[10-Q] Murphy Oil Corp. Quarterly Earnings Report
Filing Impact
Filing Sentiment
Form Type
10-Q
Rhea-AI Filing Summary
Montrose Environmental Group, Inc. (NYSE: MEG) filed a Form 8-K dated 6 Aug 2025 to disclose two furnished (non-filed) items:
- Item 2.02 鈥� Results of Operations and Financial Condition: the company issued a press release announcing financial results for the quarter ended 30 Jun 2025. The release is attached as Exhibit 99.1.
- Item 7.01 鈥� Regulation FD: an accompanying investor presentation used on the earnings conference call is available in the 鈥淧resentations and Events鈥� section of the company鈥檚 investor-relations website.
Both items are expressly furnished, meaning they are not deemed 鈥渇iled鈥� under the Exchange Act and therefore do not carry Section 18 liability or automatic incorporation into other SEC filings. No quantitative financial data are included in this 8-K itself. The filing is signed by CFO Allan Dicks.
Montrose Environmental Group, Inc. (NYSE: MEG) ha presentato un modulo 8-K datato 6 agosto 2025 per comunicare due elementi forniti (non depositati):
- Voce 2.02 鈥� Risultati Operativi e Condizione Finanziaria: la societ脿 ha pubblicato un comunicato stampa con i risultati finanziari del trimestre terminato il 30 giugno 2025. Il comunicato 猫 allegato come Esibizione 99.1.
- Voce 7.01 鈥� Regolamento FD: una presentazione per investitori utilizzata durante la conference call sui risultati 猫 disponibile nella sezione 鈥淧resentazioni ed Eventi鈥� del sito web per gli investitori della societ脿.
Entrambi gli elementi sono forniti espressamente, il che significa che non sono considerati "depositati" ai sensi dell'Exchange Act e quindi non sono soggetti alla responsabilit脿 ai sensi della Sezione 18 n茅 all'incorporazione automatica in altri documenti SEC. Nessun dato finanziario quantitativo 猫 incluso in questo 8-K. La comunicazione 猫 firmata dal CFO Allan Dicks.
Montrose Environmental Group, Inc. (NYSE: MEG) present贸 un Formulario 8-K con fecha 6 de agosto de 2025 para divulgar dos elementos proporcionados (no presentados):
- Art铆culo 2.02 鈥� Resultados de Operaciones y Condici贸n Financiera: la compa帽铆a emiti贸 un comunicado de prensa anunciando los resultados financieros del trimestre terminado el 30 de junio de 2025. El comunicado est谩 adjunto como Anexo 99.1.
- Art铆culo 7.01 鈥� Regulaci贸n FD: una presentaci贸n para inversionistas utilizada en la llamada de conferencia de ganancias est谩 disponible en la secci贸n 鈥淧resentaciones y Eventos鈥� del sitio web de relaciones con inversionistas de la compa帽铆a.
Ambos elementos se proporcionan expresamente, lo que significa que no se consideran 鈥減resentados鈥� seg煤n la Exchange Act y, por lo tanto, no est谩n sujetos a responsabilidad bajo la Secci贸n 18 ni a incorporaci贸n autom谩tica en otros documentos de la SEC. No se incluyen datos financieros cuantitativos en este 8-K. La presentaci贸n est谩 firmada por el CFO Allan Dicks.
Montrose Environmental Group, Inc. (NYSE: MEG)電� 2025雲� 8鞗� 6鞚�鞛� 8-K 鞏戩嫕鞚� 鞝滌稖頃橃棳 霊� 臧�歆� 鞝滉车霅�(鞝滌稖霅橃 鞎婌潃) 頃鞚� 瓿店皽頄堨姷雼堧嫟:
- 頃 2.02 鈥� 鞓侅梾鞁れ爜 氚� 鞛靸來儨: 須岇偓電� 2025雲� 6鞗� 30鞚� 膦呺霅� 攵勱赴 鞛 瓴瓣臣毳� 氚滍憸頃橂姅 氤措弰鞛愲毳� 氚滍枆頄堨姷雼堧嫟. 頃措嫻 氤措弰鞛愲電� 攵�靻嶌劀 99.1搿� 觳秬霅橃柎 鞛堨姷雼堧嫟.
- 頃 7.01 鈥� 攴滌爼 FD: 鞁れ爜 旎嵓霟办姢 旖滌棎靹� 靷毄霅� 韴瀽鞛� 頂勲爤鞝犿厡鞚挫厴鞚� 須岇偓 韴瀽鞛� 甏�瓿� 鞗轨偓鞚错姼鞚� 鈥滍攧霠堨牋韰岇澊靺� 氚� 鞚措菠韸糕�� 靹轨厴鞐愳劀 鞝滉车霅╇媹雼�.
霊� 頃 氇憪 氇呾嫓鞝侅溂搿� 鞝滉车霅� 瓴冹溂搿�, 鞚措姅 歃濌秾瓯半灅氩�(Exchange Act) 頃橃棎靹� 鈥滌牅於滊悳鈥� 瓴冹溂搿� 臧勳＜霅橃 鞎婌溂氅�, 霐半澕靹� 靹轨厴 18 毂呾瀯鞚措倶 雼るジ SEC 鞝滌稖 氍胳劀鞐� 鞛愲彊鞙茧 韽暔霅橃 鞎婌姷雼堧嫟. 鞚� 8-K 鞛愳泊鞐愲姅 鞝曤焿鞝� 鞛 雿办澊韯瓣皜 韽暔霅橃柎 鞛堨 鞎婌姷雼堧嫟. 鞝滌稖 靹滊獏鞚� CFO Allan Dicks臧� 頄堨姷雼堧嫟.
Montrose Environmental Group, Inc. (NYSE : MEG) a d茅pos茅 un formulaire 8-K dat茅 du 6 ao没t 2025 pour divulguer deux 茅l茅ments fournis (non d茅pos茅s) :
- Point 2.02 鈥� R茅sultats d鈥檈xploitation et situation financi猫re : la soci茅t茅 a publi茅 un communiqu茅 de presse annon莽ant les r茅sultats financiers du trimestre clos le 30 juin 2025. Le communiqu茅 est joint en tant qu鈥橢xhibit 99.1.
- Point 7.01 鈥� R茅gulation FD : une pr茅sentation aux investisseurs utilis茅e lors de la conf茅rence t茅l茅phonique sur les r茅sultats est disponible dans la section 芦 Pr茅sentations et 茅v茅nements 禄 du site web des relations investisseurs de la soci茅t茅.
Les deux 茅l茅ments sont express茅ment fournis, ce qui signifie qu鈥檌ls ne sont pas consid茅r茅s comme 芦 d茅pos茅s 禄 au sens de l鈥橢xchange Act et ne sont donc pas soumis 脿 la responsabilit茅 en vertu de la Section 18 ni 脿 une incorporation automatique dans d鈥檃utres documents d茅pos茅s aupr猫s de la SEC. Aucun chiffre financier quantitatif n鈥檈st inclus dans ce 8-K lui-m锚me. Le d茅p么t est sign茅 par le directeur financier Allan Dicks.
Montrose Environmental Group, Inc. (NYSE: MEG) hat am 6. August 2025 ein Formular 8-K eingereicht, um zwei bereitgestellte (nicht eingereichte) Punkte offenzulegen:
- Punkt 2.02 鈥� Betriebsergebnisse und Finanzlage: Das Unternehmen gab eine Pressemitteilung mit den Finanzergebnissen f眉r das Quartal zum 30. Juni 2025 heraus. Die Mitteilung ist als Anhang 99.1 beigef眉gt.
- Punkt 7.01 鈥� Regulation FD: Eine begleitende Investorenpr盲sentation, die w盲hrend der Gewinnkonferenzschaltung verwendet wurde, ist im Bereich 鈥濸r盲sentationen und Veranstaltungen鈥� auf der Investor-Relations-Website des Unternehmens verf眉gbar.
Beide Punkte sind ausdr眉cklich bereitgestellt, was bedeutet, dass sie gem盲脽 dem Exchange Act nicht als 鈥瀍ingereicht鈥� gelten und daher keine Haftung nach Abschnitt 18 tragen oder automatisch in andere SEC-Einreichungen aufgenommen werden. Quantitative Finanzdaten sind in diesem 8-K selbst nicht enthalten. Die Einreichung wurde vom CFO Allan Dicks unterzeichnet.
Positive
- None.
Negative
- None.
Insights
TL;DR: Routine 8-K furnishes Q2-25 results press release; no numbers disclosed, so market impact is likely neutral.
This 8-K merely alerts investors that MEG鈥檚 Q2-25 earnings press release (Ex. 99.1) and slide deck are available. Because the actual financial metrics are contained in the exhibit rather than the body of the filing鈥攁nd the exhibit text is not provided here鈥攏o assessment of revenue, margin or guidance can be made. The company also elects to treat the materials as "furnished," limiting legal liability. Such filings are standard practice and do not, by themselves, indicate positive or negative operational change. Impact on valuation will depend on the contents of the press release, not this cover 8-K.
Montrose Environmental Group, Inc. (NYSE: MEG) ha presentato un modulo 8-K datato 6 agosto 2025 per comunicare due elementi forniti (non depositati):
- Voce 2.02 鈥� Risultati Operativi e Condizione Finanziaria: la societ脿 ha pubblicato un comunicato stampa con i risultati finanziari del trimestre terminato il 30 giugno 2025. Il comunicato 猫 allegato come Esibizione 99.1.
- Voce 7.01 鈥� Regolamento FD: una presentazione per investitori utilizzata durante la conference call sui risultati 猫 disponibile nella sezione 鈥淧resentazioni ed Eventi鈥� del sito web per gli investitori della societ脿.
Entrambi gli elementi sono forniti espressamente, il che significa che non sono considerati "depositati" ai sensi dell'Exchange Act e quindi non sono soggetti alla responsabilit脿 ai sensi della Sezione 18 n茅 all'incorporazione automatica in altri documenti SEC. Nessun dato finanziario quantitativo 猫 incluso in questo 8-K. La comunicazione 猫 firmata dal CFO Allan Dicks.
Montrose Environmental Group, Inc. (NYSE: MEG) present贸 un Formulario 8-K con fecha 6 de agosto de 2025 para divulgar dos elementos proporcionados (no presentados):
- Art铆culo 2.02 鈥� Resultados de Operaciones y Condici贸n Financiera: la compa帽铆a emiti贸 un comunicado de prensa anunciando los resultados financieros del trimestre terminado el 30 de junio de 2025. El comunicado est谩 adjunto como Anexo 99.1.
- Art铆culo 7.01 鈥� Regulaci贸n FD: una presentaci贸n para inversionistas utilizada en la llamada de conferencia de ganancias est谩 disponible en la secci贸n 鈥淧resentaciones y Eventos鈥� del sitio web de relaciones con inversionistas de la compa帽铆a.
Ambos elementos se proporcionan expresamente, lo que significa que no se consideran 鈥減resentados鈥� seg煤n la Exchange Act y, por lo tanto, no est谩n sujetos a responsabilidad bajo la Secci贸n 18 ni a incorporaci贸n autom谩tica en otros documentos de la SEC. No se incluyen datos financieros cuantitativos en este 8-K. La presentaci贸n est谩 firmada por el CFO Allan Dicks.
Montrose Environmental Group, Inc. (NYSE: MEG)電� 2025雲� 8鞗� 6鞚�鞛� 8-K 鞏戩嫕鞚� 鞝滌稖頃橃棳 霊� 臧�歆� 鞝滉车霅�(鞝滌稖霅橃 鞎婌潃) 頃鞚� 瓿店皽頄堨姷雼堧嫟:
- 頃 2.02 鈥� 鞓侅梾鞁れ爜 氚� 鞛靸來儨: 須岇偓電� 2025雲� 6鞗� 30鞚� 膦呺霅� 攵勱赴 鞛 瓴瓣臣毳� 氚滍憸頃橂姅 氤措弰鞛愲毳� 氚滍枆頄堨姷雼堧嫟. 頃措嫻 氤措弰鞛愲電� 攵�靻嶌劀 99.1搿� 觳秬霅橃柎 鞛堨姷雼堧嫟.
- 頃 7.01 鈥� 攴滌爼 FD: 鞁れ爜 旎嵓霟办姢 旖滌棎靹� 靷毄霅� 韴瀽鞛� 頂勲爤鞝犿厡鞚挫厴鞚� 須岇偓 韴瀽鞛� 甏�瓿� 鞗轨偓鞚错姼鞚� 鈥滍攧霠堨牋韰岇澊靺� 氚� 鞚措菠韸糕�� 靹轨厴鞐愳劀 鞝滉车霅╇媹雼�.
霊� 頃 氇憪 氇呾嫓鞝侅溂搿� 鞝滉车霅� 瓴冹溂搿�, 鞚措姅 歃濌秾瓯半灅氩�(Exchange Act) 頃橃棎靹� 鈥滌牅於滊悳鈥� 瓴冹溂搿� 臧勳＜霅橃 鞎婌溂氅�, 霐半澕靹� 靹轨厴 18 毂呾瀯鞚措倶 雼るジ SEC 鞝滌稖 氍胳劀鞐� 鞛愲彊鞙茧 韽暔霅橃 鞎婌姷雼堧嫟. 鞚� 8-K 鞛愳泊鞐愲姅 鞝曤焿鞝� 鞛 雿办澊韯瓣皜 韽暔霅橃柎 鞛堨 鞎婌姷雼堧嫟. 鞝滌稖 靹滊獏鞚� CFO Allan Dicks臧� 頄堨姷雼堧嫟.
Montrose Environmental Group, Inc. (NYSE : MEG) a d茅pos茅 un formulaire 8-K dat茅 du 6 ao没t 2025 pour divulguer deux 茅l茅ments fournis (non d茅pos茅s) :
- Point 2.02 鈥� R茅sultats d鈥檈xploitation et situation financi猫re : la soci茅t茅 a publi茅 un communiqu茅 de presse annon莽ant les r茅sultats financiers du trimestre clos le 30 juin 2025. Le communiqu茅 est joint en tant qu鈥橢xhibit 99.1.
- Point 7.01 鈥� R茅gulation FD : une pr茅sentation aux investisseurs utilis茅e lors de la conf茅rence t茅l茅phonique sur les r茅sultats est disponible dans la section 芦 Pr茅sentations et 茅v茅nements 禄 du site web des relations investisseurs de la soci茅t茅.
Les deux 茅l茅ments sont express茅ment fournis, ce qui signifie qu鈥檌ls ne sont pas consid茅r茅s comme 芦 d茅pos茅s 禄 au sens de l鈥橢xchange Act et ne sont donc pas soumis 脿 la responsabilit茅 en vertu de la Section 18 ni 脿 une incorporation automatique dans d鈥檃utres documents d茅pos茅s aupr猫s de la SEC. Aucun chiffre financier quantitatif n鈥檈st inclus dans ce 8-K lui-m锚me. Le d茅p么t est sign茅 par le directeur financier Allan Dicks.
Montrose Environmental Group, Inc. (NYSE: MEG) hat am 6. August 2025 ein Formular 8-K eingereicht, um zwei bereitgestellte (nicht eingereichte) Punkte offenzulegen:
- Punkt 2.02 鈥� Betriebsergebnisse und Finanzlage: Das Unternehmen gab eine Pressemitteilung mit den Finanzergebnissen f眉r das Quartal zum 30. Juni 2025 heraus. Die Mitteilung ist als Anhang 99.1 beigef眉gt.
- Punkt 7.01 鈥� Regulation FD: Eine begleitende Investorenpr盲sentation, die w盲hrend der Gewinnkonferenzschaltung verwendet wurde, ist im Bereich 鈥濸r盲sentationen und Veranstaltungen鈥� auf der Investor-Relations-Website des Unternehmens verf眉gbar.
Beide Punkte sind ausdr眉cklich bereitgestellt, was bedeutet, dass sie gem盲脽 dem Exchange Act nicht als 鈥瀍ingereicht鈥� gelten und daher keine Haftung nach Abschnitt 18 tragen oder automatisch in andere SEC-Einreichungen aufgenommen werden. Quantitative Finanzdaten sind in diesem 8-K selbst nicht enthalten. Die Einreichung wurde vom CFO Allan Dicks unterzeichnet.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One) | |||||
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended June 30, 2025
OR
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from to
Commission file number 1-8590
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |||||||
| (Zip Code) | ||||||||
| (Address of principal executive offices) | ||||||||
| (Registrant’s telephone number, including area code) | ||||||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | Emerging growth company | |||||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). ☐ Yes ☒ No
Number of shares of Common Stock, $1.00 par value, outstanding at July 31, 2025 was 142,731,820 .
MURPHY OIL CORPORATION
TABLE OF CONTENTS
| Page | |||||
Part I – Financial Information | 2 | ||||
Item 1. Financial Statements | 2 | ||||
Consolidated Balance Sheets | 2 | ||||
Consolidated Statements of Operations | 3 | ||||
Consolidated Statements of Comprehensive Income | 4 | ||||
Consolidated Statements of Cash Flows | 5 | ||||
Consolidated Statements of Stockholders’ Equity | 6 | ||||
Notes to Consolidated Financial Statements | 7 | ||||
Note A – Basis of Presentation | 7 | ||||
Note B – New Accounting Principles and Recent Accounting Pronouncements | 7 | ||||
Note C – Revenue from Contracts with Customers | 8 | ||||
Note D – Property, Plant and Equipment | 10 | ||||
Note E – Financing Arrangements and Debt | 11 | ||||
Note F – Other Financial Information | 12 | ||||
Note G – Asset Retirement Obligations | 12 | ||||
Note H – Employee and Retiree Benefit Plans | 13 | ||||
Note I – Incentive Plans | 13 | ||||
Note J – Net Income (Loss) Per Common Share | 15 | ||||
Note K – Income Taxes | 15 | ||||
Note L – Financial Instruments and Risk Management | 16 | ||||
Note M – Accumulated Other Comprehensive Loss | 19 | ||||
Note N – Environmental and Other Contingencies | 19 | ||||
Note O – Common Stock Issued and Outstanding | 21 | ||||
Note P – Business Segments | 21 | ||||
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 26 | ||||
Item 3. Quantitative and Qualitative Disclosures About Market Risk | 46 | ||||
Item 4. Controls and Procedures | 46 | ||||
Part II – Other Information | 47 | ||||
Item 1. Legal Proceedings | 47 | ||||
Item 1A. Risk Factors | 47 | ||||
Item 5. Other Information | 48 | ||||
Item 6. Exhibits | 48 | ||||
Signature | 49 | ||||
1
Table of Contents
PART I – FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
MURPHY OIL CORPORATION AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
| (Thousands of dollars, except share amounts) | June 30, 2025 | December 31, 2024 | |||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
| Inventories | |||||||||||
| Prepaid expenses | |||||||||||
| Total current assets | |||||||||||
Property, plant and equipment, at cost less accumulated depreciation, depletion and amortization of $ | |||||||||||
| Operating lease assets | |||||||||||
| Deferred charges and other assets | |||||||||||
| Total assets | $ | $ | |||||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Current maturities of long-term debt, finance lease | $ | $ | |||||||||
| Accounts payable | |||||||||||
| Income taxes payable | |||||||||||
| Other taxes payable | |||||||||||
| Operating lease liabilities | |||||||||||
| Other accrued liabilities | |||||||||||
| Current asset retirement obligations | |||||||||||
| Total current liabilities | |||||||||||
| Long-term debt, including finance lease obligation | |||||||||||
| Asset retirement obligations | |||||||||||
| Deferred credits and other liabilities | |||||||||||
| Non-current operating lease liabilities | |||||||||||
| Deferred income taxes | |||||||||||
| Total liabilities | $ | $ | |||||||||
| Equity | |||||||||||
Cumulative Preferred Stock, par $ | $ | $ | |||||||||
Common Stock, par $ | |||||||||||
| Capital in excess of par value | |||||||||||
| Retained earnings | |||||||||||
| Accumulated other comprehensive loss | ( | ( | |||||||||
| Treasury stock | ( | ( | |||||||||
| Murphy Shareholders' Equity | |||||||||||
| Noncontrolling interest | |||||||||||
| Total equity | |||||||||||
| Total liabilities and equity | $ | $ | |||||||||
The accompanying notes are an integral part of these consolidated financial statements.
2
Table of Contents
MURPHY OIL CORPORATION AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (Thousands of dollars, except per share amounts) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Revenues and other income | |||||||||||||||||||||||
| Revenue from production | $ | $ | $ | $ | |||||||||||||||||||
| Sales of purchased natural gas | |||||||||||||||||||||||
| Total revenue from sales to customers | |||||||||||||||||||||||
| Gain on derivative instruments | |||||||||||||||||||||||
| Gain on sale of assets and other operating income | |||||||||||||||||||||||
| Total revenues and other income | |||||||||||||||||||||||
| Costs and expenses | |||||||||||||||||||||||
| Lease operating expenses | |||||||||||||||||||||||
| Severance and ad valorem taxes | |||||||||||||||||||||||
| Transportation, gathering and processing | |||||||||||||||||||||||
| Costs of purchased natural gas | |||||||||||||||||||||||
| Exploration expenses, including undeveloped lease amortization | |||||||||||||||||||||||
| Selling and general expenses | |||||||||||||||||||||||
| Depreciation, depletion and amortization | |||||||||||||||||||||||
| Accretion of asset retirement obligations | |||||||||||||||||||||||
| Impairment of assets | |||||||||||||||||||||||
| Other operating expense (income) | ( | ||||||||||||||||||||||
| Total costs and expenses | |||||||||||||||||||||||
| Operating income from continuing operations | |||||||||||||||||||||||
| Other income (loss) | |||||||||||||||||||||||
| Other income (loss) | ( | ( | |||||||||||||||||||||
| Interest expense, net | ( | ( | ( | ( | |||||||||||||||||||
| Total other income (loss) | ( | ( | ( | ||||||||||||||||||||
| Income from continuing operations before income taxes | |||||||||||||||||||||||
| Income tax expense | |||||||||||||||||||||||
| Income from continuing operations | |||||||||||||||||||||||
| Income (loss) from discontinued operations, net of income taxes | ( | ( | |||||||||||||||||||||
| Net income including noncontrolling interest | |||||||||||||||||||||||
| Less: Net income attributable to noncontrolling interest | |||||||||||||||||||||||
| NET INCOME ATTRIBUTABLE TO MURPHY | $ | $ | $ | $ | |||||||||||||||||||
NET INCOME (LOSS) PER COMMON SHARE – BASIC | |||||||||||||||||||||||
| Continuing operations | $ | $ | $ | $ | |||||||||||||||||||
| Discontinued operations | ( | ||||||||||||||||||||||
| Net income | $ | $ | $ | $ | |||||||||||||||||||
NET INCOME (LOSS) PER COMMON SHARE – DILUTED | |||||||||||||||||||||||
| Continuing operations | $ | $ | $ | $ | |||||||||||||||||||
| Discontinued operations | ( | ||||||||||||||||||||||
| Net income | $ | $ | $ | $ | |||||||||||||||||||
| Cash dividends per common share | $ | $ | $ | $ | |||||||||||||||||||
| Average common shares outstanding (thousands) | |||||||||||||||||||||||
| Basic | |||||||||||||||||||||||
| Diluted | |||||||||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
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MURPHY OIL CORPORATION AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (Thousands of dollars) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Net income including noncontrolling interest | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income (loss), net of tax | |||||||||||||||||||||||
Net gain (loss) from foreign currency translation | ( | ( | |||||||||||||||||||||
| Retirement and postretirement benefit plans | |||||||||||||||||||||||
Other comprehensive income (loss) | ( | ( | |||||||||||||||||||||
| Comprehensive income including noncontrolling interest | |||||||||||||||||||||||
| Less: Comprehensive income attributable to noncontrolling interest | |||||||||||||||||||||||
| COMPREHENSIVE INCOME ATTRIBUTABLE TO MURPHY | $ | $ | $ | $ | |||||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
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MURPHY OIL CORPORATION AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| Six Months Ended June 30, | |||||||||||
| (Thousands of dollars) | 2025 | 2024 | |||||||||
| Operating Activities | |||||||||||
| Net income including noncontrolling interest | $ | $ | |||||||||
| Adjustments to reconcile net income to net cash provided by continuing operations activities | |||||||||||
| Depreciation, depletion and amortization | |||||||||||
| Accretion of asset retirement obligations | |||||||||||
| Long-term non-cash compensation | |||||||||||
| Deferred income tax expense | |||||||||||
| Amortization of undeveloped leases | |||||||||||
Mark-to-market loss on derivative instruments | ( | ||||||||||
| Unsuccessful exploration well costs and previously suspended exploration costs | ( | ||||||||||
(Income) loss from discontinued operations | ( | ||||||||||
| Impairment of assets | |||||||||||
| Other operating activities, net | ( | ( | |||||||||
Net decrease in non-cash working capital | |||||||||||
| Net cash provided by continuing operations activities | |||||||||||
| Investing Activities | |||||||||||
| Property additions and dry hole costs | ( | ( | |||||||||
| Acquisition of oil and natural gas properties | ( | ||||||||||
| Net cash required by investing activities | ( | ( | |||||||||
| Financing Activities | |||||||||||
| Borrowings on revolving credit facility | |||||||||||
| Repayment of revolving credit facility | ( | ( | |||||||||
| Retirement of debt | ( | ||||||||||
| Repurchase of common stock | ( | ( | |||||||||
| Cash dividends paid | ( | ( | |||||||||
| Withholding tax on stock-based incentive awards | ( | ( | |||||||||
| Distributions to noncontrolling interest | ( | ( | |||||||||
| Finance lease obligation payments | ( | ( | |||||||||
Issue costs of revolving debt facility | ( | ||||||||||
Net cash required by financing activities | ( | ( | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | ( | ||||||||||
Net (decrease) increase in cash and cash equivalents | ( | ||||||||||
| Cash and cash equivalents at beginning of period | |||||||||||
| Cash and cash equivalents at end of period | $ | $ | |||||||||
The accompanying notes are an integral part of these consolidated financial statements.
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MURPHY OIL CORPORATION AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(UNAUDITED)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (Thousands of dollars except number of shares) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
Common Stock | |||||||||||||||||||||||
Balance at beginning and end of period – par $ | $ | $ | $ | $ | |||||||||||||||||||
| Capital in Excess of Par Value | |||||||||||||||||||||||
| Balance at beginning of period | |||||||||||||||||||||||
| Restricted stock transactions and other | ( | ( | ( | ( | |||||||||||||||||||
| Share-based compensation | |||||||||||||||||||||||
| Balance at end of period | |||||||||||||||||||||||
| Retained Earnings | |||||||||||||||||||||||
| Balance at beginning of period | |||||||||||||||||||||||
| Net income attributable to Murphy | |||||||||||||||||||||||
| Cash dividends paid | ( | ( | ( | ( | |||||||||||||||||||
| Balance at end of period | |||||||||||||||||||||||
| Accumulated Other Comprehensive Loss | |||||||||||||||||||||||
| Balance at beginning of period | ( | ( | ( | ( | |||||||||||||||||||
| Foreign currency translation, net of income taxes | ( | ( | |||||||||||||||||||||
| Retirement and postretirement benefit plans, net of income taxes | |||||||||||||||||||||||
| Balance at end of period | ( | ( | ( | ( | |||||||||||||||||||
| Treasury Stock | |||||||||||||||||||||||
| Balance at beginning of period | ( | ( | ( | ( | |||||||||||||||||||
| Repurchase of common stock | ( | ( | ( | ||||||||||||||||||||
| Awarded restricted stock, net of forfeitures | |||||||||||||||||||||||
Balance at end of period – | ( | ( | ( | ( | |||||||||||||||||||
| Murphy Shareholders’ Equity | |||||||||||||||||||||||
| Noncontrolling Interest | |||||||||||||||||||||||
| Balance at beginning of period | |||||||||||||||||||||||
| Net income attributable to noncontrolling interest | |||||||||||||||||||||||
| Distributions to noncontrolling interest owners | ( | ( | ( | ( | |||||||||||||||||||
| Balance at end of period | |||||||||||||||||||||||
| Total Equity | $ | $ | $ | $ | |||||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
These notes are an integral part of the financial statements of Murphy Oil Corporation and Consolidated Subsidiaries (the Company or Murphy) on pages 2 through 6 of this Form 10-Q report.
Note A – Basis of Presentation
The unaudited financial statements presented herein, in the opinion of Murphy’s management, include all adjustments necessary to present fairly the Company’s financial position as at June 30, 2025 and December 31, 2024, and the results of operations, cash flows and changes in stockholders’ equity for the interim periods ended June 30, 2025 and 2024, in conformity with U.S. generally accepted accounting principles (GAAP). In preparing the financial statements of the Company in conformity with GAAP, management has made a number of estimates and assumptions that affect the reporting of assets, liabilities, revenues, and expenses and the disclosure of contingent assets and liabilities. Actual results may differ from the estimates.
Consolidated financial statements and notes to consolidated financial statements included in this Form 10-Q report should be read in conjunction with the Company’s 2024 Form 10-K report, as certain notes and other pertinent information have been abbreviated or omitted in this report. Financial results for the three-month and six-month periods ended June 30, 2025 are not necessarily indicative of future results.
Accounting Principles Adopted
Reportable Segment Disclosures. In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The standard requires additional disclosures about operating segments, including segment expense information provided to the chief operating decision maker, and extends certain disclosure requirements to interim periods. The Company adopted this standard in the fourth quarter of 2024. The adoption did not impact the determination of significant segments and had no material impact on the Company’s consolidated financial statements. These new disclosure requirements are applied retrospectively to all prior periods included in the financial statements. Refer to Note P.
Recent Accounting Pronouncements
Expense Disaggregation Disclosures. In November 2024, the FASB issued ASU 2024-03 Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The standard becomes effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The standard requires specified information about certain costs and expenses presented on the face of the income statement to be further disaggregated in the notes to the financial statements. In addition, the standard requires certain expense and cost information that is not separately disaggregated to be qualitatively described. We expect this ASU to only impact our disclosures with no impacts to our results of operations, cash flows and financial condition.
Income Tax Disclosures. In December 2023, the FASB issued ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The standard becomes effective for annual periods beginning after December 15, 2024. The update requires financial statements to include consistent categories and greater disaggregation of information in the rate reconciliation, as well as income taxes paid disaggregated by jurisdiction. We expect this ASU to only impact our disclosures with no impacts to our results of operations, cash flows and financial condition.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Nature of Goods and Services
The Company explores for and produces crude oil, natural gas and natural gas liquids (collectively referred to as oil and natural gas) in select basins around the world. The Company’s revenue from sales of oil and natural gas production activities is primarily subdivided into two key geographic segments: the United States (U.S.) and Canada. Additionally, revenue from sales to customers is generated from three primary revenue streams: crude oil, natural gas and natural gas liquids (NGLs).
For operated oil and natural gas production where a non-operated working interest owner does not take in kind its proportionate interest in the produced commodity, the Company acts as an agent for the working interest owner and recognizes revenue only for its own share of the commingled production. The exception to this is the reporting of the noncontrolling interest (NCI) in MP Gulf of Mexico, LLC (MP GOM) as prescribed by GAAP.
U.S. - In the U.S., the Company primarily produces oil and natural gas from fields in the Eagle Ford Shale area of South Texas and in the Gulf of America. Revenue is generally recognized when oil and natural gas is transferred to the customer at the delivery point. Revenue recognized is largely index-based with price adjustments for floating market differentials.
Canada - In Canada, contracts include long-term floating commodity index priced and natural gas physical forward sales fixed price contracts. For the offshore business in Canada, contracts are based on index prices and revenue is recognized at the time of vessel load based on the volumes on the bill of lading and point of custody transfer. The Company also purchases natural gas in Canada to meet certain sales commitments.
Disaggregation of Revenue
The Company reviews performance based on two key geographical segments and between onshore and offshore sources of revenue within these geographies.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Note C - Revenue from Contracts with Customers (Continued)
The Company’s revenues and other income for the three-month and six-month periods ended June 30, 2025 and 2024 were as follows.
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (Thousands of dollars) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Net crude oil and condensate revenue | |||||||||||||||||||||||
United States - Onshore | $ | $ | $ | $ | |||||||||||||||||||
United States - Offshore 1 | |||||||||||||||||||||||
Canada - Onshore | |||||||||||||||||||||||
Canada - Offshore | |||||||||||||||||||||||
| Other | |||||||||||||||||||||||
| Total crude oil and condensate revenue | |||||||||||||||||||||||
| Net natural gas liquids revenue | |||||||||||||||||||||||
United States - Onshore | |||||||||||||||||||||||
United States - Offshore 1 | |||||||||||||||||||||||
Canada - Onshore | |||||||||||||||||||||||
| Total natural gas liquids revenue | |||||||||||||||||||||||
| Net natural gas revenue | |||||||||||||||||||||||
United States - Onshore | |||||||||||||||||||||||
United States - Offshore 1 | |||||||||||||||||||||||
Canada - Onshore | |||||||||||||||||||||||
| Total natural gas revenue | |||||||||||||||||||||||
| Revenue from production | |||||||||||||||||||||||
Sales of purchased natural gas 2 | |||||||||||||||||||||||
Canada - Onshore | |||||||||||||||||||||||
| Total sales of purchased natural gas | |||||||||||||||||||||||
| Total revenue from sales to customers | |||||||||||||||||||||||
| Gain on derivative instruments | |||||||||||||||||||||||
| Gain on sale of assets and other operating income | |||||||||||||||||||||||
| Total revenues and other income | $ | $ | $ | $ | |||||||||||||||||||
1 Includes revenue attributable to noncontrolling interest in MP GOM.
2 Purchases of natural gas are reported on a gross basis when Murphy takes control of the product and has risks and rewards of ownership. Sales of purchased natural gas are reported when the contractual performance obligations are satisfied. This occurs at the time the product is delivered to a third-party purchaser at the contractually determinable price.
Contract Balances and Asset Recognition
As of June 30, 2025, and December 31, 2024, receivables from contracts with customers, net of royalties and associated payables, on the balance sheet from continuing operations, were $172.2 million and $178.3 million, respectively. Payment terms for the Company’s sales vary across contracts and geographical regions, with the majority of the cash receipts required within 30 days of billing. Based on a forward-looking expected loss model in accordance with ASU 2016-13, the Company did not recognize any impairment losses on receivables or contract assets arising from customer contracts during the reporting periods.
The Company has not entered into any revenue contracts that have financing components as of June 30, 2025.
The Company does not employ sales incentive strategies such as commissions or bonuses for obtaining sales contracts. For the periods presented, the Company did not identify any assets to be recognized associated with the costs to obtain a contract with a customer.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Note C – Revenue from Contracts with Customers (Continued)
Performance Obligations
The Company recognizes oil and natural gas revenue when it satisfies a performance obligation by transferring control over a commodity to a customer. Judgment is required to determine whether some customers simultaneously receive and consume the benefit of commodities. As a result of this assessment for the Company, each unit of measure of the specified commodity is considered to represent a distinct performance obligation that is satisfied at a point in time upon the transfer of control of the commodity.
For contracts with market or index-based pricing, which represent the majority of sales contracts, the Company has elected the allocation exception and allocates the variable consideration to each single performance obligation in the contract. As a result, there is no price allocation to unsatisfied remaining performance obligations for delivery of commodity product in subsequent periods.
The Company has entered into several long-term, fixed price contracts in Canada. The underlying reason for entering a fixed price contract is generally unrelated to anticipated future prices or other observable data and serves a particular purpose in the Company’s long-term strategy.
As of June 30, 2025, the Company had the following sales contracts in place which are expected to generate revenue from sales to customers for a period over 12 months starting at the inception of the contract:
| Location | Commodity | End Date | Description | Approximate Volumes | ||||||||||||||||||||||
| U.S. | Natural Gas and NGLs | Q2 2030 | Deliveries from dedicated acreage in Eagle Ford Shale | As produced | ||||||||||||||||||||||
| Canada | Natural Gas | Q4 2025 | Contracts to sell natural gas at USD index pricing | |||||||||||||||||||||||
| Canada | Natural Gas | Q4 2026 | Contracts to sell natural gas at USD index pricing | |||||||||||||||||||||||
| Canada | Natural Gas | Q4 2027 | Contracts to sell natural gas at USD index pricing | |||||||||||||||||||||||
| Canada | Natural Gas | Q4 2028 | Contracts to sell natural gas at USD index pricing | |||||||||||||||||||||||
| Canada | Natural Gas | Q4 2025 | Contracts to sell natural gas at CAD fixed pricing | |||||||||||||||||||||||
| Canada | Natural Gas | Q4 2026 | Contracts to sell natural gas at CAD fixed pricing | |||||||||||||||||||||||
| Canada | NGLs | Q4 2026 | Contracts to sell NGLs at CAD index pricing | As produced | ||||||||||||||||||||||
The fixed price contracts above are accounted for as normal sales and purchases for accounting purposes.
Exploratory Wells
Under FASB guidance, exploratory well costs should continue to be capitalized when the well has found a sufficient quantity of reserves to justify its completion as a producing well and the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project.
As of June 30, 2025, the Company had total capitalized drilling costs pending the determination of proved reserves of $110.5 million. The following table reflects the net changes in capitalized exploratory well costs during the six-month periods ended June 30, 2025 and 2024.
| (Thousands of dollars) | 2025 | 2024 | |||||||||
| Beginning balance at January 1 | $ | $ | |||||||||
| Additions pending the determination of proved reserves | |||||||||||
| Capitalized exploratory well costs charged to expense | ( | ||||||||||
| Balance at June 30 | $ | $ | |||||||||
Capital additions of $38.5 million, for the six months ended June 30, 2025, were mainly for the Hai Su Vang-1X (Golden Sea Lion), Block 15/2-17 and Lac Da Hong-1X (Pink Camel), Block 15-1/05 exploration wells in Vietnam and long-lead equipment for the Cello #1 (Mississippi Canyon 385) and Banjo #1 (Mississippi Canyon 385) exploration wells in the Gulf of America. The Lac Da Hong-1X (Pink Camel) exploration well in Vietnam encountered 106 feet of net oil pay from one reservoir and continues to progress post-drill evaluations. Capital
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Note D – Property, Plant and Equipment (Continued)
additions of $20.4 million, for the six months ended June 30, 2024, were mainly for the non-operated Ocotillo #1 (Mississippi Canyon 40) exploration well in the Gulf of America.
There were no capitalized well costs charged to dry hole expense for the six months ended June 30, 2025. Capitalized well costs charged to dry hole expense of $26.5 million for the six months ended June 30, 2024 were related to the Hoffe Park #1 (Mississippi Canyon 166) exploration well in the Gulf of America.
The preceding table excludes well costs of $31.8 million incurred and expensed directly to dry hole for the six months ended June 30, 2024. This amount primarily related to the non-operated Orange #1 (Mississippi Canyon 216) exploration well in the Gulf of America.
The following table provides an aging of capitalized exploration well costs based on the date the drilling was completed for each individual well.
| June 30, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| (Thousands of dollars) | Amount | No. of Wells | Amount | No. of Wells | |||||||||||||||||||
| Aging of capitalized well costs: | |||||||||||||||||||||||
| Zero to one year | $ | $ | |||||||||||||||||||||
| One to two years | |||||||||||||||||||||||
| Two to three years | |||||||||||||||||||||||
| Three years or more | |||||||||||||||||||||||
| $ | $ | ||||||||||||||||||||||
Of the $94.5 million of exploration well costs capitalized and classified as more than one year at June 30, 2025, $65.0 million was in Vietnam, $22.1 million was in the Gulf of America, $4.7 million was in Canada, and $2.7 million was in Brunei. In all geographical areas, either further appraisal or development drilling is planned and/or development studies/plans are in various stages of completion.
Property Additions
During the first quarter of 2025, Murphy purchased a floating production storage and offloading vessel (FPSO) from BW Offshore (UK) Limited for a gross purchase price of $125.0 million, subject to customary closing adjustments. An initial payment of $100.0 million was made in the first quarter of 2025, with the remaining balance paid during the second quarter of 2025, after certain contractual obligations were met. The FPSO will remain at its current location, supporting operations at the Cascade field (Walker Ridge 206 and 250) and Chinook field (Walker Ridge 469 and 425) in the Gulf of America. BW Offshore (UK) Limited will continue to provide operations and maintenance services under a new five-year contract.
Impairments
There were no no impairments in the three months ended June 30, 2024. There were pretax impairments of $34.5 million in the six months ended June 30, 2024 related to the Calliope field in Mississippi Canyon in the Gulf of America, in which operational issues led to a reserve reduction.
Subsequent Event
Note E – Financing Arrangements and Debt
As of June 30, 2025, the Company had a $1.35 billion revolving credit facility (RCF). The RCF is a senior unsecured guaranteed facility which expires on October 7, 2029. At June 30, 2025, the Company had $200.0 million of outstanding borrowings under the RCF and $0.4 million of outstanding letters of credit, which reduce the borrowing capacity of the RCF. At June 30, 2025, the interest rate in effect on borrowings under the RCF was 6.67 %. At June 30, 2025, the Company was in compliance with all covenants related to the RCF.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Note E – Financing Arrangements and Debt (Continued)
The Company also has a shelf registration statement on file with the U.S. Securities and Exchange Commission (SEC) that permits the offer and sale of debt and/or equity securities through October 15, 2027.
Note F – Other Financial Information
Supplemental Information to Statement of Cash Flows
| Six Months Ended June 30, | |||||||||||
| (Thousands of dollars) | 2025 | 2024 | |||||||||
| Net (increase) decrease in operating working capital, excluding cash and cash equivalents: | |||||||||||
| (Increase) decrease in accounts receivable | $ | ( | $ | ||||||||
| (Increase) decrease in inventories | ( | ||||||||||
| (Increase) decrease in prepaid expenses | ( | ||||||||||
| Increase (decrease) in accounts payable and accrued liabilities | ( | ||||||||||
| Increase (decrease) in income taxes payable | ( | ||||||||||
| Net decrease in non-cash working capital | $ | $ | |||||||||
| Supplementary disclosures: | |||||||||||
| Net cash income taxes (refunded) paid | $ | $ | |||||||||
Interest paid, net of amounts capitalized of $ | |||||||||||
| Non-cash investing activities: | |||||||||||
| Asset retirement costs capitalized | $ | $ | |||||||||
| (Increase) decrease in capital expenditure accrual | ( | ||||||||||
Note G – Asset Retirement Obligations
The asset retirement obligations liabilities (ARO) recognized by the Company are related to the estimated costs to dismantle and abandon its producing oil and natural gas properties and related equipment.
A reconciliation of the beginning and ending aggregate carrying amount of the ARO for the six-month periods ended June 30, 2025 and 2024 are shown in the following table.
| (Thousands of dollars) | June 30, 2025 | June 30, 2024 | |||||||||
| Balance at beginning of year | $ | $ | |||||||||
| Accretion | |||||||||||
| Liabilities incurred | |||||||||||
| Revisions of previous estimates | |||||||||||
| Liabilities settled | ( | ( | |||||||||
| Changes due to translation of foreign currencies | ( | ||||||||||
| Balance at end of period | |||||||||||
Current portion of liability | ( | ( | |||||||||
| Non-current portion of liability | $ | $ | |||||||||
The estimation of future ARO is based on a number of assumptions requiring professional judgment. The Company cannot predict the type of revisions to these assumptions that may be required in future periods due to the availability of additional information such as: prices for oil field services, technological changes, governmental requirements and other factors.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Note H – Employee and Retiree Benefit Plans
The Company has defined benefit pension plans that are principally noncontributory and cover most full-time employees. All pension plans are funded except for the U.S. and Canadian nonqualified supplemental plans and the U.S. directors’ plan. All U.S. tax qualified plans meet the funding requirements of federal laws and regulations. Contributions to foreign plans are based on local laws and tax regulations. The Company also sponsors other postretirement benefits such as health care and life insurance benefit plans, which are not funded, that cover most retired U.S. employees. The health care benefits are contributory; the life insurance benefits are noncontributory.
The table that follows provides the components of net periodic benefit expense for the three-month and six-month periods ended June 30, 2025 and 2024.
| Three Months Ended June 30, | |||||||||||||||||||||||
| Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||
| (Thousands of dollars) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Service cost | $ | $ | $ | $ | |||||||||||||||||||
| Interest cost | |||||||||||||||||||||||
| Expected return on plan assets | ( | ( | |||||||||||||||||||||
| Estimated defined contribution provision | |||||||||||||||||||||||
| Amortization of prior service cost (credit) | ( | ( | |||||||||||||||||||||
| Recognized actuarial loss (gain) | ( | ( | |||||||||||||||||||||
| Total net periodic benefit expense | $ | $ | $ | ( | $ | ( | |||||||||||||||||
| Six Months Ended June 30, | |||||||||||||||||||||||
| Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||
| (Thousands of dollars) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Service cost | $ | $ | $ | $ | |||||||||||||||||||
| Interest cost | |||||||||||||||||||||||
| Expected return on plan assets | ( | ( | |||||||||||||||||||||
| Estimated defined contribution provision | |||||||||||||||||||||||
| Amortization of prior service cost (credit) | ( | ( | |||||||||||||||||||||
| Recognized actuarial loss (gain) | ( | ( | |||||||||||||||||||||
| Total net periodic benefit expense | $ | $ | $ | ( | $ | ( | |||||||||||||||||
The components of net periodic benefit expense, other than the service cost, are recorded in “Other income (loss)” in the Consolidated Statements of Operations.
During the six-month period ended June 30, 2025, the Company made contributions of $18.6 million to its defined benefit pension and postretirement benefit plans. Remaining funding in 2025 for the Company’s defined benefit pension and postretirement plans is anticipated to be $12.3 million.
Note I – Incentive Plans
The Company recognizes expenses for all share-based and cash-based incentive compensation in the Consolidated Statements of Operations using a fair value-based measurement method over the applicable vesting periods.
The Annual Incentive Plan (AIP) authorizes the Compensation Committee (the Committee) to establish specific performance goals associated with annual cash awards that may be earned by officers, executives and certain
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Note I – Incentive Plans (Continued)
other employees. Cash awards under the AIP are determined based on the Company’s actual financial and operating results as measured against the performance goals established by the Committee.
In May 2025, the Company’s shareholders approved the 2025 Long-Term Incentive Plan (the 2025 Long-Term Plan) to replace the 2020 Long-Term Incentive Plan (the 2020 Long-Term Plan). All awards granted on or after May 14, 2025, will be made under the 2025 Long-Term Plan. The 2025 Long-Term Plan will expire in 2035 and authorizes the issuance of up to 3.885 million shares of common stock over its term. Additional information on the 2025 Long-Term Plan can be found in Exhibit A to definitive proxy statement filed on March 28, 2025.
Similar to the 2020 Long-Term Plan, the 2025 Long-Term Plan authorizes the Committee to make grants of the Company’s common stock and stock-based awards to employees. These grants may be in the form of stock options (nonqualified or incentive), stock appreciation rights (SARs), restricted stock, restricted stock units (RSUs), performance units, performance shares, dividend equivalents and other stock-based incentives.
Shares issued pursuant to awards granted under the 2025 Long-Term Plan and the previous 2020 Long-Term Plan, may be shares that are authorized and unissued or shares that were reacquired by the Company, including shares repurchased on the open market. Share awards that have been canceled, expired, forfeited, or otherwise not issued will not count as shares issued under both plans.
During the six months ended June 30, 2025, the Committee granted the following awards from the 2020 Long-Term Plan:
| Type of Award | Number of Awards Granted | Grant Date | Grant Date Fair Value | Valuation Methodology | ||||||||||||||||||||||
Performance-based RSUs (TSR) 1 | February 4, 2025 | $ | Monte Carlo | |||||||||||||||||||||||
Performance-based RSUs (ROACE) 1 | February 4, 2025 | $ | Average Stock Price | |||||||||||||||||||||||
Time-based RSUs (Stock-Settled) 2 | February 4, 2025 | $ | Average Stock Price | |||||||||||||||||||||||
Time-based RSUs (Cash-Settled) 2 | February 4, 2025 | $ | Average Stock Price | |||||||||||||||||||||||
1 Performance-based RSUs are tied to the achievement of Total Shareholder Return (TSR) and Return on Average Capital Employed (ROACE) performance goals and are scheduled to vest three years
2 Time-based RSUs generally vest on the third anniversary of the date of grant.
The Company also maintains a Stock Plan for Non-Employee Directors (NEDs) that permits the issuance of RSUs, stock options, or a combination thereof to the Company’s NEDs.
The Company currently has outstanding incentive awards issued to Directors under the 2021 Stock Plan for NEDs (the 2021 NED Plan) and the 2018 Stock Plan for NEDs. All awards granted on or after May 12, 2021 were made under the 2021 NED Plan.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Note I – Incentive Plans (Continued)
During the six months ended June 30, 2025, the Committee granted the following awards to NEDs under the 2021 NED Plan:
| Type of Award | Number of Awards Granted | Grant Date | Grant Date Fair Value | Valuation Methodology | ||||||||||||||||||||||
Time-Based RSUs 1 | February 5, 2025 | $ | Closing Stock Price | |||||||||||||||||||||||
Time-Based RSUs 2 | March 31, 2025 | $ | Closing Stock Price | |||||||||||||||||||||||
Time-Based RSUs 2 | June 30, 2025 | $ | Closing Stock Price | |||||||||||||||||||||||
1 NED’s time-based RSUs are scheduled to vest on the first anniversary of the date of grant. NEDs may elect to defer settlement of their vested time-based RSUs until (1) termination of service from the Board or (2) a future date selected by the director at the time of their deferral election. These unvested time-based RSUs are included in the table above, will vest in one year , and become deferred RSUs.
Amounts recognized in the financial statements with respect to share-based plans are shown in the following table.
| Six Months Ended June 30, | |||||||||||
| (Thousands of dollars) | 2025 | 2024 | |||||||||
| Compensation charged against income before tax benefit | $ | $ | |||||||||
| Related income tax benefit recognized in income | |||||||||||
Note J – Net Income (Loss) Per Common Share
Net income attributable to Murphy was used as the numerator in computing both basic and diluted income per common share for the three-month and six-month periods ended June 30, 2025 and 2024. The following table reconciles the weighted-average shares outstanding used for these computations.
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (Weighted-average shares) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Basic method | |||||||||||||||||||||||
| Dilutive restricted stock units | |||||||||||||||||||||||
| Diluted method | |||||||||||||||||||||||
Note K – Income Taxes
The Company’s effective income tax rate is calculated as the amount of income tax expense (benefit) divided by income (loss) from continuing operations before income taxes. For the three-month and six-month periods ended June 30, 2025 and 2024, the Company’s effective income tax rates were as follows:
| 2025 | 2024 | ||||||||||
| Three months ended June 30, | |||||||||||
| Six months ended June 30, | |||||||||||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Note K – Income Taxes (Continued)
The effective tax rate for the three-month period ended June 30, 2025 was below the U.S. statutory tax rate of 21% primarily due to several factors including: no tax applied to the pretax income of the noncontrolling interest in MP GOM, a Canada tax credit received, and the effects of tax losses generated in Canada which has a higher tax rate. These impacts are partially offset by exploration and other expenses in certain foreign jurisdictions, for which no income tax benefits are currently available as well as stock-based compensation.
The effective tax rate for the three-month period ended June 30, 2024 was below the U.S. statutory tax rate of 21% primarily due to no tax applied to the pretax income of the noncontrolling interest in MP GOM, and a Canada tax credit received. These impacts are partially offset by the effects of income generated in foreign tax jurisdictions, certain of which have income tax rates higher than the U.S. Federal rate, and certain expenses, including exploration and other expenses in certain foreign jurisdictions, for which no income tax benefits are currently available.
The effective tax rate for the six-month period ended June 30, 2025 was above the U.S. statutory tax rate of 21% primarily due to several factors including: the effects of income generated in foreign tax jurisdictions, certain of which have income tax rates higher than the U.S. Federal rate; U.S. state tax expense; stock-based compensation; and certain expenses, including exploration and other expenses in certain foreign jurisdictions, for which no income tax benefits are currently available. These impacts were partially offset by no tax applied to the pretax income of the noncontrolling interest in MP GOM, and a Canada tax credit received.
The effective tax rate for the six-month period ended June 30, 2024 was below the U.S. statutory tax rate of 21% primarily due to no tax applied to the pretax income of the noncontrolling interest in MP GOM, and a Canada tax credit received. These impacts were partially offset by several factors including: the effects of income generated in foreign tax jurisdictions, certain of which have income tax rates higher than the U.S. Federal rate; U.S. state tax expense and certain expenses, including exploration and other expenses in certain foreign jurisdictions, for which no income tax benefits are currently available.
The Company’s tax returns in multiple jurisdictions are subject to audit by taxing authorities. These audits often take years to complete and settle. Although the Company believes that recorded liabilities for unsettled issues are adequate, additional gains or losses could occur in future years from resolution of outstanding unsettled matters. Additionally, the Company could be required to pay amounts into an escrow account as any matters are identified and appealed with the relevant taxing authorities. As of June 30, 2025, the earliest years remaining open for audit and/or settlement in our major taxing jurisdictions are as follows: U.S. – 2016; Canada – 2016; and Malaysia – 2018. The Company has retained certain possible liabilities and rights to income tax receivables relating to Malaysia for the years prior to 2019.
Subsequent to the balance sheet date, on July 4, 2025, the current U.S. Administration signed into law the legislation commonly referred to as the One Big Beautiful Bill Act (OBBBA), which includes a broad range of tax reform provisions affecting corporations. The OBBBA, among other changes, permanently reinstates the "bonus" depreciation provisions that allow for the immediate expensing of 100% of the cost of certain qualified property acquired and placed in service after January 19, 2025, permanently reinstates the elective immediate expensing of domestic research and experimental expenditures paid or incurred in tax years beginning after December 31, 2024 (with a special transition rule that allows accelerated deduction of the remaining unamortized balance of capitalized domestic research and experimental expenditures), and permanently relaxes the limitation on the deductibility of business interest effective for tax years beginning after December 31, 2024. The OBBBA also modifies certain international tax provisions effective for tax years beginning after December 31, 2025. The Company is currently evaluating the impact of these tax law changes and will recognize the income tax effects in the consolidated financial statements beginning in the period in which the OBBBA was signed into law.
Note L – Financial Instruments and Risk Management
Murphy, at times, uses derivative instruments to manage certain risks related to commodity prices, foreign currency exchange rates and interest rates. The use of derivative instruments for risk management is covered by operating policies and is closely monitored by the Company’s senior management. The Company does not hold any derivatives for speculative purposes, and it does not use derivatives with leveraged or complex features. Derivative instruments are traded with creditworthy major financial institutions or over national
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Note L – Financial Instruments and Risk Management (Continued)
exchanges such as the New York Mercantile Exchange (NYMEX). The Company has a risk management control system to monitor commodity price risks and any derivatives obtained to manage a portion of such risks. For accounting purposes, the Company has not designated commodity and foreign currency derivative contracts as hedges, and therefore, it recognizes all gains and losses on these derivative contracts in its Consolidated Statements of Operations.
Foreign Currency Exchange Risks
The Company is subject to foreign currency exchange risk associated with operations in countries outside the U.S. The Company had no
Commodity Price Risks
The Company is subject to commodity price risk related to products it produces and sells. During the second quarter of 2025, the Company had the following open natural gas swap contracts. Under the swaps contracts, which mature monthly, the Company pays the average monthly price in effect and receives the fixed contract price on a notional amount of sales volume, thereby fixing the price for the commodity sold.
At June 30, 2025, volumes per day associated with outstanding natural gas derivative contracts and the weighted average prices for these contracts are as follows:
NYMEX Henry Hub | Area | Commodity | Volumes MMCF/d | Price/MCF | Start Date | End Date | ||||||||||||||
| Fixed price derivative swap | United States | Natural Gas | $ | 7/1/2025 | 9/30/2025 | |||||||||||||||
| Fixed price derivative swap | United States | Natural Gas | $ | 10/1/2025 | 12/31/2025 | |||||||||||||||
During first six months ended June 30, 2025, the Company did no t have any crude oil derivative contracts. During first six months ended June 30, 2024, the Company did no t have any crude oil or natural gas derivative contracts.
At June 30, 2025 and December 31, 2024, the fair value of derivative instruments not designated as hedging instruments are presented in the following table:
| (Thousands of dollars) | Asset (Liability) Derivatives Fair Value | |||||||||||||||||||
| Type of Derivative Contract | Balance Sheet Location | June 30, 2025 | December 31, 2024 | |||||||||||||||||
| Commodity swaps | Accounts payable | $ | ( | $ | ( | |||||||||||||||
For the three-month and six-month periods ended June 30, 2025 and 2024, the gains and losses recognized in the Consolidated Statements of Operations for derivative instruments not designated as hedging instruments are presented in the following table:
| Gain (Loss) | Gain (Loss) | |||||||||||||||||||||||||||||||
| (Thousands of dollars) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||
| Type of Derivative Contract | Statement of Operations Location | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||||
| Commodity swaps | Gain on derivative instruments | $ | $ | $ | $ | |||||||||||||||||||||||||||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Note L – Financial Instruments and Risk Management (Continued)
Fair Values – Recurring
The Company carries certain assets and liabilities at fair value in its Consolidated Balance Sheets. The fair value hierarchy is based on the quality of inputs used to measure fair value, with Level 1 being the highest quality and Level 3 being the lowest quality. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are observable inputs other than quoted prices included within Level 1. Level 3 inputs are unobservable inputs which reflect assumptions about pricing by market participants.
The fair value measurements for these assets and liabilities at June 30, 2025 and December 31, 2024, are shown in the following table.
| June 30, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||
| (Thousands of dollars) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Commodity swaps | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
| Nonqualified employee savings plan | ||||||||||||||||||||||||||||||||||||||||||||||||||
| $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
The commodity swaps liability as of June 30, 2025 was $0.3 million and recorded as “Accounts payable” in the Consolidated Balance Sheets. The fair value of commodity swaps was based on active market quotes for NYMEX Henry Hub natural gas. The before tax income effect of changes in the fair value of natural gas derivative contracts is recorded in “Loss on derivative instruments” in the Consolidated Statements of Operations.
The nonqualified employee savings plan is an unfunded savings plan through which participants seek a return via phantom investments in equity securities and/or mutual funds. The fair value of this liability was based on quoted prices for these equity securities and mutual funds. The income effect of changes in the fair value of the nonqualified employee savings plan is recorded in “Selling and general expenses” in the Consolidated Statements of Operations.
The Company offsets certain assets and liabilities related to derivative contracts when the legal right of offset exists. There were no
The following table presents the carrying amounts and estimated fair values of financial instruments held by the Company at June 30, 2025 and December 31, 2024. The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties. The table excludes cash and cash equivalents, trade accounts receivable, trade accounts payable and accrued expenses, all of which had fair values approximating carrying amounts. The fair value of current and long-term debt was estimated based on rates offered to the Company at that time for debt of the same maturities. Substantially all of the Company’s long-term debt is actively traded in open markets, and accordingly, is classified as Level 1 in the fair value hierarchy. The Company has off-balance sheet exposures relating to certain letters of credit. The fair value of these, which represents fees associated with obtaining the instruments, were minimal.
| June 30, 2025 | December 31, 2024 | ||||||||||||||||||||||
| (Thousands of dollars) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||
Current and long-term debt | $ | $ | $ | $ | |||||||||||||||||||
Fair Values – Nonrecurring
There were no
In the six months ended June 30, 2024, an impairment charge of $34.5 million was triggered for the Calliope field, due to operational issues that led to reserve reductions.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Note L – Financial Instruments and Risk Management (Continued)
The fair values were determined by internal discounted cash flow models using estimates of future production, prices, costs and discount rates believed to be consistent with those used by principal market participants in the applicable region.
The fair value information associated with the impaired properties is presented in the following table.
| Six Months Ended June 30, 2024 | |||||||||||||||||||||||||||||
| Net Book Value Prior to Impairment | Total Pretax Impairment | ||||||||||||||||||||||||||||
| Fair Value | |||||||||||||||||||||||||||||
(Thousands of dollars) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||
Property, plant and equipment: | |||||||||||||||||||||||||||||
| Impaired proved properties | |||||||||||||||||||||||||||||
United States - Offshore | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Note M – Accumulated Other Comprehensive Loss
The components of “Accumulated other comprehensive loss” on the Consolidated Balance Sheets at December 31, 2024 and June 30, 2025 and the changes during the six-month period ended June 30, 2025 are presented net of taxes in the following table.
| (Thousands of dollars) | Foreign Currency Translation Gains (Losses) | Retirement and Postretirement Benefit Plan Adjustments | Total | ||||||||||||||
| Balance at December 31, 2024 | $ | ( | $ | ( | $ | ( | |||||||||||
| Components of other comprehensive income (loss): | |||||||||||||||||
| Before reclassifications to income | |||||||||||||||||
| Reclassifications to income ¹ | |||||||||||||||||
| Net other comprehensive income (loss) | |||||||||||||||||
| Balance at June 30, 2025 | $ | ( | $ | ( | $ | ( | |||||||||||
1 Reclassifications before taxes of $2.1 million are included in the computation of net periodic benefit expense for the six-month period ended June 30, 2025. See Note H for additional information. Related income taxes of $0.3 million are included in "Income tax expense” on the Consolidated Statements of Operations for the six-month period ended June 30, 2025.
Note N – Environmental and Other Contingencies
The Company’s operations and earnings have been and may be affected by various forms of governmental action both in the United States and throughout the world. Examples of such governmental action include, but are by no means limited to: tax legislation changes, including tax rate changes, and retroactive tax claims; trade policies, tariffs and other trade restrictions; royalty and revenue sharing increases; import and export controls; price controls; currency controls; allocation of supplies of crude oil and petroleum products and other goods; expropriation of property; restrictions and preferences affecting the issuance of oil and natural gas or mineral leases; restrictions on drilling and/or production; laws, regulations and government action intended for the promotion of safety and the protection and/or remediation of the environment including in connection with the purported causes or potential impacts of climate change; governmental support for other forms of energy; and laws and regulations affecting the Company’s relationships with employees, suppliers, customers, stockholders and others. Given the factors involved in various government actions, including political considerations, it is difficult to predict their likelihood, the form they may take, or the effect they may have on the Company.
ENVIRONMENTAL MATTERS – Murphy and other companies in the oil and natural gas industry are subject to numerous federal, state, local and foreign laws and regulations dealing with the environment and protection of health and safety. The principal environmental, health and safety laws and regulations to which Murphy is subject address such matters as the generation, storage, handling, use, disposal and remediation of petroleum
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Note N – Environmental and Other Contingencies (Continued)
products, wastewater and hazardous materials; the emission and discharge of such materials to the environment, including methane and other greenhouse gas (GHG) emissions; wildlife, habitat and water protection; water access, use and disposal; the placement, operation and decommissioning of production equipment; the health and safety of our employees, contractors and communities where our operations are located, including indigenous communities; and the causes and impacts of climate change. These laws and regulations also generally require permits for existing operations, as well as the construction or development of new operations and the decommissioning of facilities once production has ceased.
Violation of federal or state environmental, health and safety laws, regulations and permits can result in the imposition of significant civil and criminal penalties, injunctions and construction bans or delays. A discharge of hazardous substances into the environment could, to the extent such event is not adequately insured, subject the Company to substantial expense, including both the cost to comply with applicable regulations and claims by neighboring landowners and other third parties for any personal injury and property damage that might result. In addition, Item 103 of SEC Regulation S-K requires disclosure of certain environmental matters when a governmental authority is a party to the proceedings and such proceedings involve potential monetary sanctions that the Company reasonably believes will exceed a specified threshold. Pursuant to SEC amendments to this item, the Company will be using a threshold of $1.0 million for such proceedings and the Company is not aware of environmental legal proceedings likely to exceed this $1.0 million threshold.
In recent years, there has been an increase in regulatory oversight of the oil and natural gas industry at the state and federal level, with a focus on climate change and GHG emissions (including methane emissions). For example, in March 2024, the U.S. Environmental Protection Agency (EPA) published its final rule regulating methane and volatile organic compounds emissions in the oil and natural gas industry which, among other things, requires periodic inspections to detect leaks (and subsequent repairs), places stringent restrictions on venting and flaring of methane, and establishes a program whereby third parties can monitor and report large methane emissions to the U.S. EPA. In November 2024, the U.S. EPA published its final rule implementing a charge on large emitters of waste methane from the oil and gas sector. This rule, however, was disapproved by a joint Congressional resolution in March 2025. In addition, an international climate agreement (the Paris Agreement) was agreed to at the 2015 United Nations Framework Convention on Climate Change in Paris, France. In January 2025, the United States submitted formal notification to the United Nations that it intends to withdraw from the Paris Agreement. Pursuant to the terms of the Paris Agreement, the withdrawal will take effect on January 27, 2026. While presidential administrations may modify, revise or repeal rules related to climate change and GHG emissions, the general trend has been towards stricter regulation over time. Further, many states have adopted or are considering regulations related to GHG emissions.
The Company currently owns or leases, and has in the past owned or leased, properties at which hazardous substances have been or are being handled. Hazardous substances may have been disposed of or released on or under the properties owned or leased by the Company or on or under other locations where these wastes have been taken for disposal. In addition, many of these properties have been operated by third parties whose treatment and disposal or release of hydrocarbons or other wastes were not under Murphy’s control. Under existing laws, the Company could be required to investigate, remove or remediate previously disposed wastes (including wastes disposed of or released by prior owners or operators), to investigate and clean up contaminated property (including contaminated groundwater) or to perform remedial plugging operations to prevent future contamination. Certain of these historical properties are in various stages of negotiation, investigation, and/or cleanup, and the Company is investigating the extent of any such liability and the availability of applicable defenses. The Company has retained certain liabilities related to environmental matters at formerly owned U.S. refineries that were sold in 2011. The Company also obtained insurance covering certain levels of environmental exposures related to past operations of these refineries. Murphy USA Inc. has retained any environmental exposure associated with Murphy’s former U.S. marketing operations that were spun-off in August 2013. The Company believes costs related to these sites will not have a material adverse effect on Murphy’s net income, financial condition or liquidity in a future period. Depending on the evolution of laws, regulations and litigation outcomes relating to climate change, there can be no guarantee that climate change litigation will not in the future materially adversely affect our results of operations, cash flows and financial condition.
There is the possibility that environmental expenditures could be required at currently unidentified sites, and additional expenditures could be required at known sites. However, based on information currently available to the Company, the amount of future investigation and remediation costs incurred at known or currently
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Note N – Environmental and Other Contingencies (Continued)
unidentified sites is not expected to have a material adverse effect on the Company’s future net income, cash flows or liquidity.
LEGAL MATTERS – Murphy and its subsidiaries are engaged in a number of other legal proceedings (including litigation related to climate change), all of which Murphy considers routine and incidental to its business. Based on information currently available to the Company, the ultimate resolution of environmental and legal matters referred to in this note is not expected to have a material adverse effect on the Company’s net income, financial condition or liquidity in a future period.
Note O – Common Stock Issued and Outstanding
Activity in the number of shares of common stock issued and outstanding for the six-month periods ended June 30, 2025 and 2024 is shown below.
(Number of shares outstanding) | June 30, 2025 | June 30, 2024 | |||||||||
| Beginning of period | |||||||||||
Restricted stock awards 1 | |||||||||||
Treasury shares purchased | ( | ( | |||||||||
| End of period | |||||||||||
1 Shares issued upon award of restricted stock are less withholding for statutory income taxes owed upon issuance of shares.
On August 8, 2024, the Company’s Board of Directors authorized a share repurchase program whereby the Company can repurchase up to $1,100.0 million of its common stock. This repurchase program has no time limit and may be suspended or discontinued completely at any time without prior notice as determined by the Company at its discretion and dependent upon a variety of factors.
During the three months ended June 30, 2025, the Company did no t repurchase any share of its common stock. During the six months ended June 30, 2025, the Company repurchased 3.6 million shares of its common stock under the share repurchase program for $100.0 million ($100.9 million including excise taxes and fees). As of June 30, 2025, the Company had $550.1 million of its common stock remaining available to repurchase under the program.
Note P – Business Segments
Information about business segments and geographic operations is reported in the following tables. For geographic purposes, revenues are attributed to the country in which the sale occurs. Corporate, including interest income, other gains and losses, interest expense and unallocated overhead, is shown in the table to reconcile the business segments to consolidated totals. The Company has accounted for its former United Kingdom (U.K.), Malaysia, and U.S. refining and marketing operations as discontinued operations for all periods presented. Murphy’s President and Chief Executive Officer, Eric M. Hambly, acts as the Chief Operating Decision Maker (CODM).
“Other segment costs (income)” below are those items that are included in Segment income (loss) but are not regularly provided to the CODM or are reported to the CODM but are not considered to be significant segment expenses. “Other segment costs (income)” for the periods presented included certain pension amortization costs allocated to the reportable segments, and dividend income from short-term investment accounts attributed to the Canada segment.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Note P – Business Segments (Continued)
| Exploration and Production | |||||||||||||||||||||||||||||||||||
(Millions of dollars) | United States 1 | Canada | Other | Total E&P | Corporate, Other, and Discontinued Operations | Consolidated Total | |||||||||||||||||||||||||||||
| Three Months Ended June 30, 2025 | |||||||||||||||||||||||||||||||||||
Revenue from production | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Gain on sales of assets and other operating income | |||||||||||||||||||||||||||||||||||
| Revenues from external customers | |||||||||||||||||||||||||||||||||||
Lease operating expenses | |||||||||||||||||||||||||||||||||||
Lease operating expenses and taxes other than income | |||||||||||||||||||||||||||||||||||
Repair and maintenance | |||||||||||||||||||||||||||||||||||
| Workovers | |||||||||||||||||||||||||||||||||||
Total lease operating expenses | |||||||||||||||||||||||||||||||||||
| Severance and ad valorem taxes | |||||||||||||||||||||||||||||||||||
| Transportation, gathering and processing | |||||||||||||||||||||||||||||||||||
Costs of purchased natural gas | |||||||||||||||||||||||||||||||||||
| Selling and general expenses | |||||||||||||||||||||||||||||||||||
Exploration Expenses | |||||||||||||||||||||||||||||||||||
| Geological and geophysical | |||||||||||||||||||||||||||||||||||
Dry holes and previously suspended exploration costs | ( | ( | ( | ||||||||||||||||||||||||||||||||
Other exploratory costs, including undeveloped lease amortization and delay lease rentals | |||||||||||||||||||||||||||||||||||
| Total exploration expenses | |||||||||||||||||||||||||||||||||||
| Depreciation, depletion and amortization | |||||||||||||||||||||||||||||||||||
| Accretion of asset retirement obligations | |||||||||||||||||||||||||||||||||||
Other operating expenses | ( | ||||||||||||||||||||||||||||||||||
| Interest Income | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Interest expense, net of capitalization | |||||||||||||||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||||||||||||||
Current income tax expense (benefit) | ( | ( | |||||||||||||||||||||||||||||||||
Deferred income tax expense (benefit) | ( | ( | ( | ||||||||||||||||||||||||||||||||
Total income tax expense (benefit) | ( | ( | ( | ||||||||||||||||||||||||||||||||
Other segment costs (income) | |||||||||||||||||||||||||||||||||||
Segment income (loss) - including NCI 1 | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||
| Additions to property, plant, equipment | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Total assets at quarter-end | |||||||||||||||||||||||||||||||||||
1 Includes results attributable to a noncontrolling interest in MP GOM.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Note P – Business Segments (Continued)
| Exploration and Production | |||||||||||||||||||||||||||||||||||
(Millions of dollars) | United States 1 | Canada | Other | Total E&P | Corporate, Other, and Discontinued Operations | Consolidated Total | |||||||||||||||||||||||||||||
| Three Months Ended June 30, 2024 | |||||||||||||||||||||||||||||||||||
Revenue from production | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Sales of purchased natural gas | |||||||||||||||||||||||||||||||||||
Gain on sales of assets and other operating income | |||||||||||||||||||||||||||||||||||
| Revenues from external customers | |||||||||||||||||||||||||||||||||||
Lease operating expenses | |||||||||||||||||||||||||||||||||||
Lease operating expenses and taxes other than income | |||||||||||||||||||||||||||||||||||
Repair and maintenance | |||||||||||||||||||||||||||||||||||
| Workovers | |||||||||||||||||||||||||||||||||||
Total lease operating expenses | |||||||||||||||||||||||||||||||||||
| Severance and ad valorem taxes | |||||||||||||||||||||||||||||||||||
| Transportation, gathering and processing | |||||||||||||||||||||||||||||||||||
Costs of purchased natural gas | |||||||||||||||||||||||||||||||||||
| Selling and general expenses | ( | ||||||||||||||||||||||||||||||||||
Exploration Expenses | |||||||||||||||||||||||||||||||||||
| Geological and geophysical | |||||||||||||||||||||||||||||||||||
Dry holes and previously suspended exploration costs | |||||||||||||||||||||||||||||||||||
Other exploratory costs, including undeveloped lease amortization and delay lease rentals | |||||||||||||||||||||||||||||||||||
| Total exploration expenses | |||||||||||||||||||||||||||||||||||
| Depreciation, depletion and amortization | |||||||||||||||||||||||||||||||||||
| Impairment of assets | |||||||||||||||||||||||||||||||||||
| Accretion of asset retirement obligations | |||||||||||||||||||||||||||||||||||
Other operating expenses | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
| Interest Income | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
| Interest expense, net of capitalization | |||||||||||||||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||||||||||||||
Current income tax expense (benefit) | ( | ( | ( | ||||||||||||||||||||||||||||||||
Deferred income tax expense (benefit) | ( | ( | |||||||||||||||||||||||||||||||||
Total income tax expense (benefit) | ( | ( | |||||||||||||||||||||||||||||||||
Other segment costs (income) | ( | ( | ( | ||||||||||||||||||||||||||||||||
Segment income (loss) - including NCI 1 | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||
| Additions to property, plant, equipment | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Total assets at quarter-end | |||||||||||||||||||||||||||||||||||
1 Includes results attributable to a noncontrolling interest in MP GOM.
23
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Note P – Business Segments (Continued)
| Exploration and Production | |||||||||||||||||||||||||||||||||||
(Millions of dollars) | United States 1 | Canada | Other | Total E&P | Corporate, Other, and Discontinued Operations | Consolidated Total | |||||||||||||||||||||||||||||
| Six Months Ended June 30, 2025 | |||||||||||||||||||||||||||||||||||
Revenue from production | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Gain on sales of assets and other operating income | |||||||||||||||||||||||||||||||||||
| Revenues from external customers | |||||||||||||||||||||||||||||||||||
Lease operating expenses | |||||||||||||||||||||||||||||||||||
Lease operating expenses and taxes other than income | |||||||||||||||||||||||||||||||||||
Repair and maintenance | |||||||||||||||||||||||||||||||||||
| Workovers | |||||||||||||||||||||||||||||||||||
Total lease operating expenses | |||||||||||||||||||||||||||||||||||
| Severance and ad valorem taxes | |||||||||||||||||||||||||||||||||||
| Transportation, gathering and processing | |||||||||||||||||||||||||||||||||||
Costs of purchased natural gas | |||||||||||||||||||||||||||||||||||
| Selling and general expenses | |||||||||||||||||||||||||||||||||||
Exploration Expenses | |||||||||||||||||||||||||||||||||||
| Geological and geophysical | |||||||||||||||||||||||||||||||||||
Dry holes and previously suspended exploration costs | ( | ( | ( | ||||||||||||||||||||||||||||||||
Other exploratory costs, including undeveloped lease amortization and delay lease rentals | |||||||||||||||||||||||||||||||||||
| Total exploration expenses | |||||||||||||||||||||||||||||||||||
| Depreciation, depletion and amortization | |||||||||||||||||||||||||||||||||||
| Accretion of asset retirement obligations | |||||||||||||||||||||||||||||||||||
Other operating expenses | ( | ||||||||||||||||||||||||||||||||||
| Interest Income | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Interest expense, net of capitalization | |||||||||||||||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||||||||||||||
Current income tax expense (benefit) | ( | ||||||||||||||||||||||||||||||||||
Deferred income tax expense (benefit) | ( | ( | ( | ||||||||||||||||||||||||||||||||
Total income tax expense (benefit) | ( | ( | |||||||||||||||||||||||||||||||||
Other segment cost | |||||||||||||||||||||||||||||||||||
Segment income (loss) - including NCI 1 | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||
| Additions to property, plant, equipment | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Total assets at quarter-end | |||||||||||||||||||||||||||||||||||
1 Includes results attributable to a noncontrolling interest in MP GOM.
24
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Note P – Business Segments (Continued)
| Exploration and Production | |||||||||||||||||||||||||||||||||||
(Millions of dollars) | United States 1 | Canada | Other | Total E&P | Corporate, Other, and Discontinued Operations | Consolidated Total | |||||||||||||||||||||||||||||
| Six Months Ended June 30, 2024 | |||||||||||||||||||||||||||||||||||
Revenue from production | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Sales of purchased natural gas | |||||||||||||||||||||||||||||||||||
Gain on sales of assets and other operating income | |||||||||||||||||||||||||||||||||||
| Revenues from external customers | |||||||||||||||||||||||||||||||||||
Lease operating expenses | |||||||||||||||||||||||||||||||||||
Lease operating expenses and taxes other than income | |||||||||||||||||||||||||||||||||||
Repair and maintenance | |||||||||||||||||||||||||||||||||||
| Workovers | |||||||||||||||||||||||||||||||||||
Total lease operating expenses | |||||||||||||||||||||||||||||||||||
| Severance and ad valorem taxes | |||||||||||||||||||||||||||||||||||
| Transportation, gathering and processing | |||||||||||||||||||||||||||||||||||
Costs of purchased natural gas | |||||||||||||||||||||||||||||||||||
| Selling and general expenses | ( | ||||||||||||||||||||||||||||||||||
Exploration Expenses | |||||||||||||||||||||||||||||||||||
| Geological and geophysical | |||||||||||||||||||||||||||||||||||
Dry holes and previously suspended exploration costs | |||||||||||||||||||||||||||||||||||
Other exploratory costs, including undeveloped lease amortization and delay lease rentals | |||||||||||||||||||||||||||||||||||
| Total exploration expenses | |||||||||||||||||||||||||||||||||||
| Depreciation, depletion and amortization | |||||||||||||||||||||||||||||||||||
| Impairment of assets | |||||||||||||||||||||||||||||||||||
| Accretion of asset retirement obligations | |||||||||||||||||||||||||||||||||||
| Other operating expenses | ( | ||||||||||||||||||||||||||||||||||
| Interest Income | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Interest expense, net of capitalization | |||||||||||||||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||||||||||||||
Current income tax expense | |||||||||||||||||||||||||||||||||||
Deferred income tax expense (benefit) | ( | ||||||||||||||||||||||||||||||||||
Total income tax expense (benefit) | ( | ||||||||||||||||||||||||||||||||||
Other segment costs (income) | ( | ( | |||||||||||||||||||||||||||||||||
Segment income (loss) - including NCI 1 | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||
| Additions to property, plant, equipment | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Total assets at quarter-end | |||||||||||||||||||||||||||||||||||
1 Includes results attributable to a noncontrolling interest in MP GOM.
25
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read together with the unaudited consolidated financial statements and accompanying notes for the quarter ended June 30, 2025 included under “Item 1. Financial Statements” of this Form 10-Q and the audited consolidated financial statements and related notes and MD&A included in Item 8 and 7, respectively, of our Annual Report on Form 10-K for the year ended December 31, 2024. This MD&A includes forward-looking statements that involve certain risks and uncertainties. See “Forward-Looking Statements” at the end of this section.
Overview
Murphy is an independent oil and natural gas company with a multi-basin onshore and offshore portfolio and significant exploration opportunities. The Company boasts over a century of strong execution and innovative, full-cycle development capabilities, with a focus on value creation to enhance shareholder returns. The Company’s current operations include 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.
The analysis and discussion in this section includes amounts attributable to a noncontrolling interest in MP GOM, unless otherwise noted.
Significant Company financial and operational highlights during the second quarter of 2025 were as follows:
•Increased production to 196,315 barrels of oil equivalent (BOE) per day (including NCI), up from 187,847 BOE per day in the second quarter of 2024, and up from 163,374 BOE per day in the first quarter of 2025
•Paid quarterly dividend of $46.4 million ($0.325 per share, or $1.30 per share annualized)
Subsequent to the second quarter of 2025:
•Closed an acquisition of additional working interests in Eagle Ford Shale, in acreages primarily operated by Murphy, for a gross purchase price of $23.0 million
•Declared a quarterly dividend of $0.325 per share or $1.30 per share annualized
•Signed a rig contract for our upcoming Côte d’Ivoire three-well exploration program
Murphy Oil Corporation’s net income from continuing operations, including noncontrolling interest, for the three months ended June 30, 2025, was $33.8 million, a decrease of $123.1 million compared to the same period in 2024. Lower net income from continuing operations was driven primarily by lower revenues from production ($114.4 million), lower other income ($58.5 million), and higher depreciation, depletion and amortization expenses (DD&A) ($43.8 million). These decreases were partially offset by lower lease operating expenses ($44.1 million), lower exploration expenses ($32.3 million), and lower income tax expenses ($31.6 million).
Lower revenues during the quarter were the result of lower oil prices partially offset by higher production volumes. Lower other income was the result of unrealized foreign exchange losses and no repeat of prior year interest income on joint interest receivables. Higher DD&A was due to higher overall production. Lower lease operating expenses were caused primarily by less workover expenses in the current period and lower production handling fees related to lower Gulf of America production. Lower exploration expenses were due to no dry holes recorded in 2025 (2024: non-operated Orange #1 (Mississippi Canyon 216) exploration well), and lower income tax expenses were driven by lower net income.
For the three months ended June 30, 2025, total hydrocarbon production was 196,315 barrels of oil equivalent per day, an increase of 5% compared to the second quarter of 2024. The increase was principally due to higher production in the Eagle Ford Shale and Tupper Montney, partially offset by lower offshore production in both the U.S. and Canada. Higher production in the Eagle Ford Shale was primarily the result of new wells online during the period, and higher production at Tupper Montney was due to better well performance and no repeat of 2024 planned turnaround-related downtime. Lower production in the Gulf of America was caused by
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
Overview (Continued)
downtime and well performance issues at several wells but was partially offset by wells coming back online during the quarter.
Net income from continuing operations, including noncontrolling interest, for the six months ended June 30, 2025, was $123.9 million, a decrease of $148.6 million compared to the same period in 2024. Lower net income from continuing operations was largely driven by lower revenues from production ($236.3 million), lower other income ($67.7 million), and higher DD&A ($26.8 million), and was partially offset by lower lease operating expenses ($73.3 million), lower exploration expenses ($62.2 million), lower impairment of assets ($34.5 million), and lower income tax expenses ($29.0 million).
Lower revenues were primarily driven by lower crude oil prices combined with decreased oil production in the current period. These items were partially offset by higher natural gas prices, and higher production volumes in the Eagle Ford Shale and Canada. Lower other income was the result of unrealized foreign exchange losses and no repeat of prior year interest income on joint interest receivables. Higher DD&A was due to higher production at new onshore wells. Lower lease operating expenses were caused primarily by less workover expenses in the current period and lower production handling fees related to reduced Gulf of America production. Lower exploration expenses were due to no dry holes recorded in 2025 (2024: non-operated Orange #1 (Mississippi Canyon 216) and Hoffe Park #1 (Mississippi Canyon 166) exploration wells). Impairment charges related to the Calliope field were recorded in the first quarter of 2024, and there were no impairment charges recorded in 2025. Lower income tax expenses were driven by lower net income.
For the six months ended June 30, 2025, total hydrocarbon production was 179,935 barrels of oil equivalent per day, a decrease of 1% compared to the same period in 2024. The decrease was principally due to lower offshore production in the Gulf of America, partially offset by increased production in the Eagle Ford Shale and in both onshore and offshore Canada. Lower production in the Gulf of America was caused by downtime and well performance issues at several wells but was partially offset by other wells coming back online. Higher production in the Eagle Ford Shale was the result of bringing online new wells in Karnes during the period, and higher production at Tupper Montney was due to better performance in 2025, and no repeat of planned turnaround-related downtime in 2024.
Murphy’s continuing operations generate revenues through the production and sale of crude oil, natural gas and natural gas liquids in the United States and Canada. Changes in the price of crude oil and natural gas have a significant impact on the profitability of the Company. In order to make a profit and generate cash in its exploration and production business, revenue generated from the sales of oil and natural gas produced must exceed the combined costs of producing these products and expenses related to exploration, administration and capital borrowing from lending institutions and note holders. Geopolitical uncertainty surrounding domestic and foreign governmental regulations, including effects of trade policies, tariffs and other trade restrictions, can affect the demand for crude oil, natural gas and natural gas liquids, as well as the cost of oil field goods and services.
At June 30, 2025, the West Texas Intermediate (WTI) crude oil price was $65.11 per barrel, whereas the crude oil price at the end of July 2025 was $69.26, reflecting an 6% increase in price. As of August 4, 2025 closing, the NYMEX WTI forward curve price for the remainder of 2025 was $65.03 per barrel. Reductions in commodity prices will reduce the Company’s future profits and operating cash flows.
27
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
Results of Operations
Murphy’s Net income (loss) by type of business and geographic segment is presented below:
| Income (Loss) | |||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (Millions of dollars) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Exploration and production | |||||||||||||||||||||||
| United States | $ | 86.5 | $ | 185.7 | $ | 194.4 | $ | 320.2 | |||||||||||||||
| Canada | 10.5 | 8.9 | 52.0 | 28.3 | |||||||||||||||||||
| Other | (7.3) | (10.1) | (18.5) | (20.9) | |||||||||||||||||||
Total exploration and production | 89.7 | 184.5 | 227.9 | 327.6 | |||||||||||||||||||
| Corporate and other | (55.9) | (27.7) | (104.1) | (55.2) | |||||||||||||||||||
| Income from continuing operations | 33.8 | 156.8 | 123.8 | 272.4 | |||||||||||||||||||
Discontinued operations, net of tax 1 | 1.3 | (0.6) | 0.7 | (1.5) | |||||||||||||||||||
| Net income including noncontrolling interest | 35.1 | 156.2 | 124.5 | 270.9 | |||||||||||||||||||
Less: Net income attributable to noncontrolling interest | 12.8 | 28.5 | 29.2 | 53.2 | |||||||||||||||||||
| Net income attributable to Murphy | $ | 22.3 | $ | 127.7 | $ | 95.3 | $ | 217.7 | |||||||||||||||
1 The Company has presented its former U.K., Malaysia and U.S. refining and marketing operations as discontinued operations in its consolidated financial statements.
28
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
Results of Operations (Continued)
Exploration and Production Continuing Operations
The following section of Exploration and Production (E&P) continuing operations excludes the Corporate segment unless otherwise noted.
The following is a summarized statement of operations for E&P continuing operations:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (Millions of dollars) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
Revenues and other income | |||||||||||||||||||||||
Revenue from production | $ | 683.0 | $ | 797.5 | $ | 1,355.8 | $ | 1,592.1 | |||||||||||||||
Sales of purchased natural gas | — | 3.5 | — | 3.7 | |||||||||||||||||||
Other income | 1.7 | 1.8 | 4.1 | 3.4 | |||||||||||||||||||
Total revenues and other income | 684.7 | 802.8 | 1,359.9 | 1,599.2 | |||||||||||||||||||
Cost and Expenses | |||||||||||||||||||||||
| Lease operating expenses | 215.5 | 259.6 | 420.6 | 493.9 | |||||||||||||||||||
| Severance and ad valorem taxes | 10.8 | 10.4 | 19.5 | 20.5 | |||||||||||||||||||
| Transportation, gathering and processing | 54.0 | 53.5 | 102.9 | 110.0 | |||||||||||||||||||
| Costs of purchased natural gas | — | 2.9 | — | 3.1 | |||||||||||||||||||
| Depreciation, depletion and amortization | 257.6 | 212.9 | 449.4 | 421.2 | |||||||||||||||||||
| Impairments of assets | — | — | — | 34.5 | |||||||||||||||||||
| Accretion of asset retirement obligations | 14.4 | 13.1 | 28.5 | 25.8 | |||||||||||||||||||
Total exploration expenses, including undeveloped lease amortization | 10.4 | 42.8 | 24.9 | 87.2 | |||||||||||||||||||
| Selling and general expenses | 13.1 | 2.9 | 23.0 | 9.0 | |||||||||||||||||||
| Other | 1.6 | (20.2) | 6.3 | (11.4) | |||||||||||||||||||
| Results of operations before taxes | 107.3 | 224.9 | 284.8 | 405.4 | |||||||||||||||||||
Income tax provisions | 17.6 | 40.4 | 56.9 | 77.8 | |||||||||||||||||||
Results of operations (excluding Corporate segment) 1 | $ | 89.7 | $ | 184.5 | $ | 227.9 | $ | 327.6 | |||||||||||||||
1 Includes results attributable to a noncontrolling interest in MP GOM.
29
Table of Contents
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
Results of Operations (Continued)
Pricing
The following table contains the weighted average sales prices for the three-month and six-month periods ended June 30, 2025 and 2024:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (Weighted average sales prices) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Crude oil and condensate – dollars per barrel | |||||||||||||||||||||||
United States - Onshore | $ | 64.00 | $ | 80.71 | $ | 66.84 | $ | 78.76 | |||||||||||||||
United States - Offshore 1 | 64.48 | 81.67 | 68.23 | 79.61 | |||||||||||||||||||
Canada - Onshore 2 | 59.94 | 72.25 | 61.73 | 70.24 | |||||||||||||||||||
Canada - Offshore 2 | 64.76 | 84.34 | 70.39 | 85.25 | |||||||||||||||||||
Other 2 | 70.86 | 100.92 | 70.86 | 96.43 | |||||||||||||||||||
| Natural gas liquids – dollars per barrel | |||||||||||||||||||||||
| United States - Onshore | 19.56 | 19.48 | 21.07 | 20.08 | |||||||||||||||||||
United States - Offshore 1 | 19.35 | 22.77 | 22.75 | 23.56 | |||||||||||||||||||
Canada - Onshore 2 | 33.84 | 35.46 | 35.00 | 35.16 | |||||||||||||||||||
| Natural gas – dollars per thousand cubic feet | |||||||||||||||||||||||
| United States - Onshore | 2.75 | 1.59 | 3.03 | 1.77 | |||||||||||||||||||
United States - Offshore 1 | 3.47 | 2.00 | 3.89 | 2.32 | |||||||||||||||||||
Canada - Onshore 2 | 1.65 | 1.37 | 1.96 | 1.68 | |||||||||||||||||||
1 Prices include the effect of noncontrolling interest in MP GOM.
2 U.S. dollar equivalent.
The following table contains benchmark prices relevant to the Company for the three-month and six-month periods ended June 30, 2025 and 2024:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (Average price for the period) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Oil and NGLs | |||||||||||||||||||||||
| WTI ($/BBL) | $ | 63.74 | $ | 80.57 | $ | 67.58 | $ | 78.77 | |||||||||||||||
| Natural gas | |||||||||||||||||||||||
| NYMEX ($/MMBTU) | 3.16 | 2.04 | 3.72 | 2.23 | |||||||||||||||||||
AECO (C$/MCF) | 1.69 | 1.18 | 1.93 | 1.84 | |||||||||||||||||||
30
Table of Contents
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
Results of Operations (Continued)
Production Volumes
The following table contains hydrocarbons produced during the three-month and six-month periods ended June 30, 2025 and 2024. For further discussion on volumes, please see the “Revenues from Production” section on page 33.
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| (Barrels per day unless otherwise noted) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||
| Net crude oil and condensate | ||||||||||||||||||||||||||
United States - Onshore | 28,519 | 19,873 | 22,779 | 20,127 | ||||||||||||||||||||||
United States - Offshore 1 | 58,840 | 66,818 | 57,222 | 66,448 | ||||||||||||||||||||||
Canada - Onshore | 2,307 | 2,978 | 2,445 | 2,617 | ||||||||||||||||||||||
Canada - Offshore | 5,638 | 7,506 | 7,237 | 6,885 | ||||||||||||||||||||||
| Other | 296 | 245 | 275 | 245 | ||||||||||||||||||||||
Total net crude oil and condensate | 95,600 | 97,420 | 89,958 | 96,322 | ||||||||||||||||||||||
| Net natural gas liquids | ||||||||||||||||||||||||||
United States - Onshore | 5,557 | 4,125 | 4,818 | 4,145 | ||||||||||||||||||||||
United States - Offshore 1 | 4,720 | 4,505 | 4,265 | 4,596 | ||||||||||||||||||||||
Canada - Onshore | 494 | 494 | 516 | 474 | ||||||||||||||||||||||
Total net natural gas liquids | 10,771 | 9,124 | 9,599 | 9,215 | ||||||||||||||||||||||
| Net natural gas – thousands of cubic feet per day | ||||||||||||||||||||||||||
United States - Onshore | 32,389 | 23,197 | 29,306 | 23,714 | ||||||||||||||||||||||
United States - Offshore 1 | 52,964 | 57,762 | 52,062 | 55,462 | ||||||||||||||||||||||
Canada - Onshore | 454,310 | 406,856 | 400,898 | 381,155 | ||||||||||||||||||||||
Total net natural gas | 539,663 | 487,815 | 482,266 | 460,331 | ||||||||||||||||||||||
Total net hydrocarbons - including NCI 2,3 | 196,315 | 187,847 | 179,935 | 182,259 | ||||||||||||||||||||||
| Noncontrolling interest | ||||||||||||||||||||||||||
| Net crude oil and condensate – barrels per day | (6,070) | (6,717) | (5,925) | (6,608) | ||||||||||||||||||||||
| Net natural gas liquids – barrels per day | (244) | (217) | (207) | (214) | ||||||||||||||||||||||
| Net natural gas – thousands of cubic feet per day | (1,942) | (2,003) | (1,590) | (2,039) | ||||||||||||||||||||||
Total noncontrolling interest 2,3 | (6,638) | (7,268) | (6,397) | (7,162) | ||||||||||||||||||||||
Total net hydrocarbons - excluding NCI 2,3 | 189,677 | 180,579 | 173,538 | 175,097 | ||||||||||||||||||||||
1 Includes net volumes attributable to a noncontrolling interest in MP GOM.
2 Natural gas converted on an energy equivalent basis of 6:1.
3 NCI – noncontrolling interest in MP GOM.
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
Results of Operations (Continued)
Sales Volumes
The following table contains hydrocarbons sold during the three-month and six-month periods ended June 30, 2025 and 2024. For further discussion on volumes, please see the “Revenues from Production” section on page 33.
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| (Barrels per day unless otherwise noted) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||
| Net crude oil and condensate | ||||||||||||||||||||||||||
United States - Onshore | 28,520 | 19,873 | 22,779 | 20,127 | ||||||||||||||||||||||
United States - Offshore 1 | 58,469 | 67,507 | 56,313 | 67,781 | ||||||||||||||||||||||
Canada - Onshore | 2,307 | 2,978 | 2,444 | 2,617 | ||||||||||||||||||||||
Canada - Offshore | 7,762 | 5,645 | 9,436 | 6,322 | ||||||||||||||||||||||
| Other | 457 | 469 | 230 | 240 | ||||||||||||||||||||||
Total net crude oil and condensate | 97,515 | 96,472 | 91,202 | 97,087 | ||||||||||||||||||||||
| Net natural gas liquids | ||||||||||||||||||||||||||
United States - Onshore | 5,557 | 4,125 | 4,819 | 4,145 | ||||||||||||||||||||||
United States - Offshore 1 | 4,720 | 4,505 | 4,264 | 4,596 | ||||||||||||||||||||||
Canada - Onshore | 494 | 494 | 516 | 474 | ||||||||||||||||||||||
Total net natural gas liquids | 10,771 | 9,124 | 9,599 | 9,215 | ||||||||||||||||||||||
| Net natural gas – thousands of cubic feet per day | ||||||||||||||||||||||||||
United States - Onshore | 32,388 | 23,197 | 29,306 | 23,714 | ||||||||||||||||||||||
United States - Offshore 1 | 52,964 | 57,762 | 52,062 | 55,462 | ||||||||||||||||||||||
Canada - Onshore | 454,310 | 406,855 | 400,898 | 381,155 | ||||||||||||||||||||||
Total net natural gas | 539,662 | 487,814 | 482,266 | 460,331 | ||||||||||||||||||||||
Total net hydrocarbons - including NCI 2,3 | 198,230 | 186,898 | 181,179 | 183,024 | ||||||||||||||||||||||
| Noncontrolling interest | ||||||||||||||||||||||||||
| Net crude oil and condensate – barrels per day | (6,014) | (6,792) | (5,792) | (6,798) | ||||||||||||||||||||||
| Net natural gas liquids – barrels per day | (243) | (217) | (207) | (214) | ||||||||||||||||||||||
| Net natural gas – thousands of cubic feet per day | (1,942) | (2,003) | (1,590) | (2,039) | ||||||||||||||||||||||
Total noncontrolling interest 2,3 | (6,581) | (7,343) | (6,264) | (7,352) | ||||||||||||||||||||||
Total net hydrocarbons - excluding NCI 2,3 | 191,649 | 179,555 | 174,915 | 175,672 | ||||||||||||||||||||||
1 Includes net volumes attributable to a noncontrolling interest in MP GOM.
2 Natural gas converted on an energy equivalent basis of 6:1.
3 NCI – noncontrolling interest in MP GOM.
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
Results of Operations (Continued)
The following discussion of E&P continuing operations includes amounts attributable to a noncontrolling interest in MP GOM and excludes the Corporate segment unless otherwise noted.
Revenues from Production
The Company’s production revenues by country and product were as follows:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (Millions of dollars) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
Revenues from production | |||||||||||||||||||||||
United States - Oil | $ | 509.2 | $ | 647.6 | $ | 971.0 | $ | 1,270.6 | |||||||||||||||
United States - Natural gas liquids | 18.1 | 16.6 | 35.9 | 34.9 | |||||||||||||||||||
United States - Natural gas | 24.8 | 13.9 | 52.7 | 31.0 | |||||||||||||||||||
Canada - Oil | 58.3 | 62.9 | 147.5 | 131.6 | |||||||||||||||||||
Canada - Natural gas liquids | 1.5 | 1.6 | 3.3 | 3.0 | |||||||||||||||||||
Canada - Natural gas | 68.1 | 50.6 | 142.4 | 116.8 | |||||||||||||||||||
Other - Oil | 2.9 | 4.3 | 2.9 | 4.2 | |||||||||||||||||||
Total revenue from production | $ | 683.0 | $ | 797.5 | $ | 1,355.8 | $ | 1,592.1 | |||||||||||||||
Revenues from production for the three months ended June 30, 2025, decreased by $114.4 million compared to the same period in 2024. Lower revenues were primarily driven by lower crude oil prices, combined with decreased oil production in the Gulf of America due to downtime related to workovers, planned turnarounds and well issues, primarily at the Samurai and Cascade & Chinook fields. These items were partially offset by higher natural gas prices, new wells online in the Eagle Ford Shale at the Karnes field, new wells online at Mormont in the Gulf of America, wells back online from downtime in the Gulf of America, and timing of deliveries in Canada Offshore.
Revenues from production for the six months ended June 30, 2025, decreased $236.3 million compared to the same period in 2024. Lower revenues were primarily driven by lower crude oil prices, combined with decreased oil production in the Gulf of America due to downtime related to workovers, planned turnarounds and well issues, primarily at the Samurai and Cascade & Chinook fields. These items were partially offset by higher natural gas prices, new wells online in the Eagle Ford Shale and Gulf of America, as well as wells back online from downtime in the Gulf of America, and timing of deliveries in Canada Offshore.
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
Results of Operations (Continued)
Lease Operating and Transportation, Gathering and Processing Expenses
The Company’s total lease operating expenses and transportation, gathering and processing expenses by geographic area were as follows:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
| (Millions of dollars) | (Dollars per equivalent barrel) | (Millions of dollars) | (Dollars per equivalent barrel) | |||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||||||||||||||||||||
| Lease operating expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||
United States - Onshore | $ | 29.5 | $ | 37.0 | $ | 8.20 | $ | 14.61 | $ | 59.2 | $ | 72.7 | $ | 10.08 | $ | 14.14 | ||||||||||||||||||||||||||||||||||
United States - Offshore | 137.0 | 175.2 | 20.91 | 23.58 | 264.9 | 326.2 | 21.13 | 21.96 | ||||||||||||||||||||||||||||||||||||||||||
Canada - Onshore | 35.6 | 35.3 | 4.98 | 5.43 | 65.8 | 66.2 | 5.21 | 5.46 | ||||||||||||||||||||||||||||||||||||||||||
Canada - Offshore | 12.6 | 11.6 | 17.86 | 22.60 | 29.5 | 28.1 | 17.29 | 24.43 | ||||||||||||||||||||||||||||||||||||||||||
| Other | 0.8 | 0.5 | 19.95 | 12.26 | 1.2 | 0.7 | 29.02 | 16.10 | ||||||||||||||||||||||||||||||||||||||||||
Total lease operating expenses | $ | 215.5 | $ | 259.6 | $ | 11.95 | $ | 15.27 | $ | 420.6 | $ | 493.9 | $ | 12.83 | $ | 14.83 | ||||||||||||||||||||||||||||||||||
Transportation, gathering and processing | ||||||||||||||||||||||||||||||||||||||||||||||||||
United States - Onshore | $ | 2.1 | $ | 2.4 | $ | 0.62 | $ | 0.93 | $ | 4.5 | $ | 5.0 | $ | 0.77 | $ | 0.99 | ||||||||||||||||||||||||||||||||||
United States - Offshore | 28.1 | 31.8 | 4.28 | 4.29 | 54.5 | 65.8 | 4.35 | 4.43 | ||||||||||||||||||||||||||||||||||||||||||
Canada - Onshore | 22.0 | 18.8 | 3.08 | 2.89 | 40.3 | 36.7 | 3.19 | 3.03 | ||||||||||||||||||||||||||||||||||||||||||
Canada - Offshore | 1.8 | 0.5 | 2.53 | 1.01 | 3.6 | 2.5 | 2.10 | 2.13 | ||||||||||||||||||||||||||||||||||||||||||
Total transportation, gathering and processing | $ | 54.0 | $ | 53.5 | $ | 3.00 | $ | 3.14 | $ | 102.9 | $ | 110.0 | $ | 3.14 | $ | 3.30 | ||||||||||||||||||||||||||||||||||
For the three months ended June 30, 2025, lease operating expenses decreased by $44.1 million and transportation, gathering and processing expenses increased by $0.5 million compared to the same period in 2024. In the Gulf of America, current quarter workovers at Marmalard, Khaleesi (completed in Q3 2025) and Samurai (completed in Q2 2025) were lower than expenditures at Neidermeyer in the prior year. In the Eagle Ford Shale, there were lower operating costs resulting from cost-savings initiatives including workforce reductions at the end of 2024, lower repairs and maintenance, and equipment optimization. The Company also realized lower operating costs at the U.S. Offshore Cascade & Chinook fields that resulted from the purchase of the FPSO. In addition, lower Gulf of America production handling fees, resulting from lower production, contributed to the decrease in the quarter. These decreases were partially offset by higher production volumes from both the U.S. Onshore and Canada Onshore areas.
For the six months ended June 30, 2025, lease operating expenses decreased by $73.3 million, and transportation, gathering and processing expenses decreased by $7.1 million compared to the same period in 2024. In the Gulf of America, workover costs at the Khaleesi, Mormont and Samurai fields were lower than expenditures at the Neidermeyer field in the prior year. In the Eagle Ford Shale, lower operating costs resulted from cost-savings initiatives including workforce reductions at the end of 2024, lower repairs and maintenance, and equipment optimization. The Company also realized lower operating costs at the U.S. Offshore Cascade & Chinook fields that resulted from the purchase of the FPSO. In addition, lower Gulf of America production handling fees, resulting from lower production, contributed to the decrease in the period. These decreases were partially offset by higher production volumes from both the U.S. Onshore and Canada Onshore areas.
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
Results of Operations (Continued)
Depreciation, Depletion and Amortization Expenses
The Company’s DD&A by geographic area were as follows:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
| (Millions of dollars) | (Dollars per equivalent barrel) | (Millions of dollars) | (Dollars per equivalent barrel) | |||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||||||||||||||||||||
DD&A | ||||||||||||||||||||||||||||||||||||||||||||||||||
United States - Onshore | $ | 107.4 | $ | 75.1 | $ | 29.88 | $ | 29.64 | $ | 174.4 | $ | 149.2 | $ | 29.68 | $ | 29.04 | ||||||||||||||||||||||||||||||||||
United States - Offshore | 110.9 | 99.9 | 16.93 | 13.44 | 203.2 | 199.8 | 16.21 | 13.45 | ||||||||||||||||||||||||||||||||||||||||||
Canada - Onshore | 30.0 | 30.8 | 4.20 | 4.76 | 54.1 | 59.0 | 4.29 | 4.86 | ||||||||||||||||||||||||||||||||||||||||||
Canada - Offshore | 8.1 | 6.2 | 11.47 | 12.00 | 16.4 | 12.3 | 9.59 | 10.71 | ||||||||||||||||||||||||||||||||||||||||||
| Other | 1.2 | 0.9 | 28.38 | 20.69 | 1.3 | 0.9 | 31.02 | 20.68 | ||||||||||||||||||||||||||||||||||||||||||
Total DD&A | $ | 257.6 | $ | 212.9 | $ | 14.28 | $ | 12.52 | $ | 449.4 | $ | 421.2 | $ | 13.70 | $ | 12.64 | ||||||||||||||||||||||||||||||||||
DD&A for the three months ended June 30, 2025 increased by $44.7 million compared to the same period in 2024. The increase was primarily due to higher sales volumes at both U.S. and Canada Onshore areas, in addition to higher rates at U.S. Offshore.
DD&A for the six months ended June 30, 2025 increased by $28.2 million. The increase was primarily due to higher sales volumes in the Eagle Ford Shale as a result of new wells and higher rates at U.S. Offshore, partially offset by lower production in the Gulf of America.
Impairment of Assets
There were no impairments for the three and six months ended June 30, 2025, as well as no impairments for the three months ended June 30, 2024.
Impairment of assets for the six months ended June 30, 2024 was $34.5 million and related to the Calliope field in Mississippi Canyon in the Gulf of America, as a result of operational issues that led to a reserve reduction.
Exploration Expenses
The Company’s exploration expenses were as follows:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (Millions of dollars) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
Exploration expenses | |||||||||||||||||||||||
| Dry holes and previously suspended exploration costs | $ | (0.9) | $ | 25.9 | $ | (0.7) | $ | 58.3 | |||||||||||||||
| Geological and geophysical | 0.8 | 8.2 | 4.4 | 9.6 | |||||||||||||||||||
| Other exploration | 8.2 | 5.7 | 17.3 | 13.5 | |||||||||||||||||||
| Undeveloped lease amortization | 2.3 | 3.0 | 3.9 | 5.8 | |||||||||||||||||||
Total exploration expenses, including undeveloped lease amortization | $ | 10.4 | $ | 42.8 | $ | 24.9 | $ | 87.2 | |||||||||||||||
Exploration expenses for the three months ended June 30, 2025 decreased by $32.4 million compared to the same period in 2024, primarily as a result of lower dry hole costs in the current period. In the second quarter of 2024, the dry hole costs related to the Orange #1 (Mississippi Canyon 216) non-operated exploration well in the Gulf of America that encountered non-commercial hydrocarbons.
Exploration expenses for the six months ended June 30, 2025 decreased by $62.3 million compared to the same period in 2024. In 2024, there were dry holes and previously suspended exploration costs relating to the Orange
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
Results of Operations (Continued)
#1 (Mississippi Canyon 216) non-operated exploration well and for the previously suspended costs for Hoffe Park #1 (Mississippi Canyon 166) exploration well in the Gulf of America.
Income Taxes
Income taxes for the three and six months ended June 30, 2025 decreased by $22.8 million and $20.9 million, respectively, compared to the same periods in 2024. Lower income tax for each period is primarily the result of lower net income.
Corporate
Corporate activities include interest expense and income, foreign exchange effects, realized and unrealized gains/losses on derivative instruments (forward swaps to hedge commodity price) and corporate overhead not allocated to E&P. AG真人官方ized and unrealized losses on derivative instruments result from increases in market natural gas prices relating to future periods whereby the swap contracts provided the Company with a fixed price.
For the three months ended June 30, 2025, the Corporate segment reported a loss of $55.9 million, an unfavorable variance of $28.2 million, compared to the same period in 2024. The unfavorable variance was primarily due to higher unrealized foreign exchange losses ($39.8 million) primarily relating to our Canadian subsidiary, partially offset by unrealized gains on derivative instruments ($10.3 million).
The Corporate segment reported a loss of $104.1 million for the six months ended June 30, 2025, an unfavorable variance of $48.9 million, compared to the same period in 2024. The unfavorable variance was primarily due to higher unrealized foreign exchange losses ($50.0 million).
Financial Condition
The Company’s primary sources of liquidity are cash on hand, net cash provided by continuing operations activities and available borrowing capacity under its senior unsecured RCF. The Company’s liquidity requirements, both in the short-term and long-term, consist primarily of capital expenditures, debt maturity, retirement and interest payments, working capital requirements, dividend payments, and, as applicable, share repurchases. The Company may, from time to time, redeem, repurchase or otherwise acquire its outstanding notes through open market purchases, tender offers or pursuant to the terms of such securities. The Company believes that the primary sources of liquidity described above will be adequate to fund its liquidity needs over the next 12 months and the foreseeable future.
Cash Flows
The following table presents the Company’s cash flows for the periods presented:
| Six Months Ended June 30, | |||||||||||
(Millions of dollars) | 2025 | 2024 | |||||||||
Net cash provided (required) by: | |||||||||||
| Net cash provided by continuing operations activities | $ | 658.7 | $ | 866.4 | |||||||
Net cash required by investing activities | (679.4) | (516.9) | |||||||||
Net cash required by financing activities | (22.4) | (334.3) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | (0.9) | 1.3 | |||||||||
Net (decrease) increase in cash and cash equivalents | $ | (43.9) | $ | 16.5 | |||||||
Cash Provided by Continuing Operations Activities
Net cash provided by continuing operations activities for the six months ended June 30, 2025 was $207.7 million lower compared to the same period in 2024. The decrease in cash flows from operations activities was primarily
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
Financial Condition (Continued)
due to lower revenue from production ($236.3 million), partially offset by lower lease operating expenses ($73.3 million).
Cash Required by Investing Activities
Net cash required by investing activities for the six months ended June 30, 2025 was $162.6 million higher compared to the same period in 2024. The increase was primarily due to a gross payment of $125.0 million for the purchase of an FPSO in the Gulf of America and higher development drilling at Eagle Ford Shale, partially offset by lower development drilling at Gulf of America.
A reconciliation of “Property additions and dry hole costs” in the Consolidated Statements of Cash Flows to total capital expenditures for continuing operations follows.
| Six Months Ended June 30, | |||||||||||
| (Millions of dollars) | 2025 | 2024 | |||||||||
Property additions and dry hole costs per the cash flow statements | $ | 678.0 | $ | 516.9 | |||||||
Acquisition of oil properties per the cash flow statements | 1.4 | — | |||||||||
| Geophysical and other exploration expenses | 19.3 | 19.0 | |||||||||
| Capital expenditure accrual changes and other | (20.3) | 28.8 | |||||||||
| Total capital expenditures | $ | 678.4 | $ | 564.7 | |||||||
Total accrual basis capital expenditures are shown below.
| Six Months Ended June 30, | |||||||||||
| (Millions of dollars) | 2025 | 2024 | |||||||||
| Capital Expenditures | |||||||||||
| Exploration and production | $ | 671.4 | $ | 556.3 | |||||||
| Corporate | 7.0 | 8.4 | |||||||||
| Total capital expenditures | $ | 678.4 | $ | 564.7 | |||||||
Higher capital expenditures in the six months ended June 30, 2025 compared to the same period of 2024 were primarily attributable to higher field development costs in the Gulf of America attributable to the FPSO purchase and higher development drilling in the Eagle Ford Shale related to new wells online. Higher exploratory drilling in Vietnam and other development drilling in the Gulf of America also contributed to the increase. These increases were partially offset by lower exploration costs and development drilling costs in the Gulf of America due to prior year spend on the non-operated Ocotillo #1 (Mississippi Canyon 40) and Orange #1 (Mississippi Canyon 216) exploration wells, and Khaleesi development costs, respectively.
Capital expenditures in 2025 primarily relate to development drilling and field development activities in the Gulf of America ($248.1 million), Eagle Ford Shale ($230.2 million), Tupper Montney and Kaybob Duvernay ($92.0 million), and in Vietnam ($29.6 million). Exploration costs in 2025 were $57.2 million, primarily comprised of activities in Vietnam for the Lac Da Hong-1X (Pink Camel), Block 15-1/05, and Hai Su Vang-1X (Golden Sea Lion), Block 15/2-17 exploration wells, and activities in the Gulf of America related to long lead equipment purchases for the Cello #1 (Mississippi Canyon 385) and Banjo #1 (Mississippi Canyon 385) exploration wells.
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
Financial Condition (Continued)
Cash Required by Financing Activities
Net cash required by financing activities for the six months ended June 30, 2025 decreased by $311.9 million compared to the same period in 2024. In 2025, the cash required by financing activities was principally for the repurchase of common shares ($102.6 million), year-to-date cash dividends to shareholders of $0.65 per share ($93.4 million), and distributions to the noncontrolling interest in MP GOM ($18.2 million), and was partially offset by net borrowings on the senior unsecured RCF ($200.0 million).
In 2024, cash required by financing activities was for the repurchase of common shares ($105.9 million), cash dividends to shareholders ($91.5 million), distributions to the noncontrolling interest in MP GOM ($61.2 million), debt repurchases ($50.0 million), and withholding tax on stock-based incentive awards ($25.3 million).
Liquidity
At June 30, 2025, the Company had approximately $1.5 billion of liquidity consisting of $379.6 million in cash and cash equivalents and $1,149.6 million available on its committed senior unsecured RCF with a major banking consortium.
The Company’s $1.35 billion senior unsecured RCF expires in October 2029. As of June 30, 2025, the Company had $200.0 million of outstanding borrowings under the RCF and $0.4 million of outstanding letters of credit, which reduce the borrowing capacity of the RCF. At June 30, 2025, the interest rate in effect on borrowings under the RCF was 6.67%. At June 30, 2025, the Company was in compliance with all covenants related to the RCF.
Cash and invested cash are maintained in several operating locations outside the U.S. As of June 30, 2025, cash and cash equivalents held outside the U.S. included U.S. dollar equivalents of approximately $112.4 million, the majority of which was held in Canada ($73.6 million), Vietnam ($9.0 million), Mexico ($8.0 million), and the U.K. ($7.7 million). In certain cases, the Company could incur cash taxes or other costs should these cash balances be repatriated to the U.S. in future periods. Canada currently collects a 5% withholding tax on any earnings repatriated to the U.S.
Working Capital
| (Millions of dollars) | June 30, 2025 | December 31, 2024 | |||||||||
Working capital | |||||||||||
| Total current assets | $ | 762.1 | $ | 785.3 | |||||||
| Total current liabilities | 909.3 | 942.8 | |||||||||
Net working capital liability | $ | (147.2) | $ | (157.5) | |||||||
As of June 30, 2025, net working capital increased by $10.4 million compared to December 31, 2024. The increase was primarily attributable to lower current operating lease obligations ($62.5 million), lower other accrued liabilities ($33.5 million), and higher prepaid expenses ($11.6 million). These items were partially offset by lower cash and equivalents ($43.9 million), higher accounts payable ($37.1 million) and higher current asset retirement obligations ($22.0 million).
Lower lease obligations were due to lower day rates on the Noble Stanley Lafosse drilling rig and the absence of lease rental payments related to the BW Pioneer FPSO in the Gulf of America. Lower other accrued liabilities were related to lower incentive award obligations in the current year, and higher prepaid expenses were primarily due to the renewal of insurance policies. Lower cash and equivalents were due to lower net income, the BW Pioneer FPSO purchase, and returns to shareholders in the form of share repurchases and dividends. Higher accounts payable related to higher production in the Eagle Ford Shale. Higher current asset retirement obligations related to planned abandonment activities in U.S. Offshore in the next 12 months.
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
Financial Condition (Continued)
Capital Employed
A summary of capital employed at June 30, 2025 and December 31, 2024 follows.
| June 30, 2025 | December 31, 2024 | ||||||||||||||||||||||
| (Millions of dollars) | Amount | % | Amount | % | |||||||||||||||||||
| Capital employed | |||||||||||||||||||||||
| Long-term debt | $ | 1,475.0 | 22.1 | % | $ | 1,274.5 | 19.7 | % | |||||||||||||||
| Murphy shareholders' equity | 5,198.5 | 77.9 | % | 5,194.3 | 80.3 | % | |||||||||||||||||
| Total capital employed | $ | 6,673.5 | 100.0 | % | $ | 6,468.8 | 100.0 | % | |||||||||||||||
At June 30, 2025, long-term debt of $1,475.0 million increased by $200.5 million compared to December 31, 2024, primarily as a result of amounts drawn on the senior unsecured RCF. The total of the fixed-rate notes had a weighted average maturity of 8.9 years and a weighted average coupon of 6.1%.
Murphy shareholders’ equity increased by $4.2 million in 2025, primarily due to foreign currency translation ($88.6 million) and awarded restricted stock ($20.1 million), partially offset by shares repurchased ($100.9 million, including excise tax). A summary of transactions in stockholders’ equity accounts is presented in the “Consolidated Statements of Stockholders’ Equity” on page 6 of this Form 10-Q report.
Critical Accounting Estimates
As of June 30, 2025, there have been no significant changes to our critical accounting estimates since our Annual Report on Form 10-K for the year ended December 31, 2024.
Accounting Changes and Recent Accounting Pronouncements
See Note B to the Consolidated Financial Statements regarding the impact or potential impact of recent accounting pronouncements upon our financial position and results of operations.
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
Other Key Performance Metrics
The Company uses other operational performance and income metrics to review operational performance.
Management uses adjusted net income, earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA, earnings before interest, taxes, depreciation and amortization, and exploration expenses (EBITDAX) and adjusted EBITDAX internally to evaluate the Company’s operational performance and trends between periods and relative to its industry competitors. Adjusted net income and adjusted EBITDAX exclude certain items that management believes affect the comparability of results between periods. Management believes this information may be useful to investors and analysts to gain a better understanding of the Company’s financial results. Adjusted net income, EBITDA, adjusted EBITDA, EBITDAX and adjusted EBITDAX are non-GAAP financial measures and should not be considered substitutes for net income (loss) or cash provided by operating activities as determined in accordance with GAAP.
The following table reconciles net income attributable to Murphy to adjusted net income from continuing operations attributable to Murphy.
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(Millions of dollars, except per share amounts) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
Net income attributable to Murphy (GAAP) 1 | $ | 22.3 | $ | 127.7 | $ | 95.3 | $ | 217.7 | |||||||||||||||
| Discontinued operations (income) loss | (1.3) | 0.6 | (0.7) | 1.5 | |||||||||||||||||||
| Net income from continuing operations attributable to Murphy | 21.0 | 128.3 | 94.6 | 219.2 | |||||||||||||||||||
Adjustments: | |||||||||||||||||||||||
| Foreign exchange loss (gain) | 34.3 | (5.5) | 34.3 | (16.0) | |||||||||||||||||||
| Mark-to-market (gain) on derivative instruments | (10.3) | — | (1.4) | — | |||||||||||||||||||
| Impairment of assets | — | — | — | 34.5 | |||||||||||||||||||
| Write-off of previously suspended exploration well | — | — | — | 26.1 | |||||||||||||||||||
| Total adjustments, before taxes | 24.0 | (5.5) | 32.9 | 44.6 | |||||||||||||||||||
Income tax (benefit) expense related to adjustments | (6.5) | 1.4 | (8.3) | (8.8) | |||||||||||||||||||
| Total adjustments, after taxes | 17.5 | (4.1) | 24.6 | 35.8 | |||||||||||||||||||
| Adjusted net income from continuing operations attributable to Murphy (Non-GAAP) | $ | 38.5 | $ | 124.2 | $ | 119.2 | $ | 255.0 | |||||||||||||||
| Net income from continuing operations per average diluted share (GAAP) | $ | $ | $ | $ | |||||||||||||||||||
| Adjusted net income from continuing operations per average diluted share (Non-GAAP) | $ | 0.27 | $ | 0.81 | $ | 0.83 | $ | 1.66 | |||||||||||||||
1 Excludes amounts attributable to a noncontrolling interest in MP GOM.
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
Other Key Performance Metrics (Continued)
The following table reconciles net income attributable to Murphy to EBITDA, adjusted EBITDA, EBITDAX and adjusted EBITDAX attributable to Murphy.
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (Millions of dollars) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
Net income attributable to Murphy (GAAP) 1 | $ | 22.3 | $ | 127.7 | $ | 95.3 | $ | 217.7 | |||||||||||||||
| Income tax expense | 1.1 | 32.7 | 33.8 | 62.7 | |||||||||||||||||||
| Interest expense, net | 25.1 | 21.0 | 48.6 | 41.0 | |||||||||||||||||||
Depreciation, depletion and amortization expense 1 | 250.8 | 207.3 | 438.2 | 410.1 | |||||||||||||||||||
| EBITDA attributable to Murphy (Non-GAAP) | 299.3 | 388.7 | 615.9 | 731.5 | |||||||||||||||||||
Exploration expenses | 10.3 | 42.7 | 24.8 | 87.1 | |||||||||||||||||||
| EBITDAX attributable to Murphy (Non-GAAP) | $ | 309.6 | $ | 431.4 | $ | 640.7 | $ | 818.6 | |||||||||||||||
| EBITDA attributable to Murphy (Non-GAAP) | $ | 299.3 | $ | 388.7 | $ | 615.9 | $ | 731.5 | |||||||||||||||
Foreign exchange loss (gain) | 34.3 | (5.4) | 34.3 | (15.9) | |||||||||||||||||||
Accretion of asset retirement obligations 1 | 12.9 | 11.7 | 25.4 | 23.1 | |||||||||||||||||||
Mark-to-market (gain) on derivative instruments | (10.3) | — | (1.4) | — | |||||||||||||||||||
Impairment of assets | — | — | — | 34.5 | |||||||||||||||||||
| Write-off of previously suspended exploration well | — | — | — | 26.1 | |||||||||||||||||||
Discontinued operations (income) loss | (1.3) | 0.6 | (0.7) | 1.5 | |||||||||||||||||||
| Adjusted EBITDA attributable to Murphy (Non-GAAP) | $ | 334.9 | $ | 395.6 | $ | 673.5 | $ | 800.8 | |||||||||||||||
Other exploration expenses 2 | 10.3 | 42.7 | 24.8 | 61.0 | |||||||||||||||||||
| Adjusted EBITDAX attributable to Murphy (Non-GAAP) | $ | 345.2 | $ | 438.3 | $ | 698.3 | $ | 861.8 | |||||||||||||||
1 Excludes amounts attributable to a noncontrolling interest in MP GOM.
2 Other exploration expenses consist of exploration expenses as reported in the consolidated statement of operations excluding amounts relating to the write-off of previously suspended exploration well included in Adjusted EBITDA calculation above.
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
Other Key Performance Metrics (Continued)
Management uses free cash flow (FCF) and adjusted FCF internally as additional measures of liquidity 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 and its performance over time. Adjusted FCF excludes certain items that management believes affect the comparability of results between periods. 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.
The following table reconciles net cash provided by continuing operations activities to FCF and adjusted FCF.
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| (Millions of dollars) | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Net cash provided by continuing operations activities (GAAP) | $ | 358.1 | $ | 467.7 | $ | 658.7 | $ | 866.4 | |||||||||||||||
Exclude: increase (decrease) in non-cash working capital | (30.7) | (25.5) | (7.9) | (1.1) | |||||||||||||||||||
| Operating cash flow excluding working capital adjustments | 327.4 | 442.2 | 650.8 | 865.3 | |||||||||||||||||||
Less: property additions and dry hole costs 1 | (309.6) | (267.8) | (678.0) | (516.9) | |||||||||||||||||||
| Free cash flow (Non-GAAP) | $ | 17.8 | $ | 174.4 | $ | (27.2) | $ | 348.4 | |||||||||||||||
Less: cash dividends paid | (46.4) | (45.8) | (93.4) | (91.5) | |||||||||||||||||||
Less: distributions to noncontrolling interest | (11.2) | (38.2) | (18.2) | (61.2) | |||||||||||||||||||
| Less: withholding tax on stock-based incentive awards | — | — | (7.7) | (25.3) | |||||||||||||||||||
Less: acquisition of oil and natural gas properties | — | — | (1.4) | — | |||||||||||||||||||
| Adjusted free cash flow (Non-GAAP) | $ | (39.8) | $ | 90.4 | $ | (147.9) | $ | 170.4 | |||||||||||||||
1 Property additions for the 2025 period include a payment of $125.0 million for the purchase of a floating production, storage, and offloading vessel in the U.S Offshore, including amounts attributable to a noncontrolling interest in MP GOM.
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
Outlook
The oil and natural gas industry is impacted by global commodity pricing and as a result the prices for the Company’s primary products are often volatile and are affected by the levels of supply and demand for energy. As discussed in the “Results of Operations” section discussing revenues, on page 33, lower average crude oil and higher natural gas pricing during the second quarter of 2025 compared to the same period in 2024 directly impacted the Company’s product sales revenue.
As of close on August 4, 2025, forward price curves for existing forward contracts for the remainder of 2025 and 2026 are shown in the following table.
| 2025 | 2026 | |||||||||||||
| WTI ($/BBL) | 65.03 | 62.87 | ||||||||||||
| NYMEX ($/MMBTU) | 3.36 | 3.92 | ||||||||||||
| AECO (US$ Equivalent/MCF) | 1.45 | 2.23 | ||||||||||||
In late June 2025, Shell Canada Energy announced its first cargo of liquefied natural gas (LNG) shipped from the Kitimat facility in British Columbia. Increases in export levels of Canadian liquefied natural gas would impact our natural gas-weighted Canadian business.
In April 2025, the U.S. government announced a baseline tariff of 10% on products imported from all countries and an additional individualized reciprocal tariff on the countries with which the United States has the largest trade deficits. Increased tariffs by the United States have led and may continue to lead to the imposition of retaliatory tariffs by foreign jurisdictions. Additionally, the U.S. government has announced and rescinded multiple tariffs on several foreign jurisdictions, which has increased uncertainty regarding the ultimate effect of the tariffs on economic conditions. Current uncertainties about tariffs and their effects on trading relationships may affect costs for and availability of goods and services used in E&P operations or contribute to inflation in the countries in which we operate. Although we are continuing to monitor the economic effects of such announcements, as well as opportunities to mitigate their related impacts, costs and other effects associated with the tariffs remain uncertain.
We cannot predict what impact economic factors (including, but not limited to, inflation, global conflicts, trade policies, tariffs, other trade restrictions, and possible economic recession) may have on future commodity pricing and future costs for goods and services in the E&P operations. Lower prices or higher costs, should they occur, will result in lower profits and operating cash flows and could result in material future impairment charges.
For the third quarter of 2025, production is expected to average between 185.0 and 193.0 thousand barrels of oil equivalents per day, excluding noncontrolling interest.
The Company’s capital expenditures for 2025 are expected to be between $1,135 million and $1,285 million, excluding noncontrolling interest. This includes net acquisition capital of $104 million for the BW Pioneer FPSO in the Gulf of America, and excludes $23.0 million for the purchase of additional working interests in Eagle Ford Shale acreage primarily operated by Murphy. The Cello #1 (Mississippi Canyon 385) and Banjo #1 (Mississippi Canyon 385) exploration wells in the Gulf of America will be drilled in the third and fourth quarters of 2025. The Company remains on schedule to commence a three-well exploration program in Côte d’Ivoire in the fourth quarter of 2025. We will also begin drilling an appraisal well at our recent Hai Su Vang-1X (Golden Sea Lion), Block 15/2-17 oil discovery well in the third quarter, with results expected in the fourth quarter. In addition, we continue field development activities in Vietnam at Lac Da Vang (Golden Camel), Block 15-1/05, with scheduled first oil anticipated in the fourth quarter of 2026.
Capital and other expenditures are routinely reviewed and planned capital expenditures may be adjusted to reflect differences between budgeted and forecast cash flow during the year. Capital expenditures may also be affected by asset purchases or sales, which often are not anticipated at the time a budget is prepared. The Company will primarily fund its capital program in 2025 using operating cash flow and available cash. If oil and/or natural gas prices weaken, actual cash flow generated from operations could be reduced such that capital spending reductions are required and/or additional borrowings under available credit facilities might be required during the year to maintain funding of the Company’s ongoing development projects.
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
Outlook (Continued)
The Company plans to utilize any surplus cash (not planned to be used by operations, investing activities, dividends or payment to noncontrolling interests) in accordance with the Company’s capital allocation plan designed to allow for additional shareholder returns and debt reduction. Details of the plan can be found in the “Capital Allocation” section of the Company’s Form 8-K filed on May 7, 2025. Based on current market conditions and our planned exploration and appraisal program, the Company is currently more likely to use available adjusted Free Cash Flow for share repurchases than bond repayment.
Subsequent to the balance sheet date, on July 4, 2025, the current U.S. Administration signed into law the OBBBA legislation, which includes a broad range of tax reform provisions affecting corporations. The OBBBA, among other changes, permanently reinstates the "bonus" depreciation provisions that allow for the immediate expensing of 100% of the cost of certain qualified property acquired and placed in service after January 19, 2025, permanently reinstates the elective immediate expensing of domestic research and experimental expenditures paid or incurred in tax years beginning after December 31, 2024 (with a special transition rule that allows accelerated deduction of the remaining unamortized balance of capitalized domestic research and experimental expenditures), and permanently relaxes the limitation on the deductibility of business interest effective for tax years beginning after December 31, 2024. The OBBBA also modifies certain international tax provisions effective for tax years beginning after December 31, 2025. The Company is currently evaluating the impact of these tax law changes and will recognize the income tax effects in the consolidated financial statements beginning in the period in which the OBBBA was signed into law.
On August 8, 2024, the Company’s Board of Directors authorized a share repurchase program whereby the Company can repurchase up to $1,100 million of the Company’s common stock, of which $550 million remains available to repurchase as of June 30, 2025.
The Company continues to monitor the impact of commodity prices on its financial position and is currently in compliance with the covenants related to the senior unsecured RCF (see Note E).
As of August 4, 2025, the Company has entered into forward fixed price delivery contracts to manage risk associated with certain future oil and natural gas sales prices as follows:
Volumes (MMCF/d) | Price/MCF | Remaining Period | ||||||||||||||||||||||||||||||||||||
| Area | Commodity | Type 1 | Start Date | End Date | ||||||||||||||||||||||||||||||||||
| Canada | Natural Gas | Fixed price forward sales | 40 | C$2.75 | 7/1/2025 | 12/31/2025 | ||||||||||||||||||||||||||||||||
| Canada | Natural Gas | Fixed price forward sales | 50 | C$3.03 | 1/1/2026 | 12/31/2026 | ||||||||||||||||||||||||||||||||
1 Fixed price forward sale contracts listed above are accounted for as normal sales and purchases for accounting purposes.
Volumes (MMCF/d) | Price/MCF | Remaining Period | ||||||||||||||||||||||||||||||||||||
| Area | Commodity | Type | Start Date | End Date | ||||||||||||||||||||||||||||||||||
| United States | Natural Gas | Fixed price derivative swap | 60 | $3.65 | 7/1/2025 | 9/30/2025 | ||||||||||||||||||||||||||||||||
| United States | Natural Gas | Fixed price derivative swap | 60 | $3.74 | 10/1/2025 | 12/31/2025 | ||||||||||||||||||||||||||||||||
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
Forward-Looking Statements
This Form 10-Q 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”, “expressed confidence”, “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 decisions 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 ESG (environmental/social/governance) matters, make capital expenditures or 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/demand levels, actions taken by major oil exporters and the resulting impacts on commodity prices; geopolitical concerns; 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 market of health pandemics such as COVID-19 and related government responses; other natural hazards impacting our operations or markets; any other deterioration in our business, markets or prospects; any failure to obtain necessary regulatory approvals; 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 “Item 1A. Risk Factors” in our most recent Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (SEC) and on page 47 of this Form 10-Q report, 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 report. Murphy Oil Corporation undertakes no duty to publicly update or revise any forward-looking statements.
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company is exposed to market risks associated with prices of crude oil, natural gas and petroleum products, foreign currency exchange rates, and interest rates. As described in Note L, Murphy periodically makes use of derivative financial and commodity instruments to manage risks associated with existing or anticipated transactions.
Commodity Price Risk
There were commodity-based derivative contracts in place as of June 30, 2025, covering certain future U.S. natural gas sales volumes in 2025. A 10% increase in the respective benchmark price of these commodities would have increased the net payable associated with these derivative contracts by approximately $4.1 million, while a 10% decrease would have decreased the recorded net payable by a similar amount, resulting in a receivable.
Foreign Exchange Risk
There were no derivative foreign exchange contracts in place at June 30, 2025.
Interest Rate Risk
The Company’s senior unsecured RCF provides for variable interest rate borrowings. As of June 30, 2025, we had $200.0 million of outstanding borrowings under the RCF. Assuming no change in the amount of borrowings outstanding under the RCF, a 10% increase in the average interest rate would have increased our quarterly interest expense by approximately $0.3 million. Actual results may vary due to changes in the amount of variable rate debt outstanding.
ITEM 4. CONTROLS AND PROCEDURES
Under the direction of its principal executive officer and principal financial officer, controls and procedures have been established by the Company to ensure that material information relating to the Company and its consolidated subsidiaries is made known to the officers who certify the Company’s financial reports and to other members of senior management and the Board of Directors.
Based on the Company’s evaluation as of the end of the period covered by the filing of this Quarterly Report on Form 10-Q, the principal executive officer and principal financial officer of Murphy Oil Corporation have concluded that the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) are effective to ensure that the information required to be disclosed by Murphy Oil Corporation in reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms.
During the quarter ended June 30, 2025, there were no changes in the Company’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
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PART II – OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Murphy and its subsidiaries are engaged in a number of legal proceedings (including litigation related to climate change), all of which Murphy considers routine and incidental to its business. Based on information currently available to the Company, the ultimate resolution of matters referred to in this item is not expected to have a material adverse effect on the Company’s net income, financial condition or liquidity in a future period.
ITEM 1A. RISK FACTORS
The Company’s operations in the oil and natural gas business naturally lead to various risks and uncertainties. These risk factors are discussed in “Item 1A. Risk Factors” in the Company’s 2024 Form 10-K filed on February 27, 2025. The Company has not identified any additional risk factors not previously disclosed in its 2024 Form 10-K report.
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ITEM 5. OTHER INFORMATION
During the three months ended June 30, 2025, no director or officer of the Company adopted terminated
ITEM 6. EXHIBITS
The following is an index of exhibits that are hereby filed as indicated by asterisk (*), that are considered furnished rather than filed as indicated by double asterisks (**), or that are incorporated by reference. Exhibits other than those listed have been omitted since they are either not required or not applicable.
| Exhibit No. | Description | |||||||
3.1 | Certificate of Incorporation of Murphy Oil Corporation, as amended effective May 11, 2005 (incorporated by reference to Exhibit 3.1 to Form 10-K of Registrant filed on February 28, 2011) | |||||||
3.2 | By-Laws of Murphy Oil Corporation, as amended effective August 5, 2020 (incorporated by reference to Exhibit 3.2 to Form 10-Q of Registrant filed on August 6, 2020) | |||||||
10.34 | Murphy Oil Corporation 2025 Long-Term Incentive Plan (incorporated by reference to Exhibit A to definitive proxy statement on Schedule 14A of Registrant filed on March 28, 2025) | |||||||
*31.1 | Certification required by Rule 13a-14(a) pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |||||||
*31.2 | Certification required by Rule 13a-14(a) pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |||||||
**32.1 | Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |||||||
| 101. INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||
| 101. SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
| 101. CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
| 101. DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
| 101. LAB | Inline XBRL Taxonomy Extension Labels Linkbase Document | |||||||
| 101. PRE | Inline XBRL Taxonomy Extension Presentation Linkbase | |||||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||||
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| MURPHY OIL CORPORATION | ||||||||
| (Registrant) | ||||||||
| By | /s/ PAUL D. VAUGHAN | |||||||
| Paul D. Vaughan | ||||||||
| Vice President and Controller | ||||||||
| (Chief Accounting Officer and Duly Authorized Officer) | ||||||||
August 6, 2025
(Date)
49
Source:
FAQ
What did Montrose Environmental Group (MEG) announce in its 8-K dated August 6, 2025?
The company furnished a press release with fiscal Q2 2025 results (Exhibit 99.1) and noted an investor presentation for its earnings call.
Where can investors find the MEG Q2 2025 investor presentation?
It is posted under 鈥淧resentations鈥� in the 鈥淧resentations and Events鈥� section of MEG鈥檚 investor-relations website.
Is the information in MEG鈥檚 8-K considered 鈥渇iled鈥� with the SEC?
No. Items 2.02 and 7.01 are expressly furnished; they are not deemed 鈥渇iled鈥� under Section 18 of the Exchange Act.
Who signed the Form 8-K for Montrose Environmental Group?
Chief Financial Officer Allan Dicks signed the filing on August 6, 2025.
Does the 8-K include specific financial figures for Q2 2025?
No. The actual numbers are contained in the press release (Exhibit 99.1), which is not reproduced in the body of this filing.
Murphy Oil
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Aug 6, 2025
[8-K] Murphy Oil Corp. Reports Material Event
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[8-K] Murphy Oil Corp. Reports Material Event
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Oil & Gas E&P
Crude Petroleum & Natural Gas
United States
HOUSTON