HOUSTON - Murphy Oil Corporation (NYSE: NYSE:MUR) has reported its financial results for the first quarter ended March 31, 2024, with an adjusted net income of $131 million, or $0.85 per diluted share, which is in line with the analyst consensus of $0.85.
Revenue outperformed expectations, coming in at $796.41 million against the consensus estimate of $751.29 million. In premarket trading Thursday, MUR stock was down 0.38%.
The company's production for the quarter was robust, averaging 170 thousand barrels of oil equivalent per day (MBOEPD), with oil volumes comprising 52 percent of the total. This production level was at the high end of the company's guidance range, thanks in part to strong performance across onshore assets. Murphy Oil also highlighted the repurchase of $50 million of stock, which aligns with their ongoing share repurchase program.
Roger W. Jenkins, Chief Executive Officer, expressed satisfaction with the quarter's performance, noting the progression of offshore plans and better-than-expected production from onshore assets. "We advanced our 2024 onshore well delivery program, with new wells in the Eagle Ford (NYSE:F) Shale, Tupper Montney, and Kaybob Duvernay either currently flowing or expected to come online in the near term," Jenkins stated. He also emphasized the company's commitment to production growth and increased free cash flow to enhance shareholder returns.
Murphy Oil's first quarter saw a net income of $90 million, or $0.59 per diluted share. Adjustments to net income totaled $50 million before tax, including a $35 million impairment of assets and a $26 million write-off of a previously suspended exploration well, offset by an $11 million foreign exchange gain.
The company maintains its 2024 capital expenditure (CAPEX) guidance range of $920 million to $1.02 billion and full-year production estimates of 180 to 188 MBOEPD. The second quarter production is estimated to be in the range of 176 to 184 MBOEPD, with oil volumes constituting 51 percent.
Murphy Oil's financial position remains strong, with approximately $1.1 billion in liquidity and a total debt of $1.3 billion. The positive outlooks received from Moody's (NYSE:MCO) and Fitch credit rating agencies underscore the company's solid financial standing and operational success.
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