EL DORADO, Ark.--(BUSINESS WIRE)--Oct. 1, 2009--
Murphy Oil Corporation (NYSE:MUR) announced that through a subsidiary,
it has purchased a corn-based ethanol plant located in Hankinson, North
Dakota.
The plant, which initially began operating in July 2008 before being
idled in October 2008, has an annual production capacity of 110 million
gallons. The purchase price of $92 million will be financed primarily
through non-recourse debt offered via the sellers. Additionally, an
estimated $15 million in working capital will be invested into the
facility.
Murphy Oil Corporation’s President and Chief Executive Officer, David M.
Wood, said, “We are adding this capability to supplement our growing
North American fuels business. It also marks our initial entry into the
manufacture of bio-fuels. Given the current ethanol mandates and our
subsequent blending needs, having more of a presence in the supply chain
better balances our business.” He also added, “This plant is favorably
located near the feedstock supply and has accessible rail service for
carrying the finished product. We should see first production shortly.”
This press release contains forward-looking statements as defined in
the Private Securities Litigation Reform Act of 1995. These
statements, which express management’s current views concerning future
events or results, are subject to inherent risks and uncertainties. Factors
that could cause actual results to differ materially from those
expressed or implied in our forward-looking statements include, but are
not limited to, the volatility and level of crude oil and natural gas
prices, the level and success rate of our exploration programs, our
ability to maintain production rates and replace reserves, political and
regulatory instability, and uncontrollable natural hazards. For
further discussion of risk factors, see Murphy’s 2008 Annual Report on
Form 10-K on file with the U.S. Securities and Exchange Commission. Murphy
undertakes no duty to publicly update or revise any forward-looking
statements.
Source: Murphy Oil Corporation
Murphy Oil Corporation
Investor/Media Contact:
Dory Stiles,
870-864-6496