Murphy Oil Q2 Earnings & Sales Beat Estimates on Strong Production

Core Insights - Murphy Oil Corporation (MUR) reported second-quarter 2025 adjusted net earnings of 27 cents per share, exceeding the Zacks Consensus Estimate of 21 cents by 28.6%, but down 66.7% from 81 cents in the same quarter last year [1][8] - Revenues for Murphy Oil reached $695.6 million, surpassing the Zacks Consensus Estimate of $638 million by 8.9% [2] - The company produced 190,000 barrels of oil equivalent per day (BOE/D) in Q2 2025, exceeding the guidance range of 177,000-185,000 BOE/D, driven by strong performance in the Eagle Ford Shale and Tupper Montney region [3][8] Financial Performance - Total costs and expenses were $603.4 million, a decrease of 2.5% from $618.5 million a year ago, attributed to lower lease operating costs and exploration expenses [4] - Murphy Oil returned $193 million to shareholders in the first half of 2025, including $100 million in share repurchases and $93 million in dividends [4][8] - As of June 30, 2025, the company had cash and cash equivalents of $379.6 million, down from $423.6 million at the end of 2024, with long-term debt totaling $1.48 billion [7] Share Repurchase and Acquisitions - The board of directors authorized a share repurchase program allowing the company to repurchase up to $1.1 billion of its common stock, with $550.1 million remaining available as of June 30, 2025 [5][8] - In July 2025, Murphy Oil completed a small acquisition in the Eagle Ford Shale for $23 million and signed a rig contract for a three-well exploration program in Côte d'Ivoire [6] Future Guidance - For Q3 2025, Murphy Oil expects production to be in the range of 185,000-193,000 BOE/D, with 47% expected to be oil [9] - The company reiterated its 2025 capital expenditures guidance of $1.13-$1.28 billion, with Q3 capital expenditure projected at $260 million [9]