Murphy Oil Corporation today announced its financial and operating results for the first quarter ended March 31, 2022, including a net loss attributable to Murphy of US$113 million, or US$0.73 net loss per diluted share. Adjusted net income, which excludes discontinued operations and other one-off items, was US$113 million, or US$0.73 net income per diluted share.
Unless otherwise noted, the financial and operating highlights and metrics discussed in this commentary exclude noncontrolling interest.
Highlights for the first quarter include:
- Produced 141 thousand boepd, with 60% liquids volumes, due to strong operational performance across oil-weighted assets • Generated US$409 million of adjusted earnings before interest, tax, depreciation, amortization and exploration, or US$32.54 per barrel of oil equivalent sold.
- Raised 2022 debt reduction goal to a range of US$600 million to US$650 million from US$300 million as a continuation of the delivering strategy, assuming an US$85 per barrel West Texas Intermediate oil price.
- Received a Moody’s corporate family rating upgrade to Ba2 from Ba3 with a stable outlook, and received an S&P outlook revision to positive from stable while affirmed at an issuer credit rating of BB – both actions progressing goal to achieve investment grade rating.
Subsequent to quarter-end:
- Achieved first oil at the Murphy-operated King’s Quay floating production system, with two of seven planned wells currently flowing from the Khaleesi, Mormont, Samurai field development project in the Gulf of Mexico.
- Declared 17% increase of quarterly dividend to US$0.175 per share, payable on June 1 and representing a 40 percent increase from fourth quarter 2021.
- Announced the redemption of US$200 million of 6.875% senior notes due 2024, progressing 2022 debt reduction goal.
Roger W. Jenkins, President and Chief Executive Officer said: “The Murphy-operated King’s Quay floating production system (FPS) has been performing above expectations since it began receiving volumes in early April. I am pleased at the team’s achievements in bringing the project to fruition safely, and with strong current production rates from the first two wells in the Khaleesi, Mormont, Samurai field development project, I am looking forward to flowing the next well imminently as we progress with additional completions. Achieving production from this significant project on schedule and within budget was a key priority within our overall strategy of delever, execute, explore. Through precise execution, the cash flow that will be generated from this development enables us to achieve our debt reduction goals in 2022 and 2023 while simultaneously reviewing our dividend.”
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