• Exceeded Upper End of Guidance Range With Production of 202 MBOEPD,
• Sanctioned Lac Da Vang Field Development Project in Vietnam,
• Executed $249 Million of Debt Reduction, Repurchased $75 Million of Shares Outstanding

Murphy Oil Corporation today announced its financial and operating results for the third quarter ended September 30, 2023, including net income attributable to Murphy of $255 million, or $1.63 net income per diluted share. Excluding discontinued operations and other items affecting comparability between periods, adjusted net income attributable to Murphy was $249 million, or $1.59 adjusted net income per diluted share.

Unless otherwise noted, the financial and operating highlights and metrics discussed in this news release exclude noncontrolling interest (NCI).

Highlights for the third quarter include:

• Exceeded upper end of guidance range with production of 202 thousand barrels of oil equivalent per day (MBOEPD), including 103 thousand barrels of oil per day (MBOPD)
• Redeemed remaining $249 million of 5.75% Senior Notes due 2025
• Repurchased $75 million, or 1.7 million shares outstanding, at an average price of $44.53 per share
• Closed divestiture of certain non-core operated Kaybob Duvernay and all non-operated Placid Montney assets for net cash proceeds of $103 million
• Subsequent to the third quarter:
• Sanctioned by board the Lac Da Vang field development project in Vietnam, targeting first oil in 2026
• Increased share repurchase authorization by $300 million

“Murphy had another great quarter with strong execution across our assets, resulting in significant free cash flow that we dedicated to paying down debt and repurchasing stock in accordance with our capital allocation framework. We also utilized part of the proceeds from the divestiture of a non-core portion of our Canadian assets to support our new country entry in Côte d’Ivoire and advance our Lac Da Vang field development project in Vietnam,” said Roger W. Jenkins, President and Chief Executive Officer. “I am delighted we are progressing our strategy of Delever, Execute, Explore, Return as we close out 2023, and I look forward to Murphy’s many opportunities in the new year.”

THIRD QUARTER 2023 RESULTS

The company recorded net income attributable to Murphy of $255 million, or $1.63 net income per diluted share, for the third quarter 2023. Adjusted net income, which excludes both the results of discontinued operations and certain other items that affect comparability of results between periods, was $249 million, or $1.59 adjusted net income per diluted share for the same period. The only adjustment to net income this quarter was foreign exchange gain totaling $9 million before tax. Details for third quarter results and an adjusted net income reconciliation can be found in the attached schedules.

Earnings before interest, taxes, depreciation and amortization (EBITDA) attributable to Murphy were $595 million. Earnings before interest, tax, depreciation, amortization and exploration expenses (EBITDAX) attributable to Murphy were $618 million. Adjusted EBITDA attributable to Murphy was $597 million. Adjusted EBITDAX attributable to Murphy was $620 million. Reconciliations for third quarter EBITDA, EBITDAX, adjusted EBITDA and adjusted EBITDAX can be found in the attached schedules.

Third quarter production averaged 202 MBOEPD and consisted of 51 percent oil volumes, or 103 MBOPD. Production for the quarter exceeded the upper end of the guidance range due to several factors, including strong well performance across onshore assets, lower realized royalty rates in the Tupper Montney natural gas asset and outperformance in the Gulf of Mexico due to an absence of hurricane downtime. Details for third quarter production can be found in the attached schedules.

FINANCIAL POSITION

Murphy had approximately $1.1 billion of liquidity on September 30, 2023, with no borrowings on the $800 million credit facility and $328 million of cash and cash equivalents, inclusive of NCI.

On September 15, 2023, the company announced the redemption of its remaining $249 million of 5.75 percent Senior Notes due 2025. Murphy funded the redemption during the third quarter and the obligation was satisfied. As a result, at the end of the third quarter, Murphy’s total debt was reduced to $1.6 billion, and consisted of long-term, fixed-rate notes with a weighted average maturity of 7.8 years and a weighted average coupon of 6.2 percent. Overall, Murphy has achieved a 47 percent, or $1.4 billion, reduction in total debt since year-end 2020.

OPERATIONS SUMMARY

Onshore

In the third quarter of 2023, the onshore business produced approximately 113 MBOEPD, which included 33 percent liquids volumes.

Eagle Ford Shale – Production averaged 38 MBOEPD with 74 percent oil volumes and 88 percent liquids volumes. As planned, Murphy brought online four operated wells in Catarina and three operated wells in Tilden during the quarter.

Tupper Montney – Natural gas production averaged 414 million cubic feet per day (MMCFD) in the third quarter. Production exceeded guidance by 35 MMCFD, of which 17 MMCFD was due to record high initial production rates, and 18 MMCFD was the result of a lower realized royalty rate of 3.9 percent.

Kaybob Duvernay – During the third quarter, production averaged 5 MBOEPD with 67 percent liquids volumes. As previously announced, in the third quarter Murphy closed the divestment of certain non-core operated Kaybob Duvernay and all of its non-operated Placid Montney assets for cash proceeds of $103 million, with an effective date of March 1, 2023. As a result of this transaction, Murphy no longer holds working interests in Placid Montney.

Offshore

Excluding NCI, the offshore business produced approximately 89 MBOEPD for the third quarter, which included 81 percent oil.

Gulf of Mexico – Production averaged approximately 86 MBOEPD, consisting of 80 percent oil during the third quarter. While production was positively impacted by the absence of Gulf of Mexico storms in the quarter, a mechanical issue developed at a well in the operated Neidermeyer field, causing production from that well to be shut in late in the quarter. In addition, a well in the operated Dalmatian field remains offline due to a mechanical issue that occurred earlier in the year. Workovers are planned for both wells in 2024.

Canada – In the third quarter, production averaged 3 MBOEPD, consisting of 100 percent oil, all from the Hibernia field. The asset life extension project is progressing for the non-operated Terra Nova floating, production, storage and offloading vessel, which Murphy anticipates will return to production by year-end 2023.

Vietnam – Subsequent to the third quarter, the Board of Directors sanctioned the Lac Da Vang field development project in Block 15-1/05 of the Cuu Long Basin. Murphy as operator holds a 40 percent working interest in the block. This project is expected to achieve first oil in 2026, with development phased through 2029. Overall, the field has an estimated ultimate recovery of 100 million barrels of oil equivalent (MMBOE) gross resources, with peak gross production of 30 to 40 MBOEPD.

Côte d’Ivoire – During the quarter, Murphy commenced initial work, including a review of commerciality and field development concepts for the Paon discovery in Block CI-103.

EXPLORATION

Gulf of Mexico – The company advanced preparations to resume drilling the Oso #1 (Atwater Valley 138) exploration well.

Côte d’Ivoire – Murphy commenced seismic reprocessing during the third quarter.

2023 CAPITAL EXPENDITURE AND PRODUCTION GUIDANCE

Third quarter accrued CAPEX of $162 million was lower than guidance primarily due to timing of non-operated projects. Murphy maintains its 2023 accrued CAPEX range of $950 million to $1.025 billion, which excludes $49 million in acquisition-related CAPEX for Côte d’Ivoire and Vietnam.

The company is raising its full year 2023 production range to 185 to 187 MBOEPD, consisting of approximately 53 percent oil and 59 percent liquids volumes. This represents a 3 MBOEPD increase in the midpoint from the previous range.

Production for fourth quarter 2023 is estimated to be in the range of 181.5 to 189.5 MBOEPD with 95 MBOPD, or 51 percent, oil volumes. This range includes planned downtime of 500 BOEPD in the Gulf of Mexico and 1.5 MBOEPD onshore. Production is also impacted by mechanical issues in two operated Gulf of Mexico wells, with plans in place for workovers in 2024.

KeyFacts Energy: Murphy Oil US country profile