Murphy Oil Corp president and chief government Eric M. Hambly mentioned Wednesday the corporate is refraining from making forward-looking actions based mostly on the current motion of oil costs.
“The primary quarter of 2026 unfolded in opposition to one of the crucial risky macroeconomic backdrops the vitality sector has skilled in years”, Hambly mentioned in a letter to shareholders. “Throughout the quarter, international vitality markets have been formed by heightened geopolitical dangers which drove a pointy enhance in oil costs.
“Whereas these occasions highlighted the significance of safe and reliable provide, additionally they strengthened the cyclical nature of our business and the significance of a resilient and versatile enterprise mannequin.
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“Throughout these unsure occasions, our technique is to remain anchored to what we management – disciplined capital allocation, protected and dependable operations and our long-cycle tasks.
“Within the first quarter, this focus translated into robust execution throughout our portfolio with significant progress at Lac Da Vang in Vietnam, development of the high-impact Chinook #8 properly within the Gulf of America and sustained outperformance from our U.S. and Canada onshore packages.
“We additionally took steps to protect our stability sheet power, improve liquidity and enhance our debt maturity profile.
“Within the quarter, our unhedged place enabled the corporate to completely seize the upside from greater oil costs. Given the potential for costs to maneuver meaningfully in both path, we elected to not implement any oil hedges through the quarter. Our robust monetary standing permits us to maintain this strategy whereas preserving the flexibleness to adapt to market modifications and maximize shareholder worth.
“With respect to our capital expenditure (capex) plan, we’re avoiding incremental spending tied to short-term worth strikes and are retaining our 2026 capex steering unchanged”.
The Houston, Texas-based explorer and producer reported $53 million in internet revenue and $46.5 million in internet revenue adjusted for nonrecurring gadgets for the primary quarter (Q1), each down from the identical three-month interval final 12 months.
Whereas the adjusted determine was practically half of Q1 2025, adjusted earnings per share of $0.32 for the January-March 2026 interval beat the Zacks Consensus Estimate of $0.29, helped by greater onshore manufacturing in the USA and better realized pure gasoline costs. The New York-listed firm declared a dividend per share of $0.35.
Murphy Oil’s complete internet output together with non-controlling pursuits (NCI) rose from 163, 374 barrels of oil equal per day (boepd) in Q1 2025 to 180,053 boepd in Q1 2026. Excluding NCI, internet manufacturing averaged 174,236 boepd, up from 157,220 boepd in Q1 2025.
In crude oil and condensate manufacturing, U.S. onshore climbed to twenty-eight,497 bpd however U.S. offshore fell to 51,839 bpd. Canadian onshore and offshore each elevated to 2,932 bpd and 9,006 bpd respectively.
U.S. pure gasoline liquids manufacturing elevated each onshore and offshore to five,856 bpd and 4,298 bpd respectively.
U.S. gasoline manufacturing additionally elevated each onshore and offshore to 33.08 million cubic toes per day (MMcfpd) and 51.15 MMcfpd respectively. Canadian contribution (onshore) elevated to 377 MMcfpd.
Murphy Oil bought a complete of 179,223 boepd internet together with NCI, up from 163,938 boepd in Q1 2025. Exlcuding NCI, internet gross sales totaled 173,354 boepd, up from 157,996 boepd in Q1 2025.
Realized costs for crude and condensate rose year-on-year for U.S. onshore to $73.44 per barrel. U.S. offshore fell to $71.65 per barrel. Murphy Oil’s Canadian crude and condensate, each onshore and offshore, bought for greater costs in comparison with Q1 2025.
U.S. and Canadian realized NGL costs fell year-over-year, whereas Murphy logged greater realized gasoline costs in each international locations: $3.74 per thousand cubic toes for U.S. onshore, $5.68 for U.S. offshore and $2.44 for Canadian onshore.
Income rose from $665.71 million for Q1 2025 to $733.55 million for Q1 2026. Internet money from working actions rose from $300.68 million to $321.18 million. Free money movement (FCF) and adjusted FCF for Q1 2026 was $41.4 million and a destructive 61.7 million respectively, in comparison with Q1 2025 FCF of -$44.9 million and Q1 2025 adjusted FCF of -$108 million.
Present belongings totaled $936.95 million together with $378.75 million in money and money equivalents. Present liabilities stood at $1.13 billion together with $2.55 million in present maturities from long-term debt and finance lease.
Murphy Oil had $2.38 billion of liquidity on the finish of Q1 2026. In addition to money and money equivalents, that included a $2-billion undrawn senior unsecured credit score facility.
To contact the writer, e mail jov.onsat@rigzone.com
