Murphy Oil Corporation reported a net loss of $3.0 million for the quarter ended September 30, 2025, largely driven by a $92 million non‑cash impairment related to the Dalmatian field. After the one‑time charge, the company posted adjusted net income of $58.1 million, translating to an adjusted EPS of $0.41—an $0.25 or 156 % beat over the consensus estimate of $0.16. Revenue reached $732.99 million, topping the $638.07 million consensus by $94.92 million, a 15 % year‑over‑year increase that reflects stronger oil and gas sales despite the impairment.
The company produced 200.4 million barrels of oil equivalent per day, with 94.1 million barrels of oil per day, matching the production guidance and exceeding the previous quarter’s output. Realized oil prices averaged $66.18 per barrel, up $1.87 from the second quarter, while natural‑gas prices fell 20 % to $1.50 per thousand cubic feet, a decline attributed to weak AECO prices. Natural gas, which accounts for 47 % of the production mix, contributed less to revenue, partially offsetting the oil price lift. The mix shift and price dynamics explain the modest revenue growth relative to the prior year’s $139 million net income.
Operating expenses fell to $9.39 per BOE, a $2.41 reduction from the second quarter and a 20 % decline from the same period last year. The cost discipline stemmed from lower offshore workover costs, improved Eagle Ford operating efficiencies, and a disciplined capital allocation strategy that prioritized high‑impact wells. The company’s focus on cost control is evident in the 20 % lower operating‑expense metric and the continued investment in high‑return exploration projects.
Capital allocation remained disciplined: the company reduced debt by $50 million and returned $46 million to shareholders through dividends, while free cash flow of $124.4 million supported the 50 % target of adjusted free cash flow allocated to shareholders. The adjusted free cash flow of $218.8 million, reported by some analysts, further underscores the firm’s liquidity position. These actions reinforce the company’s confidence in its balance sheet and its ability to fund future growth.
Operational highlights included the successful commissioning of new wells in the Eagle Ford and Tupper Montney basins, the on‑schedule completion of the Gulf of America workover program, and the launch of the first development well at the Lac Da Vang (Golden Camel) field in Vietnam. CEO Eric Hambly noted, “We achieved total production of 200,000 barrels of oil equivalents per day and oil production of 94,000 barrels per day, underscoring the strength and potential of our assets.” He added, “Our Lac Da Vang field development is progressing on track, and we started drilling our first development well earlier this week.” Hambly also emphasized confidence in the company’s “strong balance sheet and flexible multi‑basin portfolio” to navigate near‑term volatility while pursuing long‑term growth.
The company reiterated its 2025 guidance, maintaining full‑year production and capital‑expenditure targets. Management expressed confidence that the firm remains on track for the year, citing robust operational execution and cost discipline. Headwinds include commodity price volatility and macroeconomic uncertainty, while tailwinds are driven by strong demand in core segments and the expansion of international assets in Vietnam and Côte d’Ivoire. The guidance signals a balanced outlook, with the company poised to capitalize on favorable market conditions while managing potential risks.
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