Murphy Oil Corporation Announces Additional Cost Savings Initiatives

Source Press Release
Company Murphy Oil Corporation 
Tags Capital Spending, Strategy - Corporate
Date April 01, 2020

EL DORADO, Ark.--(BUSINESS WIRE)--Apr. 1, 2020-- The Board of Directors of Murphy Oil Corporation (NYSE: MUR) today declared a quarterly cash dividend on the Common Stock of  Murphy Oil Corporation of $0.125 per share, or $0.50 per share on an annualized basis. As a result of ongoing crude oil and natural gas market weakness, the Board believes this 50 percent reduction from the previous quarterly level of $0.25 per share is prudent. The dividend is payable on June 1, 2020, to stockholders of record as of May 18, 2020.

The company is also announcing today it has made an additional reduction in the 2020 capital plan down to the new midpoint of $780 million from the previously announced $950 million in March 2020. This represents a 46 percent decrease from the original guidance midpoint of $1.45 billion. Further details of the revised plan will be released at a later date.

Concurrently, the Board of Directors has approved significant salary reductions for company executives. The president and chief executive officer’s annual salary has been reduced by 35 percent, while remaining executives received salary reductions of as much as 30 percent with an average of 22 percent. These changes are effective April 1, 2020.

Being mindful of the challenging economic environment, Murphy directors have agreed to align with reductions to corporate executives’ salaries. Beginning in second quarter 2020, cash retainers for all directors will be lowered by 35 percent, with the chairman reducing his cash retainer by 70 percent.

“Murphy recognizes the reality of the current situation in the commodity markets, and we believe the reduction in dividends, capital expenditures, salaries and retainers are prudent steps to sustain the company for the long term,” said Claiborne P. Deming, Chairman of the Board for Murphy Oil Corporation. “We will continue to review our dividend and other items throughout the course of the year and make further adjustments if warranted.”

ABOUT MURPHY OIL CORPORATION

As an independent oil and natural gas exploration and production company, Murphy Oil Corporation believes in providing energy that empowers people by doing right always, staying with it and thinking beyond possible. It challenges the norm, taps into its strong legacy and uses its foresight and financial discipline to deliver inspired energy solutions. Murphy sees a future where it is an industry leader who is positively impacting lives for the next 100 years and beyond. Additional information can be found on the company’s website at  www.murphyoilcorp.com.

Source: EvaluateEnergy® ©2020 EvaluateEnergy Ltd