Murphy Oil Corp
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.86%.
Did MUR Beat Earnings? Q2 2025 Results
Murphy Oil delivered a sharply better-than-expected second quarter, with adjusted earnings of $0.27 per diluted share beating the $0.17 consensus estimate by 61.19%, even as tumbling commodity prices weighed heavily on headline results. Revenue of $683.07 million topped analyst expectations by 8.04%, though it still fell 14.7% year over year as realized oil prices slid 11% sequentially to $64.31 per barrel and natural gas prices dropped 29.5% to $1.88 per MCF. The clearest driver of the beat was a production surge to 189,677 BOEPD, clearing the high end of guidance, fueled by record-setting new wells in Eagle Ford's Karnes County and all 10 new Tupper Montney wells ranking among Murphy's all-time top-20 performers. With the company now eyeing an active exploration calendar, including Cello #1 and Banjo #1 wells in the Gulf of America and a Côte d'Ivoire deepwater program kicking off in Q4, Murphy reaffirmed full-year capital spending guidance and guided Q3 production to 185,000 to 193,000 BOEPD, signaling confidence in operational momentum despite the soft pricing environment.
- Strong new onshore well productivity exceeding expectations at Eagle Ford and Tupper Montney
- Karnes County Eagle Ford wells delivered highest initial production rates in Murphy EFS history averaging 2,123 BOEPD per well
- All 10 new Tupper Montney wells in Murphy all-time top-20 performers with 19.2 MMCFPD average 30-day IP
- Lower operating expenses at $11.80/BOE, down 14.1% sequentially
- Eagle Ford Shale operating costs down 18% or $12 million in H1 2025 vs H1 2024
- Completion of Samurai #3 and Khaleesi #2 workovers in Gulf of America
- Significantly lower realized oil prices ($64.31/bbl, down 11% sequentially) and natural gas prices ($1.88/MCF, down 29.5% sequentially)
“I am very pleased with our solid operational results in the second quarter which were achieved through strong new onshore well performance, continued Gulf of America workover progress, and field development execution at Lac Da Vang (Golden Camel). It's an exciting time at Murphy as we look ahead to significant exploration and appraisal catalysts in the second half of the year.”
Murphy Oil CEO, on the earnings call
Forward Guidance & Outlook
Murphy reaffirmed full-year 2025 CAPEX guidance at the midpoint of $1,135 to $1,285 million (excluding the $23 million Eagle Ford acquisition). Full-year total company production is now expected to trend toward the midpoint of 174,500 to 182,500 BOEPD. Q3 2025 production guidance is 185,000 to 193,000 BOEPD with Q3 CAPEX expected at $260 million. Operating expenses are anticipated in the $10 to $12 per BOE range during H2 2025. Significant exploration catalysts are expected in H2 2025 including Cello #1 and Banjo #1 wells in the Gulf of America, a Hai Su Vang appraisal well in Vietnam (results expected Q4), and a three-well Côte d'Ivoire exploration program beginning in Q4. The Lac Da Vang field development in Vietnam remains on schedule for first oil in Q4 2026. Given current market conditions and the exploration program, the company expects to use available adjusted free cash flow for share repurchases rather than bond repayments.
MUR YoY Financials
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MUR Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.