Murphy Oil Corp.’s board of directors reduced the oil exploration giant’s quarterly cash stock dividend to 25 cents from 35 cents, reflecting continued low prices in the crude oil market.
The new figure represents an annual dividend of a dollar per share; the quarterly dividend is payable Sept. 1 to shareholders of record Aug. 15.
“The decision to reduce the dividend was a difficult but prudent one based on the lack of a sustained recovery in commodity prices,” Murphy President and CEO Roger Jenkins said in a statement. “The dividend has been, and will continue to be, a top priority as it is an essential piece of our total shareholder return value proposition. This reset better aligns our dividend with our financial metrics and recognizes the high quality investment options within our portfolio.”
Last week, the company (NYSE: MUR) announced a second-quarter profit of $2.9 million, but that income was attributed mostly to the sale of Murphy interests in Canada.
Excluding the sale proceeds, Murphy had a quarterly loss of $62 million, or 36 cents per share. The company posted a loss of $2.27 billion, or $13 a share, in 2015, and laid off about 250 workers in the first quarter of 2016.
Murphy Oil stock closed at $26.57 on Wednesday, up 84 cents.
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