Murphy Oil(US:MUR)2025-05-07 20:50Financial Performance - Murphy Oil Corporation's net income from continuing operations for Q1 2025 was $90.0 million, a decrease of $25.6 million compared to Q1 2024[97]. - Net income attributable to Murphy for Q1 2025 was $73.0 million, down from $90.0 million in Q1 2024[103]. - Net cash provided by continuing operations activities was $300.7 million in Q1 2025, a decrease of $98.1 million from $398.8 million in Q1 2024[124]. - Corporate activities reported a loss of $48.2 million in Q1 2025, an unfavorable variance of $20.7 million compared to the same period in 2024[121]. - Income taxes increased by $1.9 million in Q1 2025, primarily due to higher taxes in foreign jurisdictions[119]. Production and Revenue - Total hydrocarbon production for Q1 2025 was 163,374 barrels of oil equivalent per day, an 8% decrease from Q1 2024[98]. - Revenue from production in Q1 2025 was $672.7 million, down from $794.6 million in Q1 2024, reflecting a significant decline in crude oil prices and production[104]. - Total net crude oil and condensate production decreased to 84,819 barrels per day in Q1 2025, down 13.2% from 97,704 barrels per day in Q1 2024[111]. - Revenues from production fell by $121.9 million to $672.7 million in Q1 2025, a decrease of 15.4% compared to $794.6 million in Q1 2024[113]. Expenses - Lease operating expenses decreased to $205.1 million in Q1 2025 from $234.3 million in Q1 2024, primarily due to lower sales volumes in the U.S.[104]. - Total depreciation, depletion, and amortization (DD&A) expense decreased by $16.5 million to $191.8 million in Q1 2025, compared to $208.3 million in Q1 2024[116]. - Exploration expenses dropped significantly by $29.9 million to $14.5 million in Q1 2025, down from $44.4 million in Q1 2024[118]. Capital Expenditures - Total capital expenditures rose to $424.8 million in Q1 2025, up from $271.3 million in Q1 2024[128]. - Exploration and production capital expenditures rose to $420.6 million in Q1 2025, compared to $267.1 million in Q1 2024[129]. - Higher capital expenditures were primarily due to increased field development costs in the Gulf of America[129]. Market Conditions - The average WTI crude oil price at the end of Q1 2025 was $71.48 per barrel, with a subsequent drop to $58.21 by the end of April 2025, indicating a 19% reduction[102]. - The average sales price for crude oil in the U.S. onshore decreased to $71.65 per barrel in Q1 2025 from $76.85 in Q1 2024[105]. - A 10% increase in benchmark prices for commodities would raise net payables related to derivative contracts by approximately $6.4 million[160]. - The company is exposed to market risks related to crude oil, natural gas, and petroleum product prices, as well as foreign currency exchange rates and interest rates[159]. Debt and Financing - The company had $200.0 million of outstanding borrowings under its revolving credit facility (RCF) as of March 31, 2025[162]. - A 10% increase in the average interest rate would increase interest expense by approximately $0.1 million, assuming no change in borrowings[162]. - Actual results may vary due to changes in the amount of variable rate debt outstanding[162]. Strategic Activities - The company drilled an oil discovery at Lac Da Hong-1X in offshore Vietnam, encountering 106 feet of net oil pay[99]. - Murphy completed the acquisition of the BW Pioneer FPSO in the Gulf of America for a gross purchase price of $125.0 million[99]. - The company repurchased $100.0 million of common stock, totaling approximately 3.6 million shares[99]. Risk Management - The company utilizes derivative financial and commodity instruments to manage risks associated with market fluctuations[159]. - There were no derivative foreign exchange contracts in place as of March 31, 2025[161].