Core Viewpoint - Murphy Oil Corporation (NYSE:MUR) has been recognized among the Dividend Champions, Contenders, and Challengers List, indicating its strong dividend yield potential [1] Financial Performance - BMO Capital has reduced its price target for Murphy Oil to $35 from $37, maintaining a Market Perform rating, citing a softer production outlook for 2026 due to pressures from Montney royalties and the Gulf of America [2] - In the Q4 2025 earnings call, the President and CEO reported that production exceeded guidance for both the quarter and the full year, attributed to strong onshore wells and high uptime at offshore assets [3] - Lease operating expenses decreased by approximately 20% year-over-year, and capital spending was below guidance, reflecting efficiency gains in the Eagle Ford Shale program [4] Exploration and Development - The exploration quarter was described as uneven but overall positive, with successful results from the Hai Su Vang appraisal in the Golden Sea Lion field and oil discoveries from exploration wells in the Gulf of America, although the Civette well in Côte d'Ivoire did not yield commercial hydrocarbons [5] - In Vietnam, the appraisal well encountered about 429 feet of net oil pay without reaching the oil-water contact, suggesting that the resource potential could exceed the initial estimate of 170 million barrels of oil equivalent [6] Company Overview - Murphy Oil Corporation is a global exploration and production company with a diverse portfolio of onshore and offshore assets, focusing on crude oil, natural gas, and natural gas liquids primarily in the U.S. and Canada, while its exploration efforts target select regions worldwide [7]

Core Viewpoint - Murphy Oil Corporation (NYSE:MUR) reported mixed financial results for Q4 2025, with adjusted EPS exceeding expectations but revenue declining year-over-year and missing forecasts [2][3]. Financial Performance - Adjusted EPS for Q4 2025 was $0.14, beating expectations by $0.17 [2]. - Revenue for the quarter was $624.56 million, down nearly 7% year-over-year, missing forecasts by $10.75 million [2]. Production and Guidance - The company's output for Q4 and the full year 2025 exceeded guidance, with strong performance from onshore wells and high uptime at offshore facilities [3]. - For FY 2026, net production is guided at 171,000 barrels of oil equivalent per day (boed), down from 182,000 boed in the previous year, primarily due to reduced natural gas volumes from Tupper Montney [3]. Dividend and Analyst Ratings - Murphy Oil raised its quarterly dividend by 7.7% to $0.35 per share [3]. - Following the results, Barclays lowered its price target for Murphy Oil from $31 to $29 while maintaining an 'Underweight' rating [4].

Core Viewpoint - Murphy Oil Corporation is a significant entity in the U.S. oil and gas exploration and production sector, known for its operations both onshore and offshore [1] Financial Performance - In Q4 2025, Murphy Oil reported earnings of $0.14 per share, exceeding the Zacks Consensus Estimate of a loss of $0.07 per share, resulting in an earnings surprise of +304.08% [3] - The company's revenue for the quarter was $624.56 million, which met the Zacks Consensus Estimate but represented a decrease from $670.96 million reported in the same quarter the previous year [4] Stock Performance - Murphy Oil's stock has experienced fluctuations, with a 52-week high of $35.19 and a low of $18.95, and the current market capitalization is approximately $4.3 billion [5] - The stock price was $30.09 on February 2, 2026, with a recent decrease of 3.19%, dropping by $0.99 [2][6] Analyst Ratings - UBS has maintained a Neutral rating for Murphy Oil, adjusting the price target from $31 to $30 [2][6]

Core Insights - Murphy Oil Corporation (MUR) reported adjusted net earnings of 14 cents per share for Q4 2025, exceeding the Zacks Consensus Estimate of a loss of 7 cents by 300%, although this represents a 60% decrease from 35 cents in the same quarter last year [1] - The company's total revenues for Q4 2025 were $624.6 million, slightly above the Zacks Consensus Estimate of $622 million, but down 6.9% year over year [3] - For the full year 2025, adjusted earnings per share were $1.37, a decline of 50.4% from $2.76 in 2024 [2] Financial Performance - Murphy Oil's total revenues for 2025 were $2.72 billion, down 9.9% from $3.02 billion in 2024 [3] - The company produced 181,400 barrels of oil equivalent per day (BOE/D) in Q4 2025, within the guided range of 176,000-182,500 BOE/D [4] - Total costs and expenses for Q4 2025 were $565.2 million, a decrease of 3.5% from $585.8 million in the previous year [4] Operational Highlights - Murphy Oil achieved a reserve replacement ratio of 103% in 2025, with total proved reserves at 715 million barrels of oil equivalent (MMBOE) at year-end [6][8] - The company returned $288.8 million to shareholders in 2025, including $102.6 million in share repurchases and $186.2 million in dividends [5] Financial Condition - As of December 31, 2025, Murphy Oil had cash and cash equivalents of $377.2 million, down from $423.6 million a year earlier [7] - The company reported long-term debt of $1.38 billion as of December 31, 2025, compared to $1.27 billion at the end of 2024 [7] - Net cash provided by continuing operational activities in 2025 was $1.25 billion, down from $1.73 billion in 2024 [7] Future Guidance - For Q1 2026, Murphy Oil expects production (excluding non-controlling interest) to be in the range of 164,000-172,000 BOE/D [10] - The company plans to invest between $1.2 billion and $1.3 billion in 2026, with expected production for the year in the range of 167,000-175,000 BOE/D, of which 50% is anticipated to be oil [10] Dividend Information - The board of directors approved an increase in the quarterly dividend rate to 35 cents from 32.5 cents per share, resulting in an annualized dividend of $1.40 per share [9]

Group 1 - The article discusses the analysis of oil and gas companies, specifically focusing on Murphy Oil and its competitive position, balance sheet, and development prospects [1] - A recent appraisal well in Vietnam has positively impacted Murphy Oil's discovery, overshadowing its latest earnings report [2] - The oil and gas industry is characterized as a boom-bust, cyclical sector that requires patience and experience for successful investment [2] Group 2 - The investing group Oil & Gas Value Research seeks undervalued oil companies and out-of-favor midstream companies that present compelling investment opportunities [2] - The group includes an active chat room for investors to discuss recent information and share ideas related to oil and gas investments [2]

Financial Data and Key Metrics Changes - In 2025, the company achieved a production rate of 182,000 barrels of oil equivalent per day, exceeding guidance, while the forecast for 2026 is a decrease to 171,000 barrels per day [10][11] - Lease operating expenses were reduced by 20% year-over-year, and capital expenditures were kept below guidance due to efficiency gains [6][10] - The company reported a successful exploration and appraisal success rate of 80% in 2025 [14] Business Line Data and Key Metrics Changes - The Eagle Ford Shale production is expected to remain flat in 2026 with a 25% reduction in capital spending [11] - The Tupper Montney natural gas volumes are expected to decline due to higher gas prices leading to increased royalties, but the cash flow impact will be muted [10][11] Market Data and Key Metrics Changes - The company is expanding its exploration portfolio with new blocks in the Gulf of America and an entry into offshore Morocco [12][13] - The average reserve life in the industry is noted to be 12 years, with a proactive approach to securing new blocks to ensure sustained growth [13] Company Strategy and Development Direction - The company plans to strategically invest in development, exploration, and appraisal activities in the Gulf of America, Vietnam, and Côte d'Ivoire to enhance shareholder value [9][14] - The focus is on intentional investments that set the groundwork for long-term growth, differentiating the company from peers [10][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the unpredictable market environment and softening commodity prices but emphasizes the company's preparedness to withstand downturns [10][14] - The company expects challenges in 2026 but remains committed to investing in future growth and long-term shareholder value [14] Other Important Information - The company reported a 103% overall reserve replacement rate, maintaining reserves around 700 million barrels [94] - The royalty rate for Tupper Montney is projected to increase from 4.6% in 2025 to approximately 8.4% in 2026 due to commodity price fluctuations [62] Q&A Session Summary Question: Inquiry about Hai Su Vang 2X stem test and CapEx flexibility - Management confirmed that the Hai Su Vang appraisal well produced at a rate of 12,000 barrels per day without facility constraints and discussed the flexibility of 2026 CapEx, indicating a potential 10% reduction if necessary [19][23][29] Question: Details on Civette drilling failure and its impact on future prospects - Management explained that the Civette well tested multiple objectives but did not yield commercial quantities of oil, emphasizing that the learnings will not negatively impact the Caracal and Bubal prospects [33][36] Question: Clarification on Vietnam production potential - Management stated that while the Hai Su Vang field could potentially exceed current Eagle Ford production, they are cautious in their estimates and will provide more clarity after further appraisal [39][41] Question: Discussion on 2027 production outlook - Management indicated that modest oil growth is expected from 2026 to 2027, with the Chinook well anticipated to contribute significantly in the second half of 2026 [46][72] Question: Details on Lac Da Vang ramp-up period - Management outlined that the Lac Da Vang development will see initial production in 2026, with a peak expected in late 2027 or early 2028 [76][78] Question: Exploration plans in Morocco - Management expressed excitement about the Morocco entry, highlighting the low cost of entry and the potential of the untested structure [85][87]

Financial Data and Key Metrics Changes - In 2025, the company achieved production levels that exceeded guidance, with a year-end production of 182,000 barrels of oil equivalent per day, while projecting a decrease to 171,000 barrels of oil equivalent per day for 2026 [10][11] - Lease operating expenses were reduced by 20% year-over-year, and capital expenditures were kept below guidance due to efficiency gains [6][10] - The company reported an 80% success rate in exploration efforts for 2025 [14] Business Line Data and Key Metrics Changes - The Eagle Ford Shale production is expected to remain flat in 2026 with a 25% reduction in capital spending [11] - The Tupper Montney natural gas volumes are projected to decrease due to higher gas prices leading to increased royalties, but the cash flow impact is expected to be muted [10][11] Market Data and Key Metrics Changes - The company is expanding its exploration portfolio with new blocks in the Gulf of America and an entry into offshore Morocco, indicating a proactive approach to securing new opportunities [12][13] - The average reserve life in the industry is noted to be 12 years, with a focus on maintaining a solid balance sheet and low leverage ratio [13] Company Strategy and Development Direction - The company plans to strategically invest in development, exploration, and appraisal activities in the Gulf of America, Vietnam, and Côte d'Ivoire to enhance shareholder value in the mid to long term [9][14] - The focus is on intentional investments that set the groundwork for growth beyond the next few quarters, differentiating the company from its peers [10][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the unpredictable market environment and softening commodity prices but expressed confidence in the company's positioning to withstand downturns [10][14] - The company anticipates modest growth in production profiles, particularly from the growing Vietnam business, while maintaining a cautious approach to capital expenditures [50][51] Other Important Information - The Hai Su Vang appraisal well reported a successful result with 429 feet of net oil pay, significantly above initial estimates, indicating potential for a new growth business in Vietnam [8][9] - The company is cautious about providing specific resource estimates until further appraisal wells are completed [40][41] Q&A Session Summary Question: Inquiry about Hai Su Vang 2X stem test and 2026 CapEx flexibility - Management confirmed that the 12,000 barrels per day production rate is not facility-constrained and discussed the flexibility of 2026 CapEx, indicating a potential 10% reduction if necessary [19][23][29] Question: Details on Civette drilling failure and its impact on future prospects - Management explained that the Civette well tested multiple objectives but did not yield commercial quantities of oil, emphasizing that this does not affect the probability of success for Caracal and Bubal prospects [33][36] Question: Expectations for Vietnam's production growth - Management projected that peak production from Hai Su Vang could occur by 2033, with ongoing appraisal wells expected to provide more clarity on resource estimates [115] Question: Clarification on royalty mechanisms in Tupper Montney - Management detailed that the royalty rate is a sliding scale based on commodity prices, projecting an increase from 4.6% in 2025 to approximately 8.4% in 2026 [62] Question: Plans for Morocco exploration - Management expressed excitement about the Morocco entry, highlighting the low cost of entry and existing seismic data that will be reprocessed to assess prospectivity [86][87]

Financial Data and Key Metrics Changes - In 2025, the company achieved a production rate of 182,000 barrels of oil equivalent per day, exceeding guidance, while the expected production for 2026 is projected to decrease to 171,000 barrels of oil equivalent per day [8][10] - Lease operating expenses were reduced by 20% year-over-year, maintaining a range of $10-$12 per barrel [5][10] - The company reported an 80% success rate in exploration efforts for 2025 [11] Business Line Data and Key Metrics Changes - The Eagle Ford Shale production is expected to remain flat in 2026 with a 25% reduction in capital spending [8][10] - The appraisal results from the Hai Su Vang, Golden Sea Lion field in Vietnam indicated a significant resource potential, with 429 feet of net oil pay found [6][10] - The company plans to continue its focused exploration and appraisal program in 2026, including two appraisal wells in Vietnam and two exploration wells in Côte d'Ivoire [9][10] Market Data and Key Metrics Changes - The company is expanding its exploration portfolio with new blocks in the Gulf of America and has entered offshore Morocco [9][10] - The average reserve life in the industry is noted to be 12 years, with a proactive approach to securing new blocks in diverse basins [10] Company Strategy and Development Direction - The company aims to make strategic investments in development, exploration, and appraisal activities in the Gulf of America, Vietnam, and Côte d'Ivoire to enhance shareholder value [6][10] - The focus for 2026 is on intentional investments that set the groundwork for long-term growth, despite challenges from unpredictable market conditions and softening commodity prices [7][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges of a softening commodity price environment but emphasizes the company's preparedness to withstand downturns [7][10] - The company expects modest growth in production profiles, particularly from its growing Vietnam business, while maintaining a focus on operational efficiency [41][42] Other Important Information - The company reported a 103% overall reserve replacement on proved reserves, maintaining a solid level of reserves around 700 million barrels [82] - The royalty rate for the Tupper Montney asset is projected to increase from 4.6% in 2025 to approximately 8.4% in 2026 due to rising gas prices [52] Q&A Session Summary Question: What is the natural flow rate for the Hai Su Vang 2X stem test? - The test produced 12,000 barrels per day, which is not constrained by facilities but reflects the reservoir's capability [15][18] Question: What portion of the 2026 CapEx is considered flexible? - The company has significant investments that will proceed regardless of oil prices, but there is flexibility to reduce capital spending by about 10% if necessary [20][23] Question: What was the failure mechanism at Civette and its impact on future prospects? - The Civette well found oil pay but not in commercial quantities, and the learnings will not negatively impact the probability of success for Caracal and Bubal [29][30] Question: When is first oil expected from Hai Su Vang? - First oil is anticipated in 2031, with peak production likely by 2033 [104] Question: What are the plans for the new blocks in Morocco? - The company plans to reprocess existing seismic data and assess prospectivity with a low expenditure of around $5 million over the next three years [75]

Core Insights - The discovery of significant oil reserves in Block 15-2/17 of the Cuu Long Basin has been confirmed, with positive exploration and appraisal drilling results indicating potential for future development [1][2] Group 1: Discovery and Exploration - The first discovery well encountered approximately 370 feet (113 meters) of oil-bearing formations, with test production reaching around 6,000 barrels per day [2] - Follow-up appraisal drilling at the HSV-2X well confirmed a total oil-bearing thickness of 429 feet (131 meters), primarily within the deeper main reservoir [2][3] - Murphy Oil Corporation plans to continue appraisal work and will submit a detailed report on oil and gas resources and reserves to Vietnamese authorities for evaluation [3] Group 2: Operational and Stakeholder Information - The Hai Su Vang field is operated by Murphy Oil under a production sharing contract (PSC) with PVEP of Vietnam and SK Earthon of South Korea, with respective stakes of 35%, 25%, and 40% [5] - Murphy Oil operates several offshore oil and gas blocks in Vietnam's Cuu Long and Phu Khanh basins and is also investing in the Lac Da Vang field [5] Group 3: Industry Context - Vietnam ranks among the leading oil reserve holders in Southeast Asia and approximately 28th globally, with major oil and gas resources concentrated in the Cuu Long, Nam Con Son, and Song Hong basins [6] - The Ministry of Industry and Trade reported that Vietnam produced around 10 million tons of oil and approximately 6 billion cubic meters of gas last year [7]

2025 FOURTH QUARTER EARNINGS CONFERENCE CALL AND WEBCAST JANUARY 29, 2026 ERIC M. HAMBLY PRESIDENT AND CHIEF EXECUTIVE OFFICER 4Q 2025 Earnings Presentation 0 0 CAUTIONARY STATEMENT Cautionary Note to US Investors – The United States Securities and Exchange Commission (SEC) requires oil and natural gas companies, in their filings with the SEC, to disclose proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existin ...