Form 8-K MURPHY OIL CORP /DE For: Oct 29
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): October 28, 2015
MURPHY OIL CORPORATION
(Exact name of registrant as specified in its charter)
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Delaware |
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1-8590 |
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71-0361522 |
(State or other jurisdiction of incorporation) |
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(Commission File Number) |
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(I.R.S. Employer Identification No.) |
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200 Peach Street |
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P.O. Box 7000, El Dorado, Arkansas |
71730-7000 |
(Address of principal executive offices) |
(Zip Code) |
Registrant’s telephone number, including area code 870-862-6411 |
Not applicable |
(Former Name or Former Address, if Changed Since Last Report) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition
The following information is furnished pursuant to Item 2.02, “Results of Operations and Financial Condition.”
On October 28, 2015, Murphy Oil Corporation issued a news release announcing its preliminary third quarter 2015 and nine-month financial and operating results for the period ended September 30, 2015. The full text of this news release is attached hereto as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits
(d) |
Exhibits |
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99.1 |
A news release dated October 28, 2015 announcing preliminary third quarter 2015 and nine-month financial and operating results for the period ended September 30, 2015 is attached hereto as Exhibit 99.1. |
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
MURPHY OIL CORPORATION |
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By: |
/s/ Keith Caldwell |
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Keith Caldwell |
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Senior Vice President and Controller |
Date: October 29, 2015
Exhibit Index
99.1 |
News release dated October 28, 2015, as issued by Murphy Oil Corporation. |
MURPHY ANNOUNCES PRELIMINARY THIRD QUARTER 2015 AND
NINE-MONTH FINANCIAL AND OPERATING RESULTS
EL DORADO, Arkansas, October 28, 2015 – Murphy Oil Corporation (NYSE: MUR) today announced its preliminary financial and operating results for the quarter and nine-month period ended September 30, 2015, including a net loss of $1,595 million, or $9.26 per diluted share during the quarter. The net loss during the third quarter includes a non-cash impairment of oil and natural gas properties of $2,301 million, or $1,537 million net of taxes. Details are provided in the third quarter financial results section below.
Operating and financial highlights for the quarter and year-to-date include:
· |
Produced volumes of 207,586 boepd in the third quarter, exceeding guidance of |
200,000 boepd
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Reduced lease operating expense per barrel by over 19 percent year-over-year |
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Lowered G&A expense by approximately 12 percent year-over-year |
· |
Maintained net debt to EBITDA ratio below 1.5 at quarter-end (annualized) |
· |
Signed farm-in agreement for 15-1/05 block in Vietnam’s Cuu Long Basin, where a discovery well has successfully been tested |
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Achieved exploration success in low-risk opportunities – Merapuh 5 and Marakas offshore Malaysia and Dalmatian South #2 in Gulf of Mexico |
THIRD QUARTER FINANCIAL RESULTS
The net loss of $1,595 million, or $9.26 per diluted share, includes a non-cash impairment of oil and natural gas properties of $2,301 million, or $1,537 million net of taxes. The non-cash impairment is caused by the low market price for future production, as demonstrated by oil prices that declined between $8 and $15 per barrel compared to three months earlier. The property impairments occurred at the Seal heavy oil field in Western Canada, and oil and natural gas fields offshore Malaysia and the deepwater Gulf of Mexico.
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The net loss from continuing operations in the third quarter of 2015 was $1,587 million, or $9.22 per diluted share. The company reported an adjusted loss, which excludes both the results of discontinued operations and certain other items that affect comparability of results between periods, of $124.5 million, or $0.72 per diluted share in the third quarter of 2015.
Earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations in the third quarter 2015 totaled $356.8 million, or $18.68 per barrel of oil equivalent (boe) sold. Earnings before interest, taxes, depreciation, amortization and exploration expenses (EBITDAX) in the third quarter 2015 totaled $414.9 million, or $21.72 per boe sold. Both EBITDA and EBITDAX were significantly impacted by a greater than 50 percent reduction in Brent and West Texas Intermediate (WTI) oil prices between the comparative periods. Details for third quarter EBITDA and EBITDAX can be found in the attached schedules.
Third quarter 2015 production averaged nearly 207,600 barrels of oil equivalent per day (boepd), ahead of our 200,000 boepd guidance, primarily due to Sarawak oil and natural gas fields performing better, above planned performance on base production, Eagle Ford Shale new well volumes exceeding plan due to enhanced drilling and completion techniques, Kakap-Gumusut scheduled maintenance completed early and higher natural gas production from the Montney. Details for third quarter production can be found in the attached schedules.
“During the third quarter, we delivered almost 7,600 barrels per day of high-margin volumes above our guidance, driven by continuous improvements in productivity and ongoing operating efficiencies,” stated Roger W. Jenkins, President and Chief Executive Officer. “In addition, we continue to focus on driving costs lower in our business both in operating expenses and in general and administrative costs. Today, Murphy is better positioned financially to carry out our plans and compete in the upstream oil and natural gas business going forward in a ‘lower-for-longer’ commodity price environment.”
YEAR-TO-DATE FINANCIAL RESULTS
For the nine-month period ended September 30, 2015, Murphy reported a net loss of $1,684 million, or $9.62 per diluted share. The net loss from continuing operations for the same period was $1,673 million, or $9.55 per diluted share. The net loss includes a non-cash impairment of oil
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and natural gas properties of $2,301 million, or $1,537 million net of taxes, due to current low commodity-price levels.
The company reported an adjusted loss, which excludes both the results of discontinued operations and certain other items that affect comparability of results between periods, in the nine-month period ended September 30, 2015 of $406.1 million, or $2.32 per diluted share.
EBITDA from continuing operations for the nine-month period ended September 30, 2015, totaled $1,070 million, or $18.60 per boe sold. EBITDAX for the same period totaled $1,322 million, or $22.98 per boe sold. Both EBITDA and EBITDAX were greatly impacted by almost a 40 percent decrease in Brent and WTI oil prices between the comparative periods. Details for year-to-date EBITDA and EBITDAX can be found in the attached schedules.
Production for the nine-month period ended September 30, 2015, averaged 210,300 boepd. Details for the nine-month period production can be found in the attached schedules.
OVERHEAD COST REDUCTIONS
Management has taken a proactive approach toward improving Murphy’s efficiency and structure in direct response to the low commodity price environment. Over the course of the year, the company has announced and implemented key organizational changes. The overall savings is currently expected to be reflected as a reduction in 2015 G&A expense by approximately 18 percent from 2014 levels, or $64 million, and will be fully realized in 2016. Following initiatives to streamline the organization in response to low commodity prices, year-end 2015 staffing levels are expected to be reduced by approximately 23 percent from a year earlier.
REGIONAL OPERATIONS SUMMARY
North American Onshore
Eagle Ford Shale – Production in the third quarter of 2015 averaged over 63,000 boepd with 33 new wells brought online. The company achieved higher than projected third quarter Eagle Ford Shale production due to continued efficiency improvements, lower base declines and increased Estimated Ultimate Recoveries (EURs) per well associated with enhanced drilling and completion techniques. The full-year outlook for 2015 is now expected to average over 61,000 boepd, an
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increase from near 57,000 boepd from 2014 annual production with over a 45 percent capital reduction in 2015.
Montney – Murphy produced 194 million cubic feet per day (MMcfd) of natural gas. Well performance continues to exceed expectations due to new completion techniques.
Offshore
Malaysia – Sarawak natural gas production in the third quarter was 129 MMcfd supported by strong natural gas nominations and liquids production was near 15,800 boepd. The company achieved record average daily gross production of 291 MMcfd from Sarawak natural gas during the quarter. At the Kakap-Gumusut main facility, planned maintenance activities to install natural gas handling and injection systems were completed three weeks ahead of schedule in late July. The company successfully drilled both the Merapuh 5 and Marakas wells with positive results and is continuing to evaluate development options. The Murphy operated well, Paus-Kelasa, failed to encounter commercial quantities of hydrocarbons and was expensed as a dry hole during the quarter.
Gulf of Mexico – Production for the third quarter of 2015 was over 27,200 boepd with 71 percent liquids. The Dalmatian South #2 was spud during the third quarter and drilling was completed early in the fourth quarter. The well found commercial hydrocarbons in two separate zones. The well has been completed and subsea equipment will be installed with first production expected in early 2016.
Development work at the non-operated Kodiak project continues, where the first of two wells has been drilled and completed and fabrication of topside facilities is underway. First production here is also expected early next year.
New Area of Operation
Vietnam – Murphy reached an agreement with PetroVietnam Exploration Production Corporation (PVEP) and SK Innovation Co. Ltd. (SK) to farm-in to the 15-1/05 Production Sharing Contract (PSC), in the highly prospective, oil prone, Cuu Long Basin, Offshore Vietnam. Murphy will hold a 35 percent working interest in the PSC. Oil discoveries previously made in the PSC are currently under appraisal and PVEP, as the operator, recently completed the successful drilling and testing
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of well LDV-4X in two zones and is currently incorporating these well results into the resource assessment of the block.
LIQUIDITY AT QUARTER-END
Exclusive of capital lease obligations, the company had $3.11 billion of outstanding debt, consisting of $2.25 billion of long-term, fixed-rate bonds with a weighted average maturity of 9.7 years and a weighted average coupon of 4.07 percent. There was $0.75 billion drawn on the $2.0 billion revolving credit facility with an additional $0.11 billion outstanding under bid lines. In addition, the company had cash on-hand and liquid invested securities totaling $1.29 billion.
FULL-YEAR AND FOURTH QUARTER 2015 PRODUCTION GUIDANCE
The company is increasing the full-year 2015 production guidance to a range of 205 thousand to 209 thousand boepd and expects fourth quarter production to be 199 thousand boepd.
2015 CAPITAL EXPENDITURE GUIDANCE
Capital expenditure guidance for full-year 2015 is reaffirmed at $2.3 billion. For the nine-months ended September 30, 2015, the company had spent $1.7 billion. Details for capital expenditures can be found in the attached schedules.
CONFERENCE CALL AND WEBCAST SCHEDULED FOR OCTOBER 29, 2015
Murphy will host a conference call to discuss third quarter 2015 results on Thursday, October 29, 2015, at 1:00 p.m. EDT. The call can be accessed either via the Internet through the Investor Relations section of Murphy Oil’s website at http://ir.murphyoilcorp.com or via the telephone by dialing 1-888-208-1617. The telephone reservation number for the call is 107766. Replays of the call will be available through the same address on Murphy Oil’s website, and a recording of the call will be available through November 12, 2015, by calling 1-888-203-1112 and referencing reservation number 107766. A replay of the conference call will also be available on the Murphy website at http://ir.murphyoilcorp.com.
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FINANCIAL DATA
Summary financial data and operating statistics for the third quarter 2015 and nine-month period ended September 30, 2015, with comparisons to 2014, are contained in the following schedules. Additionally, a schedule indicating the impacts of items affecting comparability of earnings between periods and schedules comparing EBITDA and EBITDAX between periods are also included with these schedules, along with condensed balance sheet, updated hedging activity, and guidance for the fourth quarter.
Murphy Oil Corporation is a global independent oil and natural gas exploration and production company, with proved reserves of 756 million barrels of oil equivalent at year-end 2014. The Company's diverse resources base includes offshore production in South East Asia, Canada and Gulf of Mexico; as well as, North American onshore plays in the Eagle Ford Shale and Montney.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express management’s current views concerning future events or results, are subject to inherent risks and uncertainties. Factors that could cause one or more of these forecasted events not to occur include, but are not limited to, a failure to obtain necessary regulatory approvals, a deterioration in the business or prospects of Murphy, adverse developments in Murphy business’ markets, and adverse developments in the U.S. or global capital markets, credit markets or economies in general. Factors that could cause actual results to differ materially from those expressed or implied in our forward-looking statements include, but are not limited to, the volatility and level of crude oil and natural gas prices, the level and success rate of our exploration programs, our ability to maintain production rates and replace reserves, customer demand for our products, adverse foreign exchange movements, political and regulatory instability, and uncontrollable natural hazards. For further discussion of risk factors, see Murphy’s 2014 Annual Report on Form 10-K on file with the U.S. Securities and Exchange Commission. Murphy undertakes no duty to publicly update or revise any forward-looking statements.
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NON-GAAP MEASURES
This news release also contains certain historical non-GAAP measures of financial performance that management believes are good tools for internal use and the investment community in evaluating Murphy Oil Corporation's overall financial performance. These non-GAAP measures are broadly used to value and compare companies in the crude oil and natural gas industry. Please see the attached schedules for reconciliations of the differences between non-GAAP measures used in this news release and the most directly comparable GAAP financial measures.
RESERVE REPORTING TO THE SECURITIES EXCHANGE COMMISSION
The Securities and Exchange Commission (SEC) requires oil and natural gas companies, in their filings with the SEC, to disclose proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. The SEC permits the optional disclosure of probable and possible reserves; however, we have not disclosed the Company's probable and possible reserves in our filings with the SEC. Investors are urged to consider closely the disclosures and risk factors in our most recent annual report on Form 10-K and in other reports on file with the SEC, available from Murphy Oil Corporation's offices or website at http://ir.murphyoilcorp.com.
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MURPHY OIL CORPORATION |
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SUMMARIZED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
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(Thousands of dollars, except per share amounts) |
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Three Months Ended |
Nine Months Ended |
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September 30, |
September 30, |
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2015 |
2014 |
2015 |
2014 |
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Revenues |
$ |
714,949 | 1,433,037 | 2,374,986 | 4,068,458 | |||
Costs and expenses |
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Lease operating expenses |
183,826 | 265,518 | 643,736 | 813,638 | ||||
Severance and ad valorem taxes |
14,265 | 28,574 | 54,099 | 83,793 | ||||
Exploration expenses |
58,149 | 117,433 | 251,842 | 390,711 | ||||
Selling and general expenses |
71,791 | 82,960 | 237,934 | 269,986 | ||||
Depreciation, depletion and amortization |
433,706 | 499,151 | 1,318,123 | 1,354,393 | ||||
Impairment of assets |
2,300,974 |
– |
2,300,974 |
– |
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Accretion of asset retirement obligations |
11,918 | 12,600 | 35,437 | 36,992 | ||||
Interest expense |
32,009 | 34,970 | 91,945 | 101,625 | ||||
Interest capitalized |
(1,864) | (5,323) | (5,072) | (19,244) | ||||
Other expense |
18,192 | 661 | 81,804 | 1,297 | ||||
3,122,966 | 1,036,544 | 5,010,822 | 3,033,191 | |||||
Income (loss) from continuing operations before income taxes |
(2,408,017) | 396,493 | (2,635,836) | 1,035,267 | ||||
Income tax expense (benefit) |
(820,935) | 125,435 | (963,298) | 452,255 | ||||
Income (loss) from continuing operations |
(1,587,082) | 271,058 | (1,672,538) | 583,012 | ||||
Loss from discontinued operations, net of income taxes |
(8,344) | (25,350) | (11,163) | (52,639) | ||||
Net income (loss) |
$ |
(1,595,426) | 245,708 | (1,683,701) | 530,373 | |||
Income (loss) per Common share – Basic |
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Continuing operations |
$ |
(9.22) | 1.52 | (9.55) | 3.25 | |||
Discontinued operations |
(0.04) | (0.14) | (0.07) | (0.29) | ||||
Net income (loss) |
$ |
(9.26) | 1.38 | (9.62) | 2.96 | |||
Income (loss) per Common share – Diluted |
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Continuing operations |
$ |
(9.22) | 1.51 | (9.55) | 3.23 | |||
Discontinued operations |
(0.04) | (0.14) | (0.07) | (0.29) | ||||
Net income (loss) |
$ |
(9.26) | 1.37 | (9.62) | 2.94 | |||
Cash dividends per Common share |
$ |
0.35 | 0.35 | 1.05 | 0.975 | |||
Average Common shares outstanding (thousands) |
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Basic |
172,205 | 177,536 | 175,047 | 179,260 | ||||
Diluted |
172,205 | 178,856 | 175,047 | 180,578 |
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MURPHY OIL CORPORATION |
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SUMMARIZED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) |
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(Thousands of dollars) |
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Three Months Ended |
Nine Months Ended |
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September 30, |
September 30, |
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2015 |
2014 |
2015 |
2014 |
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Operating Activities |
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Net income (loss) |
$ |
(1,595,426) | 245,708 | (1,683,701) | 530,373 | |||
Adjustments to reconcile net income (loss) to net cash provided |
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Loss from discontinued operations |
8,344 | 25,350 | 11,163 | 52,639 | ||||
Depreciation, depletion and amortization |
433,706 | 499,151 | 1,318,123 | 1,354,393 | ||||
Impairment of assets |
2,300,974 |
– |
2,300,974 |
– |
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Amortization of deferred major repair costs |
2,046 | 2,077 | 5,450 | 6,390 | ||||
Dry hole costs |
21,436 | 75,780 | 120,459 | 203,607 | ||||
Amortization of undeveloped leases |
16,506 | 17,981 | 62,331 | 55,745 | ||||
Accretion of asset retirement obligations |
11,918 | 12,600 | 35,437 | 36,992 | ||||
Deferred and noncurrent income tax charges (benefits) |
(780,880) | 46,435 | (975,120) | 64,557 | ||||
Pretax (gains) losses from disposition of assets |
(60) | 133 | (154,183) | 5,130 | ||||
Net (increase) decrease in operating working capital |
(10,145) | (41,509) | 97,026 | 6,940 | ||||
Other operating activities, net |
(27,102) | (4,575) | (41,431) | 17,531 | ||||
Net cash provided by continuing operations activities |
381,317 | 879,131 | 1,096,528 | 2,334,297 | ||||
Investing Activities |
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Property additions and dry hole costs |
(541,454) | (966,161) | (1,975,069) | (2,806,705) | ||||
Proceeds from sales of property, plant and equipment |
736 | 49 | 423,842 | 3,138 | ||||
Purchases of investment securities* |
(235,488) | (299,828) | (865,251) | (672,689) | ||||
Proceeds from maturity of investment securities* |
189,051 | 267,010 | 852,394 | 587,341 | ||||
Other investing activities, net |
1,030 | (6,226) | (19,538) | (19,233) | ||||
Net cash required by investing activities |
(586,125) | (1,005,156) | (1,583,622) | (2,908,148) | ||||
Financing Activities |
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Borrowings of debt |
62,000 | 200,000 | 435,000 | 1,050,000 | ||||
Repayment of capital lease obligation |
(2,453) |
– |
(7,156) |
– |
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Purchase of treasury stock |
– |
– |
(250,000) | (375,000) | ||||
Withholding tax on stock-based incentive awards |
– |
(2) | (8,976) | (6,786) | ||||
Cash dividends paid |
(60,208) | (62,122) | (184,789) | (174,248) | ||||
Other financing activities, net |
(1) | (160) | (153) | (1,384) | ||||
Net cash (required) provided by financing activities |
(662) | 137,716 | (16,074) | 492,582 | ||||
Cash Flows from Discontinued Operations |
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Operating activities |
80,579 | (36,984) | (4,866) | (83,974) | ||||
Investing activities |
21 | (3,009) | 5,343 | (12,101) | ||||
Changes in cash included in current assets held for sale |
90,548 | 52,187 | 179,774 | 103,694 | ||||
Net increase in cash and cash equivalents of |
171,148 | 12,194 | 180,251 | 7,619 | ||||
Effect of exchange rate changes on cash and cash equivalents |
3,721 | (10,950) | 8,276 | (2,484) | ||||
Net increase (decrease) in cash and cash equivalents |
(30,601) | 12,935 | (314,641) | (76,134) | ||||
Cash and cash equivalents at beginning of period |
909,268 | 661,086 | 1,193,308 | 750,155 | ||||
Cash and cash equivalents at end of period |
$ |
878,667 | 674,021 | 878,667 | 674,021 |
*Represents cash invested in Canadian government securities with maturities greater than 90 days at the date of acquisition.
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MURPHY OIL CORPORATION |
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SCHEDULE OF ADJUSTED EARNINGS (LOSS) |
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(Unaudited) |
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(Millions of dollars, except per share amounts) |
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Three Months Ended |
Nine Months Ended |
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2015 |
2014 |
2015 |
2014 |
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Net income (loss) |
$ |
(1,595.4) | 245.7 | (1,683.7) | 530.4 | |||
Discontinued operations loss |
8.3 | 25.3 | 11.2 | 52.6 | ||||
Income (loss) from continuing operations |
(1,587.1) | 271.0 | (1,672.5) | 583.0 | ||||
Impairment of assets |
1,536.5 |
– |
1,536.5 |
– |
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Mark-to-market gain on crude oil derivative contracts |
(10.9) | (28.0) | (15.7) | (4.3) | ||||
Foreign exchange (gains) losses |
(47.8) | (3.1) | (83.0) | 1.0 | ||||
Decrease in Malaysia corporate tax rate on certain fields |
(21.8) |
– |
(21.8) |
– |
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Restructuring charges |
6.6 |
– |
14.1 |
– |
||||
Gain on sale of 10% interest in Malaysia |
– |
– |
(218.8) |
– |
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Environmental provisions |
– |
– |
35.8 |
– |
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Increase in Alberta corporate tax rate |
– |
– |
23.8 |
– |
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Oil Insurance Limited dividend |
– |
– |
(4.5) | (3.3) | ||||
Tax benefits on investments in foreign areas |
– |
(34.3) |
– |
(34.3) | ||||
Adjusted earnings (loss) |
$ |
(124.5) | 205.6 | (406.1) | 542.1 | |||
Adjusted earnings (loss) per diluted share |
$ |
(0.72) | 1.15 | (2.32) | 3.00 |
Non-GAAP Financial Measures
Presented above is a reconciliation of Net income (loss) to Adjusted earnings (loss). Adjusted earnings (loss) excludes certain items that management believes affect the comparability of results between periods. Management believes this is important information to provide because it is used by management to evaluate the Company's operational performance and trends between periods and relative to its industry competitors. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company's financial results. Adjusted earnings (loss) is a non-GAAP financial measure and should not be considered a substitute for Net income (loss) as determined in accordance with accounting principles generally accepted in the United States of America.
Note:Amounts shown above as reconciling items between Net income (loss) and Adjusted earnings (loss) are presented net of applicable income taxes.
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MURPHY OIL CORPORATION |
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SCHEDULE OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION |
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AND AMORTIZATION (EBITDA) |
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(Unaudited) |
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(Millions of dollars, except per barrel of oil equivalents sold) |
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Three Months Ended |
Nine Months Ended |
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2015 |
2014 |
2015 |
2014 |
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Income (loss) from continuing operations |
$ |
(1,587.1) | 271.0 | (1,672.5) | 583.0 | |||||
Income tax expense (benefit) |
(820.9) | 125.4 | (963.3) | 452.2 | ||||||
Interest expense |
32.0 | 35.0 | 91.9 | 101.6 | ||||||
Interest capitalized |
(1.9) | (5.3) | (5.1) | (19.2) | ||||||
Depreciation, depletion and amortization expense |
433.7 | 499.2 | 1,318.1 | 1,354.4 | ||||||
Impairment of assets |
2,301.0 |
– |
2,301.0 |
– |
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Earnings before interest, taxes, depreciation and |
$ |
356.8 | 925.3 | 1,070.1 |
* |
2,472.0 | ||||
Total barrels of oil equivalents sold from |
19,104.8 | 20,959.6 | 57,536.0 | 58,715.2 | ||||||
EBITDA per barrel of oil equivalents sold |
$ |
18.68 | 44.15 | 18.60 | 42.10 |
Non-GAAP Financial Measures
Presented above is a reconciliation of Income (loss) from continuing operation to Earnings before interest, taxes, depreciation, impairments and amortization (EBITDA). Management believes EBITDA is important information to provide because it is used by management to evaluate the Company's operational performance and trends between periods and relative to its industry competitors. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company's financial results. EBITDA is a non-GAAP financial measure and should not be considered a substitute for Net income (loss) or Cash provided by operating activities as determined in accordance with accounting principles generally accepted in the United States of America.
*Includes $155.1 million pre-tax gain on sale of 10% interest in Malaysia in the nine month period of 2015.
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MURPHY OIL CORPORATION |
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SCHEDULE OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, |
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AMORTIZATION AND EXPLORATION (EBITDAX) |
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(Unaudited) |
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(Millions of dollars, except per barrel of oil equivalents sold) |
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Three Months Ended |
Nine Months Ended |
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2015 |
2014 |
2015 |
2014 |
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Income (loss) from continuing operations |
$ |
(1,587.1) | 271.0 | (1,672.5) | 583.0 | |||||
Income tax expense (benefit) |
(820.9) | 125.4 | (963.3) | 452.2 | ||||||
Interest expense |
32.0 | 35.0 | 91.9 | 101.6 | ||||||
Interest capitalized |
(1.9) | (5.3) | (5.1) | (19.2) | ||||||
Depreciation, depletion and amortization expense |
433.7 | 499.2 | 1,318.1 | 1,354.4 | ||||||
Impairment of assets |
2,301.0 |
– |
2,301.0 |
– |
||||||
Exploration expense |
58.1 | 117.4 | 251.8 | 390.7 | ||||||
Earnings before interest, taxes, depreciation, |
$ |
414.9 | 1,042.7 | 1,321.9 |
* |
2,862.7 | ||||
Total barrels of oil equivalents sold from |
19,104.8 | 20,959.6 | 57,536.0 | 58,715.2 | ||||||
EBITDAX per barrel of oil equivalents sold |
$ |
21.72 | 49.75 | 22.98 | 48.76 |
Non-GAAP Financial Measures
Presented above is a reconciliation of Income (loss) from continuing operation to Earnings before interest, taxes, depreciation, impairments, amortization and exploration (EBITDAX). Management believes EBITDAX is important information to provide because it is used by management to evaluate the Company's operational performance and trends between periods and relative to its industry competitors. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company's financial results. EBITDAX is a non-GAAP financial measure and should not be considered a substitute for Net income (loss) or Cash provided by operating activities as determined in accordance with accounting principles generally accepted in the United States of America.
*Includes $155.1 million pre-tax gain on sale of 10% interest in Malaysia in the nine month period of 2015.
12
MURPHY OIL CORPORATION |
||||||||
FUNCTIONAL RESULTS OF OPERATIONS (Unaudited) |
||||||||
(Millions of dollars) |
||||||||
Three Months Ended |
Three Months Ended |
|||||||
September 30, 2015 |
September 30, 2014 |
|||||||
Revenues |
Income (loss) |
Revenues |
Income (loss) |
|||||
Exploration and production |
||||||||
United States |
$ |
335.1 | (107.8) | 667.6 | 130.5 | |||
Canada |
123.2 | (507.0) | 246.9 | 40.4 | ||||
Malaysia |
207.3 | (952.7) | 516.4 | 148.0 | ||||
Other |
– |
(28.6) |
– |
(7.5) | ||||
Total exploration and production |
665.6 | (1,596.1) | 1,430.9 | 311.4 | ||||
Corporate and other |
49.3 | 9.0 | 2.1 | (40.4) | ||||
Revenue/income (loss) from continuing operations |
714.9 | (1,587.1) | 1,433.0 | 271.0 | ||||
Discontinued operations, net of tax |
– |
(8.3) |
– |
(25.3) | ||||
Total revenues/net income (loss) |
$ |
714.9 | (1,595.4) | 1,433.0 | 245.7 | |||
Nine Months Ended |
Nine Months Ended |
|||||||
September 30, 2015 |
September 30, 2014 |
|||||||
Revenues |
Income (loss) |
Revenues |
Income (loss) |
|||||
Exploration and production |
||||||||
United States |
$ |
955.0 | (218.1) | 1,660.4 | 335.3 | |||
Canada |
428.4 | (577.8) | 807.4 | 160.9 | ||||
Malaysia |
897.6 | (701.9) | 1,592.2 | 482.6 | ||||
Other |
– |
(130.7) | (0.2) | (256.0) | ||||
Total exploration and production |
2,281.0 | (1,628.5) | 4,059.8 | 722.8 | ||||
Corporate and other |
94.0 | (44.0) | 8.6 | (139.8) | ||||
Revenue/income (loss) from continuing operations |
2,375.0 | (1,672.5) | 4,068.4 | 583.0 | ||||
Discontinued operations, net of tax |
– |
(11.2) |
– |
(52.6) | ||||
Total revenues/net income (loss) |
$ |
2,375.0 | (1,683.7) | 4,068.4 | 530.4 |
Note:Corporate and other above includes unallocated administrative expenses, interest income and net interest expense, the impacts of foreign exchange, and income taxes associated with these income and expense items.
13
MURPHY OIL CORPORATION |
|||||||
OIL AND GAS OPERATING RESULTS (Unaudited) |
|||||||
THREE MONTHS ENDED SEPTEMBER 30, 2015 AND 2014 |
|||||||
Canada |
|||||||
United |
Conven- |
Syn- |
|||||
(Millions of dollars) |
States |
tional |
thetic |
Malaysia |
Other |
Total |
|
Three Months Ended September 30, 2015 |
|||||||
Oil and gas sales and other revenues |
$ |
335.1 | 76.4 | 46.8 | 207.3 |
– |
665.6 |
Lease operating expenses |
66.9 | 22.6 | 37.3 | 57.0 |
– |
183.8 | |
Severance and ad valorem taxes |
12.1 | 0.9 | 1.3 |
– |
– |
14.3 | |
Depreciation, depletion and amortization |
220.8 | 51.6 | 12.1 | 144.2 | 1.6 | 430.3 | |
Accretion of asset retirement obligations |
5.2 | 1.6 | 1.3 | 3.8 |
– |
11.9 | |
Impairment of assets |
144.8 | 683.6 |
– |
1,472.6 |
– |
2,301.0 | |
Exploration expenses |
|||||||
Dry holes |
10.2 |
– |
– |
14.1 | (2.9) | 21.4 | |
Geological and geophysical |
2.5 |
– |
– |
– |
4.8 | 7.3 | |
Other |
1.8 | 0.1 |
– |
– |
11.0 | 12.9 | |
14.5 | 0.1 |
– |
14.1 | 12.9 | 41.6 | ||
Undeveloped lease amortization |
12.0 | 3.9 |
– |
– |
0.6 | 16.5 | |
Total exploration expenses |
26.5 | 4.0 |
– |
14.1 | 13.5 | 58.1 | |
Selling and general expenses |
22.9 | 5.1 | 0.2 | 3.3 | 15.2 | 46.7 | |
Other expenses |
0.9 |
– |
– |
17.3 |
– |
18.2 | |
Results of operations before taxes |
(165.0) | (693.0) | (5.4) | (1,505.0) | (30.3) | (2,398.7) | |
Income tax benefits |
(57.2) | (190.2) | (1.2) | (552.3) | (1.7) | (802.6) | |
Results of operations (excluding corporate |
$ |
(107.8) | (502.8) | (4.2) | (952.7) | (28.6) | (1,596.1) |
Three Months Ended September 30, 2014 |
|||||||
Oil and gas sales and other revenues |
$ |
667.6 | 150.1 | 96.8 | 516.4 |
– |
1,430.9 |
Lease operating expenses |
84.0 | 42.6 | 55.6 | 83.3 |
– |
265.5 | |
Severance and ad valorem taxes |
25.3 | 1.9 | 1.4 |
– |
– |
28.6 | |
Depreciation, depletion and amortization |
234.5 | 61.9 | 13.4 | 185.7 | 1.3 | 496.8 | |
Accretion of asset retirement obligations |
4.5 | 1.5 | 2.4 | 4.2 |
– |
12.6 | |
Exploration expenses |
|||||||
Dry holes |
66.0 |
– |
– |
– |
9.8 | 75.8 | |
Geological and geophysical |
3.9 | 0.1 |
– |
0.5 | 1.4 | 5.9 | |
Other |
8.9 | 0.3 |
– |
– |
8.6 | 17.8 | |
78.8 | 0.4 |
– |
0.5 | 19.8 | 99.5 | ||
Undeveloped lease amortization |
11.8 | 4.9 |
– |
– |
1.2 | 17.9 | |
Total exploration expenses |
90.6 | 5.3 |
– |
0.5 | 21.0 | 117.4 | |
Selling and general expenses |
24.2 | 6.3 | 0.3 | 3.4 | 19.5 | 53.7 | |
Other expenses |
0.7 |
– |
– |
– |
– |
0.7 | |
Results of operations before taxes |
203.8 | 30.6 | 23.7 | 239.3 | (41.8) | 455.6 | |
Income tax provisions (benefits) |
73.3 | 7.8 | 6.1 | 91.3 | (34.3) | 144.2 | |
Results of operations (excluding corporate |
$ |
130.5 | 22.8 | 17.6 | 148.0 | (7.5) | 311.4 |
14
MURPHY OIL CORPORATION |
|||||||
OIL AND GAS OPERATING RESULTS (Unaudited) |
|||||||
NINE MONTHS ENDED SEPTEMBER 30, 2015 AND 2014 |
|||||||
Canada |
|||||||
United |
Conven- |
Syn- |
|||||
(Millions of dollars) |
States |
tional |
thetic |
Malaysia |
Other |
Total |
|
Nine Months Ended September 30, 2015 |
|||||||
Oil and gas sales and other revenues |
$ |
955.0 | 275.7 | 152.7 | 897.6 |
– |
2,281.0 |
Lease operating expenses |
247.3 | 80.9 | 124.7 | 190.8 |
– |
643.7 | |
Severance and ad valorem taxes |
46.5 | 3.5 | 4.1 |
– |
– |
54.1 | |
Depreciation, depletion and amortization |
622.4 | 171.0 | 37.4 | 475.1 | 4.7 | 1,310.6 | |
Accretion of asset retirement obligations |
14.9 | 5.0 | 4.1 | 11.4 |
– |
35.4 | |
Impairment of assets |
144.8 | 683.6 |
– |
1,472.6 |
– |
2,301.0 | |
Exploration expenses |
|||||||
Dry holes |
74.5 |
– |
– |
14.1 | 31.8 | 120.4 | |
Geological and geophysical |
7.8 |
– |
– |
1.2 | 21.7 | 30.7 | |
Other |
6.7 | 0.5 |
– |
– |
31.1 | 38.3 | |
89.0 | 0.5 |
– |
15.3 | 84.6 | 189.4 | ||
Undeveloped lease amortization |
48.5 | 12.4 |
– |
– |
1.5 | 62.4 | |
Total exploration expenses |
137.5 | 12.9 |
– |
15.3 | 86.1 | 251.8 | |
Selling and general expenses |
68.2 | 18.4 | 0.7 | 4.5 | 44.3 | 136.1 | |
Other expenses |
8.4 | 44.0 |
– |
17.3 | 12.1 | 81.8 | |
Results of operations before taxes |
(335.0) | (743.6) | (18.3) | (1,289.4) | (147.2) | (2,533.5) | |
Income tax provisions (benefits) |
(116.9) | (188.7) | 4.6 | (587.5) | (16.5) | (905.0) | |
Results of operations (excluding |
$ |
(218.1) | (554.9) | (22.9) | (701.9) | (130.7) | (1,628.5) |
Nine Months Ended September 30, 2014 |
|||||||
Oil and gas sales and other revenues |
$ |
1,660.4 | 504.0 | 303.4 | 1,592.2 | (0.2) | 4,059.8 |
Lease operating expenses |
242.1 | 123.1 | 180.1 | 268.3 |
– |
813.6 | |
Severance and ad valorem taxes |
75.7 | 4.4 | 3.7 |
– |
– |
83.8 | |
Depreciation, depletion and amortization |
591.2 | 192.1 | 39.8 | 521.1 | 3.6 | 1,347.8 | |
Accretion of asset retirement obligations |
12.9 | 4.6 | 7.0 | 12.5 |
– |
37.0 | |
Exploration expenses |
|||||||
Dry holes |
73.5 |
– |
– |
– |
130.1 | 203.6 | |
Geological and geophysical |
19.7 | 0.3 |
– |
0.5 | 54.8 | 75.3 | |
Other |
13.0 | 0.8 |
– |
– |
42.3 | 56.1 | |
106.2 | 1.1 |
– |
0.5 | 227.2 | 335.0 | ||
Undeveloped lease amortization |
37.2 | 14.8 |
– |
– |
3.7 | 55.7 | |
Total exploration expenses |
143.4 | 15.9 |
– |
0.5 | 230.9 | 390.7 | |
Selling and general expenses |
71.8 | 21.4 | 0.8 | 11.8 | 55.6 | 161.4 | |
Other expenses |
1.2 | 0.1 |
– |
– |
– |
1.3 | |
Results of operations before taxes |
522.1 | 142.4 | 72.0 | 778.0 | (290.3) | 1,224.2 | |
Income tax provisions (benefits) |
186.8 | 34.8 | 18.7 | 295.4 | (34.3) | 501.4 | |
Results of operations (excluding |
$ |
335.3 | 107.6 | 53.3 | 482.6 | (256.0) | 722.8 |
15
MURPHY OIL CORPORATION |
||||||||
PRODUCTION-RELATED EXPENSES (Unaudited) |
||||||||
(Dollars per barrel of oil equivalents sold) |
||||||||
Three Months Ended |
Nine Months Ended |
|||||||
September 30, |
September 30, |
|||||||
2015 |
2014 |
2015 |
2014 |
|||||
United States – Eagle Ford Shale |
||||||||
Lease operating expense |
$ |
8.10 | 9.79 | 10.82 | 10.13 | |||
Severance and ad valorem taxes |
2.07 | 4.56 | 2.71 | 5.09 | ||||
Depreciation, depletion and amortization (DD&A) expense |
27.88 | 27.75 | 27.33 | 28.18 | ||||
United States – Gulf of Mexico and other |
||||||||
Lease operating expense |
$ |
7.92 | 10.28 | 9.14 | 13.97 | |||
Severance and ad valorem taxes |
– |
– |
– |
0.02 | ||||
DD&A expense |
23.57 | 27.91 | 22.74 | 26.35 | ||||
Canada – Conventional operations |
||||||||
Lease operating expense |
$ |
5.67 | 11.79 | 6.51 | 11.20 | |||
Severance and ad valorem taxes |
0.23 | 0.50 | 0.29 | 0.40 | ||||
DD&A expense |
12.91 | 17.19 | 13.75 | 17.49 | ||||
Canada – Synthetic oil operations |
||||||||
Lease operating expense |
$ |
37.20 | 54.01 | 40.67 | 57.47 | |||
Severance and ad valorem taxes |
1.29 | 1.39 | 1.32 | 1.19 | ||||
DD&A expense |
12.00 | 12.98 | 12.20 | 12.69 | ||||
Malaysia |
||||||||
Lease operating expense – Sarawak |
$ |
7.44 | 7.32 | 8.25 | 8.89 | |||
– Block K |
14.36 | 16.20 | 13.53 | 15.39 | ||||
DD&A expense – Sarawak |
20.57 | 20.82 | 22.20 | 19.92 | ||||
– Block K |
33.06 | 28.30 | 31.50 | 26.10 | ||||
Total Oil and Gas Operations |
||||||||
Lease operating expense |
$ |
9.62 | 12.67 | 11.19 | 13.86 | |||
Severance and ad valorem taxes |
0.75 | 1.36 | 0.94 | 1.43 | ||||
DD&A expense |
22.53 | 23.71 | 22.78 | 22.96 |
16
MURPHY OIL CORPORATION |
||||||||||
OTHER FINANCIAL DATA (Unaudited) |
||||||||||
(Millions of dollars) |
||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||
September 30, |
September 30, |
|||||||||
2015 |
2014 |
2015 |
2014 |
|||||||
Capital expenditures – continuing operations |
||||||||||
Exploration and production |
||||||||||
United States |
$ |
359.3 | 569.8 | 1,173.7 | 1,666.1 | |||||
Canada |
41.4 | 140.2 | 141.3 | 317.0 | ||||||
Malaysia |
67.4 | 244.1 | 199.6 | 610.5 | ||||||
Other |
46.4 | 20.8 | 116.9 | 234.4 | ||||||
514.5 | 974.9 | 1,631.5 | 2,828.0 | |||||||
Corporate |
11.9 | 2.4 | 37.5 | 5.6 | ||||||
Total capital expenditures – continuing operations |
526.4 | 977.3 | 1,669.0 | 2,833.6 | ||||||
Charged to exploration expenses* |
||||||||||
United States |
14.5 | 78.8 | 89.0 | 106.2 | ||||||
Canada |
0.1 | 0.4 | 0.5 | 1.1 | ||||||
Malaysia |
14.1 | 0.5 | 15.3 | 0.5 | ||||||
Other |
12.9 | 19.8 | 84.6 | 227.2 | ||||||
Total charged to exploration expenses |
41.6 | 99.5 | 189.4 | 335.0 | ||||||
Total capitalized – continuing operations |
$ |
484.8 | 877.8 | 1,479.6 | 2,498.6 | |||||
*Excludes amortization of undeveloped leases of |
$ |
16.5 | 17.9 | 62.4 | 55.7 |
17
MURPHY OIL CORPORATION |
|||||
CONDENSED BALANCE SHEET (Unaudited) |
|||||
(Millions of dollars) |
|||||
September 30, |
December 31, |
||||
Assets |
|||||
Cash and cash equivalents |
$ |
878.7 |
$ |
1,193.3 | |
Canadian government securities |
415.1 | 461.3 | |||
Other current assets |
872.0 | 1,624.5 | |||
Property, plant and equipment – net |
10,168.8 | 13,331.1 | |||
Other long-term assets |
293.4 | 113.5 | |||
Total assets |
$ |
12,628.0 |
$ |
16,723.7 | |
Liabilities and Stockholders' Equity |
|||||
Current maturities of long-term debt |
$ |
12.2 |
$ |
465.4 | |
Other current liabilities |
1,639.1 | 2,682.5 | |||
Long-term debt |
3,327.7 |
2 |
2,517.6 | ||
Other long-term liabilities |
1,620.6 | 2,484.8 | |||
Total stockholders' equity |
6,028.4 | 8,573.4 | |||
Total liabilities and stockholders' equity |
$ |
12,628.0 |
$ |
16,723.7 |
1 Reclassified to current presentation.
2 Includes a capital lease on production equipment of $213.0 million at September 30, 2015.
18
MURPHY OIL CORPORATION |
|||||||
STATISTICAL SUMMARY |
|||||||
Three Months Ended |
Nine Months Ended |
||||||
September 30, |
September 30, |
||||||
2015 |
2014 |
2015 |
2014 |
||||
Net crude oil and condensate produced – barrels per day |
125,170 | 144,934 | 128,888 | 135,801 | |||
United States – Eagle Ford Shale |
48,304 | 47,745 | 48,423 | 43,653 | |||
– Gulf of Mexico and other |
16,992 | 16,534 | 14,027 | 13,266 | |||
Canada – light |
91 | 38 | 104 | 38 | |||
– heavy |
4,975 | 6,784 | 5,837 | 7,433 | |||
– offshore |
6,846 | 7,823 | 7,413 | 8,216 | |||
– synthetic |
10,907 | 11,200 | 11,230 | 11,481 | |||
Malaysia1 – Sarawak |
15,194 | 21,679 | 15,696 | 19,590 | |||
– Block K |
21,861 | 33,131 | 26,158 | 32,124 | |||
Net crude oil and condensate sold – barrels per day |
124,549 | 142,440 | 129,294 | 135,942 | |||
United States – Eagle Ford Shale |
48,304 | 47,745 | 48,423 | 43,653 | |||
– Gulf of Mexico and other |
16,992 | 16,534 | 14,027 | 13,266 | |||
Canada – light |
91 | 38 | 104 | 38 | |||
– heavy |
4,975 | 6,784 | 5,837 | 7,433 | |||
– offshore |
5,611 | 7,092 | 7,238 | 8,605 | |||
– synthetic |
10,907 | 11,200 | 11,230 | 11,481 | |||
Malaysia1 – Sarawak |
18,493 | 23,660 | 17,546 | 21,287 | |||
– Block K |
19,176 | 29,387 | 24,889 | 30,179 | |||
Net natural gas liquids produced – barrels per day |
11,093 | 10,923 | 10,431 | 8,580 | |||
United States – Eagle Ford Shale |
8,192 | 6,521 | 7,744 | 5,409 | |||
– Gulf of Mexico and other |
2,264 | 3,412 | 2,020 | 2,308 | |||
Canada |
1 | 23 | 9 | 23 | |||
Malaysia1 – Sarawak |
636 | 967 | 658 | 840 | |||
Net natural gas liquids sold – barrels per day |
11,789 | 11,480 | 10,466 | 8,625 | |||
United States – Eagle Ford Shale |
8,192 | 6,521 | 7,744 | 5,409 | |||
– Gulf of Mexico and other |
2,264 | 3,412 | 2,020 | 2,308 | |||
Canada |
1 | 23 | 9 | 23 | |||
Malaysia1 – Sarawak |
1,332 | 1,524 | 693 | 885 | |||
Net natural gas sold – thousands of cubic feet per day |
427,937 | 443,413 | 425,964 | 423,041 | |||
United States – Eagle Ford Shale |
39,543 | 37,782 | 39,203 | 31,890 | |||
– Gulf of Mexico and other |
47,987 | 67,137 | 53,010 | 50,831 | |||
Canada |
196,111 | 151,784 | 194,136 | 144,873 | |||
Malaysia1 – Sarawak |
128,963 | 174,958 | 117,339 | 166,036 | |||
– Block K |
15,333 | 11,752 | 22,276 | 29,411 | |||
Total net hydrocarbons produced – equivalent barrels per day2 |
207,586 | 229,759 | 210,313 | 214,888 | |||
Total net hydrocarbons sold – equivalent barrels per day2 |
207,661 | 227,822 | 210,754 | 215,074 |
1The Company sold 20% of its interest in Malaysia properties on December 18, 2014 and sold an additional 10% on January 29, 2015. This table includes volumes for these sold interests through the date of disposition. Total production volumes during the three-month and nine-month periods in 2014 for these 30% volumes sold were approximately 26,000 and 25,500 barrels of oil equivalent per day, respectively.
2Natural gas converted on an energy equivalent basis of 6:1.
19
MURPHY OIL CORPORATION |
||||||||
STATISTICAL SUMMARY (Continued) |
||||||||
Three Months Ended |
Nine Months Ended |
|||||||
September 30, |
September 30, |
|||||||
2015 |
2014 |
2015 |
2014 |
|||||
Weighted average sales prices |
||||||||
Crude oil and condensate – dollars per barrel |
||||||||
United States – Eagle Ford Shale |
$ |
48.70 | 93.56 | 49.27 | 95.50 | |||
– Gulf of Mexico and other |
44.94 | 97.03 | 49.45 | 99.36 | ||||
Canada1 – light |
37.70 | 85.92 | 43.41 | 93.17 | ||||
– heavy |
20.28 | 57.86 | 25.09 | 56.69 | ||||
– offshore |
48.09 | 97.63 | 53.77 | 105.41 | ||||
– synthetic |
46.53 | 93.55 | 49.72 | 96.83 | ||||
Malaysia – Sarawak2 |
46.38 | 80.55 | 50.27 | 89.57 | ||||
– Block K2 |
46.88 | 89.00 | 54.24 | 95.18 | ||||
Natural gas liquids – dollars per barrel |
||||||||
United States – Eagle Ford Shale |
$ |
10.26 | 26.55 | 11.52 | 28.77 | |||
– Gulf of Mexico and other |
10.25 | 30.45 | 13.13 | 32.60 | ||||
Canada1 |
– |
64.95 | 22.31 | 75.96 | ||||
Malaysia – Sarawak2 |
54.27 | 68.48 | 55.23 | 75.68 | ||||
Natural gas – dollars per thousand cubic feet |
||||||||
United States – Eagle Ford Shale |
$ |
2.39 | 3.76 | 2.39 | 4.17 | |||
– Gulf of Mexico and other |
2.46 | 3.60 | 2.47 | 4.20 | ||||
Canada1 |
2.42 | 3.61 | 2.44 | 3.76 | ||||
Malaysia – Sarawak2 |
3.75 | 5.11 | 4.31 | 5.67 | ||||
– Block K |
0.24 | 0.24 | 0.24 | 0.24 |
1U.S. dollar equivalent.
2Prices are net of payments under the terms of the respective production sharing contracts.
20
MURPHY OIL CORPORATION |
||||||||||||
COMMODITY HEDGE POSITIONS |
||||||||||||
AS OF OCTOBER 28, 2015 |
||||||||||||
Volumes |
Price |
Remaining Period |
||||||||||
Area |
Commodity |
Type |
(Bbl/d) |
(USD/Bbl) |
Start Date |
End Date |
||||||
United States |
WTI |
Fixed price derivative swap |
15,000 |
$63.30 |
10/1/2015 |
12/31/2015 |
||||||
United States |
WTI |
Fixed price derivative swap |
20,000 |
$52.01 |
1/1/2016 |
12/31/2016 |
||||||
Volumes |
Price |
Remaining Period |
||||||||||
Area |
Commodity |
Type |
(MMcf/d) |
(CAD/Mcf) |
Start Date |
End Date |
||||||
Western Canada |
Natural Gas |
Fixed price forward sales |
65 |
C$4.13 |
10/1/2015 |
12/31/2015 |
||||||
Western Canada |
Natural Gas |
Fixed price forward sales |
59 |
C$3.19 |
1/1/2016 |
12/31/2016 |
21
MURPHY OIL CORPORATION |
||||
FOURTH QUARTER 2015 GUIDANCE |
||||
Liquids |
Gas |
|||
BOPD |
MCFD |
|||
Production – net |
||||
U.S. – Eagle Ford Shale |
51,500 | 38,000 | ||
– Gulf of Mexico |
15,000 | 43,000 | ||
Canada – Seal heavy |
4,000 | 3,000 | ||
– Montney |
– |
193,000 | ||
– Offshore |
6,500 |
– |
||
– Synthetic |
13,500 |
– |
||
Malaysia – Sarawak |
15,000 | 115,000 | ||
– Block K |
24,500 | 22,000 | ||
130,000 | 414,000 | |||
Total net production (BOEPD) |
199,000 | |||
Total net sales (BOEPD) |
197,000 | |||
Realized oil prices ($ per barrel): |
||||
Malaysia – Sarawak |
$ 49.32
|
|||
– Block K |
$ 49.28
|
|||
Realized natural gas price ($ per MCF): |
||||
Malaysia – Sarawak |
$ 3.74
|
|||
Exploration expense – inclusive of dry hole |
$132 million |
|||
FULL YEAR 2015 GUIDANCE |
||||
Total production (BOEPD) |
205,000 to 209,000 |
|||
Capital expenditures |
$2.3 billion |
22
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