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 operating expenses and strong cost reductions in Eagle Ford Shale.

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

• Announced significant oil discoveries in Vietnam and the Gulf of America, with a dry hole in Côte d'Ivoire and new entry into Morocco.

• Maintained a strong balance sheet with $2.3 billion in liquidity and a low leverage ratio of 1.0x.

• 2026 will focus on strategic investments in development, exploration, and appraisal, particularly in Vietnam, Gulf of America, and Côte d'Ivoire.

Financial highlights

• Generated $300 million in free cash flow in 2025, with revenue of $2.69 billion and net income of $104.2 million.

• Lease operating expenses reduced by 20% year-over-year to $10.89 per BOE; capital expenditures came in below guidance.

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

• Proved developed reserves increased to 57% of total proved reserves.

• Adjusted EBITDA for 2025 was $1,362.4 million.

Outlook and guidance

• 2026 net production guidance is 167,000–175,000 BOEPD, with capital expenditures of $1.2–$1.3 billion and 50% oil weighting.

• Lease operating expenses expected to remain in the $10–$12 per barrel range.

• Flexibility to reduce 2026 capital spending by about 10% if needed; up to 30–40% reduction possible in 2027 under prolonged low prices.

• Modest oil growth expected from 2026 to 2027, with low single-digit annual increases.

• 2026 onshore plan includes 30 Eagle Ford Shale wells, 4 Kaybob Duvernay wells, and 13 Tupper Montney wells.