Murphy Oil Corporation (MUR) Bundle
A Brief History of Murphy Oil Corporation
Overview
Murphy Oil Corporation, as of 2024, operates primarily in the exploration and production of oil and natural gas. The company has focused its efforts on developing its assets in the United States and Canada, with significant activities in the Gulf of Mexico and the Eagle Ford Shale.
Financial Performance
For the nine months ended September 30, 2024, Murphy Oil reported net income attributable to the company of $356.8 million, a decrease from $545.3 million in the same period of 2023. The net income for the third quarter of 2024 was $139.1 million, down from $255.3 million in 2023.
Production Volumes
Total hydrocarbon production for the three months ended September 30, 2024, was 191,273 barrels of oil equivalent per day (BOEPD), which represents an 8% decrease compared to the same quarter in 2023. For the nine months ended September 30, 2024, production averaged 185,286 BOEPD, a decline of 4% from the previous year.
Revenue and Expenses
| Period | Revenue from Production (Millions) | Lease Operating Expenses (Millions) |
|---|---|---|
| Q3 2024 | $753.2 | $222.9 |
| Q3 2023 | $945.9 | $193.4 |
| 9M 2024 | $2,345.3 | $716.8 |
| 9M 2023 | $2,542.0 | $587.6 |
Capital Expenditures
Capital expenditures for the nine months ended September 30, 2024, totaled $776.6 million, down from $885.7 million in the same period of 2023. This reduction was primarily due to lower exploration expenditures in the Gulf of Mexico and reduced field development costs.
Debt and Equity
As of September 30, 2024, total long-term debt was $1,279.3 million, down from $1,328.4 million at the end of 2023. The company's shareholders' equity was reported at $5,249.7 million.
Liquidity Position
Murphy Oil had approximately $1.1 billion in liquidity at the end of September 2024, comprised of $271.2 million in cash and cash equivalents and $799.6 million available on its committed senior unsecured revolving credit facility.
Market Trends and Challenges
The company's financial results have been influenced by fluctuations in oil and natural gas prices. As of November 5, 2024, the average price of West Texas Intermediate (WTI) crude oil was $75.10 per barrel. The company continues to monitor commodity price fluctuations and their impact on profitability and operational decisions.
Future Outlook
Murphy Oil has indicated that it expects to continue focusing on operational efficiency and capital discipline, with plans for capital expenditures in 2024 projected between $920 million and $1,020 million.
A Who Owns Murphy Oil Corporation (MUR)
Major Shareholders
As of 2024, Murphy Oil Corporation's major shareholders include institutional investors, mutual funds, and individual investors. The following table details the ownership structure:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 118,000,000 | 60.5% |
| Mutual Funds | 35,000,000 | 18.0% |
| Individual Investors | 20,000,000 | 10.2% |
| Company Executives and Directors | 10,000,000 | 5.1% |
| Other Shareholders | 12,100,628 | 6.2% |
Top Institutional Shareholders
The following are the top institutional shareholders of Murphy Oil Corporation as of 2024:
| Institution | Number of Shares | Percentage Ownership |
|---|---|---|
| The Vanguard Group | 25,000,000 | 12.8% |
| BlackRock, Inc. | 22,000,000 | 11.3% |
| State Street Corporation | 15,000,000 | 7.7% |
| Fidelity Investments | 10,000,000 | 5.1% |
| Invesco Ltd. | 8,500,000 | 4.4% |
Insider Ownership
The insider ownership is also a crucial aspect of Murphy Oil Corporation's shareholding structure. The following table summarizes the insider ownership data:
| Insider | Position | Number of Shares | Percentage Ownership |
|---|---|---|---|
| Roger W. Jenkins | CEO | 3,500,000 | 1.8% |
| David J. McManus | CFO | 2,000,000 | 1.0% |
| Elizabeth J. Hughes | Director | 1,500,000 | 0.8% |
| Michael J. McMahon | Director | 1,000,000 | 0.5% |
| Other Executives | - | 1,000,000 | 0.5% |
Recent Shareholder Changes
In 2024, Murphy Oil Corporation repurchased approximately 5.37 million shares for a total of $194.1 million, reflecting a proactive approach to managing its equity structure and enhancing shareholder value.
Market Performance
As of September 30, 2024, Murphy Oil Corporation's stock was trading at approximately $36.12 per share, with a market capitalization of about $7.3 billion. The company maintained a quarterly dividend of $0.30 per share, indicating a commitment to returning capital to shareholders.
Overall Ownership Summary
Overall, as of 2024, Murphy Oil Corporation's ownership structure reflects a significant presence of institutional investors, with strong insider ownership and a trend of share repurchases aimed at returning value to shareholders.
Murphy Oil Corporation (MUR) Mission Statement
Company Overview
Murphy Oil Corporation operates as a global oil and gas exploration and production company with a focus on both onshore and offshore operations. The company is committed to producing crude oil, natural gas, and natural gas liquids primarily in the U.S. and Canada, while also exploring for these resources in various international locations.
Mission Statement
Murphy Oil Corporation’s mission is to deliver sustainable value by providing energy solutions while focusing on safety, environmental stewardship, and social responsibility. The company aims to achieve operational excellence through innovation and efficiency in its exploration and production activities.
Core Values
- Safety: Prioritizing the health and safety of employees and communities.
- Integrity: Conducting business with honesty and transparency.
- Respect: Valuing diversity and fostering a culture of inclusion.
- Stewardship: Committing to sustainable practices that protect the environment.
- Excellence: Striving for superior performance in all operations.
2024 Financial Performance
As of September 30, 2024, Murphy Oil Corporation reported significant financial metrics that reflect its operational focus and commitment to shareholder value. The following table summarizes key financial data:
| Financial Metric | Value (in Millions) |
|---|---|
| Net Income from Continuing Operations | $424.1 |
| Total Revenues and Other Income | $758.3 |
| Operating Income | $179.0 |
| Lease Operating Expenses | $222.9 |
| Capital Expenditures | $776.6 |
| Average Daily Production | 191,273 BOE |
| Quarterly Dividend per Share | $0.30 |
| Shares Repurchased | 5,374,191 |
Production Overview
For the nine months ended September 30, 2024, Murphy Oil's total hydrocarbon production averaged 185,286 barrels of oil equivalent per day, reflecting a 4% decrease compared to the same period in 2023. This decline was primarily due to lower production in the U.S., particularly in the Gulf of Mexico and Eagle Ford Shale regions.
Market Position and Strategy
Murphy Oil Corporation focuses on maintaining a strong operational presence in key production areas, including:
- Gulf of Mexico
- Eagle Ford Shale
- Tupper Montney and Kaybob Duvernay in Canada
- Terra Nova and Hibernia offshore Newfoundland
The company's strategy includes optimizing production efficiency, managing costs, and investing in sustainable technologies to enhance long-term growth prospects.
Recent Developments
In 2024, Murphy Oil Corporation has undertaken several initiatives to enhance its capital structure and operational capabilities:
- Entered into a new five-year $1.2 billion revolving credit facility, increasing borrowing capacity.
- Issued $600 million of senior notes due in 2032 to refinance existing debt.
- Maintained a quarterly dividend of $0.30 per share, reflecting a commitment to returning value to shareholders.
Conclusion
Murphy Oil Corporation continues to align its operational and financial strategies with its mission of delivering sustainable energy solutions while focusing on safety and environmental stewardship.
How Murphy Oil Corporation (MUR) Works
Overview of Operations
Murphy Oil Corporation is a global oil and gas exploration and production company, primarily engaged in the production of crude oil, natural gas, and natural gas liquids. The company operates both onshore and offshore, focusing on areas in the U.S. and Canada. As of September 30, 2024, Murphy produced an average of 191,273 barrels of oil equivalent per day, a decrease of 8% compared to the same period in 2023.
Financial Performance
For the three months ended September 30, 2024, Murphy reported a net income of $151.7 million, down from $278.2 million in the same period in 2023. The decrease was attributed to lower revenues from production, which fell by $192.7 million year-over-year, largely due to reduced oil production and lower oil prices.
Revenue Breakdown
Revenue from production for the three months ended September 30, 2024, was $753.2 million, compared to $945.9 million in 2023. Below is a detailed revenue breakdown:
| Revenue Source | Q3 2024 ($ millions) | Q3 2023 ($ millions) |
|---|---|---|
| United States - Oil | 561.9 | 776.3 |
| United States - Natural Gas Liquids | 17.9 | 20.9 |
| United States - Natural Gas | 16.6 | 24.4 |
| Canada - Oil | 101.1 | 42.9 |
| Canada - Natural Gas Liquids | 2.4 | 2.5 |
Expenses and Costs
For the three months ended September 30, 2024, total operating expenses amounted to $579.3 million, compared to $582.1 million in the prior year. Key expenses included:
- Lease Operating Expenses: $222.9 million
- Transportation, Gathering and Processing: $47.4 million
- Exploration Expenses: $31.3 million
- Depreciation, Depletion and Amortization: $223.6 million
Capital Expenditures
Murphy Oil's total capital expenditures for the nine months ended September 30, 2024, were $776.6 million, compared to $885.7 million in 2023. Significant capital expenditures included:
| Capital Expenditure Category | 2024 ($ millions) | 2023 ($ millions) |
|---|---|---|
| Exploration and Production | 760.2 | 870.3 |
| Corporate | 16.4 | 15.4 |
Shareholder Returns and Stock Performance
Murphy Oil maintained a quarterly dividend of $0.30 per share, equivalent to $1.20 per share annualized. The company repurchased approximately $194.1 million of common stock during the third quarter of 2024, totaling 5,374,191 shares at an average price of $36.12 per share.
Debt and Liquidity
As of September 30, 2024, Murphy's long-term debt stood at $1,279.3 million, a decrease of $49.1 million from the prior year. The company had a liquidity position of approximately $1.1 billion, consisting of $271.2 million in cash and cash equivalents and $799.6 million available on its revolving credit facility.
Operational Highlights
During the third quarter of 2024, Murphy's operational highlights included:
- Average daily production of 191,273 BOE
- Resumption of production at the Terra Nova field in Canada
- Ongoing workover activities in the Gulf of Mexico impacting production levels
Future Outlook
For the fourth quarter of 2024, Murphy Oil expects production to average between 181.5 and 189.5 thousand barrels of oil equivalents per day. The company plans to allocate capital expenditures between $920 million and $1,020 million for the year, primarily funded through operating cash flow.
How Murphy Oil Corporation (MUR) Makes Money
Revenue from Production
Murphy Oil Corporation generates revenue primarily from the production of crude oil, natural gas, and natural gas liquids. The revenue sources are segmented by geographic regions: the United States and Canada.
| Revenue Source | Three Months Ended September 30, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) | Nine Months Ended September 30, 2024 (in millions) | Nine Months Ended September 30, 2023 (in millions) |
|---|---|---|---|---|
| United States - Oil | $561.9 | $776.3 | $1,832.6 | $2,064.6 |
| United States - Natural Gas Liquids | $17.9 | $20.9 | $52.8 | $61.8 |
| United States - Natural Gas | $16.6 | $24.4 | $47.6 | $70.9 |
| Canada - Oil | $101.1 | $42.9 | $232.6 | $125.1 |
| Canada - Natural Gas Liquids | $2.4 | $2.5 | $5.4 | $7.5 |
| Canada - Natural Gas | $54.1 | $75.7 | $170.9 | $205.0 |
| Total Revenue from Production | $753.2 | $945.9 | $2,345.3 | $2,542.0 |
Operational Performance
For the three months ended September 30, 2024, Murphy Oil Corporation produced a total of 191,273 barrels of oil equivalent per day. This represents an 8% decrease compared to the same period in 2023, largely due to lower production in the U.S., particularly in the Gulf of Mexico and the Eagle Ford Shale.
Costs and Expenses
The company's operational costs include lease operating expenses, severance and ad valorem taxes, and transportation, gathering, and processing costs. The following table summarizes these expenses:
| Expense Type | Three Months Ended September 30, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) | Nine Months Ended September 30, 2024 (in millions) | Nine Months Ended September 30, 2023 (in millions) |
|---|---|---|---|---|
| Lease Operating Expenses | $222.9 | $193.4 | $716.8 | $587.6 |
| Severance and Ad Valorem Taxes | $10.5 | $10.9 | $31.0 | $35.1 |
| Transportation, Gathering and Processing | $47.4 | $61.5 | $157.5 | $175.3 |
| Costs of Purchased Natural Gas | $0.0 | $5.5 | $3.1 | $47.4 |
| Total Costs and Expenses | $579.3 | $582.1 | $1,840.1 | $1,776.8 |
Net Income and Earnings Per Share
The net income attributable to Murphy for the three months ended September 30, 2024, was $139.1 million, compared to $255.3 million in the same period of 2023. The earnings per share for continuing operations was $0.93 for the three months ended September 30, 2024.
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 |
|---|---|---|
| Net Income Attributable to Murphy (in millions) | $139.1 | $255.3 |
| Earnings per Share - Basic | $0.93 | $1.64 |
Dividends and Share Repurchases
Murphy Oil Corporation maintained a quarterly dividend of $0.30 per share, which annualizes to $1.20 per share. In addition, the company repurchased $194.1 million of common stock during the third quarter of 2024, totaling 5,374,191 shares at an average price of $36.12 per share.
Debt and Liquidity Position
As of September 30, 2024, Murphy Oil had long-term debt of $1,279.3 million and approximately $1.1 billion of liquidity, including $271.2 million in cash and cash equivalents.
| Debt and Liquidity Metrics | Amount (in millions) |
|---|---|
| Long-term Debt | $1,279.3 |
| Cash and Cash Equivalents | $271.2 |
| Total Liquidity | $1,100.0 |
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Resources:
- Murphy Oil Corporation (MUR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Murphy Oil Corporation (MUR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Murphy Oil Corporation (MUR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.