Murphy Oil Corporation Reports Fourth Quarter and Full-Year 2024 Financial and Operating Results
Murphy Oil Corporation (NYSE: MUR) has announced its financial and operational results for the fourth quarter and full year ending December 31, 2024. The company reported a net income of $50 million, or $0.34 per diluted share, for the fourth quarter. Adjusted net income, which excludes discontinued operations and other factors affecting comparability, stood at $51 million, or $0.35 per diluted share.
For the full year 2024, Murphy Oil recorded a net income of $407 million, translating to $2.70 per diluted share. Adjusted net income was $417 million, or $2.76 per diluted share.
Key Highlights: Fourth Quarter 2024
- Discovered oil at Hai Su Vang-1X offshore Vietnam, encountering approximately 370 feet of net oil pay from two reservoirs.
- Initiated construction of the LDV-A platform and finalized the contract for the floating storage and offloading vessel for the Lac Da Vang field development project in Vietnam.
- Secured a $1.35 billion five-year senior unsecured credit facility, marking a nearly 70% increase from the previous facility.
- Issued $600 million in 6.000% senior notes due 2032 and redeemed $600 million of senior notes due in 2027, 2028, and 2029.
- Reduced net debt to approximately $850 million, the lowest level in over a decade.
- Completed seismic reprocessing for exploration in Côte d’Ivoire.
Key Highlights: Full Year 2024
- Achieved the lowest Total Recordable Incident Rate since 2016.
- Entered “Murphy 3.0” of its capital allocation framework, repurchasing $300 million in stock (8.0 million shares) and $50 million in senior notes.
- Recorded the lowest annual selling and general expense since 2002, totaling $108 million.
- Achieved a record-high peak gross production rate of 496 million cubic feet per day (MMCFD) in Tupper Montney, reaching full processing plant capacity.
- Discovered oil at the non-operated Ocotillo #1 well in Mississippi Canyon 40, Gulf of Mexico.
- Acquired six deepwater blocks in Gulf of Mexico Federal Lease Sale 261.
- Increased the quarterly cash dividend by 8% to $0.325 per share ($1.30 annualized for 2025).
Leadership Comments
Eric M. Hambly, President and CEO, emphasized Murphy’s strategic focus on deleveraging, operational execution, exploration, and shareholder returns. He highlighted the company’s exploration success in Vietnam and the Gulf of Mexico, as well as its financial discipline, liquidity improvements, and commitment to shareholder value through dividends and share buybacks.
Fourth Quarter 2024 Financials
- Net income: $50 million ($0.34 per diluted share).
- Adjusted net income: $51 million ($0.35 per diluted share).
- EBITDA: $315 million.
- EBITDAX: $330 million.
- Adjusted EBITDA: $321 million.
- Adjusted EBITDAX: $337 million.
- Production: 175 thousand barrels of oil equivalent per day (MBOEPD), including 85 MBOPD.
- Capital expenditures (CAPEX): $186 million.
Full-Year 2024 Financials
- Net income: $407 million ($2.70 per diluted share).
- Adjusted net income: $417 million ($2.76 per diluted share).
- EBITDA: $1.4 billion.
- EBITDAX: $1.6 billion.
- Adjusted EBITDA: $1.5 billion.
- Adjusted EBITDAX: $1.6 billion.
- Production: 177 MBOEPD, including 88 MBOPD.
- CAPEX: $953 million.
Capital Allocation & Financial Position
- Repurchased $300 million in shares during 2024, with $650 million remaining under the repurchase authorization.
- Issued $600 million in senior notes at 6.000% due 2032, extending its debt maturity profile by two years.
- Entered a new $1.35 billion credit facility, increasing liquidity by nearly 70%.
- Maintained $1.8 billion in liquidity as of December 31, 2024, with $424 million in cash.
- Reduced net debt to approximately $850 million, achieving a net debt-to-total capital ratio of 13%.
Year-End 2024 Proved Reserves
- Total proved reserves: 713 million barrels of oil equivalent (MMBOE).
- Reserve replacement: 83%.
- Reserve life: 11 years.
- Proved developed reserves: 59%.
Operations Summary
Onshore:
- Produced approximately 100 MBOEPD, with 29% liquids volumes.
- Eagle Ford Shale production averaged 30 MBOEPD, with 69% oil content.
Murphy Oil plans to continue exploration activities in the Gulf of Mexico, Vietnam, and Côte d’Ivoire while maintaining its strong capital allocation strategy and shareholder returns.
