Murphy Oil (NYSE: MUR) reported Q4 EPS of ($0.16), in-line with the analyst estimate of ($0.16).

2017 CAPITAL EXPENDITURE AND PRODUCTION GUIDANCE

Murphy is planning 2017 capital expenditures to be $890 million which assumes a West Texas Intermediate oil price of $52 per barrel and Henry Hub natural gas price of $3.10 per thousand cubic feet.

Approximately 65 percent of the total capital is being allocated towards the onshore unconventional businesses with a majority in the Eagle Ford Shale and Kaybob Duvernay. Offshore expenditures are focused on short-cycle projects that maintain existing assets and other activities expected to increase value-added production in future years. Field development and development drilling accounts for 85 percent of the annual capital expenditures.

Production for the first quarter 2017 is estimated in the range of 166 to 170 Mboepd with full year 2017 production to be in the range of 162 to 168 Mboepd. The North American onshore unconventional production is expected to be 55 percent of full year guidance. Full year production assumes an expected reduction following approval of the redetermination in the non-operated Kakap-Gumusut field in Malaysia. Details on guidance can be found in the attached schedules.

"Our focus in 2017 is three fold. First, allocating a majority of capital toward developing locations in the highest return areas in our onshore portfolio. Second, investing in selective offshore projects that deliver top quartile finding and development metrics. Third, covering all costs, including our dividend, within cash flow which will maintain our solid balance sheet," Jenkins said. "Additionally, our activity in the Kaybob Duvernay is primarily targeting appraisal areas that will allow for further development plans to be formulated and ultimately support onshore value-added production growth complementing our Eagle Ford Shale and Montney assets," Jenkins continue

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