Murphy Oil reports fall in Q2 net income

Overview

• Murphy Oil Q2 production of 189.7 MBOEPD exceeded company's quarterly guidance range of 177.0 to 185.0 MBOEPD

• Company's net income fell to $22.3 mln due to lower commodity prices

• Operating expenses decreased to $11.80 per BOE, reflecting cost improvements

Outlook

• Murphy expects full-year 2025 production near midpoint of 174.5-182.5 MBOEPD

• Company anticipates H2 2025 operating expenses at $10-$12 per BOE

• Murphy maintains 2025 CAPEX guidance of $1,135 to $1,285 mln

• Company plans key exploration wells in Gulf of America, Vietnam in H2 2025

Result Drivers

• PRODUCTION INCREASE - Higher production rates from Eagle Ford Shale and Tupper Montney assets drove Q2 results

• LOWER COMMODITY PRICES - Decline in oil and natural gas prices significantly impacted net income

• COST REDUCTION - Operating expenses decreased due to improved production rates and lower costs in Eagle Ford Shale

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 15 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the oil & gas exploration and production peer group is "buy."

• Wall Street's median 12-month price target for Murphy Oil Corp is $26.00, about 8.3% above its August 5 closing price of $23.85

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nBw9FHJ8Wa