Murphy Oil Corporation Reports Q1 2025 Financial Results with Decreased Net Income and Revenue

Murphy Oil Corporation reported its financial results for the first quarter of 2025, revealing a net income of $73.0 million, a decrease from $90.0 million in the same period of 2024. The company's revenue from production fell to $672.7 million, down from $794.6 million year-over-year, primarily due to lower crude oil production in the U.S. and decreased crude oil prices. The average sales price for West Texas Intermediate (WTI) crude oil at the end of the quarter was $71.48 per barrel, reflecting a decline from previous levels. The company’s total hydrocarbon production averaged 163,374 barrels of oil equivalent per day, an 8% decrease compared to the first quarter of 2024.

In terms of operational efficiency, Murphy Oil reported a reduction in total costs and expenses, which amounted to $521.8 million, down from $642.4 million in the prior year. This decrease was attributed to lower lease operating expenses, exploration expenses, and the absence of asset impairment charges that had impacted the previous year’s results. The company’s lease operating expenses decreased by $29.2 million, primarily due to lower sales volumes and operating costs at the non-operated Terra Nova field. Additionally, exploration expenses dropped significantly from $44.4 million in 2024 to $14.5 million in 2025, reflecting a reduction in costs associated with dry holes and previously suspended exploration activities.

Strategically, Murphy Oil made significant moves during the quarter, including the acquisition of the BW Pioneer floating production storage and offloading vessel for $125 million, which is expected to enhance operations in the Gulf of America. The company also repurchased $100 million worth of its common stock, reflecting its commitment to returning value to shareholders. As of March 31, 2025, Murphy had approximately $1.5 billion in liquidity, consisting of $392.9 million in cash and cash equivalents and $1.1 billion available under its revolving credit facility.

Looking ahead, Murphy Oil anticipates production for the second quarter of 2025 to average between 177,000 and 185,000 barrels of oil equivalent per day, excluding noncontrolling interest. The company plans to allocate between $1.135 billion and $1.285 billion for capital expenditures in 2025, which includes the acquisition of the FPSO. However, the company remains cautious about the potential impact of fluctuating commodity prices and geopolitical uncertainties on its financial performance. The management emphasized that any surplus cash will be utilized in accordance with its capital allocation plan, which aims to enhance shareholder returns and reduce debt.