• Revenue: $629 million in Q4 2024.
• Net Income: $50 million or $0.34 per diluted share in Q4 2024.
• Adjusted Net Income: $51 million or $0.35 per diluted share in Q4 2024.
• Adjusted EBITDA: $321 million in Q4 2024.
• CapEx: $186 million in Q4 2024, excluding noncontrolling interest.
• Debt Reduction: $50 million reduction in senior notes in 2024; total debt reduced by approximately 60% since 2020.
• Net Debt: Approximately $850 million at year-end 2024.
• Liquidity: $1.8 billion at year-end 2024.
• Production: 175,000 barrels of oil equivalent per day in Q4 2024.
• Average Realized Oil Price: $70 per barrel in Q4 2024.
• Natural Gas Liquids Price: Just over $23 per barrel in Q4 2024.
• Natural Gas Price: $1.84 per 1,000 cubic feet in Q4 2024.
• Proved Reserves: 713 million barrels of oil equivalent at year-end 2024.
• Reserve Replacement Ratio: 83% in 2024.
• Dividend Increase: 8% increase in quarterly cash dividend to $1.30 per share annualized.
• Share Repurchases: $300 million or 8 million shares repurchased in 2024; $650 million remaining under authorization as of January 28, 2025.
• 2025 CapEx Forecast: $1.135 billion to $1.285 billion.
• 2025 Production Forecast: 174,500 to 182,500 barrels of oil equivalent per day.

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Release Date: January 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Murphy Oil Corp (NYSE:MUR) reduced its total debt by approximately 60% since 2020, reaching the lowest net debt in over a decade at $850 million by year-end 2024.
• The company achieved an 8% increase in its quarterly cash dividend, raising the annualized rate to $1.30 per share.
• Murphy Oil Corp (NYSE:MUR) drilled an oil discovery at the Hai Su Vang-1X exploration well in Vietnam, with promising flow test results.
• The company maintained an 11-year reserve life with 713 million barrels of oil equivalent proved reserves at year-end 2024.
• Murphy Oil Corp (NYSE:MUR) allocated nearly 80% of adjusted free cash flow to share repurchases in 2024, with $650 million remaining under its share repurchase authorization as of January 2025.

Negative Points

• Murphy Oil Corp (NYSE:MUR) experienced production impacts in Q4 2024 due to nonoperated Gulf of Mexico downtime from a hurricane, lower performance from a revised Eagle Ford shale completion design, and mechanical issues at offshore wells.
• The company recorded a $28 million asset impairment for a field in the Gulf of Mexico during the fourth quarter.
• Murphy Oil Corp (NYSE:MUR) faced a significant production impact from a revised completion design in the Eagle Ford Shale, resulting in nearly 2,000 barrels of oil equivalent per day impact.
• The company's Q4 2024 production numbers were softer than expected, partly due to mechanical issues and delays in the Gulf of Mexico.
• Murphy Oil Corp (NYSE:MUR) anticipates elevated operating expenses in Q1 2025, estimated at $15 to $16 per barrel, due to ongoing workover activities.

Q & A Highlights

Q: Can you clarify if the CapEx range of $1.1 billion to $1.3 billion includes development costs for the PON and Hai Su Vang projects? A: The current CapEx range includes the full development of the Lac Da Vang field but does not include development costs for the PON project in Cote d'Ivoire or the Hai Su Vang discovery in Vietnam. These projects are not yet included in our long-range view. - Eric Hambly, President, Chief Operating Officer

Q: What happened in Q4 that led to softer production numbers, and what lessons were learned? A: We faced several short-lived issues, including downtime offshore due to mechanical issues and storm impacts, as well as underperformance from a new completion design in the Eagle Ford Shale. Most of these issues should be resolved by the end of the second quarter. - Eric Hambly, President, Chief Operating Officer

Q: How do you define success in the Eagle Ford for 2025, and what are your plans regarding the revised completion design? A: Success in the Eagle Ford will be defined by a steady well delivery program and increased production. We have learned from the revised completion design and will continue to optimize our operations to improve capital efficiency. - Eric Hambly, President, Chief Operating Officer

Q: Can you provide details on the Gulf of Mexico workover program and its impact on production? A: We have a few significant workovers planned for the first half of the year, including Samurai 3 and Khaleesi 2 wells. These should be resolved by mid-year, and we do not anticipate further workovers in the second half of the year. - Chris Lorino, Senior Vice President Operations

Q: How does the recent Hai Su Vang discovery in Vietnam impact your long-term corporate CapEx plans? A: The timing of the Hai Su Vang development aligns well with the ramp-down of Lac Da Vang spending, allowing us to manage it within our existing capital framework. We have flexibility to adjust onshore spending if needed. - Eric Hambly, President, Chief Operating Officer

For the complete transcript of the earnings call, please refer to the full earnings call transcript.