MUR Prices $500M of 6.5% Senior Notes to Redeem Debts With Proceeds

Core Viewpoint - Murphy Oil Corporation has priced an offering of $500 million of 6.500% senior notes due 2034, expected to close on January 23, 2026, subject to customary closing conditions [1] Group 1: Debt Management - The proceeds from the offering will be used to redeem 5.875% notes due 2027 and 6.375% notes due 2028, along with related premiums, fees, and expenses [2] - Excess proceeds will be allocated to repay outstanding borrowings under its revolving credit facility and for general corporate purposes [2] - Murphy Oil has previously issued $600 million of 6.000% senior notes due 2032 to redeem existing notes, which has helped extend the debt period and lower interest burdens [3] Group 2: Financial Performance - In Q3 2025, Murphy reduced its debt by $50 million and aims to bring long-term debt down to $1 billion, which will further decrease annual interest payments [4] - The times interest earned ratio at the end of Q3 2025 was 3, indicating the company's strong ability to meet interest obligations [4] - Murphy's current debt-to-capital ratio is 21.35%, significantly lower than the industry average of 48.86% [5] Group 3: Industry Context - The oil-energy sector is capital-intensive, often requiring companies to borrow funds to finance long-term capital projects [6] - A decline in interest rates to the range of 3.50% to 3.75% is expected to benefit capital-intensive stocks [6] - Oil and gas companies continue to issue new debts to fund capital projects and redeem debts when excess funds are available [7] Group 4: Stock Performance - Murphy Oil's share price has increased by 24.3% over the past three months, contrasting with a 0.8% decline in the industry [8] - The company has seen a share price rise of 24.6% since the pricing of the senior notes [9]