Murphy Oil Corporation Announces Preliminary Financial and Operating Results for the Fourth Quarter and Full-Year Ended December 31, 2015; Provides Capital Expenditure and Production Guidance for the Full Year of 2016
January 28, 2016 at 03:39 am IST
Share
Murphy Oil Corporation announced preliminary financial and operating results for the fourth quarter and full-year ended December 31, 2015. The net loss of $587.1 million, or $3.41 per diluted share, includes a non-cash impairment of oil and natural gas properties of $192.2 million, or $123.5 million net of taxes, as a result of further declines in market prices for future production since the end of third quarter. The net loss from continuing operations in the fourth quarter of 2015 was $583.2 million, or $3.39 per diluted share. The company reported an adjusted loss, which excludes both the results of discontinued operations and certain other items that affect comparability of results between periods, of $130.5 million, or $0.76 per diluted share in the fourth quarter of 2015. Earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations in the fourth quarter 2015 totaled a negative $122.0 million, or $6.41 per barrel of oil equivalent (boe) sold, inclusive of the impact of the aforementioned $282.0 million in deepwater rig exit costs. Earnings before interest, taxes, depreciation, amortization and exploration expenses (EBITDAX) in the fourth quarter 2015 totaled $97.1 million, or $5.10 per boe sold.
Fourth quarter 2015 production averaged nearly 200,800 barrels of oil equivalent per day (boepd), slightly ahead of its 199,000 boepd guidance, primarily due to higher natural gas production from the Montney area in Western Canada and higher production in Malaysia for Sarawak natural gas
For the year-ended December 31, 2015, Murphy reported a net loss of $2,270.8 million, or $13.03 per diluted share which includes non-cash impairments of oil and natural gas properties totaling $2,493.2 million, or $1,660.0 million net of taxes. EBITDA from continuing operations for the full-year 2015 totaled $948.1 million, or $12.38 per boe sold. EBITDAX for the same period totaled $1,419.0 million, or $18.53 per boe sold. Both EBITDA and EBITDAX were greatly impacted by a 47% decrease in Brent and WTI oil prices between the comparative periods and the Deepwater rig contract exit costs. The company spent $2.19 billion as compared to original CapEx plan of $2.3 billion.
Production for the full-year 2015 averaged 207,903 boepd. Details for 2015 production can be found in the attached schedules.
Murphy is planning 2016 capital expenditures for operations to be $825.0 million, which is approximately 62% lower than the $2.19 billion spent in 2015. Approximately, 45% will be allocated toward offshore, 41% will be allocated toward the Eagle Ford Shale and 14% will be allocated toward Canada onshore. At this time, the capital program for 2016 remains under review for additional downward revisions should lower commodity prices persist.
Production for the first quarter 2016 is estimated in the range of 190,000 - 194,000 boepd with full-year 2016 production to be in the range of 180,000 to 185,000 boepd.
Murphy Oil Corporation is an independent oil and gas exploration and production company. The Company is engaged in both onshore and offshore operations and properties. The Companyâs geographic segments include the United States, Canada, and all other countries. It produces crude oil, natural gas and natural gas liquids primarily in the United States and Canada and explores for crude oil, natural gas and natural gas liquids in targeted areas worldwide. In the United States, it produces crude oil, natural gas liquids and natural gas primarily from fields in the Gulf of Mexico and in the Eagle Ford Shale area of South Texas. It holds rights to approximately 133 thousand gross acres in South Texas in the Eagle Ford Shale unconventional oil and natural gas play. In Canada, it holds working interests in Tupper Montney (100% owned), Kaybob Duvernay (operated) and two non-operated offshore assets: the Hibernia and Terra Nova fields, located offshore Newfoundland in the Jeanne dâArc Basin.
Murphy Oil Corporation Announces Preliminary Financial and Operating Results for the Fourth Quarter and Full-Year Ended December 31, 2015; Provides Capital Expenditure and Production Guidance for the Full Year of 2016