Murphy Oil(US:MUR)2024-11-07 11:18Production and Revenue - Murphy Oil Corporation produced 191,273 barrels of oil equivalent per day in Q3 2024, an 8% decrease compared to Q3 2023[89]. - Total revenues and other income for Q3 2024 were $754.1 million, down from $956.4 million in Q3 2023, reflecting a decrease of approximately 21%[95]. - For the three months ended September 30, 2024, total revenue from production was $753.2 million, a decrease of $192.7 million compared to $945.9 million in the same period of 2023[105]. - Revenues from U.S. oil production for the three months ended September 30, 2024, were $561.9 million, a decrease of 27.6% compared to $776.3 million in the same period of 2023[105]. - Revenues from Canadian oil production for the three months ended September 30, 2024, were $101.1 million, significantly up from $42.9 million in the same period of 2023[105]. Income and Expenses - Net income from continuing operations for Q3 2024 was $151.7 million, a decrease of $126.5 million compared to the same period in 2023[89]. - Lease operating expenses increased to $222.9 million in Q3 2024, compared to $193.4 million in Q3 2023, representing a rise of 15.5%[95]. - For the nine months ended September 30, 2024, net income was $424.1 million, a decrease of $160.6 million compared to the same period in 2023[91]. - The company impaired assets for $34.5 million related to the Calliope field in the Gulf of Mexico for the nine months ended September 30, 2024, due to operational issues[111]. - Corporate activities reported a loss of $33.7 million for the three months ended September 30, 2024, an unfavorable variance of $3.6 million compared to the same period of 2023[116]. Production Costs and Operational Issues - Higher lease operating expenses were primarily due to workover projects in the Gulf of Mexico and increased production activity in Canada[91]. - The company experienced downtime at the Samurai field and hurricane-related downtime, impacting production revenues in the Gulf of Mexico[105]. - Depreciation, depletion, and amortization (DD&A) expense for the three months ended September 30, 2024 decreased by $12.6 million, primarily due to lower volumes in the Gulf of Mexico and at Eagle Ford Shale[110]. - Exploration expenses for the three months ended September 30, 2024 increased by $4.8 million, primarily due to higher geological and geophysical costs in the Gulf of Mexico[112]. Cash Flow and Liquidity - The company's primary sources of liquidity include cash on hand and net cash provided by continuing operations activities[117]. - Net cash provided by continuing operations activities for the nine months ended September 30, 2024, was $89.7 million higher compared to the same period in 2023[119]. - As of September 30, 2024, the company had approximately $1.1 billion of liquidity, consisting of $271.2 million in cash and cash equivalents and $799.6 million available on its committed senior unsecured revolving credit facility[127]. - Net working capital liability as of September 30, 2024, was $(255.2) million, a decrease of $160.9 million compared to December 31, 2023[128]. Debt and Equity - Long-term debt decreased by $49.1 million to $1,279.3 million as of September 30, 2024, primarily due to open market repurchases[131]. - Shareholders' equity decreased by $113.1 million in 2024, primarily due to share repurchases and cash dividends paid[131]. - The company had no outstanding borrowings under its revolving credit facility as of September 30, 2024[127]. Market Conditions - The average price of WTI crude oil for the three months ended September 30, 2024, was $75.10 per barrel, down from $82.26 per barrel in the same period of 2023, representing a decrease of approximately 14.5%[99]. - The average price of natural gas (NYMEX) for the three months ended September 30, 2024, was $2.09 per MMBTU, down from $2.58 per MMBTU in the same period of 2023, reflecting a decrease of approximately 19%[99]. - A 10% increase in benchmark prices of commodities would have increased the net payable associated with derivative contracts by approximately $2.5 million[150]. Capital Expenditures - Total capital expenditures for the nine months ended September 30, 2024, were $776.6 million, down from $885.7 million in the same period of 2023[124]. - Net cash required by investing activities decreased by $88.9 million for the nine months ended September 30, 2024, primarily due to lower property additions and dry hole costs[122]. - Net cash required by financing activities increased by $61.4 million for the nine months ended September 30, 2024, mainly due to share repurchases and cash dividends[126].