On August 8, 2024, Murphy Oil Corp (MUR, Financial) released its 8-K filing detailing the financial and operational results for the second quarter ended June 30, 2024. Murphy Oil, an oil and gas exploration and production company with operations in the United States and Canada, reported net income attributable to Murphy of $128 million, or $0.83 per diluted share, surpassing the analyst estimate of $0.78 per share. Adjusted net income was $124 million, or $0.81 per diluted share.
Performance and Challenges
Murphy Oil Corp (MUR, Financial) produced 181 thousand barrels of oil equivalent per day (MBOEPD) in Q2 2024, with 91 thousand barrels of oil per day (MBOPD). The company achieved a record high peak gross production rate of 496 million cubic feet per day (MMCFD) in Tupper Montney. Despite these achievements, the company faced unplanned downtime in the Gulf of Mexico and additional downtime at non-operated Terra Nova, impacting overall production.
Financial Achievements
Murphy Oil Corp (MUR, Financial) reported total revenues of $802.77 million, slightly below the estimated $813.46 million. The company maintained a quarterly dividend of $0.30 per share and repurchased $56 million of stock during the quarter. Additionally, Murphy repurchased $50 million of senior notes due 2027 and 2028, demonstrating a commitment to debt reduction and shareholder returns.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenues | $802.77 million | $814.59 million |
| Net Income | $128 million | $98.3 million |
| Adjusted Net Income | $124 million | $124.4 million |
| EBITDA | $389 million | $373.2 million |
| Adjusted EBITDA | $396 million | $412.1 million |
Operational Highlights
Murphy Oil Corp (MUR, Financial) drilled a discovery at the non-operated Ocotillo #1 exploration well in the Gulf of Mexico and brought online several wells in the Eagle Ford Shale and Tupper Montney regions. The company also progressed its Lac Da Vang field development project in Vietnam, with first oil expected in late 2026.
Capital Allocation and Shareholder Returns
Murphy Oil Corp (MUR, Financial) revised its capital allocation framework to accelerate shareholder returns, increasing the share repurchase authorization by $500 million. The company aims to allocate a minimum of 50% of adjusted free cash flow to shareholder returns, primarily through share buybacks, while maintaining a $1.0 billion total long-term debt goal.
"We have made incredible progress advancing our priorities of Delever, Execute, Explore, Return since they were first announced more than three years ago. From outperformance across our onshore assets to continued execution offshore in the second quarter, we have generated ample cash flow to fund our operations and repurchase more than $50 million of stock and $50 million of long-term debt," said Roger W. Jenkins, Chief Executive Officer.
Analysis
Murphy Oil Corp (MUR, Financial) demonstrated strong operational performance and financial discipline in Q2 2024, exceeding earnings estimates and maintaining robust production levels. The company's focus on debt reduction and shareholder returns, coupled with strategic investments in exploration and development projects, positions it well for future growth. However, operational challenges such as unplanned downtime in the Gulf of Mexico highlight the need for continued vigilance in managing production risks.
For more detailed financial data and operational statistics, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Murphy Oil Corp for further details.
