Murphy Oil(MUR) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Financial and Operating Results This report summarizes Murphy Oil's Q2 2025 financial and operational performance, shareholder returns, and future guidance Financial Highlights Murphy Oil reported a net income of $22.3 million and adjusted net income of $38.5 million for Q2 2025, maintaining strong liquidity of approximately $1.5 billion Q2 2025 Key Financial Metrics (attributable to Murphy) | Metric | Value (Millions USD) | | :--- | :--- | | Net Income | $22.3 | | Adjusted Net Income (Non-GAAP) | $38.5 | | Adjusted EBITDA (Non-GAAP) | $334.9 | | Net Cash from Continuing Operations | $358.1 | | Free Cash Flow (Non-GAAP) | $17.8 | | Accrued Capital Expenditures (CAPEX) | $250.8 | - The company's liquidity as of June 30, 2025, was approximately $1.5 billion, consisting of $1.15 billion undrawn from its credit facility and $380 million in cash and cash equivalents[4] - Total debt stood at $1.48 billion, comprised of long-term fixed-rate notes with a weighted average maturity of 8.9 years and a weighted average coupon of 6.1%, plus $200 million drawn on the credit facility[5] Operational Highlights Q2 2025 total production reached 189,677 BOEPD, exceeding guidance, driven by strong onshore and offshore performance and strategic project advancements Q2 2025 Production Summary (Excluding NCI) | Category | Production Volume | | :--- | :--- | | Total Production | 189,677 BOEPD | | Oil Production | 89,530 BOPD | Q2 2025 Production by Area | Area | Total Production (BOEPD) | Oil Production (BOPD) | | :--- | :--- | :--- | | Onshore | 118,000 | 31,000 | | Eagle Ford Shale | 39,000 | 29,000 | | Tupper Montney | 75,000 | — | | Kaybob Duvernay | 4,000 | 2,000 | | Offshore (excl. NCI) | 72,000 | 59,000 | | Gulf of America | 66,000 | 53,000 | | Canada | 6,000 | 6,000 | - Operational progress includes the completion of the Samurai 3 and Khaleesi 2 workovers in the Gulf of America and advancing the Lac Da Vang field development in Vietnam, which is on schedule for first oil in H2 2026[10][11] - Subsequent to the quarter, Murphy closed a $23 million acquisition in the Eagle Ford Shale and signed a rig contract for a three-well exploration program in Côte d'Ivoire[6] Shareholder Returns Murphy returned $46 million to shareholders in Q2 2025 through dividends, contributing to $193 million in total capital returned for H1 2025 H1 2025 Return of Capital | Category | Amount (Millions USD) | | :--- | :--- | | Share Repurchases | $100 | | Dividends | $93 | | Total | $193 | - The company had $550 million remaining under its share repurchase authorization as of June 30, 2025[3] - A quarterly dividend of $0.325 per share ($1.30 per share annualized) was declared[6] 2025 Guidance Murphy Oil reaffirmed its full-year 2025 CAPEX guidance at $1,210 million midpoint and expects full-year production within the 174,500 to 182,500 BOEPD range Full Year 2025 Guidance (Excluding NCI) | Metric | Guidance Range | | :--- | :--- | | Total Net Production | 174,500 to 182,500 BOEPD | | Capital Expenditures | $1,135 to $1,285 Million | Q3 2025 Guidance (Excluding NCI) | Metric | Guidance | | :--- | :--- | | Total Net Production | 185,000 to 193,000 BOEPD | | Exploration Expense | $40 Million | 2025 Onshore Wells Online Plan (Gross) | Area | 2025E Total | | :--- | :--- | | Eagle Ford Shale | 34 | | Kaybob Duvernay | 4 | | Tupper Montney | 10 | | Non-Op Eagle Ford Shale | 18 | Financial Statements and Schedules This section presents detailed consolidated financial statements, non-GAAP reconciliations, and comprehensive operational data, including segment performance and hedging positions Consolidated Statements of Operations Q2 2025 total revenues were $695.6 million, resulting in net income attributable to Murphy of $22.3 million or $0.16 per diluted share Income Statement Summary (in thousands USD) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenues | $695,570 | $802,771 | | Total Costs and Expenses | $618,449 | $603,359 | | Income from Continuing Operations | $33,822 | $156,905 | | Net Income Attributable to Murphy | $22,280 | $127,739 | | Diluted EPS | $0.16 | $0.83 | Consolidated Statements of Cash Flows Net cash from continuing operations was $358.1 million in Q2 2025, with $309.6 million used in investing and $60.5 million in financing activities Cash Flow Summary (in thousands USD) | Category | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Cash from Continuing Operations | $358,050 | $467,652 | | Net Cash from Investing Activities | ($309,641) | ($267,791) | | Net Cash from Financing Activities | ($60,513) | ($190,063) | | Net Change in Cash | ($13,283) | $10,189 | Condensed Consolidated Balance Sheets As of June 30, 2025, total assets were $9.84 billion, with $1.47 billion in long-term debt and $5.20 billion in shareholders' equity Balance Sheet Summary (in thousands USD) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $379,631 | $423,569 | | Total Assets | $9,839,515 | $9,667,479 | | Long-term debt | $1,474,959 | $1,274,502 | | Total Liabilities | $4,482,335 | $4,325,636 | | Murphy Shareholders' Equity | $5,198,526 | $5,194,250 | Non-GAAP Reconciliations Q2 2025 non-GAAP reconciliations show adjusted net income of $38.5 million, adjusted EBITDA of $334.9 million, and free cash flow of $17.8 million Q2 2025 Non-GAAP Reconciliation Summary (in millions USD) | Metric | GAAP Value | Adjustments | Non-GAAP Value | | :--- | :--- | :--- | :--- | | Net Income Attributable to Murphy | $22.3 | $16.2 | $38.5 (Adjusted Net Income) | | Net Income Attributable to Murphy | $22.3 | $312.6 | $334.9 (Adjusted EBITDA) | | Net Cash from Continuing Ops | $358.1 | ($340.3) | $17.8 (Free Cash Flow) | Segment and Operational Data Q2 2025 segment data shows the US as the primary revenue contributor, with total production at 189,700 BOEPD and reduced lease operating expenses Q2 2025 Revenue and Income by Geography (in millions USD) | Region | Revenues | Income (Loss) | | :--- | :--- | :--- | | United States | $553.5 | $86.5 | | Canada | $128.3 | $10.5 | | Other | $2.9 | ($7.3) | Production-Related Expenses per BOE (excl. NCI) | Expense Category | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Lease operating expense | $11.80 | $15.09 | | Severance and ad valorem taxes | $0.62 | $0.64 | | DD&A expense | $14.28 | $12.52 | Q2 Average Realized Prices | Commodity | Region | 2025 | 2024 | | :--- | :--- | :--- | :--- | | Crude Oil ($/bbl) | U.S. Offshore | $64.48 | $81.67 | | Natural Gas ($/Mcf) | U.S. Onshore | $2.75 | $1.59 | Hedging Positions Murphy holds fixed-price forward sales contracts for Canadian natural gas and derivative swaps for US natural gas to mitigate price volatility Natural Gas Hedge Positions | Area | Type | Volume (MMCF/d) | Price | Period | | :--- | :--- | :--- | :--- | :--- | | Canada | Fixed price forward sales | 40 | C$2.75/MCF | H2 2025 | | Canada | Fixed price forward sales | 50 | C$3.03/MCF | Full Year 2026 | | United States | Fixed price derivative swap | 60 | US$3.65/MCF | Q3 2025 | | United States | Fixed price derivative swap | 60 | US$3.74/MCF | Q4 2025 |