Murphy Oil Announces Preliminary First Quarter 2015 Earnings - Updates Operations

Source Press Release
Company Murphy Oil Corporation 
Tags Reserve Update, Financial & Operating Data, Upstream Activities
Date April 30, 2015


Murphy Oil Corp has announced a net loss of $14.4 million ($0.08 per diluted share) in the 2015 first quarter, down from net income of $155.3 million ($0.85 per diluted share) in the first quarter a year ago.  Income from continuing operations in the 2015 first quarter was $3.5 million ($0.02 per diluted share) compared to $169.3 million ($0.93 per diluted share) earned in the first quarter a year ago.  Results in the 2015 quarter included a $199.5 million after tax gain on a 10% sale in Malaysia.

Adjusted earnings (loss), which excludes both the results of discontinued operations and certain other items that affect comparability of results between periods, in the first quarter of 2015 showed a loss of $198.5 million ($1.11 per diluted share).  This was a decrease of $373.3 million ($2.07 per diluted share) compared to the prior year's quarter primarily attributed to approximately a 50% decline in both Brent and West Texas Intermediate benchmark crude prices and a 44% decline in the Henry Hub natural gas price.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for continuing operations totaled $391.4 million in the first quarter 2015, down from $754.4 million in the first quarter of 2014.  EBITDA per barrel of oil equivalent (boe) sold was $18.90 in the 2015 quarter compared to $41.81 in the 2014 quarter.  Earnings before interest, taxes, depreciation, amortization and exploration expenses (EBITDAX) for continuing operations totaled $520.1 million in the first quarter 2015, down from $892.9 million in the first quarter of 2014.  EBITDAX per barrel of oil equivalent (boe) sold was $25.11 in the 2015 quarter compared to $49.48 in the 2014 quarter.  Both of these 2015 measures include the effect of the gain on the sale of 10% interest in Malaysia.

First quarter 2015 highlights were as follows:

  • Completed the sell-down of 30% of our Malaysia oil and gas assets.
  • Signed an agreement to sell the remaining U.K. downstream assets with the transaction scheduled to close mid-year.
  • Added an exploration block in the Vulcan Sub-Basin offshore Australia and a deepwater block offshore Sarawak, Malaysia.
  • Submitted the high bid for five blocks in the Gulf of Mexico Central lease sale in March.
  • Progressed the two-well Medusa expansion project with both wells drilled to plan and one well completed.
  • Advanced the Kodiak two-well sub-sea tie-back project with the first well drilled to plan.
  • Completed the initial phase of development drilling at the South Acis oil field and Belum gas field with better than expected results.
  • Delivered 45 new wells on line in the Eagle Ford Shale.

Roger W. Jenkins, President and Chief Executive Officer, commented:

'We continue to progress the optimization of our portfolio, reaching closure on the final phase of the sell-down of our Malaysia assets and signing a sales agreement for our remaining U.K. downstream assets.  We remain focused on allocating capital and reducing operating expenditures.  Looking ahead, Murphy is well positioned with a solid balance sheet and cash positions to carry out our capital plans and evaluate opportunities that will enhance our business.'

Source: EvaluateEnergy® ©2020 EvaluateEnergy Ltd