Murphy Oil (MUR) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income was $128 million ($0.83 per diluted share), with adjusted net income of $124 million ($0.81 per share), and adjusted EBITDA of $396 million; production averaged 181,000–187,847 BOE/d (50% oil), exceeding or meeting guidance, with strong onshore and offshore results and record Tupper Montney output.

• Accelerated Murphy 3.0 capital allocation framework, now allocating at least 50% of adjusted free cash flow to shareholder returns, primarily via buybacks, with the remainder to debt reduction and balance sheet strength.

• Repurchased $56 million of stock and $50 million of senior notes in Q2; year-to-date repurchases total $150 million (3.8 million shares at $39.70/share); share repurchase authorization increased by $500 million post-quarter, with $800 million remaining as of August 7, 2024.

• Advanced key international projects, including Vietnam's Lac Da Vang field development and a Gulf of Mexico discovery at Ocotillo #1; non-commercial result at Orange #1.

• Maintained quarterly dividend at $0.30 per share and reaffirmed long-term growth and debt reduction targets.

Financial highlights

• Q2 2024 revenue was $746–$797.5 million, with realized oil prices above $80/bbl and NGL at $21.88–$22/bbl; adjusted EBITDA margin was 50–53%.

• Accrued CapEx for Q2 was $292 million, excluding NCI.

• Liquidity stood at $1.1 billion as of June 30, 2024, with $1.28 billion long-term debt outstanding and no borrowings under the $800 million credit facility.

• Net income margin was 16–17% and adjusted EBITDA margin was 50–53% for Q2 2024.

• Cash and cash equivalents at June 30, 2024, were $333.6–$334 million.

Outlook and guidance

• Q3 2024 production forecast: 181.5–189.5 MBOE/d (50% oil), accounting for planned and storm-related downtime.

• Full-year 2024 production guidance maintained at 180,000–188,000 BOE/d (52% oil), likely at the lower end due to Gulf of Mexico operational impacts.

• Accrued CapEx guidance for 2024: $920 million–$1.02 billion, excluding NCI.

• Targeting $1.0 billion long-term debt by mid-2025 and first oil in Vietnam in 2026.

• Long-term plan targets 210,000–220,000 BOE/d by 2027–2028, with 45% of cash flow reinvested and >50% oil weighting.