

 

4.5

 

Geological and geophysical

 

0.4

 

 

0.7

 

1.1

 

Other exploration

 

1.6

 

0.2

 

5.5

 

7.3

 

 

 

2.0

 

0.2

 

10.7

 

12.9

 

Undeveloped lease amortization

 

7.8

 

0.2

 

0.8

 

8.8

 

Total exploration expenses

 

9.8

 

0.4

 

11.5

 

21.7

 

Selling and general expenses

 

14.0

 

6.4

 

6.2

 

26.6

 

Other

 

4.5

 

(9.5

)

0.6

 

(4.4

)

Results of operations before taxes

 

116.5

 

17.5

 

0.4

 

134.4

 

Income tax provisions (benefits)

 

24.9

 

5.0

 

(0.9

)

29.0

 

Results of operations (excluding corporate overhead and interest)

$

91.6

 

12.5

 

1.3

 

105.4

 

1 2019 includes results attributable to a noncontrolling interest in MP GOM.

MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (unaudited)

NINE MONTHS ENDED SEPTEMBER 30, 2019, AND 2018

 

(Millions of dollars)

United

States 1

Canada

Other

Total

Nine Months Ended September 30, 2019

 

 

 

 

Oil and gas sales and other operating revenues

$

1,734.3

 

323.8

 

7.9

 

2,066.0

 

Lease operating expenses

308.3

 

107.1

 

1.1

 

416.5

 

Severance and ad valorem taxes

36.0

 

1.0

 

 

37.0

 

Transportation, gathering and processing

103.4

 

25.3

 

 

128.7

 

Depreciation, depletion and amortization

618.6

 

181.6

 

2.9

 

803.1

 

Accretion of asset retirement obligations

25.2

 

4.6

 

 

29.8

 

Exploration expenses

 

 

 

 

Dry holes and previously suspended exploration costs

(0.2

)

 

13.1

 

12.9

 

Geological and geophysical

16.1

 

 

8.1

 

24.2

 

Other exploration

5.5

 

0.3

 

10.9

 

16.7

 

 

21.4

 

0.3

 

32.1

 

53.8

 

Undeveloped lease amortization

18.0

 

1.0

 

2.7

 

21.7

 

Total exploration expenses

39.4

 

1.3

 

34.8

 

75.5

 

Selling and general expenses

52.9

 

21.3

 

17.3

 

91.5

 

Other

37.5

 

(6.9

)

0.9

 

31.5

 

Results of operations before taxes

513.0

 

(11.5

)

(49.1

)

452.4

 

Income tax provisions (benefits)

93.0

 

(4.0

)

(13.7

)

75.3

 

Results of operations (excluding corporate overhead and interest)

$

420.0

 

(7.5

)

(35.4

)

377.1

 

 

 

 

 

 

Nine Months Ended September 30, 2018

 

 

 

 

Oil and gas sales and other operating revenues

$

971.7

 

357.5

 

19.9

 

1,349.1

 

Lease operating expenses

162.6

 

91.0

 

0.2

 

253.8

 

Severance and ad valorem taxes

39.2

 

0.9

 

 

40.1

 

Transportation, gathering and processing

26.1

 

23.7

 

 

49.8

 

Depreciation, depletion and amortization

382.4

 

171.1

 

2.4

 

555.9

 

Accretion of asset retirement obligations

13.4

 

5.8

 

 

19.2

 

Exploration expenses

 

 

 

 

Dry holes and previously suspended exploration costs

 

 

4.5

 

4.5

 

Geological and geophysical

6.5

 

 

4.3

 

10.8

 

Other exploration

5.1

 

0.3

 

17.0

 

22.4

 

 

11.6

 

0.3

 

25.8

 

37.7

 

Undeveloped lease amortization

29.2

 

0.6

 

1.7

 

31.5

 

Total exploration expenses

40.8

 

0.9

 

27.5

 

69.2

 

Selling and general expenses

39.0

 

20.7

 

18.1

 

77.8

 

Other

12.4

 

(20.9

)

1.2

 

(7.3

)

Results of operations before taxes

255.8

 

64.3

 

(29.5

)

290.6

 

Income tax provisions (benefits)

55.5

 

17.6

 

(0.7

)

72.4

 

Results of operations (excluding corporate overhead and interest)

$

200.3

 

46.7

 

(28.8

)

218.2

 

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
September 30,

 

Nine Months Ended
September 30,

 

2019

 

2018

 

2019

 

2018

Continuing operations

 

 

 

 

 

 

 

United States – Eagle Ford Shale

 

 

 

 

 

 

 

Lease operating expense

$

6.74

 

 

8.26

 

 

8.92

 

 

8.23

 

Severance and ad valorem taxes

2.87

 

 

3.48

 

 

3.01

 

 

3.22

 

Depreciation, depletion and amortization (DD&A) expense

24.29

 

 

24.43

 

 

23.94

 

 

24.59

 

 

 

 

 

 

 

 

 

United States – Gulf of Mexico

 

 

 

 

 

 

 

Lease operating expense

$

10.20

 

 

10.29

 

 

9.70

 

 

12.79

 

DD&A expense

16.86

 

 

17.57

 

 

16.01

 

 

17.25

 

 

 

 

 

 

 

 

 

Canada – Onshore

 

 

 

 

 

 

 

Lease operating expense

$

4.36

 

 

4.33

 

 

5.40

 

 

4.69

 

Severance and ad valorem taxes

0.07

 

 

0.07

 

 

0.07

 

 

0.07

 

DD&A expense

11.26

 

 

10.69

 

 

11.07

 

 

10.47

 

 

 

 

 

 

 

 

 

Canada – Offshore

 

 

 

 

 

 

 

Lease operating expense

$

17.43

 

 

22.42

 

 

16.91

 

 

13.36

 

DD&A expense

11.55

 

 

14.76

 

 

13.36

 

 

13.47

 

 

 

 

 

 

 

 

 

Total oil and gas continuing operations

 

 

 

 

 

 

 

Lease operating expense

$

7.85

 

 

7.46

 

 

8.52

 

 

7.74

 

Severance and ad valorem taxes

0.73

 

 

1.34

 

 

0.76

 

 

1.22

 

DD&A expense

17.31

 

 

17.58

 

 

16.75

 

 

17.42

 

 

 

 

 

 

 

 

 

Total oil and gas continuing operations – excluding noncontrolling interest

 

 

 

 

 

 

 

Lease operating expense

$

7.68

 

 

7.46

 

 

8.45

 

 

7.74

 

Severance and ad valorem taxes

0.73

 

 

1.34

 

 

0.76

 

 

1.22

 

DD&A expense

17.03

 

 

17.11

 

 

16.84

 

 

17.42

 

MURPHY OIL CORPORATION

OTHER FINANCIAL DATA

(unaudited)

(Millions of dollars)

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2019

 

2018

 

2019

 

2018

Capital expenditures for continuing operations

 

 

 

 

 

 

 

Exploration and production

 

 

 

 

 

 

 

United States 1

$

295.5

 

 

128.2

 

 

2,042.3

 

 

$

454.6

 

Canada

45.9

 

 

89.0

 

 

201.6

 

 

291.3

 

Other

12.3

 

 

21.2

 

 

76.7

 

 

38.9

 

Total

353.7

 

 

238.4

 

 

2,320.6

 

 

784.8

 

 

 

 

 

 

 

 

 

Corporate

2.9

 

 

10.7

 

 

8.5

 

 

18.6

 

Total capital expenditures - continuing operations

356.6

 

 

249.1

 

 

2,329.1

 

 

803.4

 

 

 

 

 

 

 

 

 

Charged to exploration expenses 2

 

 

 

 

 

 

 

United States

1.6

 

 

2.0

 

 

21.4

 

 

11.6

 

Canada

0.1

 

 

0.2

 

 

0.3

 

 

0.3

 

Other

4.0

 

 

10.7

 

 

32.1

 

 

25.8

 

Total charged to exploration expenses - continuing operations

5.7

 

 

12.9

 

 

53.8

 

 

37.7

 

 

 

 

 

 

 

 

 

Total capitalized 3

$

350.9

 

 

236.2

 

 

$

2,275.3

 

 

$

765.7

 

Memo: Capital expenditures on discontinued operations

4.8

 

 

21.7

 

 

64.4

 

 

60.2

 

1 Includes $1,226.3 million for acquisition of exploration and production properties in the US Gulf of Mexico in the nine months ended September 30, 2019.

2 Excludes amortization of undeveloped leases of $6.5 million and $21.7 million for the three and nine months ended September 30, 2019 and $8.8 million and $31.5 million for the three and nine months ended September 30, 2018.

3 Includes noncontrolling interest capital expenditures of $5.6 million and $28.8 million for the three and nine months ended September 30, 2019.

MURPHY OIL CORPORATION

CONDENSED BALANCE SHEETS (unaudited)

 

(Millions of dollars)

September 30, 2019

 

December 31, 2018 1

Assets

 

 

 

Cash and cash equivalents

$

434.9

 

 

359.9

 

Assets held for sale

128.4

 

 

173.9

 

Other current assets

581.3

 

 

346.1

 

Property, plant and equipment – net

9,932.0

 

 

8,432.1

 

Non-current assets held for sale

 

 

1,545.0

 

Other long-term assets

707.1

 

 

195.6

 

Total assets

$

11,783.7

 

 

11,052.6

 

 

 

 

 

Liabilities and Equity

 

 

 

Current maturities of long-term debt

$

 

 

0.7

 

Liabilities associated with assets held for sale

18.1

 

 

286.5

 

Other current liabilities

914.8

 

 

559.0

 

Long-term debt

2,779.2

 

 

3,109.3

 

Non-current liabilities associated with assets held for sale

 

 

392.7

 

Other long-term liabilities

2,045.8

 

 

1,506.8

 

Total equity 2,3

6,025.8

 

 

5,197.6

 

Total liabilities and equity

$

11,783.7

 

 

11,052.6

 

1

Reclassified to conform to current presentation.

2

Includes noncontrolling interest of $349.2 million and $368.3 million as of September 30, 2019 and December 31, 2018, respectively.

3

Number of shares of Common Stock, $1.00 par value, outstanding at September 30, 2019 was 157,230,034.

MURPHY OIL CORPORATION

PRODUCTION SUMMARY

(unaudited)

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

Barrels per day unless otherwise noted

2019

 

2018

 

2019

 

2018

Continuing operations

 

 

 

 

 

 

 

 

Net crude oil and condensate

 

 

 

 

 

 

 

United States

Onshore

40,582

 

 

33,909

 

 

33,256

 

 

32,519

 

 

Gulf of Mexico 1

70,583

 

 

14,378

 

 

64,266

 

 

14,081

 

Canada

Onshore

7,101

 

 

6,096

 

 

6,503

 

 

5,242

 

 

Offshore

4,333

 

 

5,570

 

 

6,302

 

 

7,237

 

Other

 

351

 

 

533

 

 

435

 

 

566

 

Total net crude oil and condensate - continuing operations

122,950

 

 

60,486

 

 

110,762

 

 

59,645

 

Net natural gas liquids

 

 

 

 

 

 

 

 

United States

Onshore

5,582

 

 

6,687

 

 

5,621

 

 

6,756

 

 

Gulf of Mexico 1

6,597

 

 

1,085

 

 

4,172

 

 

1,091

 

Canada

Onshore

1,422

 

 

1,095

 

 

1,197

 

 

1,005

 

Total net natural gas liquids - continuing operations

13,601

 

 

8,867

 

 

10,990

 

 

8,852

 

Net natural gas – thousands of cubic feet per day

 

 

 

 

 

 

 

United States

Onshore

29,122

 

 

33,031

 

 

30,203

 

 

32,329

 

 

Gulf of Mexico 1

72,897

 

 

14,485

 

 

44,029

 

 

13,811

 

Canada

Onshore

296,883

 

 

272,061

 

 

267,205

 

 

266,077

 

Total net natural gas - continuing operations

398,902

 

 

319,577

 

 

341,437

 

 

312,217

 

Total net hydrocarbons - continuing operations including NCI 2,3

203,035

 

 

122,616

 

 

178,658

 

 

120,533

 

Noncontrolling interest

 

 

 

 

 

 

 

 

Net crude oil and condensate – barrels per day

(10,322

)

 

 

 

(11,215

)

 

 

Net natural gas liquids – barrels per day

(478

)

 

 

 

(496

)

 

 

Net natural gas – thousands of cubic feet per day

(3,403

)

 

 

 

(3,933

)

 

 

Total noncontrolling interest

(11,367

)

 

 

 

(12,367

)

 

 

Total net hydrocarbons - continuing operations excluding NCI 2,3

191,668

 

 

122,616

 

 

166,292

 

 

120,533

 

Discontinued operations

 

 

 

 

 

 

 

 

Net crude oil and condensate – barrels per day

1,748

 

 

27,269

 

 

16,331

 

 

29,136

 

Net natural gas liquids – barrels per day

37

 

 

689

 

 

434

 

 

673

 

Net natural gas – thousands of cubic feet per day 2

9,624

 

 

109,213

 

 

67,863

 

 

112,516

 

Total discontinued operations

3,389

 

 

46,160

 

 

28,076

 

 

48,562

 

Total net hydrocarbons produced excluding NCI 2,3

195,057

 

 

168,776

 

 

194,367

 

 

169,095

 

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

PRICE SUMMARY

(unaudited)

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

2019

 

2018

 

2019

 

2018

Weighted average Exploration and Production sales prices 1

 

 

 

 

 

 

 

Continuing operations

 

 

 

 

 

 

 

 

Crude oil and condensate – dollars per barrel

 

 

 

 

 

 

 

 

United States

Onshore

$

58.80

 

 

72.82

 

 

$

60.33

 

 

$

68.97

 

 

Gulf of Mexico 2

60.69

 

 

71.86

 

 

61.90

 

 

68.72

 

Canada 3

Onshore

48.61

 

 

61.53

 

 

49.98

 

 

60.80

 

 

Offshore

62.44

 

 

76.34

 

 

64.97

 

 

71.92

 

Other

 

67.96

 

 

74.37

 

 

69.86

 

 

74.37

 

Natural gas liquids – dollars per barrel

 

 

 

 

 

 

 

 

United States

Onshore

10.82

 

 

31.17

 

 

14.66

 

 

26.29

 

 

Gulf of Mexico 2

13.86

 

 

36.12

 

 

15.96

 

 

30.26

 

Canada 3

Onshore

21.03

 

 

41.10

 

 

27.50

 

 

40.32

 

Natural gas – dollars per thousand cubic feet

 

 

 

 

 

 

 

 

United States

Onshore

2.18

 

 

2.92

 

 

2.51

 

 

2.91

 

 

Gulf of Mexico 2

2.37

 

 

2.98

 

 

2.46

 

 

2.96

 

Canada 3

Onshore

1.16

 

 

1.60

 

 

1.50

 

 

1.61

 

1

Effective September 30, 2019, weighted average realized prices are reported excluding transportation, gathering and processing costs. Comparative periods are conformed to current presentation.

2

Prices include the effect of noncontrolling interest share for MP GOM.

3

U.S. dollar equivalent.

MURPHY OIL CORPORATION

COMMODITY HEDGE POSITIONS (unaudited)

AS OF OCTOBER 30, 2019

 

 

 

Commodity

 

Type

 

Volumes
(Bbl/d)

 

Price
(USD/Bbl)

 

Remaining Period

Area

 

 

 

 

 

Start Date

 

End Date

United States

 

WTI

 

Fixed price derivative swap

 

35,000

 

 

$60.51

 

10/1/2019

 

12/31/2019

United States

 

WTI

 

Fixed price derivative swap

 

45,000

 

 

$56.42

 

1/1/2020

 

12/31/2020

 

 

 

 

 

 

Volumes
(MMcf/d)

 

Price
(CAD/Mcf)

 

Remaining Period

Area

 

Commodity

 

Type

 

 

 

Start Date

 

End Date

Montney

 

Natural Gas

 

Fixed price forward sales at AECO

 

59

 

 

C$2.81

 

10/1/2019

 

10/31/2019

Montney Natural Gas Fixed price forward sales at AECO

97

 

 

C$2.71

 

11/1/2019

 

3/31/2020

Montney Natural Gas Fixed price forward sales at AECO

59

 

 

C$2.81

 

4/1/2020

 

12/31/2020

MURPHY OIL CORPORATION

FOURTH QUARTER 2019 GUIDANCE

 

 

Liquids

BOPD

 

Gas

MCFD

 

BOEPD

Production – net

 

 

 

 

 

U.S. – Eagle Ford Shale

48,300

 

 

32,000

 

 

53,500

 

– Gulf of Mexico excluding NCI

72,700

 

 

73,600

 

 

85,000

 

– Gulf of Mexico including NCI 1

84,800

 

 

78,700

 

 

98,000

 

Canada – Tupper Montney

 

 

264,000

 

 

44,000

 

– Kaybob Duvernay and Placid Montney

6,700

 

 

22,500

 

 

10,500

 

– Offshore

8,400

 

 

 

 

8,400

 

Other

600

 

 

 

 

600

 

 

 

 

 

 

 

Total net production (BOEPD) - excluding NCI

198,000 to 206,000

Total net production (BOEPD) - including NCI 1

210,700 to 219,300

 

 

 

 

 

 

Exploration expense ($ millions)

$21

 

 

 

 

 

 

FULL YEAR 2019 GUIDANCE

Total net production (BOEPD) - excluding NCI

174,000 to 178,000

Total net production (BOEPD) - including NCI 2

186,600 to 190,600

Capital expenditures – excluding NCI ($ billions) 3

$1.35 - $1.45

 

 

 

 

 

 

1 Includes noncontrolling interest of MP GOM of 12,100 BOPD liquids and 5,100 MCFD gas.

 

 

 

 

2 Includes noncontrolling interest of MP GOM of 13,000 BOEPD.

 

 

 

 

3 Excludes noncontrolling interest of MP GOM of $48 MM and $20 MM for assets held for sale.

 

Source: Murphy Oil Corporation

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