second quarter 2026
Filed Aug 5, 2026MURPHY OIL CORPORATION ANNOUNCES SECOND QUARTER RESULTS
Production was at the upper end of quarterly guidance, net income increased versus 2Q 2025, and the company advanced several development and exploration activities. The full-year capital program was expanded and includes dry hole expense assumptions.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income attributable to MurphyGAAP | $ 232.2 | – | – |
| Net income attributable to Murphy per common share - DilutedGAAP | $ 1.59 | – | – |
| Adjusted net income from continuing operations attributable to Murphynon-GAAP | $ 225.8 | – | – |
| Adjusted net income from continuing operations per average common share - Dilutednon-GAAP | $ 1.55 | – | – |
| Adjusted EBITDA attributable to Murphynon-GAAP | $ 592.7 | – | – |
| Adjusted EBITDAX attributable to Murphynon-GAAP | $ 632.0 | – | – |
| Net cash provided by continuing operations activitiesGAAP | $ 655.9 | – | – |
| Operating cash flow excluding working capital adjustmentsnon-GAAP | $ 588.4 | – | – |
| Free cash flownon-GAAP | $ 110.0 | – | – |
| Oil production, netother | 85,265 BOPD | – | – |
| Total production, netother | 168,995 BOEPD | – | – |
| Capital expenditures (CAPEX)other | $ 476.0 | – | – |
| Lease operating expense from continuing operationsother | $ 8.83 per BOE | – | – |
| Onshore productionother | approximately 103,800 BOEPD | – | – |
| Onshore liquids mixother | 38 percent liquids | – | – |
| Offshore production, excluding NCIother | approximately 65,000 BOEPD | – | – |
| Offshore liquids mix, excluding NCIother | 88 percent liquids | – | – |
3Q 2026 and Full Year 2026 outlook
- Note3Q 2026 Total Net Production, excl. NCI: 171,000 to 179,000 BOEPD
- Note3Q 2026 Capital Expenditures, excl. NCI: $380 - $460 MM
- Note3Q 2026 Exploration Expense: $135 MM
- NoteFull Year 2026 Total Net Production, excl. NCI: 167,000 to 175,000 BOEPD
- NoteFull Year 2026 Capital Expenditures, excl. NCI: $1,500 to $1,600 MM
- NoteFull Year 2026 Exploration Expense: $300 MM
- Note3Q 2026 Eagle Ford Shale: 28,400 BOPD oil, 6,400 BOPD NGLs, 33,100 MCFD natural gas, 40,300 BOEPD total
- Note3Q 2026 Gulf of America, excl. NCI: 38,800 BOPD oil, 3,300 BOPD NGLs, 39,900 MCFD natural gas, 48,800 BOEPD total
- Note3Q 2026 Tupper Montney: 100 BOPD oil, 436,000 MCFD natural gas, 72,800 BOEPD total
- Note3Q 2026 Kaybob Duvernay: 3,800 BOPD oil, 600 BOPD NGLs, 9,500 MCFD natural gas, 6,000 BOEPD total
- Note3Q 2026 Offshore Canada: 6,900 BOPD oil, 6,900 BOEPD total
- Note3Q 2026 Other: 200 BOPD oil, 200 BOEPD total
- Note3Q 2026 exploration expense includes assumed dry hole expense of $100 MM
- NoteFull Year 2026 exploration expense includes dry hole expense of $80 MM in 1H 2026, and assumed dry hole expense of $100 MM for 2H 2026
- NoteChinook #8 is expected to come online in the fourth quarter of 2026 with a gross initial production rate of approximately 15 MBOEPD
- NoteLac Da Vang is expected to achieve first oil in the fourth quarter of this year
Capital returns
- Paid $50 million in quarterly dividends during the second quarter of 2026.
- The Company elected not to repurchase shares in the second quarter.
- $550 million remained under the share repurchase authorization.
- There were 143.4 million shares outstanding as of June 30, 2026.
What drove it
- Produced 169,000 BOEPD at the upper end of quarterly guidance, primarily due to continued strong well performance at Tupper Montney.
- Net income increased versus 2Q 2025, driven by stronger commodity prices and continued operational outperformance.
- Bubale-1X encountered 100 feet of net pay across two reservoirs in Block CI-709 offshore Côte d'Ivoire.
- Murphy brought online six Eagle Ford Shale wells and four Kaybob Duvernay wells.
- Murphy finalized pipeline installation and launched the FSO at the Lac Da Vang development project in Vietnam.
- Murphy completed drilling operations and initiated completion activities at Chinook #8 in the Gulf of America.
Concerns
- The Hai Su Vang-4X appraisal well was expensed as a dry hole.
- 3Q 2026 exploration expense includes assumed dry hole expense of $100 MM.
- Full Year 2026 exploration expense includes dry hole expense of $80 MM in 1H 2026 and assumed dry hole expense of $100 MM for 2H 2026.
- The full-year capital program was expanded, increasing the CAPEX midpoint from $1.25 billion to $1.55 billion.
- The Company did not repurchase shares in the second quarter.
What to watch
- Completion and expected fourth-quarter 2026 start-up of the Chinook #8 development well.
- Expected fourth-quarter first oil from Lac Da Vang.
- Results from the Bubale West-1X appraisal well in Block CI-103 offshore Côte d'Ivoire.
- Results from the Lac Da Trang North-1X exploration well in Block 15-1/05 in Vietnam.
- Delivery of the 2026 onshore well plan, including Eagle Ford Shale, Kaybob Duvernay, Tupper Montney and non-operated Eagle Ford Shale wells.
- Execution of the expanded full-year capital program.
Balance sheet and cash flow
- Net cash provided by continuing operations activities was $ 655.9.
- Operating cash flow excluding working capital adjustments was $ 588.4.
- Free cash flow was $ 110.0.
- Liquidity was approximately $2.48 billion on June 30, 2026, comprised of the undrawn $2.00 billion senior unsecured credit facility and approximately $480 million of cash and cash equivalents, inclusive of NCI.
- Total debt was $1.55 billion as of June 30, 2026, comprised of long-term, fixed-rate notes.
- Total debt had a weighted average maturity of 8.7 years and a weighted average coupon of 6.3 percent.
Analysis
Murphy reported second-quarter net income attributable to Murphy of $ 232.2 and diluted net income attributable to Murphy per common share of $ 1.59. The company said net income was $232 million in 2Q 2026 compared with $22 million in 2Q 2025, attributing the increase to stronger commodity prices and continued operational outperformance. Adjusted net income from continuing operations attributable to Murphy was $ 225.8, while adjusted EBITDA attributable to Murphy was $ 592.7 and adjusted EBITDAX attributable to Murphy was $ 632.0.
Production was 168,995 BOEPD, including 85,265 BOPD of net oil production. Management said output of 169,000 BOEPD was at the upper end of quarterly guidance, primarily reflecting continued strong well performance at Tupper Montney. The onshore business produced approximately 103,800 BOEPD with 38 percent liquids, while offshore production excluding NCI was approximately 65,000 BOEPD with 88 percent liquids. The company executed its planned onshore program, bringing online six Eagle Ford Shale wells and four Kaybob Duvernay wells.
Cash generation included $ 655.9 of net cash provided by continuing operations activities, $ 588.4 of operating cash flow excluding working capital adjustments, and $ 110.0 of free cash flow. Capital expenditures were $ 476.0. Murphy paid $50 million in quarterly dividends, did not repurchase shares, and retained $550 million under its share repurchase authorization. Liquidity was approximately $2.48 billion, and total debt was $1.55 billion.
Operational progress included pipeline installation and FSO launch at Lac Da Vang, which remains on track for expected first oil in the fourth quarter of this year. The Chinook #8 development well is expected to come online in the fourth quarter of 2026 with a gross initial production rate of approximately 15 MBOEPD. Exploration added the Bubale-1X oil discovery, which encountered 100 feet of net pay across two reservoirs, while Hai Su Vang-4X was expensed as a dry hole.
The company guided to 3Q 2026 total net production excluding NCI of 171,000 to 179,000 BOEPD and full-year 2026 production of 167,000 to 175,000 BOEPD. Full-year capital expenditures excluding NCI are guided to $1,500 to $1,600 MM, following the increase in the CAPEX midpoint from $1.25 billion to $1.55 billion. Exploration expense guidance is $135 MM for 3Q 2026 and $300 MM for the full year, including stated dry hole expense and assumptions.
Management, verbatim
Murphy enters the second half of 2026 with a growing exploration pipeline and multiple pathways to long-term shareholder value creation. Bubale-1X has broadened our opportunity set, Hai Su Vang has progressed from appraisal to development planning, and Lac Da Vang is nearing first oil. The breadth of our portfolio creates optionality, allowing us to prioritize the highest-value opportunities and maximize shareholder returns.
Eric M. Hambly, President and Chief Executive Officer
Not in the filing
stated, not guessed- Total revenue and revenue comparisons were not included in the provided filing text.
- Segment revenue, segment revenue growth, and segment margin data were not included in the provided filing text.
- Gross profit, gross margin, operating income, operating expenses, income tax expense, and tax rate were not included in the provided filing text.
- Prior-quarter comparisons for reported financial and operating metrics were not included in the provided filing text.
- Prior-year figures and percentage changes for most reported metrics were not included in the provided filing text.
- GAAP diluted EPS for 2Q 2025 was not included in the provided filing text.
- Non-GAAP EPS, adjusted EBITDA, adjusted EBITDAX, operating cash flow, free cash flow, and CAPEX comparative figures were not included in the provided filing text.
- A previous release outlook was not provided, so no comparison of actual results against prior guidance is available.
- Revenue, gross margin, operating expense, and tax-rate guidance were not included in the provided filing text.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.