Highlights

  • Second quarter net income attributable to Murphy was $232.2 million, or $1.59 per diluted share, versus $22.3 million.
  • Production averaged 175,013 barrels of oil equivalent per day, down 11% year over year on Gulf of America downtime.
  • Murphy raised 2026 capital expenditure guidance to $1.5 billion to $1.6 billion, citing Bubale, Eagle Ford and Chinook costs.
  • Cash was $483.9 million, with $2.0 billion of revolver capacity available and $550.1 million left under the buyback authorization.

Murphy Oil (NYSE:MUR) shares were trading near their 52-week high at USD 43.00 on October 21, 2026, down 0.21%. The independent oil and gas producer refinanced debt with $500 million of new senior notes in the first quarter, drilled an oil discovery offshore Côte d'Ivoire in the second quarter, and filed its second quarter report on August 5 with higher full-year spending guidance.

Based in Houston, Texas, Murphy is a Delaware corporation and describes itself as an independent oil and natural gas company with a multi-basin onshore and offshore portfolio. Its onshore inventory sits in the Eagle Ford Shale, Tupper Montney and Kaybob Duvernay, and its offshore assets are in the Gulf of America and Canada. The company reports exploration and production results for the United States, Canada and other regions, plus a corporate segment, and its fiscal year ends December 31.

Earnings Rise Sharply While Production Declines

Revenue from production for the quarter ended June 30, 2026 was $926.3 million, compared with $683.1 million a year earlier. Income from continuing operations, including noncontrolling interest, was $264.0 million versus $33.8 million. Net income attributable to Murphy was $232.2 million, or $1.59 per diluted share, against $22.3 million, or $0.16. Non-GAAP adjusted net income from continuing operations attributable to Murphy was $225.8 million, or $1.55 per diluted share. Murphy attributed the revenue gain mainly to higher realized crude oil prices, and lease operating expenses fell to $143.7 million from $215.6 million.

Volumes moved the other way. Production of 175,013 barrels of oil equivalent per day fell 11% from 196,315, mainly because of planned and unplanned downtime at several Gulf of America fields, partly offset by higher output in Canada offshore and from new Eagle Ford wells. Exploration expense rose to $39.3 million from $10.4 million, and over six months it reached $122.1 million, including dry hole costs at two Côte d'Ivoire wells and a Vietnam appraisal well. Income tax expense was $77.0 million versus $1.0 million.

Discoveries, Projects and Financing

In the quarter, Murphy drilled an oil discovery at the Bubale-1X well in Block CI-709 and concluded the Hai Su Vang appraisal program in Vietnam, where one of the last three wells was a dry hole. It finished drilling Chinook #8, launched the floating storage vessel for Lac Da Vang, and brought online ten onshore wells. After quarter end, it spud the Bubale West-1X appraisal well and a Vietnam exploration well.

In the first quarter, Murphy sold $500.0 million of 6.50% senior notes due February 15, 2034 and redeemed its 2027 and 2028 notes. Long-term debt was $1,547.9 million at June 30, up $165.3 million from December 31, and liquidity was about $2.5 billion. Operating cash flow from continuing operations for six months was $977.1 million versus $658.7 million, while capital expenditures were $978.2 million versus $678.4 million. Murphy paid $100.3 million of dividends over six months and made no share repurchases.

2026 Outlook and Next Milestones

Murphy now expects 2026 capital expenditures, excluding noncontrolling interest, of $1,500 million to $1,600 million, raised from $1,200 million to $1,300 million. Third quarter production is expected between 171.0 and 179.0 thousand barrels of oil equivalent per day, excluding noncontrolling interest. Management said it is more likely to use adjusted free cash flow, a non-GAAP measure, for buybacks than bond repayment.

Chinook #8 is expected online and Lac Da Vang first oil is anticipated in the fourth quarter of 2026. Cello #1 and Banjo #1 are expected to start producing in the fourth quarter of 2027, when a Hai Su Vang investment decision is also anticipated. The Bubale appraisal program may include up to five wells over 18 to 24 months. These are company estimates, and Murphy cautioned that Middle East conflict and commodity price swings could affect results.