Arkansas-based Murphy Oil reported first quarter 2019 net income of $40 million or 23 cents per diluted share.
Adjusted net income for the company headquartered in El Dorado was $27 million or 15 cents per diluted share.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations attributable to Murphy, totaled $311 million, or $23.00 per barrel of oil equivalent (BOE) sold. Adjusted earnings before interest, taxes, depreciation, amortization and exploration expenses (EBITDAX) from continuing operations attributable to Murphy, totaled $330 million, or $24.43 per BOE sold. Details for first quarter EBITDA and EBITDAX reconciliation can be found in the attached schedules.
The financial report came after Murphy announced the divestiture of its Malaysia assets in March of this year. The sale agreement was for $2.127 billion cash with an expected book gain of $0.9 billion to $1 billion.
During the quarter, Murphy also obtained operatorship approval from regulators for Gulf of Mexico assets acquired from Petrobras America Inc. The Gulf deal was for $1.375 billion.
“The first quarter was an extremely busy quarter at Murphy. We demonstrated again that we are proven deal-makers by successfully executing agreements to divest our Malaysia assets, which are becoming gassier, followed shortly thereafter by an agreement to re-deploy the expected proceeds by acquiring oil-weighted, tax-advantaged Gulf of Mexico assets further enhancing our ability to generate cash flow, ” said Roger W. Jenkins, President and Chief Executive Officer. “While our lower than planned production across our North American business was disappointing, many of the causes were one-off events and are now behind us with production stabilize “as we move into the second quarter.”
As of March 31, 2019, the company had $2.8 billion of outstanding long-term, fixed-rate notes, $325 million of borrowings on the $1.6 billion unsecured senior credit facility, and approximately $286 million in cash and cash equivalents, net to Murphy at quarter end. The fixed-rate notes had a weighted average maturity of 7.5 years and a weighted average coupon of 5.5 percent.