Murphy Oil Reports $22.3 Million Net Income in Q2 2025, Down from $127.7 Million Last Year

Murphy Oil Corporation reported its financial results for the second quarter of 2025, revealing a net income of $22.3 million, a significant decrease from $127.7 million in the same period last year. The decline in profitability was attributed to lower revenues from production, which fell by $114.4 million to $683.1 million, primarily due to decreased crude oil prices despite an increase in production volumes. The company’s total revenue for the quarter was $695.6 million, down from $802.8 million in the prior year. The earnings per share for the quarter were $0.15, compared to $0.84 in the second quarter of 2024.

In terms of operational performance, Murphy Oil increased its production to 196,315 barrels of oil equivalent per day, up from 187,847 BOE per day in the second quarter of 2024. This increase was driven by higher output from the Eagle Ford Shale and Tupper Montney regions, although it was partially offset by lower offshore production in the Gulf of America and Canada. The company’s total hydrocarbon production for the first half of 2025 averaged 179,935 BOE per day, a slight decrease of 1% compared to the same period in 2024.

Strategically, Murphy Oil has made significant moves, including the acquisition of additional working interests in the Eagle Ford Shale for $23 million, which is expected to enhance its operational footprint in the region. The company also signed a contract for a three-well exploration program in Côte d’Ivoire, indicating its commitment to expanding its exploration activities. Additionally, Murphy Oil has continued its share repurchase program, having repurchased approximately 3.6 million shares for $100 million during the first half of 2025.

Financially, Murphy Oil's total assets increased to $9.84 billion as of June 30, 2025, up from $9.67 billion at the end of 2024. The company’s long-term debt rose to $1.47 billion, reflecting increased borrowings under its revolving credit facility. The company reported a net cash provided by continuing operations of $658.7 million for the first half of 2025, a decrease from $866.4 million in the same period last year, primarily due to lower production revenues.

Looking ahead, Murphy Oil anticipates production for the third quarter of 2025 to average between 185,000 and 193,000 BOE per day. The company plans to invest between $1.14 billion and $1.29 billion in capital expenditures for the year, which includes significant investments in field development and exploration activities. However, the company remains cautious about the impact of fluctuating commodity prices and geopolitical uncertainties on its financial performance and operational strategies.