Original source text
HOUSTON--(BUSINESS WIRE)--Murphy Oil Corporation (NYSE: MUR) today announced its financial and operating results for the second quarter ended June 30, 2026. As a supplement to this release, Murphy has also furnished a Quarterly Stockholder Update.
Unless otherwise noted, the financial and operating highlights and metrics discussed in this commentary exclude noncontrolling interest (NCI).†
(Millions of dollars, except volumes and per share amounts)
Three months
ended June 30,
2026
Net income attributable to Murphy
$
232.2
Net income attributable to Murphy per common share - Diluted
$
1.59
Adjusted net income from continuing operations attributable to Murphy
(Non-GAAP) 1
$
225.8
Adjusted net income from continuing operations per average common share - Diluted (Non-GAAP) 1
$
1.55
Adjusted EBITDA attributable to Murphy (Non-GAAP) 1
$
592.7
Adjusted EBITDAX attributable to Murphy (Non-GAAP) 1
$
632.0
Net cash provided by continuing operations activities
$
655.9
Operating cash flow excluding working capital adjustments (Non-GAAP) 1
$
588.4
Free cash flow (Non-GAAP) 1
$
110.0
Oil production, net (BOPD) 2
85,265
Total production, net (BOEPD) 2
168,995
Capital expenditures (CAPEX)
$
476.0
Lease operating expense from continuing operations ($/BOE) 2
$
8.83
Highlights for the second quarter include:
Produced 169,000 BOEPD, at the upper end of quarterly guidance primarily due to continued strong well performance at Tupper Montney Earned net income of $232 million in 2Q 2026 compared to $22 million in 2Q 2025, with the increase driven by stronger commodity prices and continued operational outperformance Announced oil discovery at the Bubale-1X exploration well in Block CI-709 offshore Côte d'Ivoire, with the well encountering 100 feet of net pay across two reservoirs Concluded the Hai Su Vang (Golden Sea Lion) appraisal program in Vietnam with the completion of the Hai Su Vang-4X appraisal well, which was expensed as a dry hole Completed drilling operations and initiated completion activities at the Chinook #8 development well in the Gulf of America Finalized pipeline installation and launched the FSO (Floating Storage and Offloading vessel) at the Lac Da Vang development project in Vietnam Executed onshore program as planned, bringing online six Eagle Ford Shale wells and four Kaybob Duvernay wells Subsequent to the second quarter:
Spud the Bubale West-1X appraisal well in Block CI-103 offshore Côte d'Ivoire Spud the Lac Da Trang (White Camel) North-1X exploration well in Block 15-1/05 in Vietnam Completed the installation of topsides and mobilized FSO to final location for the Lac Da Vang development project Expanded the full-year capital program to advance high-impact appraisal and development opportunities, increasing the CAPEX midpoint from $1.25 billion to $1.55 billion Published the 2026 Sustainability Report, highlighting Murphy’s commitment to responsible operations, corporate governance, and long-term shareholder value creation “Murphy enters the second half of 2026 with a growing exploration pipeline and multiple pathways to long-term shareholder value creation. Bubale-1X has broadened our opportunity set, Hai Su Vang has progressed from appraisal to development planning, and Lac Da Vang is nearing first oil. The breadth of our portfolio creates optionality, allowing us to prioritize the highest-value opportunities and maximize shareholder returns,” stated Eric M. Hambly, President and Chief Executive Officer.
SHAREHOLDER RETURNS
During the second quarter of 2026, we paid $50 million in quarterly dividends.
While the Company elected not to repurchase shares in the second quarter, it retains significant flexibility with $550 million remaining under its share repurchase authorization. As of June 30, 2026, there were 143.4 million shares outstanding.
FINANCIAL POSITION
Murphy had approximately $2.48 billion of liquidity on June 30, 2026, comprised of the undrawn $2.00 billion senior unsecured credit facility and approximately $480 million of cash and cash equivalents, inclusive of NCI.
As of June 30, 2026, Murphy’s total debt of $1.55 billion was comprised of long-term, fixed-rate notes, with a weighted average maturity of 8.7 years and a weighted average coupon of 6.3 percent.
ONSHORE OPERATIONS SUMMARY
In the second quarter of 2026, the onshore business produced approximately 103,800 BOEPD, which included 38 percent liquids.
Onshore
Oil Production
(BOPD)
Total Production
(BOEPD)
Eagle Ford Shale
26,900
39,100
Tupper Montney
200
58,100
Kaybob Duvernay
4,700
6,600
Eagle Ford Shale – Brought online six new wells in Catarina, with an additional eight operated Catarina wells and six non-operated Tilden wells coming online subsequent to quarter end.
Onshore Canada – Brought online a four-well pad in Kaybob Duvernay and progressed an eight-well pad in Tupper Montney, which came online subsequent to quarter end.
OFFSHORE OPERATIONS SUMMARY
Excluding NCI, the offshore business produced approximately 65,000 BOEPD in the second quarter of 2026, which included 88 percent liquids.
Gulf of America – Completed drilling operations and initiated completion activities at the high-impact Chinook #8 development well. The well is expected to come online in the fourth quarter of 2026 with a gross initial production rate of approximately 15 MBOEPD.
Vietnam – Successfully installed the pipelines and launched the FSO at the Lac Da Vang development project. Subsequent to quarter end, the topsides were installed and the FSO was mobilized to its final destination. The project remains on track and is expected to achieve first oil in the fourth quarter of this year.
PRODUCTION AND CAPITAL EXPENDITURE GUIDANCE
The table below illustrates third quarter and full year 2026 guidance.
3Q 2026 Guidance
Producing Asset
Oil
(BOPD)
NGLs
(BOPD)
Natural Gas
(MCFD)
Total
(BOEPD)
Eagle Ford Shale
28,400
6,400
33,100
40,300
Gulf of America, excl. NCI
38,800
3,300
39,900
48,800
Tupper Montney
100
—
436,000
72,800
Kaybob Duvernay
3,800
600
9,500
6,000
Offshore Canada
6,900
—
—
6,900
Other
200
—
—
200
Total Net Production, excl. NCI 1 (BOEPD)
171,000 to 179,000
Capital Expenditures, excl. NCI 2 ($ MM)
$380 - $460
Exploration Expense 3 ($ MM)
$135
Full Year 2026 Guidance
Total Net Production, excl. NCI 4 (BOEPD)
167,000 to 175,000
Capital Expenditures, excl. NCI 5 ($ MM)
$1,500 to $1,600
Exploration Expense 6 ($ MM)
$300
1
Excludes noncontrolling interest of MP GOM of 4,800 BOPD of oil, 200 BOPD of NGLs and 1,800 MCFD natural gas
2
Excludes noncontrolling interest of MP GOM of $20 million
3
Includes assumed dry hole expense of $100 MM in 3Q 2026
4
Excludes noncontrolling interest of MP GOM of 5,500 BOPD of oil, 200 BOPD of NGLs and 1,700 MCFD natural gas
5
Excludes noncontrolling interest of MP GOM of $65 million
6
Includes dry hole expense of $80 MM in 1H 2026, and assumed dry hole expense of $100 MM for 2H 2026
The table below details the 2026 onshore well delivery plan by quarter.
2026 Onshore Wells Online
1Q
2026A
2Q
2026A
3Q
2026E
4Q
2026E
2026E
Total
Eagle Ford Shale
15
6
8
6
35
Kaybob Duvernay
–
4
–
–
4
Tupper Montney
–
–
8
–
8
Non-Op Eagle Ford Shale
–
–
6
4
10
Note: All well counts are shown gross. Eagle Ford Shale non-operated working interest averages 23 percent.
CONFERENCE CALL AND WEBCAST SCHEDULED FOR AUGUST 6, 2026
Murphy will host a conference call to discuss second quarter 2026 financial and operating results on Thursday, August 6, 2026, at 9:00 a.m. ET. The call can be accessed either via the Internet through the events calendar on the Murphy Oil Corporation Investor Relations website at http://ir.murphyoilcorp.com or via telephone by dialing toll free 833-461-5787, conference ID 127579651. For additional information, please refer to the Second Quarter 2026 Earnings Presentation and Quarterly Stockholder Update available under the News and Events section of the Investor Relations website.
FINANCIAL DATA
Summary financial data and operating statistics for second quarter 2026, with comparisons to the same period from the previous year, are contained in the attached schedules. Additionally, a schedule indicating the impacts of items affecting comparability of results between periods and a reconciliation of the non-GAAP financial measures of adjusted net income from continuing operations attributable to Murphy, EBITDA, EBITDAX, adjusted EBITDA, adjusted EBITDAX, free cash flow and adjusted free cash flow to the most directly comparable GAAP financial measures for such periods are also included.
ABOUT MURPHY OIL CORPORATION
Murphy Oil Corporation is an independent oil and natural gas company with a multi-basin onshore and offshore portfolio and significant exploration opportunities. The Company has more than a century-long history of demonstrating strong execution and innovative, full-cycle development capabilities with a focus on value creation that drives shareholder returns. Murphy’s foresight and financial discipline, along with its culture of adaptability and accountability, will allow the Company to continue its outstanding legacy and exceptional reputation. The Company’s current operations include extensive inventory located onshore in the Eagle Ford Shale, Tupper Montney and Kaybob Duvernay, as well as offshore in the Gulf of America and Canada. Murphy also strives to create long-term shareholder value through offshore exploration and development in the Gulf of America, Vietnam and Côte d’Ivoire. Additional information can be found on the Company’s website at www.murphyoilcorp.com.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified through the inclusion of words such as “aim”, “anticipate”, “believe”, “drive”, “estimate”, “expect”, “forecast”, “future”, “goal”, “guidance”, “intend”, “may”, “objective”, “outlook”, “plan”, “position”, “potential”, “project”, “seek”, “should”, “strategy”, “target”, “will” or variations of such words and other similar expressions. These statements, which express management’s current views concerning future events, results and plans, are subject to inherent risks, uncertainties and assumptions (many of which are beyond our control) and are not guarantees of performance. In particular, statements, express or implied, concerning the Company’s future operating results or activities and returns or the Company's ability and intent to replace or increase reserves, increase production, generate returns and rates of return, replace or increase drilling locations, reduce or otherwise control operating costs and expenditures, generate cash flows, pay down or refinance indebtedness, achieve, reach or otherwise meet initiatives, plans, goals, ambitions or targets with respect to emissions, safety matters or other environmental, social and governance matters, make capital expenditures, pay and/or increase dividends or make share repurchases and other capital allocation decisions are forward-looking statements. Factors that could cause one or more of these future events, results or plans not to occur as implied by any forward-looking statement, which consequently could cause actual results or activities to differ materially from the expectations expressed or implied by such forward-looking statements, include, but are not limited to: macro conditions in the oil and natural gas industry, including supply and demand levels, actions taken by major oil exporters and the resulting impacts on commodity prices; geopolitical concerns (including the current conflict in Iran); increased volatility or deterioration in the success rate of our exploration programs or in our ability to maintain production rates and replace reserves; reduced customer demand for our products due to environmental, regulatory, technological or other reasons; adverse foreign exchange movements; political and regulatory instability in the markets where we do business; the impact on our operations or markets of health pandemics and related government responses; natural hazards impacting our operations or markets; any other deterioration in our business, markets or prospects; cyber attacks and other cybersecurity risks; any failure to obtain necessary regulatory approvals; the impact of current and future laws, rulings and governmental regulations; any inability to service or refinance our outstanding debt or to access debt markets at acceptable prices; or adverse developments in the U.S. or global capital markets, credit markets, banking system or economies in general, including inflation, trade policies, tariffs and other trade restrictions. For further discussion of factors that could cause one or more of these future events or results not to occur as implied by any forward-looking statement, see “Risk Factors” in our most recent Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (SEC) and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K that we file, available from the SEC’s website and from Murphy Oil Corporation’s website at http://ir.murphyoilcorp.com. Investors and others should note that we may announce material information using SEC filings, press releases, public conference calls, webcasts and the investors page of our website. We may use these channels to distribute material information about the Company; therefore, we encourage investors, the media, business partners and others interested in the Company to review the information we post on our website. The information on our website is not part of, and is not incorporated into, this news release. Each forward-looking statement contained in this news release speaks only as of the date of this news release. Except as required by applicable law, Murphy Oil Corporation undertakes no duty to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
NON-GAAP FINANCIAL MEASURES
This news release contains certain non-GAAP financial measures that management believes are useful tools for internal use and the investment community in evaluating Murphy Oil Corporation’s overall financial performance. These non-GAAP financial measures are broadly used to value and compare companies in the crude oil and natural gas industry. Not all companies define these measures in the same way. In addition, these non-GAAP financial measures are not a substitute for financial measures prepared in accordance with US generally accepted accounting principles (GAAP) and should therefore be considered only as supplemental to such GAAP financial measures. Please see the attached schedules for reconciliations of the differences between the non-GAAP financial measures used in this news release and the most directly comparable GAAP financial measures.
† In accordance with GAAP, Murphy reports the 100 percent interest, including a 20 percent noncontrolling interest (NCI), in its subsidiary, MP Gulf of Mexico, LLC (MP GOM). The GAAP financials include the NCI portion of revenue, costs, assets and liabilities and cash flows. Unless otherwise noted, the financial and operating highlights and metrics discussed in this news release, but not the accompanying schedules, exclude the NCI, thereby representing only the amounts attributable to Murphy.
MURPHY OIL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(Thousands of dollars, except per share amounts)
2026
2025
2026
2025
Revenues and other income
Revenue from production
$
926,332
$
683,065
$
1,658,686
$
1,355,795
Total revenue from sales to customers
926,332
683,065
1,658,686
1,355,795
Gain on derivative instruments
—
10,808
—
1,349
Gain on sale of assets and other operating income
1,975
1,697
3,173
4,137
Total revenues and other income
928,307
695,570
1,661,859
1,361,281
Costs and expenses
Lease operating expenses
143,719
215,554
287,183
420,633
Severance and ad valorem taxes
14,991
10,828
28,737
19,478
Transportation, gathering and processing
45,274
54,070
92,335
102,921
Exploration expenses, including undeveloped lease amortization
39,303
10,399
122,118
24,887
Selling and general expenses
38,670
36,919
73,540
67,834
Depreciation, depletion and amortization
262,106
259,324
516,482
453,484
Accretion of asset retirement obligations
14,870
14,432
29,384
28,477
Other operating expense
14,706
1,833
19,147
7,462
Total costs and expenses
573,639
603,359
1,168,926
1,125,176
Operating income from continuing operations
354,668
92,211
492,933
236,105
Other income (loss)
Other income (loss)
11,247
(32,304
)
21,099
(29,902
)
Interest expense, net
(24,917
)
(25,053
)
(53,894
)
(48,576
)
Total other loss
(13,670
)
(57,357
)
(32,795
)
(78,478
)
Income from continuing operations before income taxes
340,998
34,854
460,138
157,627
Income tax expense
77,030
1,032
126,975
33,754
Income from continuing operations
263,968
33,822
333,163
123,873
Income (loss) from discontinued operations, net of income taxes
(437
)
1,302
(979
)
669
Net income including noncontrolling interest
263,531
35,124
332,184
124,542
Less: Net income attributable to noncontrolling interest
31,356
12,844
47,023
29,226
NET INCOME ATTRIBUTABLE TO MURPHY
$
232,175
$
22,280
$
285,161
$
95,316
NET INCOME (LOSS) PER COMMON SHARE – BASIC
Continuing operations
$
1.62
$
0.15
$
2.00
$
0.66
Discontinued operations
—
0.01
(0.01
)
—
Net income
$
1.62
$
0.16
$
1.99
$
0.66
NET INCOME (LOSS) PER COMMON SHARE – DILUTED
Continuing operations
$
1.59
$
0.15
$
1.96
$
0.66
Discontinued operations
—
0.01
(0.01
)
—
Net income
$
1.59
$
0.16
$
1.95
$
0.66
Cash dividends per common share
$
0.350
$
0.325
$
0.700
$
0.650
Average common shares outstanding (thousands)
Basic
143,351
142,721
143,216
143,502
Diluted
146,149
143,216
145,894
144,144
MURPHY OIL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(Thousands of dollars)
2026
2025
2026
2025
Operating Activities
Net income including noncontrolling interest
$
263,531
$
35,124
$
332,184
$
124,542
Adjustments to reconcile net income to net cash provided by continuing operations activities
Depreciation, depletion and amortization
262,106
259,324
516,482
453,484
Unsuccessful exploration well costs and previously suspended exploration costs
13,542
(966
)
80,585
(776
)
Deferred income tax expense
55,685
4,873
92,549
21,216
Accretion of asset retirement obligations
14,870
14,432
29,384
28,477
Long-term non-cash compensation
10,260
12,111
25,693
22,016
Amortization of undeveloped leases
2,565
2,255
4,835
3,909
(Income) loss from discontinued operations
437
(1,302
)
979
(669
)
Unrealized gain on derivative instruments
—
(10,287
)
—
(1,371
)
Other operating activities, net
(34,540
)
11,797
(65,121
)
(2
)
Net (increase) decrease in non-cash working capital
67,495
30,689
(40,477
)
7,905
Net cash provided by continuing operations activities
655,951
358,050
977,093
658,731
Investing Activities
Property additions and dry hole costs
(478,363
)
(309,641
)
(866,159
)
(678,043
)
Acquisition of oil and natural gas properties
(832
)
—
(23,513
)
(1,383
)
Net cash required by investing activities
(479,195
)
(309,641
)
(889,672
)
(679,426
)
Financing Activities
Retirement of debt
—
—
(227,489
)
—
Early redemption of debt cost
—
—
(2,369
)
—
Debt issuance
—
—
500,000
—
Debt issuance cost
—
—
(7,819
)
—
Borrowings on revolving credit facility
250,000
100,000
425,000
350,000
Repayment of revolving credit facility
(250,000
)
(100,000
)
(525,000
)
(150,000
)
Issue costs of revolving credit facility
(61
)
(18
)
(12,274
)
(18
)
Repurchase of common stock, including excise tax
—
(2,548
)
(777
)
(102,620
)
Cash dividends paid
(50,171
)
(46,386
)
(100,344
)
(93,412
)
Distributions to noncontrolling interest
(21,164
)
(11,210
)
(21,164
)
(18,165
)
Withholding tax on stock-based incentive awards
—
19
(7,849
)
(7,654
)
Finance lease obligation payments
(451
)
(370
)
(870
)
(486
)
Net cash provided (required) by financing activities
(71,847
)
(60,513
)
19,045
(22,355
)
Effect of exchange rate changes on cash and cash equivalents
213
(1,179
)
213
(888
)
Net increase (decrease) in cash and cash equivalents
105,122
(13,283
)
106,679
(43,938
)
Cash and cash equivalents at beginning of period
378,753
392,914
377,196
423,569
Cash and cash equivalents at end of period
$
483,875
$
379,631
$
483,875
$
379,631
MURPHY OIL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(Thousands of dollars)
June 30,
2026
December 31,
2025
ASSETS
Cash and cash equivalents
$
483,875
$
377,196
Other current assets
542,967
439,516
Total current assets
$
1,026,842
$
816,712
Property, plant and equipment, net
8,434,791
8,136,346
Operating lease assets, net
702,528
805,464
Other long-term assets
113,973
74,104
Total assets
$
10,278,134
$
9,832,626
LIABILITIES AND EQUITY
Current maturities of long-term debt, finance lease
$
2,578
$
2,514
Accounts payable
671,238
572,183
Operating lease liabilities
280,162
278,834
Other current liabilities
248,387
209,218
Total current liabilities
$
1,202,365
$
1,062,749
Long-term debt, including finance lease obligation
1,547,864
1,382,566
Asset retirement obligations
981,355
970,908
Non-current operating lease liabilities
433,128
537,773
Other long-term liabilities
710,232
641,933
Total liabilities
$
4,874,944
$
4,595,929
Murphy Shareholders' Equity
5,259,014
5,118,380
Noncontrolling interest
144,176
118,317
Total liabilities and equity
$
10,278,134
$
9,832,626
MURPHY OIL CORPORATION
SCHEDULE OF ADJUSTED NET INCOME (LOSS) (unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(Millions of dollars, except per share amounts)
2026
2025
2026
2025
Net income attributable to Murphy (GAAP) 1
$
232.2
$
22.3
$
285.2
$
95.3
Discontinued operations (income) loss
0.4
(1.3
)
1.0
(0.7
)
Net income from continuing operations attributable to Murphy
232.6
21.0
286.2
94.6
Adjustments:
Foreign exchange (gain) loss
(9.2
)
34.3
(18.6
)
34.3
Unrealized gain on derivative instruments
—
(10.3
)
—
(1.4
)
Total adjustments, before taxes
(9.2
)
24.0
(18.6
)
32.9
Income tax (benefit) expense related to adjustments
2.4
(6.5
)
4.8
(8.3
)
Total adjustments, after taxes
(6.8
)
17.5
(13.8
)
24.6
Adjusted net income from continuing operations attributable to Murphy (Non-GAAP)
$
225.8
$
38.5
$
272.4
$
119.2
Adjusted net income from continuing operations per average diluted share (Non-GAAP)
$
1.55
$
0.27
$
1.87
$
0.83
Non-GAAP Financial Measures
Presented above is a reconciliation of net income (loss) to adjusted net income from continuing operations attributable to Murphy. Adjusted net income 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 net income is a non-GAAP financial measure and should not be considered a substitute for net income (loss) as determined in accordance with GAAP.
The pretax and income tax impacts for adjustments in the above table are shown below by area of operation and geographical location and corporate, as applicable, and exclude the share attributable to noncontrolling interests.
Three Months Ended June 30, 2026
Six Months Ended June 30, 2026
(Millions of dollars)
Pretax
Tax
Net
Pretax
Tax
Net
Corporate
$
(9.2
)
$
2.4
$
(6.8
)
$
(18.6
)
$
4.8
$
(13.8
)
Total adjustments
$
(9.2
)
$
2.4
$
(6.8
)
$
(18.6
)
$
4.8
$
(13.8
)
MURPHY OIL CORPORATION
SCHEDULE OF EBITDA, ADJUSTED EBITDA, EBITDAX AND ADJUSTED EBITDAX (unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(Millions of dollars)
2026
2025
2026
2025
Net income attributable to Murphy (GAAP) 1
$
232.2
$
22.3
$
285.2
$
95.3
Income tax expense
77.0
1.1
127.0
33.8
Interest expense, net
24.9
25.1
53.9
48.6
Depreciation, depletion and amortization expense 1
254.0
250.8
500.8
438.2
EBITDA attributable to Murphy (Non-GAAP) 1
$
588.1
$
299.3
$
966.9
$
615.9
Exploration expenses 1
39.3
10.3
122.1
24.8
EBITDAX attributable to Murphy (Non-GAAP) 1
$
627.4
$
309.6
$
1,089.0
$
640.7
EBITDA attributable to Murphy (Non-GAAP) 1
$
588.1
$
299.3
$
966.9
$
615.9
Foreign exchange (gain) loss
(9.2
)
34.3
(18.6
)
34.3
Accretion of asset retirement obligations 1
13.4
12.9
26.3
25.4
Unrealized gain on derivative instruments
—
(10.3
)
—
(1.4
)
Discontinued operations (income) loss
0.4
(1.3
)
1.0
(0.7
)
Adjusted EBITDA attributable to Murphy (Non-GAAP) 1
$
592.7
$
334.9
$
975.6
$
673.5
Exploration expenses 1
39.3
10.3
122.1
24.8
Adjusted EBITDAX attributable to Murphy
(Non-GAAP) 1
$
632.0
$
345.2
$
1,097.7
$
698.3
Non-GAAP Financial Measures
Presented above is a reconciliation of net income (loss) to earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA, earnings before interest, taxes, depreciation and amortization, and exploration expenses (EBITDAX) and adjusted EBITDAX. Management believes EBITDA, adjusted EBITDA, EBITDAX and adjusted EBITDAX are important information to provide because they are used by management to evaluate the Company’s operational performance and trends between periods and relative to its industry competitors. Adjusted EBITDAX excludes certain items that management believes affect the comparability of results between periods. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company’s financial results. EBITDA, adjusted EBITDA, EBITDAX and adjusted EBITDAX are non-GAAP financial measures and should not be considered a substitute for net income (loss) or cash provided by operating activities as determined in accordance with GAAP.
MURPHY OIL CORPORATION
SCHEDULE OF FREE CASH FLOW AND ADJUSTED FREE CASH FLOW (unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(Millions of dollars)
2026
2025
2026
2025
Net cash provided by continuing operations activities (GAAP)
$
655.9
$
358.1
$
977.1
$
658.7
Exclude: increase (decrease) in non-cash working capital
(67.5
)
(30.7
)
40.5
(7.9
)
Operating cash flow excluding working capital adjustments (Non-GAAP)
588.4
327.4
1,017.6
650.8
Less: property additions and dry hole costs 1
(478.4
)
(309.6
)
(866.2
)
(678.0
)
Free cash flow (Non-GAAP)
$
110.0
$
17.8
$
151.4
$
(27.2
)
Adjustments:
Cash dividends paid
(50.1
)
(46.4
)
(100.3
)
(93.4
)
Distributions to noncontrolling interest
(21.2
)
(11.2
)
(21.2
)
(18.2
)
Debt costs
(0.1
)
—
(22.5
)
—
Withholding tax on stock-based incentive awards
—
—
(7.8
)
(7.7
)
Acquisition of oil and natural gas properties
(0.8
)
—
(23.5
)
(1.4
)
Adjusted free cash flow (Non-GAAP)
$
37.8
$
(39.8
)
$
(23.9
)
$
(147.9
)
Non-GAAP Financial Measures
Presented above is a reconciliation of net cash provided by continuing operations activities to free cash flow (FCF) and adjusted FCF. Management believes FCF and adjusted FCF are important information to provide because they are additional measures of liquidity and are used by management to evaluate the Company’s ability to internally generate cash, excluding the timing impacts of working capital, and to measure funds available for investing and financing activities. Management also believes this information may be useful to investors and analysts to monitor the Company’s financial health over time. FCF and adjusted FCF are non-GAAP financial measures and should not be considered a substitute for net cash provided by operating, investing, or financing activities as determined in accordance with GAAP.
MURPHY OIL CORPORATION
FUNCTIONAL RESULTS OF OPERATIONS (unaudited)
Three Months Ended
June 30, 2026
Three Months Ended
June 30, 2025
(Millions of dollars)
Revenues
Income
(Loss)
Revenues
Income
(Loss)
Exploration and production
United States 1
$
744.0
$
274.2
$
553.5
$
86.5
Canada
183.6
51.9
128.3
10.5
Other
—
(30.2
)
2.9
(7.3
)
Total exploration and production
927.6
295.9
684.7
89.7
Corporate
0.7
(32.0
)
10.9
(55.9
)
Total from continuing operations
928.3
263.9
695.6
33.8
Discontinued operations, net of tax
—
(0.4
)
—
1.3
Total including noncontrolling interest
$
928.3
$
263.5
$
695.6
$
35.1
Less: Net income attributable to noncontrolling interest
31.3
12.8
Net income attributable to Murphy
$
232.2
$
22.3
Six Months Ended
June 30, 2026
Six Months Ended
June 30, 2025
(Millions of dollars)
Revenues
Income
(Loss)
Revenues
Income
(Loss)
Exploration and production
United States ¹
$
1,319.5
$
430.9
$
1,063.0
$
194.4
Canada
338.8
83.5
294.0
52.0
Other
2.9
(112.8
)
2.9
(18.5
)
Total exploration and production
1,661.2
401.6
1,359.9
227.9
Corporate
0.7
(68.4
)
1.4
(104.1
)
Total from continuing operations
1,661.9
333.2
1,361.3
123.8
Discontinued operations, net of tax
—
(1.0
)
—
0.7
Total including noncontrolling interest
$
1,661.9
$
332.2
$
1,361.3
$
124.5
Less: Net income attributable to noncontrolling interest
47.0
29.2
Net income attributable to Murphy
$
285.2
$
95.3
MURPHY OIL CORPORATION PRODUCTION-RELATED EXPENSES (unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(Dollars per barrel of oil equivalents sold)
2026
2025
2026
2025
United States – Onshore
Lease operating expense
$
9.60
$
8.20
$
9.31
$
10.08
Severance and ad valorem taxes
3.76
2.66
3.58
2.96
Depreciation, depletion and amortization expense
32.01
29.88
31.79
29.68
United States – Offshore 1
Lease operating expense
$
10.43
$
20.91
$
10.80
$
21.13
Severance and ad valorem taxes
0.12
0.14
0.12
0.11
Depreciation, depletion and amortization expense
18.74
16.93
18.21
16.21
Canada – Onshore
Lease operating expense
$
5.52
$
4.98
$
5.53
$
5.21
Severance and ad valorem taxes
0.16
0.05
0.15
0.05
Depreciation, depletion and amortization expense
4.96
4.20
4.69
4.29
Canada – Offshore
Lease operating expense
$
18.84
$
17.86
$
18.24
$
17.29
Depreciation, depletion and amortization expense
10.65
11.47
10.89
9.59
Total E&P continuing operations 1
Lease operating expense
$
8.95
$
11.95
$
8.92
$
12.83
Severance and ad valorem taxes
0.93
0.60
0.89
0.59
Depreciation, depletion and amortization expense 2
16.16
14.28
15.89
13.70
Total oil and gas continuing operations – excluding noncontrolling interest
Lease operating expense 3
$
8.83
$
11.80
$
8.77
$
12.67
Severance and ad valorem taxes
0.96
0.62
0.92
0.61
Depreciation, depletion and amortization expense 2
16.20
14.28
15.94
13.71
MURPHY OIL CORPORATION
CAPITAL EXPENDITURES (unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(Millions of dollars)
2026
2025
2026
2025
Exploration and production
United States 1
$
276.2
$
178.4
$
535.3
$
500.5
Canada
64.3
45.7
126.4
101.1
Other
152.6
26.7
300.2
69.8
Total
493.1
250.8
961.9
671.4
Corporate
7.2
2.8
16.3
7.0
Total capital expenditures - continuing operations 1
500.3
253.6
978.2
678.4
Less: capital expenditures attributable to noncontrolling interest
24.3
2.8
37.2
24.7
Total capital expenditures - continuing operations attributable to Murphy 2
$
476.0
$
250.8
$
941.0
$
653.7
Charged to exploration expenses 3
United States 1
13.1
2.2
17.3
7.3
Canada
—
—
—
0.1
Other
23.8
5.9
100.1
13.6
Total charged to exploration expenses - continuing operations 1,3
36.9
8.1
117.4
21.0
Less: charged to exploration expenses attributable to noncontrolling interest
—
0.1
—
0.1
Total charged to exploration expenses - continuing operations attributable to Murphy
36.9
8.0
117.4
20.9
Total capitalized - continuing operations attributable to Murphy
$
439.1
$
242.8
$
823.6
$
632.8
MURPHY OIL CORPORATION
PRODUCTION SUMMARY (unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(Barrels per day unless otherwise noted)
2026
2025
2026
2025
Net crude oil and condensate
United States - Onshore
26,853
28,519
27,670
22,779
United States - Offshore 1
50,920
58,840
51,377
57,222
Canada - Onshore
4,854
2,307
3,899
2,445
Canada - Offshore
7,880
5,638
8,440
7,237
Other
239
296
232
275
Total net crude oil and condensate
90,746
95,600
91,618
89,958
Net natural gas liquids
United States - Onshore
6,769
5,557
6,315
4,818
United States - Offshore 1
3,976
4,720
4,136
4,265
Canada - Onshore
570
494
549
516
Total net natural gas liquids
11,315
10,771
11,000
9,599
Net natural gas – thousands of cubic feet per day
United States - Onshore
32,861
32,389
32,971
29,306
United States - Offshore 1
49,178
52,964
50,160
52,062
Canada - Onshore
355,672
454,310
366,277
400,898
Total net natural gas
437,711
539,663
449,408
482,266
Total net hydrocarbons - including NCI 2,3
175,013
196,315
177,519
179,935
Noncontrolling interest
Net crude oil and condensate – barrels per day
(5,481
)
(6,070
)
(5,382
)
(5,925
)
Net natural gas liquids – barrels per day
(195
)
(244
)
(210
)
(207
)
Net natural gas – thousands of cubic feet per day
(2,052
)
(1,942
)
(1,955
)
(1,590
)
Total noncontrolling interest 2,3
(6,018
)
(6,638
)
(5,918
)
(6,397
)
Total net hydrocarbons - excluding NCI 2,3
168,995
189,677
171,601
173,538
MURPHY OIL CORPORATION
SALES SUMMARY (unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(Barrels per day unless otherwise noted)
2026
2025
2026
2025
Net crude oil and condensate
United States - Onshore
26,853
28,520
27,670
22,779
United States - Offshore 1
50,359
58,469
51,277
56,313
Canada - Onshore
4,854
2,307
3,899
2,444
Canada - Offshore
10,201
7,762
8,897
9,436
Other
—
457
226
230
Total net crude oil and condensate
92,267
97,515
91,969
91,202
Net natural gas liquids
United States - Onshore
6,769
5,557
6,315
4,819
United States - Offshore 1
3,976
4,720
4,136
4,264
Canada - Onshore
570
494
549
516
Total net natural gas liquids
11,315
10,771
11,000
9,599
Net natural gas – thousands of cubic feet per day
United States - Onshore
32,861
32,388
32,971
29,306
United States - Offshore 1
49,178
52,964
50,160
52,062
Canada - Onshore
355,672
454,310
366,277
400,898
Total net natural gas
437,711
539,662
449,408
482,266
Total net hydrocarbons - including NCI 2,3
176,534
198,230
177,870
181,179
Noncontrolling interest
Net crude oil and condensate – barrels per day
(5,396
)
(6,014
)
(5,365
)
(5,792
)
Net natural gas liquids – barrels per day
(195
)
(243
)
(210
)
(207
)
Net natural gas – thousands of cubic feet per day
(2,052
)
(1,942
)
(1,955
)
(1,590
)
Total noncontrolling interest 2,3
(5,933
)
(6,581
)
(5,901
)
(6,264
)
Total net hydrocarbons - excluding NCI 2,3
170,601
191,649
171,969
174,915
MURPHY OIL CORPORATION
WEIGHTED AVERAGE PRICE SUMMARY (unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Crude oil and condensate – dollars per barrel
United States - Onshore
$
99.55
$
64.00
$
86.18
$
66.84
United States - Offshore 1
99.36
64.48
84.99
68.23
Canada - Onshore 2
84.08
59.94
77.28
61.73
Canada - Offshore 2
103.88
64.76
93.00
70.39
Other 2
—
70.86
71.04
70.86
Natural gas liquids – dollars per barrel
United States - Onshore
23.08
19.56
20.55
21.07
United States - Offshore 1
21.66
19.35
18.97
22.75
Canada - Onshore 2
34.46
33.84
31.25
35.00
Natural gas – dollars per thousand cubic feet
United States - Onshore
2.41
2.75
3.07
3.03
United States - Offshore 1
3.38
3.47
4.55
3.89
Canada - Onshore 2
1.48
1.65
1.97
1.96
MURPHY OIL CORPORATION
FIXED PRICE FORWARD SALES AND COMMODITY HEDGE POSITIONS
AS OF AUGUST 3, 2026 (unaudited)
Volumes
(MMCF/D)
Price/MCF
Remaining Period
Area
Commodity
Type 1
Start Date
End Date
Canada
Natural Gas
Fixed price forward sales
88
C$2.81
7/1/2026
9/30/2026
Canada
Natural Gas
Fixed price forward sales
59
C$3.00
10/1/2026
12/31/2026
Canada
Natural Gas
Fixed price forward sales
9.5
C$3.14
1/1/2027
12/31/2027
