Murphy Oil Corp. of El Dorado, the global petroleum exploration and production giant, reported its best full-year profit numbers in four years Thursday morning, filing fourth-quarter and 2018 full-year results with the Securities & Exchange Commission.
Murphy had net income of $411 million for all of 2018, or $2.38 per common share of stock, a vast improvement over 2017’s $311 million loss. Fourth-quarter income was $103 million, or 60 cents per common share, compared with a $286 million loss over the same period in 2017.
The results reflect a quarter in which the company produced the equivalent of 176,000 barrels of oil a day, in line with guidance, and closed a previously disclosed joint venture with Petrobras for drilling in new areas of the Gulf of Mexico. Murphy also received credit rating upgrades from Moody’s and Fitch ratings during the quarter, which produced revenue of $692 million, up from $542 million in the same period of 2017. Full-year revenue was $2.57 billion, up from $2.22 billion in 2017.
“2018 was a really good year for Murphy with our net income at the highest level in four years,” President and CEO Roger W. Jenkins said in a statement. “We continued to benefit from our diverse, growing, oil-weighted portfolio that was able to continuously generate high cash flow per barrel metrics. We demonstrated again that we are proven deal-makers by successfully closing on an accretive oil-weighted transaction that will further enhance our ability to generate cash flow.”
The company returned 14 percent of its operating cash flow to investors through dividends, the filing said, and preserved its balance sheet with a debt-to-total-capital ratio of 37 percent.
“We remain committed to rewarding shareholders with cash returns through our longstanding competitive dividend, while we keep investment in our assets in line with our cash flows,” Jenkins said.