Murphy Oil Corporation Reports First Quarter Earnings and Progresses Deleveraging Strategy
In its first quarter 2024 earnings call, Murphy Oil Corporation (MUR) (Murphy Energy) exceeded production targets, reporting 170,000 barrels equivalent per day, primarily from its Eagle Ford Shale and Tupper Montney operations. The company's production in the Gulf of Mexico and exploration initiatives in Vietnam are progressing, and it is on track to reduce its debt by $300 million this year, aiming for $1 billion in long-term bond debt. Murphy Oil has also increased its quarterly dividend to $0.30 per share and repurchased $50 million of stock.
The company reported revenue of $746 million for the first quarter, excluding non-controlling interest, and expects production for the second quarter of 176,000-184,000 barrels equivalent per day, maintaining its full-year guidance of 180,000-188,000 barrels equivalent per day. Capital expenditure (CapEx) for the second quarter is estimated at $325 million, with an annual CapEx range of $920 million to $1.02 billion. The company's long-term strategy includes reinvesting approximately 45% of operating cash flow to reach an average production of 210,000-220,000 barrels equivalent per day.
The company is starting its 2024 exploration program in the Gulf of Mexico and preparing for exploration in Vietnam, with plans to begin drilling development wells in 2025 and achieve first oil by late 2026. Murphy Oil's valuation is considered discounted due to its involvement in the oil business and production profile, distinct from all-shale companies. The stock has a dividend yield of 2.71% and the company has repurchased 4.7 million shares at an average price of $42.68 per share.
Executive insights highlight the company's strong financial and operational performance in the first quarter of 2024. InvestingPro Insights offer additional information on the company's market capitalization, P/E ratio, and dividend yield. InvestingPro Tips provide further insights and analysis on Murphy Oil Corporation for investors considering potential investment in the company.
A transcript excerpt from the Murphy Oil Corporation (MUR) Q1 2024 earnings call provides additional context on the company's financial and operational performance, including highlights of its debt reduction goal, returns to shareholders, and environmental and community initiatives. The transcript also includes comments from the company's CEO, CFO, and COO regarding its strategic focus and operational updates.