Murphy Oil Corporation has announced its financial and operating results for the first quarter ended March 31, 2025, including net income attributable to Murphy of $73 million, or $0.50 net income per diluted share. Excluding discontinued operations and other items affecting comparability between periods, adjusted net income attributable to Murphy was $81 million, or $0.56 adjusted net income per diluted share.

Unless otherwise noted, the financial and operating highlights and metrics discussed in this commentary exclude noncontrolling interest (NCI).

Highlights for the first quarter include:

• Drilled an oil discovery at Lac Da Hong-1X (Pink Camel) exploration well in offshore Vietnam and encountered 106 feet of net oil pay from one reservoir
• Repurchased $100 million of stock, or 3.6 million shares
• Closed the strategic acquisition of the BW Pioneer floating production storage and offloading vessel (FPSO) in the Gulf of America for $104 million net purchase price

Subsequent to the first quarter:

• Achieved the significant milestone of 1 million work hours with zero Lost Time Injuries on the Lac Da Vang (Golden Camel) field development project in Vietnam
• Declared a quarterly dividend of $0.325 per share or $1.30 per share annualized

“I am excited to announce today an oil discovery at the Lac Da Hong-1X (Pink Camel) well, which is the second discovery in our current Vietnam exploration program. This discovery enhances the value of Murphy's growing Vietnam business when coupled with our nearby Lac Da Vang (Golden Camel) development and our recent Hai Su Vang (Golden Sea Lion) discovery. We also recently announced the acquisition of an FPSO in the Gulf of America, which leads to a direct cost reduction with a two-year payback,” said Eric M. Hambly, President and Chief Executive Officer. “Looking forward, we remain focused on progressing our onshore, Gulf of America and Vietnam development plans, creating additional value to generate excess cash flow for further shareholder returns.”

FIRST QUARTER 2025 RESULTS

The company recorded net income attributable to Murphy of $73 million, or $0.50 net income per diluted share, for the first quarter 2025. Adjusted net income, which excludes both the results of discontinued operations and certain other items that affect comparability of results between periods, was $81 million, or $0.56 per diluted share for the same period. Details for first quarter results and an adjusted net income reconciliation can be found in the attached schedules.

Earnings before interest, taxes, depreciation and amortization (EBITDA) attributable to Murphy were $317 million. Earnings before interest, taxes, depreciation, amortization and exploration expenses (EBITDAX) attributable to Murphy were $331 million. Adjusted EBITDA attributable to Murphy was $339 million. Adjusted EBITDAX attributable to Murphy was $353 million. Reconciliations for first quarter EBITDA, EBITDAX, adjusted EBITDA and adjusted EBITDAX can be found in the attached schedules.

First quarter production averaged 157 thousand barrels of oil equivalent per day (MBOEPD), which included 78.5 thousand barrels of oil per day (MBOPD). Production impacts of 6 MBOEPD were attributed to 2.6 MBOEPD of non-operated unplanned downtime in the Gulf of America and 2.1 MBOEPD of production curtailments in non-operated offshore Canada due to temporary logistics challenges. Additionally, winter storm activity delayed first production at the new Mormont #4 (Green Canyon 478) well and the Samurai #3 (Green Canyon 432) well workover, causing a 1.3 MBOEPD production impact.

Accrued capital expenditures (CAPEX) for first quarter 2025 totaled $403 million, excluding NCI and including net acquisition CAPEX of $104 million for the Pioneer FPSO and $1.4 million for non-operated working interests near the Zephyrus field in the Gulf of America. Details for first quarter production and CAPEX can be found in the attached schedules.

Capital Allocation Update

“We have successfully achieved the core objectives of our capital allocation framework since adopting it in third quarter 2022, as we have repaid approximately 35 percent of long-term debt, repurchased $550 million of shares and increased our quarterly dividend 30 percent,” said Hambly. “Looking ahead, we will continue to focus on rewarding shareholders for their support and remain committed to our strong balance sheet and disciplined strategy.”

Going forward, the company will continue to allocate a minimum of 50 percent of adjusted free cash flow to shareholder returns, primarily through buybacks. Murphy will continue to assess the appropriate shareholder return allocation under its modified plan, including potential dividend increases. Any remaining adjusted free cash flow will be allocated to the balance sheet as the company maintains its $1.0 billion total long-term debt goal.

As previously defined, adjusted free cash flow is calculated as cash flow from operations before working capital change, less capital expenditures, distributions to NCI and projected payments, quarterly dividend and accretive acquisitions.

FINANCIAL POSITION

Murphy had approximately $1.5 billion of liquidity on March 31, 2025, comprised of $1.15 billion undrawn under the $1.35 billion senior unsecured credit facility and $393 million of cash and cash equivalents, inclusive of NCI.

As of March 31, 2025, Murphy’s total debt of $1.48 billion was comprised of long-term, fixed-rate notes and $200 million drawn under the senior unsecured credit facility. The fixed-rate notes had a weighted average maturity of 9.1 years and a weighted average coupon of 6.1 percent.

ONSHORE OPERATIONS SUMMARY

In the first quarter of 2025, the onshore business produced approximately 86 MBOEPD, which included 28 percent liquids volumes.

Eagle Ford Shale – Production averaged 25 MBOEPD with 67 percent oil volumes and 83 percent liquids volumes in the first quarter. Murphy progressed its well delivery program as planned, and one non-operated Karnes well was brought online late in the first quarter.

Tupper Montney – During the first quarter, natural gas production averaged 340 million cubic feet per day (MMCFD) or 57 MBOEPD. Murphy brought online five operated wells as planned.

Kaybob Duvernay – Production averaged 4 MBOEPD with 58 percent oil volumes and 71 percent liquids volumes in the first quarter. Murphy progressed its well delivery program during the quarter and remains on track to bring four operated wells online in the third quarter.

OFFSHORE OPERATIONS SUMMARY

Excluding NCI, in the first quarter of 2025, the offshore business produced approximately 71 MBOEPD, which included 83 percent oil.

Gulf of America – Production averaged approximately 62 MBOEPD, consisting of 81 percent oil during the first quarter. As planned, Murphy brought online the Mormont #4 (Green Canyon 478) well during the quarter and progressed the Samurai #3 (Green Canyon 432) workover, which was brought online early in the second quarter.

As previously announced, Murphy acquired the BW Pioneer FPSO from BW Offshore for $104 million net purchase price. The FPSO will remain at its current location, supporting operations at the Cascade and Chinook fields (Walker Ridge 206, 250, 425 and 469) in the Gulf of America. BW Offshore will continue to provide operations and maintenance services under a new five-year contract.

Canada – In the first quarter, production averaged 9 MBOEPD, consisting of 100 percent oil.

Vietnam – During the first quarter, Murphy initiated construction of the floating storage and offloading vessel for the Lac Da Vang (Golden Camel) field development project. Additionally, early in the second quarter, Murphy achieved the significant milestone of 1 million work hours with zero Lost Time Injuries on the platform construction for the Lac Da Vang (Golden Camel) field development project.

EXPLORATION

Gulf of America – Murphy acquired working interests in five blocks near the non-operated Zephyrus field for $1.4 million in the first quarter, providing access to the southern extension of the discovered field, as well as multiple exploration opportunities.

Vietnam – During the first quarter, Murphy drilled an oil discovery at the Lac Da Hong-1X (Pink Camel) exploration well in Block 15-1/05 in the Cuu Long Basin, located 34 miles offshore Vietnam and 3 miles southwest of Murphy’s Lac Da Vang (Golden Camel) development. The well was drilled to total depth of 13,616 feet in 151 feet of water. Lac Da Hong-1X (Pink Camel) encountered 106 feet of net oil pay from one reservoir.

Murphy achieved a maximum flow rate of 2,500 BOPD. Additional testing showed high-quality oil with an API gravity of 38 degrees.

Murphy’s subsidiary, Murphy Cuu Long Bac Oil Co., Ltd., is the operator of Block 15-1/05 with 40 percent working interest. PetroVietnam Exploration Production Corporation Ltd. holds 35 percent working interest and SK Earthon Co., Ltd. holds the remaining 25 percent.

“The Lac Da Hong (Pink Camel) discovery, combined with the recently announced Hai Su Vang (Golden Sea Lion) discovery, deepens our understanding of the resource potential in our Cuu Long Basin blocks. Each of these discoveries validates our exploration strategy and helps optimize future development plans in the Cuu Long Basin. We look forward to working with our partners to evaluate the results from this latest discovery and the future development of our Vietnam business,” said Hambly.

2025 CAPITAL EXPENDITURE AND PRODUCTION GUIDANCE

Murphy maintains its 2025 accrued CAPEX range of $1,135 million to $1,285 million, which includes net acquisition CAPEX of $104 million for the Pioneer FPSO and $1.4 million for non-operated working interests near the Zephyrus field in the Gulf of America. Full year 2025 production is expected to be in the range of 174.5 to 182.5 MBOEPD, consisting of 50 percent oil and 55 percent liquids volumes, respectively.

“The winter storm activity we experienced during the first quarter delayed first production at two key operated wells in the Gulf of America and impacted the schedule of our remaining workover plans. Due to these first quarter impacts, we anticipate full year production to be towards the lower end of our production guidance range,” said Hambly.

Production for second quarter 2025 is estimated to be in the range of 177 to 185 MBOEPD with 48 percent oil volumes. Both production and CAPEX guidance ranges exclude NCI.