Murphy Oil gains on FPSO purchase and sale agreement with BW Offshore

Shares of U.S.-based oil and gas producer Murphy Oil MUR.N rise 2.3% to $25.70 in extended trading

Company's subsidiary signs purchase and sale agreement to acquire the BW Pioneer floating production storage and offloading vessel (FPSO) from BW Offshore BWO.OL

Purchase price of $125 million includes an initial payment of about $100 million upon delivery by the end of Q1

"By acquiring the FPSO and restructuring our contract, we will achieve a material reduction in operating costs of nearly $60 million annually," said CEO Eric M Hambly

MUR reaffirms 2025 capital expenditure (CAPEX) forecast range of $1,135 million to $1,285 million, reaffirms Q1 CAPEX of $425 million

As of the last close, stock down 17% YTD