Earnings Highlights MUR -- 2/4/2025

2/4/2025

Murphy Oil (MUR)
Murphy Oil’s 2024 Q4 results were somewhat disappointing, with production at 175 mboed, compared to a 2024 average of 177 mboed. This shortfall is projected to continue into 2025 Q1, with guidance at 159-167 mboed. The decline was primarily attributed to two factors: a disappointing completion design in Eagle Ford (which yielded 50% of expected results) and weather-related offshore downtime.

However, the company projects a promising increase in 2025 from existing 2024 levels, averaging 175 to 183 mboed, mainly due to substantial increases in EF. After drilling 25 wells in 2024, they are guiding to 30-35 in 2025. Compared to previous years, they are reaching 9% more rock and achieving 6% lower net costs per well, echoing the themes of other US onshore producers, allowing them to maintain activity while reducing CAPEX. Their other major basin, the Montney, is guiding slightly down, with an average of 375 mmcf/d for 2025, compared to 377 mmcf/d in 2024 and 387 mmcf/d in 2024 Q4.

Overall, offshore represents approximately 50% of total production, with 2024 at 85 mboed and 2025 guidance at 78 mboed. Several new projects in the pipeline should result in material improvements in 2026 and 2027. The Gulf of Mexico accounts for approximately 80% of all offshore production.