Murphy Oil (MUR) Q3 2024 earnings summary

Executive summary

• Q3 2024 net income was $139M ($0.93/diluted share), with adjusted net income of $111M ($0.74/diluted share), and adjusted EBITDA of $397M; production averaged 185,000 BOE/d, with strong execution in Gulf of Mexico, Eagle Ford Shale, and Vietnam projects.

• $194M was returned to shareholders via buybacks in Q3, totaling $300M YTD, reducing share count by 16% since 2018, with $650M remaining under repurchase authorization.

• Advanced key projects, including Lac Da Vang platform construction and Hai Su Vang exploration in Vietnam, and completed major Gulf of Mexico and Eagle Ford Shale programs.

• CEO transition announced: Roger Jenkins retiring, Eric Hambly to assume CEO role effective January 1, 2025.

• Continued progress on sustainability, achieving lowest emissions intensities since 2013 and highest water recycling volume.

Financial highlights

• Q3 2024 revenue from production was $753M–$758M; adjusted EBITDA was $397M; accrued CapEx was $211M.

• Realized oil price near $76/bbl, NGL at $22/bbl, and natural gas at $1.47/mcf, aided by price diversification.

• Lease operating expenses rose to $222.9M in Q3 2024, mainly due to Gulf of Mexico workovers and higher Canadian production.

• Q3 adjusted net income margin was ~14.7%; adjusted EBITDA margin was ~52.4%.

• Cash and cash equivalents at quarter-end were $271M; liquidity stood at $1.1B.

Outlook and guidance

• Q4 2024 production guidance: 181.5–189.5 MBOE/d (51% oil, 56% liquids), with $203M planned CapEx.

• Full-year 2024 production guidance tightened to 180–182 MBOE/d (50% oil, 55% liquids), CapEx range $920M–$1.02B.

• 2025 production expected to be similar or slightly higher than 2024, with higher oil output from Eagle Ford.

• Targeting long-term debt of ~$1.0B by mid-2025, with no maturities until December 2027.

• Company expects to be at the lower end of production guidance due to Gulf of Mexico and Terra Nova operational impacts.