Murphy Oil (MUR) Q4 2025 earnings summary

Executive summary

• Achieved 2025 production of 182,300 BOEPD, at the high end of guidance, with a 20% reduction in total company OPEX year-over-year and a 7% decrease in Eagle Ford drilling costs year-over-year.

• Net income attributable to shareholders was $104.2M for 2025, with adjusted EBITDA of $1,362.4M and adjusted net income of $197.0M.

• Returned $286M to shareholders in 2025 through dividends and buybacks, with an 8% increase in quarterly dividend to $1.40/share annualized for 2026.

• Major exploration successes included oil discoveries in the Gulf of America and a significant appraisal at Hai Su Vang, Vietnam, while Civette in Côte d'Ivoire was a dry hole.

• Entered Morocco with a new petroleum agreement and expanded Gulf of America exploration portfolio.

Financial highlights

• Revenue from production was $2.69B for 2025, with free cash flow of $301.3M and adjusted EBITDA of $1,362.4M.

• Lease operating expense per BOE decreased 20% year-over-year to $10.89.

• Maintained strong liquidity with $2.3B and a low leverage ratio of 1.0x.

• Achieved 103% overall reserve replacement on proved reserves, maintaining an 11-year reserve life with 715 MMBOE.

• Returned $46M to shareholders in 4Q 2025 and authorized a $550M share repurchase program.

Outlook and guidance

• 2026 production guidance: 167,000–175,000 BOEPD, with 50% oil weighting, and CAPEX of $1.2B–$1.3B, with 75% allocated to development, 12% to exploration, and 6% to appraisal.

• Q1 2026 production guidance: 164,000–172,000 BOEPD, with CAPEX of $500M–$580M.

• Eagle Ford Shale production will remain flat with 25% less capital spend.

• Capital flexibility allows for a potential 10% reduction in 2026 and up to 30-40% in 2027 if needed.

• Modest oil growth expected from 2026 to 2027, with midterm production ramp projected at low single digits.