Murphy is planning 2021 capital expenditures (CAPEX) to be in the range of $675 to $725 million with full year 2021 production to be in the range of 155 to 165 MBOEPD, comprised of approximately 52 percent oil and 59 percent total liquids volumes. Production for first quarter 2021 is estimated to be in the range of 149 to 157 MBOEPD. Both production and CAPEX guidance ranges exclude Gulf of Mexico noncontrolling interest (NCI). Murphy’s 2021 plan reflects management’s continued focus on spending within cash flow, with capital directed toward major projects and short-term free cash flow-generating projects. Such a plan would allow the company to return cash to shareholders through the longstanding dividend, with additional cash utilized in a price recovery to pay down debt.

For 2021, Murphy has allocated approximately $325 million, or 46 percent, of capital to the Gulf of Mexico for both development drilling and field development projects. These projects include activities related to the previously sanctioned Khaleesi / Mormont and Samurai developments, and the St. Malo waterflood project. The non-operated Kodiak #3 well (Mississippi Canyon 727), Lucius #9 well (Keathley Canyon 919), Lucius #3 well (Keathley Canyon 918) are scheduled to be complete and placed online in the first half of 2021.

Canada offshore spending comprises 1 percent of the budget, with approximately $5 million earmarked to support Hibernia.

The company forecasts total 2021 offshore production volumes to average 72 MBOEPD, with Gulf of Mexico production of 68 MBOEPD. Canada offshore production is forecast at 4 MBOEPD, noting that non-operated Terra Nova continues to remain offline for repairs.

Murphy plans to spend $170 million in the Eagle Ford Shale, which is 17 percent lower than in 2020. This capital includes $115 million for drilling and bringing online 19 operated wells in the company’s Karnes and Catarina acreage, as well as drilling 2 and bringing online 53 non-operated wells during the year, primarily in Karnes. Murphy’s Eagle Ford Shale budget also includes $55 million for field development.

The company has also allocated $95 million to its Canada onshore business in the Kaybob Duvernay, Tupper Montney and Placid Montney. Approximately $85 million is allocated to the newly sanctioned Tupper Montney development to drill 10 operated wells and bring online 14 operated wells. The remaining amount is primarily allocated to Kaybob Duvernay for field development.

KeyFacts Energy: Murphy Oil US country profile