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Murphy Oil Net Income Skyrockets in 4Q

2 min read

Murphy Oil Corp. of El Dorado on Wednesday reported net income of $375.2 million in the fourth quarter, but the results from continuing operations were even better: $442 million.

Those numbers compared with $75.4 million and $180.5 million in the fourth quarter of 2013.

For the full year, the oil exploration and production company (NYSE: MUR) reported income of $905.6 million, down from $1.12 billion in 2013. But continuing operations did better, with net income of $1.025 billion, or $5.69 per share, compared to $888.1 million, or $4.69 per share, in 2013.

Roger W. Jenkins, Murphy’s president and CEO, said in a statement that the company made progress in portfolio optimization during the year, and cited the company’s closing on 20 percent of its Malaysia business in mid-December.

“I am pleased to reach closure on the first phase of the sell-down of our Malaysia assets. This sale marks the value of our long-term Malaysian business and our strong relationship with our new partner, Pertamina, as well as PETRONAS.”

“We continue to grow and replace production with contributions from the Eagle Ford Shale, and new fields in the Gulf of Mexico and Malaysia. The recent collapse in commodity prices is a concern for our business and our industry. Murphy’s balance sheet and cash position post the Malaysia sell down positions us to manage the current lower price environment. We expect to lower capital expenditures by some 33 percent from 2014 levels, including a 46 percent reduction in the Eagle Ford Shale, as we look ahead to 2015. Our goal is to reduce capital expenditures as much as possible to commitment only levels, protect our balance sheet and evaluate opportunities that emerge over the coming year.”

During the last quarter, Murphy Oil set a quarterly production record of 258,868 barrels of oil equivalent per day, which also led to an annual production record of 225,973 barrels per day. That annual total was 10 percent higher than 2013’s production.

The company will hold a conference call with analysts on Thursday at noon to discuss the earnings report.

The company reported a third-quarter decline of 14 percent, citing sliding oil prices. Net income from continuing operations was $245.7 million or $1.37 per share, down from $284.8 million or $1.51 per share in the same quarter the year before.

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