Murphy Oil Sees Sharp Profit Increase

Murphy Oil Corp has reported $225.8 million in net income adjusted for nonrecurring items for the second quarter (Q2), nearly six times that of the same three-month period last year as soaring oil prices offset lower production and weaker gas prices.

The Houston, Texas-based exploration and production company's adjusted net earnings per diluted share of $1.55 beat the $1.51 consensus projection by brokerage analysts polled by Zacks.

Murphy Oil maintained its dividend per share at $0.35, or $1.4 per share on an annualized basis. "While the company elected not to repurchase shares in the second quarter, it retains significant flexibility with $550 million remaining under its share repurchase authorization", it said.

Net profit totaled $232.18 million for the April-June 2026 quarter, up from $22.28 million for Q2 2025.

Net crude oil and condensate output fell to 90,746 barrels per day (bpd) in Q2 2026 from 95,600 bpd in Q2 2025, despite increased contributions from Canada both onshore and offshore. The United States offshore accounted for the bulk, or 50,920 bpd, of the total figure. Murphy Oil's production comes only from the two countries, while its exploration portfolio includes Côte d’Ivoire and Vietnam.

Net natural gas production dropped to 437.71 million cubic feet per day (MMcfpd) in Q2 2026 from 539.66 MMcfpd in Q2 2025. The Canadian onshore contributed the most at 355.67 MMcfpd.

Net natural gas liquids production rose to 11,315 bpd in Q2 2026 from 10,771 bpd in Q2 2025.

Murphy Oil expects to average 167,000-175,000 barrels of oil equivalent a day in production in 2026.

It has increased the midpoint of its annual capital expenditure guidance to $1.55 billion from $1.25 billion "to advance high-impact appraisal and development opportunities".

Q2 2026 sales revenue totaled $926.33 million, up from $683.07 million for Q2 2025. Adjusted earnings before interest, taxes, depreciation and amortization grew to $592.7 million from $334.9 million. Operating activities generated $655.9 million in net cash for Q2 2026, up from $358.1 million for Q2 2025.

Murphy Oil ended Q2 2026 with $2.48 billion in liquidity including $480 million in cash and cash equivalents. The current portion of long-term debt and finance lease stood at $2.58 million.

"Murphy enters the second half of 2026 with a growing exploration pipeline and multiple pathways to long-term shareholder value creation. Bubale-1X [in the Ivory Coast] has broadened our opportunity set, Hai Su Vang [in Vietnam] has progressed from appraisal to development planning, and Lac Da Vang [in Vietnam] is nearing first oil", said president and chief executive Eric M. Hambly.

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