Murphy Oil Corporation Announces Preliminary First Quarter 2017 Financial and Operating Results

Source Press Release
Company Murphy Oil Corporation 
Tags Hedging, Financial & Operating Data
Date May 03, 2017

Murphy Oil Corporation (NYSE: MUR) today announced its preliminary financial and operating results for the first quarter ended March 31, 2017, including net income of $58 million, or $0.34 per diluted share.

Operating and financial highlights for the first quarter 2017 include:

  • Produced volumes of 169 Mboepd, on track to achieve full year production guidance
  • Spent $215 million on capital expenditures, in line with planned annual capital budget of $890 million for full year 2017
  • Reduced selling and general expenses by approximately 17 percent year-over-year, excluding severance expense in the prior year
  • Closed the divestiture of Canadian heavy oil asset generating a $132 million pre-tax gain
  • Executed planned quarterly Kaybob Duvernay appraisal program by drilling five wells, including the longest lateral to date of 9,500 feet, and brought three wells online

FIRST QUARTER 2017 FINANCIAL RESULTS

Murphy recorded net income of $58 million, or $0.34 per diluted share, for the first quarter 2017. The company reported an adjusted loss, which excludes both the results of discontinued operations and certain other items that affect comparability of results between periods, of $10 million, or $0.06 per diluted share. The most significant reconciling items affecting the adjusted loss were a $96 million after-tax gain on the sale of Seal properties in Canada, an after-tax gain of $26 million for mark-to-market of open crude oil hedge contracts and a $55 million deferred tax expense related to undistributed foreign earnings. The tax expense is the result of the company determining that first quarter earnings from its subsidiaries operating in Canada, Malaysia and other Southeast Asia areas will not be considered reinvested into local operations and are expected to be repatriated to the U.S. in future periods. Details for first quarter results can be found in the attached schedules.

Earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations totaled $436 million, or $29.52 per barrel of oil equivalent (boe) sold. Earnings before interest, taxes, depreciation, amortization and exploration expenses (EBITDAX) totaled $464 million, or $31.47 per boe sold. Both EBITDA and EBITDAX include a $132 million pre-tax gain on the sale of Seal heavy oil properties. Production in the first quarter 2017 averaged 169 thousand barrels of oil equivalent per day (Mboepd).

“Murphy had strong first quarter results as we exceeded production guidance with high uptime performance across all our assets. Our production is outstanding considering that we brought online fewer wells than planned in our Eagle Ford Shale asset, as our base production and new wells during the quarter both exceeded our expectations. I continue to be pleased with the significant free cash flow generated by our offshore business. We also addressed the tax status regarding future foreign earnings repatriation, which will allow for additional cash management flexibility across our company,” stated Roger W. Jenkins, President and Chief Executive Officer.

FINANCIAL POSITION

As of March 31, 2017, the company had $2.8 billion of outstanding fixed rate notes and $1.1 billion in cash and liquid invested securities. The long term, fixed-rate notes, excluding the current maturity, have a weighted average maturity of 9.8 years and a weighted average coupon of 5.6 percent. There were no borrowings on the senior credit facilities at quarter end.

REGIONAL OPERATIONS SUMMARY

North American Onshore

The North American onshore business produced over 85 Mboepd in the first quarter with 51 percent liquids. First quarter 2017 operating expenses were $6.51 per boe, a 12 percent decrease from full year 2016.

Eagle Ford Shale – Production in the quarter averaged 46 Mboepd, comprised of 88 percent liquids. During the quarter, the company brought 13 wells online utilizing high sand concentration fracs, which were comprised of six Lower Eagle Ford Shale wells, four Upper Eagle Ford Shale wells and three Austin Chalk wells. The six Lower Eagle Ford Shale wells achieved an average IP 30-day rate over 1,300 barrels of oil equivalent per day (boepd), the four Upper Eagle Ford Shale wells achieved an average IP 30-day rate over 1,200 boepd and two wells on the same pad in the Austin Chalk achieved an average IP 30-day rate over 1,100 boepd. For the remainder of 2017, the company expects to bring almost 60 wells online, of which 19 will be in the second quarter, with full year production averaging approximately 50 Mboepd.

Tupper Montney – Murphy averaged 207 million cubic feet per day (Mmcfd) of natural gas production in the quarter. There was one well drilled in the first quarter and four wells previously drilled that were completed early in the second quarter. Strong production results from these wells, in addition to wells completed in 2016, are yielding projected ultimate recoveries exceeding 17 billion cubic feet equivalent (Bcfe) per well. This exceeds the previously projected recovery range of 10 to 14 Bcfe per well. The exceptional well results continue to support the company’s new well designs of longer laterals that are approaching 10,000 feet, as well as higher sand concentration of up to 2,000 pounds per foot.

Kaybob Duvernay – Production for the quarter averaged almost 3 Mboepd, comprised of 53 percent liquids. During the quarter, five wells were drilled and three wells brought online including a two well pad in the condensate window and a one well pad in the oil window. All three wells are performing above or in line with pre-drill expectations. As the company continues executing on its appraisal plans in the second quarter, for the first-time Murphy is beginning to drill wells with optimal azimuth and lateral lengths exceeding 9,100 feet. For the remainder of 2017, the company expects to drill and bring online 11 wells, including five in the second quarter, two located in the oil window and three in the condensate window.

Offshore

The offshore business produced 84 Mboepd for the first quarter with 73 percent liquids.

Malaysia – Block K and Sarawak averaged 38 thousand barrels of liquids per day, while Sarawak natural gas production averaged 117 Mmcfd during the first quarter.

North America Gulf of Mexico and East Coast Canada averaged 25 Mboepd, comprised of 92 percent liquids, in the quarter.

PRODUCTION AND CAPITAL EXPENDITURE GUIDANCE

Production for the second quarter 2017 is estimated in the range of 160 to 164 Mboepd. Second quarter guidance includes the previously announced redetermination in the non-operated Kakap field, which reduces the company’s net production by approximately 2,900 boepd from the first quarter 2017. Also, in accordance with the Production Sharing Contracts in Malaysia, there is a planned cost recovery entitlement change for Sarawak natural gas and oil that will lower production by approximately 1,500 boepd in the second quarter as compared to the first quarter 2017. Other items affecting second quarter production, as compared to first quarter production, are planned downtime for Kikeh and Siakap North of 1,400 boepd as well as a 10-day plant turnaround in the Tupper Montney of 2,200 boepd.

Full year 2017 production is being reaffirmed in the range of 162 to 168 Mboepd. Full year capital expenditure guidance is being maintained at $890 million. Details for production can be found in the attached schedules.

“As we progress through the second quarter, we are experiencing a previously announced redetermination and an anticipated entitlement change associated with our Malaysian offshore business. Also in the second quarter, we will experience offshore planned maintenance and a brief shut-in at our Tupper Montney asset associated with a plant turnaround. Our full year production remains within the previously announced guidance range. Our base production in the Eagle Ford Shale continues to outperform expectations and, with a majority of this year’s wells being brought online in the second and third quarters, this will lead to a mid-year production increase. In our new Kaybob Duvernay asset, we are pleased with early results as our team systematically de-risks the play with five wells to be placed online in the second quarter,” Jenkins added.

CONFERENCE CALL AND WEBCAST SCHEDULED FOR MAY 3, 2017

Murphy will host a conference call to discuss first quarter 2017 financial and operating results on Thursday, May 4, 2017, at 11:00 a.m. EDT. The call can be accessed either via the Internet through the Investor Relations section of Murphy Oil’s website at  or via the telephone by dialing 1-877-795-3649. The telephone reservation number for the call is 7717232. Replays of the call will be available through the same address on the company’s website and a recording of the call will be available through May 18, 2017 by calling 1-888-203-1112 and referencing reservation number 7717232. A replay of the conference call will also be available on the Murphy website at  .

FINANCIAL DATA

Summary financial data, operating statistics and a summary balance sheet for the first quarter 2017 with comparisons to the same period from the previous year are contained in the following schedules. Additionally, a schedule indicating the impacts of items affecting comparability of results between periods and schedules comparing EBITDA and EBITDAX between periods are included with these schedules as well as guidance for the second quarter.

MURPHY OIL CORPORATION SUMMARIZED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Thousands of dollars, except per share amounts) 
             
        Three Months Ended 
        March 31, 
        2017    2016 
             
Revenues             
Sales and other operating revenues      544,658      429,094   
Gain on sale of assets        131,982      22   
Interest and other income (loss)        (12,021    1,179   
Total revenues        664,619      430,295   
             
Costs and expenses             
Lease operating expenses        122,142      159,103   
Severance and ad valorem taxes        11,213      12,637   
Exploration expenses        28,663      26,916   
Selling and general expenses        54,255      73,507   
Depreciation, depletion and amortization        236,154      286,149   
Accretion of asset retirement obligations        10,556      12,125   
Impairment of assets        –      95,088   
Interest expense        45,690      32,061   
Interest capitalized        (1,093    (1,841 
Other expense (benefit)        2,157      (416 
        509,737      695,329   
             
Income (loss) from continuing operations before income taxes        154,882      (265,034 
Income tax expense (benefit)        97,387      (65,549 
Income (loss) from continuing operations        57,495      (199,485 
Income from discontinued operations, net of income taxes        969      683   
             
Net income (loss)      58,464      (198,802 
             
Income (loss) per Common share – Basic             
Continuing operations      0.33      (1.16 
Discontinued operations        0.01      –   
Net income (loss)      0.34      (1.16 
             
Income (loss) per Common share – Diluted             
Continuing operations      0.33      (1.16 
Discontinued operations        0.01      –   
Net income (loss)      0.34      (1.16 
             
Cash dividends per Common share        0.25      0.35   
             
Average Common shares outstanding (thousands)             
Basic        172,422      172,114   
Diluted        173,089      172,114   

             
MURPHY OIL CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Thousands of dollars) 
             
        Three Months Ended 
        March 31, 
        2017    2016 
Operating Activities             
Net income (loss)      58,464      (198,802 
Adjustments to reconcile net loss to net cash provided by continuing operations activities:             
Income from discontinued operations        (969    (683 
Depreciation, depletion and amortization        236,154      286,149   
Impairment of assets        –      95,088   
Amortization of deferred major repair costs        –      2,002   
Dry hole costs        2,904      (69 
Amortization of undeveloped leases        9,957      10,469   
Accretion of asset retirement obligations        10,556      12,125   
Deferred income tax expense (benefit)        58,533      (85,683 
Pretax gains from disposition of assets        (131,982    (22 
Net (increase) decrease in noncash operating working capital1        43,418      (104,347 
Other operating activities, net        18,478      27,085   
Net cash provided by continuing operations activities        305,513      43,312   
             
Investing Activities             
Property additions and dry hole costs        (211,631    (210,029 
Proceeds from sales of property, plant and equipment        64,097      33   
Purchases of investment securities2        (212,661    (49,277 
Proceeds from maturity of investment securities2        113,210      86,983   
Other investing activities, net        –      (21,658 
Net cash required by investing activities        (246,985    (193,948 
             
Financing Activities             
Borrowings of debt        –      371,000   
Capital lease obligation payments        (9,660    (2,690 
Withholding tax on stock-based incentive awards        (5,808    (1,052 
Cash dividends paid        (43,136    (60,267 
Net cash (required) provided by financing activities        (58,604    306,991   
             
Cash Flows from Discontinued Operations             
Operating activities        –      2,312   
Investing activities        –      –   
Changes in cash included in current assets held for sale        –      (2,312 
Net change in cash and cash equivalents of discontinued operations        –      –   
Effect of exchange rate changes on cash and cash equivalents        3,132      (16,475 
             
Net increase in cash and cash equivalents        3,056      139,880   
Cash and cash equivalents at beginning of period        872,797      283,183   
Cash and cash equivalents at end of period      875,853      423,063   

     
  2016 balance includes payments for deepwater rig contract exit of $253.2 million. 
  Investments are Canadian government securities with maturities greater than 90 days at the date of acquisition. 

             
MURPHY OIL CORPORATION SCHEDULE OF ADJUSTED LOSS (Unaudited) (Millions of dollars, except per share amounts) 
             
      Three Months Ended 
      March 31, 
        2017    2016 
Net income (loss)      58.5      (198.8 
Discontinued operation earnings        (1.0    (0.7 
Income (loss) from continuing operations        57.5      (199.5 
Adjustments:             
Mark-to-market (gain) loss on crude oil derivative contracts        (26.0    13.3   
Foreign exchange (gains) losses        11.6      (1.7 
Gain on sale of Seal        (96.0    –   
Deferred tax on undistributed foreign earnings        54.6      –   
Tax benefits on investments in foreign areas        (11.9    –   
Impairments of assets        –      68.9   
Restructuring charges        –      6.2   
Total adjustments after taxes        (67.7    86.7   
Adjusted loss        (10.2    (112.8 
             
Adjusted loss per diluted share      (0.06    (0.66 
                 

Non-GAAP Financial Measures

Presented above is a reconciliation of Net income (loss) to Adjusted loss. Adjusted loss excludes certain items that management believes affect the comparability of results between periods. Management believes this is important information to provide because it is used by management to evaluate the Company's operational performance and trends between periods and relative to its industry competitors. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company's financial results. Adjusted loss is a non-GAAP financial measure and should not be considered a substitute for Net income (loss) as determined in accordance with accounting principles generally accepted in the United States of America.

Note:    Amounts shown above as reconciling items between Net income (loss) and Adjusted loss are presented net of applicable income taxes based on the statutory rate applicable by jurisdiction. The 2017 and 2016 pretax and income tax impacts for adjustments shown above are as follows by area of operations. 

                                       
      Three Months Ended        Three Months Ended 
      March 31, 2017        March 31, 2016 
      Pretax      Tax      Net        Pretax      Tax      Net 
Exploration & Production:                                       
United States      (40.0      14.0        (26.0        23.9      (8.4      15.5   
Canada      (132.4      36.4        (96.0        96.4      (26.5      69.9   
Malaysia      –        –        –          1.5      (0.5      1.0   
Other International      –        (11.9      (11.9        2.2      (0.6      1.6   
Total E&P      (172.4      38.5        (133.9        124.0      (36.0      88.0   
Corporate:      13.2        53.0        66.2          0.6      (1.9      (1.3 
Total adjustments      (159.2      91.5        (67.7        124.6      (37.9      86.7   
                                                 

Income taxes are presented based on the estimated statutory tax effect each adjustment item had on taxes in the applicable tax jurisdiction.

 
MURPHY OIL CORPORATION 
SCHEDULE OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION 
AND AMORTIZATION (EBITDA) 
(Unaudited) 
(Millions of dollars, except per barrel of oil equivalents sold) 
             
      Three Months Ended 
      March 31, 
      2017    2016 
Income (loss) from continuing operations      57.5      (199.5 
Income tax expense (benefit)        97.4      (65.5 
Interest expense        45.7      32.1   
Interest capitalized        (1.1    (1.8 
Depreciation, depletion and amortization expense        236.2      286.1   
Impairments of long-lived assets        –      95.1   
Earnings before interest, taxes, depreciation and amortization (EBITDA)      435.7    146.5   
             
Total barrels of oil equivalents sold (thousands of barrels)        14,757.5      17,546.2   
             
EBITDA per barrel of oil equivalents sold      29.52      8.35   
                 

Non-GAAP Financial Measures

Presented above is a reconciliation of Income (loss) from continuing operations to Earnings before interest, taxes, depreciation and amortization (EBITDA). Management believes EBITDA is important information to provide because it is used by management to evaluate the Company's operational performance and trends between periods and relative to its industry competitors. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company's financial results. EBITDA is a non-GAAP financial measure and should not be considered a substitute for Net income (loss) or Cash provided by operating activities as determined in accordance with accounting principles generally accepted in the United States of America.

* Includes $132.4 million pre-tax gain on sale of Seal properties in Canada in January 2017.

             
MURPHY OIL CORPORATION SCHEDULE OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AMORTIZATION AND EXPLORATION (EBITDAX) (Unaudited) (Millions of dollars, except per barrel of oil equivalents sold) 
             
      Three Months Ended 
      March 31, 
      2017    2016 
Income (loss) from continuing operations      57.5      (199.5 
Income tax expense (benefit)        97.4      (65.5 
Interest expense        45.7      32.1   
Interest capitalized        (1.1    (1.8 
Depreciation, depletion and amortization expense        236.2      286.1   
Exploration expenses        28.7      26.9   
Impairment of long-lived assets        –      95.1   
Earnings before interest, taxes, depreciation, amortization and exploration expenses (EBITDAX)      464.4    173.4   
             
Total barrels of oil equivalents sold (thousands of barrels)        14,757.5      17,546.2   
             
EBITDAX per barrel of oil equivalents sold      31.47      9.88   
                 

Non-GAAP Financial Measures

Presented above is a reconciliation of Income (loss) from continuing operations to Earnings before interest, taxes, depreciation, amortization and exploration (EBITDAX). Management believes EBITDAX is important information to provide because it is used by management to evaluate the Company's operational performance and trends between periods and relative to its industry competitors. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company's financial results. EBITDAX is a non-GAAP financial measure and should not be considered a substitute for Net income (loss) or Cash provided by operating activities as determined in accordance with accounting principles generally accepted in the United States of America.

* Includes $132.4 million pre-tax gain on sale of Seal properties in Canada in January 2017.

                       
MURPHY OIL CORPORATION FUNCTIONAL RESULTS OF OPERATIONS (Unaudited) (Millions of dollars) 
                       
      Three Months Ended
March 31, 2017 
    Three Months Ended
March 31, 2016 
        Revenues    Income
(Loss) 
    Revenues    Income
(Loss) 
Exploration and production                       
United States      261.3      23.0        174.7    (65.6 
Canada        218.0      100.6        106.1    (87.3 
Malaysia        197.3      58.6        148.2    22.3   
Other        –      (7.1      0.1    (26.2 
Total exploration and production        676.6      175.1        429.1    (156.8 
Corporate and other        (12.0    (117.6      1.2    (42.7 
Revenue/income from continuing operations        664.6      57.5        430.3    (199.5 
Discontinued operations, net of tax        –      1.0        –    0.7   
Total revenues/net income (loss)      664.6      58.5        430.3    (198.8 

                                       
MURPHY OIL CORPORATION OIL AND GAS OPERATING RESULTS (Unaudited) THREE MONTHS ENDED MARCH 31, 2017 AND 2016 
                                       
              Canada                   
        United      Conven-      Syn-                   
(Millions of dollars)        States      tional      thetic      Malaysia      Other      Total 
Three Months Ended March 31, 2017                                       
Oil and gas sales and other revenues      261.3        218.0        –        197.3        –        676.6   
Lease operating expenses        48.0        22.6        –        51.5        –        122.1   
Severance and ad valorem taxes        10.7        0.5        –        –        –        11.2   
Depreciation, depletion and amortization        138.3        44.7        –        47.9        1.0        231.9   
Accretion of asset retirement obligations        4.2        2.0        –        4.4        –        10.6   
Exploration expenses                                       
Dry holes        (0.3      –        –        3.2        –        2.9   
Geological and geophysical        0.3        0.1        –        –        4.4        4.8   
Other        2.0        0.1        –        –        8.9        11.0   
        2.0        0.2        –        3.2        13.3        18.7   
Undeveloped lease amortization        8.9        1.1        –        –        –        10.0   
Total exploration expenses        10.9        1.3        –        3.2        13.3        28.7   
Selling and general expenses        15.5        7.2        –        2.3        4.9        29.9   
Other expenses (benefits)        (3.0      –        –        5.1        –        2.1   
Results of operations before taxes        36.7        139.7        –        82.9        (19.2      240.1   
Income tax provisions (benefits)        13.7        39.1        –        24.3        (12.1      65.0   
Results of operations (excluding                                                   
corporate overhead and interest)      23.0        100.6        –        58.6        (7.1      175.1   
                                       
Three Months Ended March 31, 2016                                       
Oil and gas sales and other revenues      174.7        57.6        48.5        148.2        0.1        429.1   
Lease operating expenses        55.5        17.6        38.1        47.9        –        159.1   
Severance and ad valorem taxes        10.4        1.1        1.1        –        –        12.6   
Depreciation, depletion and amortization        168.8        45.0        13.4        54.1        1.4        282.7   
Accretion of asset retirement obligations        4.2        2.6        1.2        4.1        –        12.1   
Impairment of assets        –        95.1        –        –        –        95.1   
Exploration expenses                                       
Dry holes        0.3        –        –        (0.4      –        (0.1 
Geological and geophysical        0.3        2.9        –        0.3        4.3        7.8   
Other        1.1        0.3        –        –        7.3        8.7   
        1.7        3.2        –        (0.1      11.6        16.4   
Undeveloped lease amortization        8.9        1.3        –        –        0.3        10.5   
Total exploration expenses        10.6        4.5        –        (0.1      11.9        26.9   
Selling and general expenses        22.5        7.6        0.2        3.4        10.1        43.8   
Other expenses (benefits)        0.2        (1.5      –        –        1.0        (0.3 
Results of operations before taxes        (97.5      (114.4      (5.5      38.8        (24.3      (202.9 
Income tax provisions (benefits)        (31.9      (31.0      (1.6      16.5        1.9        (46.1 
Results of operations (excluding                                                   
corporate overhead and interest)      (65.6      (83.4      (3.9      22.3        (26.2      (156.8 

 
MURPHY OIL CORPORATION PRODUCTION-RELATED EXPENSES (Dollars per barrel of oil equivalents sold) 
               
        Three Months Ended 
        March 31, 
        2017      2016 
               
United States – Eagle Ford Shale               
Lease operating expense        7.90      7.92 
Severance and ad valorem taxes          2.57      2.02 
Depreciation, depletion and amortization (DD&A) expense          26.33      24.82 
               
United States – Gulf of Mexico               
Lease operating expense        10.86      8.58 
DD&A expense          20.69      23.56 
               
Canada – Conventional operations               
Lease operating expense        5.36      4.07 
Severance and ad valorem taxes          0.13      0.24 
DD&A expense          10.59      10.32 
               
Canada – Synthetic oil operations*               
Lease operating expense        –      26.90 
Severance and ad valorem taxes          –      0.86 
DD&A expense          –      9.49 
               
Malaysia – Sarawak                 
Lease operating expense        6.31      7.81 
DD&A expense          7.78      9.68 
               
Malaysia – Block K               
Lease operating expense        16.78      12.40 
DD&A expense          12.54      12.49 
               
Total oil and gas operations               
Lease operating expense        8.28      9.07 
Severance and ad valorem taxes          0.76      0.72 
DD&A expense          15.71      16.11 
               
Total oil and gas operations – excluding synthetic oil operations               
Lease operating expense        8.28      7.50 
Severance and ad valorem taxes          0.76      0.71 
DD&A expense          15.71      16.69 
                 
* The Company sold its 5% non-operated interest in Syncrude Canada Ltd. on June 23, 2016. 

               
MURPHY OIL CORPORATION OTHER FINANCIAL DATA (Unaudited) (Millions of dollars) 
               
      Three Months Ended 
      March 31, 
      2017        2016 
Capital expenditures               
Exploration and production               
United States      98.4        65.6   
Canada        88.2        32.5   
Malaysia        1.7        27.6   
Other        25.3        10.8   
Total        213.6        136.5   
               
Corporate        0.9        8.4   
Total capital expenditures        214.5        144.9   
               
Charged to exploration expenses1               
United States        2.0        1.7   
Canada        0.2        3.2   
Malaysia        3.2        (0.1 
Other        13.3        11.6   
Total charged to exploration expenses        18.7        16.4   
               
Total capitalized      195.8        128.5   
               
1 Excludes amortization of undeveloped leases of      10.0        10.5   

                 
MURPHY OIL CORPORATION
CONDENSED BALANCE SHEET (Unaudited)
(Millions of dollars) 
                 
          March 31,
2017 
    December 31,
2016 
                 
Assets                 
Cash and cash equivalents        875.9      872.8 
Canadian government securities          211.5      111.5 
Other current assets          522.5      574.8 
Property, plant and equipment – net          8,253.1      8,316.2 
Other long-term assets          409.0      420.6 
Total assets        10,272.0      10,295.9 
                 
Liabilities and Stockholders' Equity                 
Current maturities of long-term debt        562.4      569.8 
Other current liabilities          906.3      932.6 
Long-term debt*          2,421.6      2,422.8 
Other long-term liabilities          1,423.2      1,454.0 
Total stockholders' equity          4,958.5      4,916.7 
Total liabilities and stockholders' equity        10,272.0      10,295.9 
                 

Includes a capital lease on production equipment of $193.5 million at March 31, 2017 and $195.8 million at December 31, 2016. 

               
MURPHY OIL CORPORATION STATISTICAL SUMMARY 
               
      Three Months Ended 
      March 31, 
      2017        2016 
Net crude oil and condensate produced – barrels per day      95,604        123,475 
United States – Eagle Ford Shale      33,603        42,538 
– Gulf of Mexico      12,364        14,098 
Canada – light      1,882        131 
– heavy1      610        3,319 
– offshore      9,916        8,821 
– synthetic1      –        15,559 
Malaysia – Sarawak      13,518        13,035 
– Block K      23,712        25,974 
               
Net crude oil and condensate sold – barrels per day      89,887        119,195 
United States – Eagle Ford Shale      33,603        42,537 
– Gulf of Mexico      12,364        14,098 
Canada – light      1,882        131 
– heavy1      610        3,319 
– offshore      7,982        9,382 
– synthetic1      –        15,559 
Malaysia – Sarawak      13,476        13,759 
– Block K      19,970        20,410 
               
Net natural gas liquids produced – barrels per day      8,916        9,235 
United States – Eagle Ford Shale      6,848        7,225 
– Gulf of Mexico      1,113        1,227 
Canada      260        12 
Malaysia – Sarawak      695        771 
               
Net natural gas liquids sold – barrels per day      9,382        9,762 
United States – Eagle Ford Shale      6,848        7,225 
– Gulf of Mexico      1,113        1,227 
Canada      260        12 
Malaysia – Sarawak      1,160        1,298 
               
Net natural gas sold – thousands of cubic feet per day      388,224        383,150 
United States – Eagle Ford Shale      34,328        38,294 
– Gulf of Mexico      12,115        23,409 
Canada      217,095        209,823 
Malaysia – Sarawak      116,560        98,255 
– Block K      8,125        13,369 
               
Total net hydrocarbons produced – equivalent barrels per day2      169,224        196,568 
Total net hydrocarbons sold – equivalent barrels per day2      163,972        192,815 

     
  The Company sold the Seal area heavy oil field in January 2017 and its 5% non-operated interest in Syncrude Canada Ltd. in June 2016. 
  Natural gas converted on an energy equivalent basis of 6:1. 

 
MURPHY OIL CORPORATION STATISTICAL SUMMARY (Continued) 
             
      Three Months Ended 
      March 31, 
      2017      2016 
Weighted average sales prices             
Crude oil and condensate – dollars per barrel             
United States – Eagle Ford Shale      48.65      34.81 
– Gulf of Mexico        47.24        35.18 
Canada1 – light        47.16        30.28 
– heavy2        25.12        6.89 
– offshore        51.92        30.70 
– synthetic2        –        33.81 
Malaysia – Sarawak3        55.01        37.89 
– Block K3        51.33        36.03 
             
Natural gas liquids – dollars per barrel             
United States – Eagle Ford Shale      16.45      8.20 
– Gulf of Mexico        19.24        9.31 
Canada1        22.09        28.63 
Malaysia – Sarawak3        47.52        41.21 
             
Natural gas – dollars per thousand cubic feet             
United States – Eagle Ford Shale      2.54      1.47 
– Gulf of Mexico        2.56        1.74 
Canada1        2.09        1.55 
Malaysia – Sarawak3        3.50        3.67 
– Block K3        0.25        0.24 

 
  U.S. dollar equivalent. 
  The Company sold the Seal area heavy oil field in January 2017 and its 5% non-operated interest in Syncrude Canada Ltd. in June 2016. 
  Prices are net of payments under the terms of the respective production sharing contracts. 

 
MURPHY OIL CORPORATION COMMODITY HEDGE POSITIONS AS OF MARCH 31, 2017 
                                     
                  Volumes      Price      Remaining Period 
Area      Commodity      Type      (Bbl/d)      (USD/Bbl)      Start Date      End Date 
United States      WTI      Fixed price derivative swap      22,000      50.41      4/1/2017      12/31/2017 
                                     
                  Volumes      Price      Remaining Period 
Area      Commodity      Type      (MMcf/d)      (CAD/Mcf)      Start Date      End Date 
Montney      Natural Gas      Fixed price forward sales      124        C$2.97      4/1/2017      12/31/2017 
Montney      Natural Gas      Fixed price forward sales      59        C$2.81      1/1/2018      12/31/2020 

 
MURPHY OIL CORPORATION SECOND QUARTER 2017 GUIDANCE 
           
      Liquids    Gas 
      BOPD    MCFD 
Production – net           
U.S. – Eagle Ford Shale      41,500    32,000 
– Gulf of Mexico      12,000    11,000 
           
Canada – Tupper Montney      –    200,000 
– Kaybob Duvernay and Placid Montney      4,000    16,500 
– Offshore      9,000   
Malaysia – Sarawak      13,000    109,000 
– Block K      20,000    6,500 
           
           
Total net production (BOEPD)          160,000 – 164,000   
           
Total net sales (BOEPD)          156,000 – 160,000   
           
Realized oil prices ($ per barrel):           
Malaysia – Sarawak        52.78   
– Block K        50.88   
           
Realized natural gas price ($ per MCF):           
Malaysia – Sarawak        3.75   
           
Exploration expense ($ millions)        50.2   
           
           
FULL YEAR 2017 GUIDANCE 
           
Total production (BOEPD)          162,000 – 168,000   
           
Capital expenditures ($ millions)        890.0 

Source: EvaluateEnergy® ©2020 EvaluateEnergy Ltd