Murphy Oil Corporation based in El Dorado, Arkansas has joined other oil and gas firms in cutting its capital expenditures for the rest of the year because of the massive drop in oil prices. It’s cut the 2020 budget by 35% and layoffs are being made in Texas.
The company announced Thursday it had slashed $500 million from its 2020 budget of $1.4 billion, leaving $950 million for cap-ex the rest of the year.
“Under current conditions, we believe this capital reduction program allows for financial flexibility and preservation of our longstanding dividend. As always, we will not sacrifice safety in our efforts to reduce costs across all our assets, as it remains a core value within Murphy,” stated Roger W. Jenkins, President and Chief Executive Officer.
The revised plan will be achieved through delaying some of the company’s US Gulf of Mexico projects and development wells; postponing spud timing of two operated exploration wells, releasing operated rigs and frac crews in the Eagle Ford Shale with no operated activity planned in the second half of 2020; and deferring well completions in the Tupper Montney.
“Murphy has an ample liquidity position as of year-end 2019 between its undrawn $1.6 billion senior unsecured credit facility due November 2023 plus cash on hand, along with other sources of liquidity arising in the normal course of business. Further, we have no debt maturities until June 2022,” said Jenkins.
Source: Murphy Oil