Murphy Oil — Nov 7, 2024 release

EXHIBIT 99.1 MURPHY OIL CORPORATION ANNOUNCES THIRD QUARTER 2024 FINANCIAL AND OPERATING RESULTS Repurchased $194 Million of Shares Outstanding, Initiated Vietnam Exploration Program HOUSTON, Texas, November 7, 2024 – Murphy Oil Corporation (NYSE: MUR) today announced its financial and operating results for the third quarter ended September 30, 2024, including net income attributable to Murphy of $139 million, or $0.93 net income per diluted share. Excluding discontinued operations and other items affecting comparability between periods, adjusted net income attributable to Murphy was $111 million, or $0.74 adjusted net income per diluted share. Unless otherwise noted, the financial and operating highlights and metrics discussed in this commentary exclude noncontrolling interest (NCI). 1 Highlights for the third quarter include: • Produced 185 thousand barrels of oil equivalent per day (MBOEPD), with 88 thousand barrels of oil per day (MBOPD) • Repurchased $194 million of stock, or 5.4 million shares, at an average price of $36.12 per share • Initiated a two-well Vietnam exploration program, drilling the Hai Su Vang-1X exploration well in Block 15/2-17 • Maintained quarterly dividend of $0.30 per share or $1.20 per share annualized Subsequent to the third quarter: • Issued $600 million aggregate principal amount of 6.000 percent senior notes due 2032, and used proceeds to tender an aggregate $521 million of senior notes due 2027, 2028 and 2029 • Entered into new five-year, $1.2 billion senior unsecured credit facility, representing a 50 percent increase from previous facility size • Commenced platform construction for the Lac Da Vang field development project in Vietnam • Announced Chief Executive Officer transition, effective January 1, 2025 1 “The company has gone through an incredible transformation since we first established our strategy of Delever, Execute, Explore, Return,” said Roger W. Jenkins, Chief Executive Officer. “Most recently, we improved our balance sheet by securing a highly competitive rate on our new senior notes and significantly upsizing our unsecured credit facility. Further, we continue to reward our shareholders through a long-standing dividend and ongoing meaningful share repurchases, and our exploration opportunities in Vietnam and Côte d’Ivoire provide upside to our portfolio.” THIRD QUARTER 2024 RESULTS The company recorded net income attributable to Murphy of $139 million, or $0.93 net income per diluted share, for the third quarter 2024. Adjusted net income, which excludes both the results of discontinued operations and certain other items that affect comparability of results between periods, was $111 million, or $0.74 adjusted net income per diluted share for the same period. Details for third quarter results and an adjusted net income reconciliation can be found in the attached schedules. Earnings before interest, taxes, depreciation and amortization (EBITDA) attributable to Murphy were $378 million. Earnings before interest, tax, depreciation, amortization and exploration expenses (EBITDAX) attributable to Murphy were $410 million. Adjusted EBITDA attributable to Murphy was $397 million. Adjusted EBITDAX attributable to Murphy was $429 million. Reconciliations for third quarter EBITDA, EBITDAX, adjusted EBITDA and adjusted EBITDAX can be found in the attached schedules. Third quarter production averaged 185 MBOEPD, which included 88 MBOPD. Onshore production was approximately 2.1 MBOEPD above guidance primarily due to stronger well performance in Tupper Montney. This partially offset 1.4 MBOEPD of unplanned downtime in the Gulf of Mexico, primarily due to temporary outages at third-party downstream facilities, and 1.7 MBOEPD of additional downtime at non-operated Terra Nova. Accrued capital expenditures (CAPEX) for third quarter 2024 totaled $211 million, excluding NCI. Details for third quarter production and CAPEX can be found in the attached schedules. CAPITAL ALLOCATION FRAMEWORK Share Repurchases During the third quarter, Murphy repurchased $194 million of stock, or 5.4 million shares, at an average price of $36.12 per share. In the first nine months of 2024, Murphy repurchased $300 million of stock, or 8.0 million shares, at an average price of $37.46 per share. Murphy currently has $650 million remaining under its share repurchase authorization and 145.8 million shares outstanding. Liquidity and Debt Transactions Murphy had approximately $1.1 billion of liquidity on September 30, 2024, with no borrowings on the $800 million senior unsecured credit facility and $271 million of cash and cash equivalents, inclusive of NCI. As of September 30, 2024, Murphy’s total debt was $1.28 billion, and consisted of long-term, fixed-rate notes with a weighted average maturity of 7.5 years and a weighted average coupon of 6.2 percent. 2 As previously announced, subsequent to the third quarter Murphy issued $600 million of 6.000 percent senior notes due 2032. Proceeds were used to redeem $259 million of senior notes due 2027, $200 million of senior notes due 2028 and $62 million of senior notes due 2029, totaling $521 million. Murphy plans to call the remaining $79 million of senior notes in fourth quarter 2024 to achieve a debt-neutral transaction. Also subsequent to the third quarter, Murphy entered into a new five-year, $1.2 billion senior unsecured credit facility, representing a 50 percent increase from the previous facility size, or $400 million of additional liquidity. OPERATIONS SUMMARY Onshore In the third quarter of 2024, the onshore business produced approximately 109 MBOEPD, which included 29 percent liquids volumes. Eagle Ford Shale – Production averaged 32 MBOEPD with 72 percent oil volumes and 86 percent liquids volumes in the third quarter. Murphy brought online five operated Tilden wells as planned, in addition to three non-operated Karnes wells and nine non-operated Tilden wells during the quarter. Tupper Montney – During the third quarter, natural gas production averaged 429 million cubic feet per day (MMCFD), which exceeded guidance by approximately 11 MMCFD primarily due to stronger well performance. Kaybob Duvernay – Production averaged 5 MBOEPD with 73 percent liquids volumes in the third quarter. Offshore Excluding NCI, in the third quarter of 2024, the offshore business produced approximately 75 MBOEPD, which included 81 percent oil. Gulf of Mexico – Production averaged approximately 67 MBOEPD, consisting of 79 percent oil during the third quarter. As previously announced, Murphy brought online the operated Mormont #3 (Green Canyon 478) well and concluded workovers in the Neidermeyer, Dalmatian and non-operated Kodiak fields. Also during the quarter, the company spud the operated Mormont #4 (Green Canyon 478) well, and Murphy’s operating partner began water injection at the St. Malo waterflood project. Canada – In the third quarter, production averaged 8 MBOEPD, consisting of 100 percent oil. EXPLORATION Gulf of Mexico – During the third quarter, Murphy drilled the Sebastian #1 (Mississippi Canyon 387) exploration well. The well encountered non-commercial hydrocarbons and has been plugged and abandoned. Approximately $12 million of the net well cost was expensed in the third quarter. Murphy holds a 26.8 percent working interest in the well. Vietnam – Murphy as operator spud the Hai Su Vang-1X (Block 15-2/17) exploration well during the third quarter, initiating its two-well Vietnam exploration program. Murphy holds a 40 percent working interest in the well. Following this well, the company will spud the Lac Da Hong-1X (Block 15-1/05) exploration well as operator with a 40 percent working interest. 3 CHIEF EXECUTIVE OFFICER TRANSITION As previously announced, the Board of Directors has appointed Eric M. Hambly, Murphy’s current President and Chief Operating Officer, to succeed Roger W. Jenkins as the company's President and Chief Executive Officer, effective January 1, 2025. In addition, Mr. Hambly will become a member of the Board of Directors. Mr. Jenkins will retire from the Board on December 31, 2024. He will remain with Murphy in a non-executive role as an advisor until his retirement on December 31, 2025. 2024 CAPITAL EXPENDITURE AND PRODUCTION GUIDANCE Murphy maintains its 2024 accrued CAPEX range of $920 million to $1.02 billion. The company is tightening its full year 2024 production range to 180 to 182 MBOEPD, consisting of approximately 50 percent oil and 55 percent liquids volumes. As previously disclosed, the company expects to be at the lower end of the production range due to operational impacts in the Gulf of Mexico and at non-operated Terra Nova. Production for fourth quarter 2024 is estimated to be in the range of 181.5 to 189.5 MBOEPD with 94 MBOPD, or approximately 51 percent, oil volumes. This includes 1.5 MBOEPD of planned onshore downtime and 1.0 MBOEPD of planned downtime for maintenance at non-op Terra Nova. Both production and CAPEX guidance ranges exclude NCI. “We achieved a significant milestone this year as we reached Murphy 3.0 of our capital allocation framework. This allowed us to increase our shareholder returns through additional share repurchases after previously raising our dividend in first quarter 2024. Additionally, we extended the maturity profile of our debt and enhanced our liquidity position with a 50 percent increase in our senior unsecured credit facility,” said Eric M. Hambly, President and Chief Operating Officer. “As we look to 2025, I am excited to increase shareholder returns, progress our Vietnam development project and announce exploration results – all of which we expect to accomplish while maintaining a strong balance sheet.” Detailed guidance for the fourth quarter and full year 2024 is contained in the attached schedules. FIXED PRICE CONTRACTS The company employs derivative commodity instruments to manage certain risks associated with commodity price volatility and underpin capital spending associated with certain assets. During the third quarter, Murphy executed NYMEX natural gas swaps of 20 MMCFD of full-year 2025 production at an average price of $3.20 per thousand cubic feet. Murphy also maintains fixed price forward sales contracts in Canada to mitigate volatility of AECO prices. These contracts are for physical delivery of natural gas volumes at a fixed price, with no mark-to-market income adjustments. Details for the current fixed price contracts can be found in the attached schedules. 4 CONFERENCE CALL AND WEBCAST SCHEDULED FOR NOVEMBER 7, 2024 Murphy will host a conference call to discuss third quarter 2024 financial and operating results on Thursday, November 7, 2024, at 9:00 a.m. EST. The call can be accessed either via the Internet through the events calendar on the Murphy Oil Corporation Investor Relations website at http://ir.murphyoilcorp.com or via telephone by dialing toll-free 800-717-1738, reservation number 41884. For additional information, please refer to the Third Quarter 2024 Earnings Presentation available under the News and Events section of the Investor Relations website. FINANCIAL DATA Summary financial data and operating statistics for third quarter 2024, with comparisons to the same period from the previous year, are contained in the attached schedules. Additionally, a schedule indicating the impacts of items affecting comparability of results between periods, a reconciliation of EBITDA, EBITDAX, adjusted EBITDA and adjusted EBITDAX between periods, as well as guidance for the fourth quarter and full year 2024, are also included. CAPITAL ALLOCATION FRAMEWORK This news release contains references to the company’s capital allocation framework and adjusted free cash flow. As previously disclosed, Murphy now allocates capital pursuant to Murphy 3.0 of the company’s capital allocation framework, under which the company allocates a minimum of 50 percent of adjusted free cash flow to shareholder returns, primarily through buybacks. Murphy will continue to assess the appropriate shareholder return allocation under the framework, including potential dividend increases. The remainder of adjusted free cash flow will be allocated to the balance sheet as the company maintains the $1.0 billion total long-term debt goal. Adjusted free cash flow is defined as cash flow from operations before working capital change, less capital expenditures, distributions to NCI and projected payments, quarterly dividend and accretive acquisitions. ABOUT MURPHY OIL CORPORATION As an independent oil and natural gas exploration and production company, Murphy Oil Corporation believes in providing energy that empowers people by doing right always, staying with it and thinking beyond possible. Murphy challenges the norm, taps into its strong legacy and uses its foresight and financial discipline to deliver inspired energy solutions. Murphy sees a future where it is an industry leader who is positively impacting lives for the next 100 years and beyond. Additional information can be found on the company’s website at www.murphyoilcorp.com. FORWARD-LOOKING STATEMENTS This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified through the inclusion of words such as “aim”, “anticipate”, “believe”, “drive”, “estimate”, “expect”, “expressed confidence”, “forecast”, “future”, “goal”, “guidance”, “intend”, “may”, “objective”, “outlook”, “plan”, “position”, “potential”, “project”, “seek”, “should”, “strategy”, “target”, “will” or variations of such words and other similar expressions. These statements, which express management’s current views concerning future events, results and plans, are subject to inherent risks, uncertainties and assumptions (many of which are beyond 5 our control) and are not guarantees of performance. In particular, statements, express or implied, concerning the company’s future operating results or activities and returns or the company's ability and decisions to replace or increase reserves, increase production, generate returns and rates of return, replace or increase drilling locations, reduce or otherwise control operating costs and expenditures, generate cash flows, pay down or refinance indebtedness, achieve, reach or otherwise meet initiatives, plans, goals, ambitions or targets with respect to emissions, safety matters or other ESG (environmental/social/governance) matters, make capital expenditures or pay and/or increase dividends or make share repurchases and other capital allocation decisions are forward-looking statements. Factors that could cause one or more of these future events, results or plans not to occur as implied by any forward-looking statement, which consequently could cause actual results or activities to differ materially from the expectations expressed or implied by such forward-looking statements, include, but are not limited to: macro conditions in the oil and gas industry, including supply/demand levels, actions taken by major oil exporters and the resulting impacts on commodity prices; geopolitical concerns; increased volatility or deterioration in the success rate of our exploration programs or in our ability to maintain production rates and replace reserves; reduced customer demand for our products due to environmental, regulatory, technological or other reasons; adverse foreign exchange movements; political and regulatory instability in the markets where we do business; the impact on our operations or market of health pandemics such as COVID-19 and related government responses; other natural hazards impacting our operations or markets; any other deterioration in our business, markets or prospects; any failure to obtain necessary regulatory approvals; any inability to service or refinance our outstanding debt or to access debt markets at acceptable prices; or adverse developments in the US or global capital markets, credit markets, banking system or economies in general, including inflation. For further discussion of factors that could cause one or more of these future events or results not to occur as implied by any forward-looking statement, see “Risk Factors” in our most recent Annual Report on Form 10-K filed with the US Securities and Exchange Commission (“SEC”) and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K that we file, available from the SEC’s website and from Murphy Oil Corporation’s website at http://ir.murphyoilcorp.com. Investors and others should note that we may announce material information using SEC filings, press releases, public conference calls, webcasts and the investors page of our website. We may use these channels to distribute material information about the company; therefore, we encourage investors, the media, business partners and others interested in the company to review the information we post on our website. The information on our website is not part of, and is not incorporated into, this news release. Murphy Oil Corporation undertakes no duty to publicly update or revise any forward-looking statements. NON-GAAP FINANCIAL MEASURES This news release contains certain non-GAAP financial measures that management believes are useful tools for internal use and the investment community in evaluating Murphy Oil Corporation’s overall financial performance. These non-GAAP financial measures are broadly used to value and compare companies in the crude oil and natural gas industry. Not all companies define these measures in the same way. In addition, these non-GAAP financial measures are not a substitute for financial measures prepared in accordance with GAAP and should therefore be considered only as supplemental to such GAAP financial measures. Please see the attached schedules for reconciliations of the differences between the non-GAAP financial measures used in this news release and the most directly comparable GAAP financial measures. 6 1 In accordance with GAAP, Murphy reports the 100 percent interest, including a 20 percent noncontrolling interest (NCI), in its subsidiary, MP Gulf of Mexico, LLC (MP GOM). The GAAP financials include the NCI portion of revenue, costs, assets and liabilities and cash flows. Unless otherwise noted, the financial and operating highlights and metrics discussed in this news release, but not the accompanying schedules, exclude the NCI, thereby representing only the amounts attributable to Murphy. Investor Contacts: InvestorRelations@murphyoilcorp.com Kelly Whitley, 281-675-9107 Megan Larson, 281-675-9470 Beth Heller, 832-506-6831 7 MURPHY OIL CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three Months Ended September 30, Nine Months Ended September 30, (Thousands of dollars, except per share amounts) 2024 2023 2024 2023 Revenues and other income Revenue from production $ 753,169   $ 945,889  $ 2,345,282   $ 2,541,956  Sales of purchased natural gas —   7,877  3,742   64,628  Total revenue from sales to customers 753,169   953,766  2,349,024   2,606,584  (Loss) on derivative instruments (1,344) —  (1,344) —  Gain on sale of assets and other income 6,506   5,879  9,834   9,365  Total revenues and other income 758,331   959,645  2,357,514   2,615,949  Costs and expenses Lease operating expenses 222,886   193,402  716,778   587,678  Severance and ad valorem taxes 10,503   10,937  31,006   35,142  Transportation, gathering and processing 47,438   61,518  157,461   175,308  Costs of purchased natural gas —   5,467  3,147   47,393  Exploration expenses, including undeveloped lease amortization 31,284   26,514  118,390   152,489  Selling and general expenses 24,871   30,745  78,925   74,398  Depreciation, depletion and amortization 223,632   237,493  650,309   648,830  Accretion of asset retirement obligations 13,241   11,675  39,068   34,196  Other operating expense 5,450   4,385  10,497   21,333  Impairment of assets —   —  34,528   —  Total costs and expenses 579,305   582,136  1,840,109   1,776,767  Operating income from continuing operations 179,026   377,509  517,405   839,182  Other income (loss) Other (loss) income (3,926) 8,811  33,870   1,044  Interest expense, net (21,258) (29,984) (62,265) (88,695) Total other loss (25,184) (21,173) (28,395) (87,651) Income from continuing operations before income taxes 153,842   356,336  489,010   751,531  Income tax expense 2,122   78,111  64,855   166,813  Income from continuing operations 151,720   278,225  424,155   584,718  Loss from discontinued operations, net of income taxes (608) (421) (2,123) (744) Net income including noncontrolling interest 151,112   277,804  422,032   583,974  Less: Net income attributable to noncontrolling interest 12,018   22,462  65,197   38,701  NET INCOME ATTRIBUTABLE TO MURPHY $ 139,094   $ 255,342  $ 356,835   $ 545,273  INCOME (LOSS) PER COMMON SHARE – BASIC Continuing operations $ 0.93   $ 1.64  $ 2.37   $ 3.50  Discontinued operations —   —  (0.01) —  Net income $ 0.93   $ 1.64  $ 2.36   $ 3.50  INCOME (LOSS) PER COMMON SHARE – DILUTED Continuing operations $ 0.93   $ 1.63  $ 2.35   $ 3.47  Discontinued operations —   —  (0.01) —  Net income $ 0.93   $ 1.63  $ 2.34   $ 3.47  Cash dividends per common share $ 0.300   $ 0.275  $ 0.900   $ 0.827  Average common shares outstanding (thousands) Basic 149,384   155,454  151,401   155,749  Diluted 150,353   156,829  152,437   157,135  8 MURPHY OIL CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) Three Months Ended September 30, Nine Months Ended September 30, (Thousands of dollars) 2024 2023 2024 2023 Operating Activities Net income including noncontrolling interest $ 151,112   $ 277,804  $ 422,032   $ 583,974  Adjustments to reconcile net income to net cash provided by continuing operations activities Depreciation, depletion and amortization 223,632   237,493  650,309   648,830  Impairment of assets —   —  34,528   —  Unsuccessful exploration well costs and previously suspended exploration costs 11,268   11,292  69,548   107,825  Deferred income tax (benefit) expense (8,792) 59,547  45,136   152,104  Accretion of asset retirement obligations 13,241   11,675  39,068   34,196  Long-term non-cash compensation 8,237   20,426  30,060   42,502  Amortization of undeveloped leases 1,929   2,846  7,707   8,215  Mark-to-market loss on derivative instruments 1,344   —  1,344   —  Loss from discontinued operations 608   421  2,123   744  Contingent consideration payment —   —  —   (139,574) Mark-to-market loss on contingent consideration —   —  —   7,113  Other operating activities, net (4,301) (37,990) (38,260) (97,407) Net decrease (increase) in non-cash working capital 30,709   (127,447) 31,835   (142,788) Net cash provided by continuing operations activities 428,987   456,067  1,295,430   1,205,734  Investing Activities Property additions and dry hole costs (216,413) (207,542) (733,289) (902,295) Acquisition of oil and natural gas properties —   (22,773) —   (22,773) Proceeds from sales of property, plant and equipment —   102,913  —   102,913  Net cash required by investing activities (216,413) (127,402) (733,289) (822,155) Financing Activities Borrowings on revolving credit facility 150,000   100,000  350,000   300,000  Repayment of revolving credit facility (150,000) (100,000) (350,000) (300,000) Retirement of debt —   (248,675) (50,000) (248,675) Repurchase of common stock (194,245) (75,023) (300,132) (75,023) Cash dividends paid (44,663) (42,790) (136,208) (128,657) Withholding tax on stock-based incentive awards (12) (12) (25,310) (14,232) Distributions to noncontrolling interest (35,408) (4,069) (96,618) (20,052) Finance lease obligation payments (171) (161) (502) (457) Contingent consideration payment —   —  —   (60,243) Issue costs of debt facility —   —  —   (20) Net cash required by financing activities (274,499) (370,730) (608,770) (547,359) Effect of exchange rate changes on cash and cash equivalents (471) 479  778   (414) Net decrease in cash and cash equivalents (62,396) (41,586) (45,851) (164,194) Cash and cash equivalents at beginning of period 333,619   369,355  317,074   491,963  Cash and cash equivalents at end of period $ 271,223   $ 327,769  $ 271,223   $ 327,769  9 MURPHY OIL CORPORATION SCHEDULE OF ADJUSTED NET INCOME (LOSS) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, (Millions of dollars, except per share amounts) 2024 2023 2024 2023 Net income attributable to Murphy (GAAP) 1 $ 139.1   $ 255.3  $ 356.8   $ 545.3  Discontinued operations loss 0.6   0.4  2.1   0.7  Net income from continuing operations attributable to Murphy 139.7   255.7  358.9   546.0  Adjustments: Impairment of assets —   —  34.5   —  Write-off of previously suspended exploration well —   —  26.1   17.1  Foreign exchange loss (gain) 5.4   (8.6) (10.6) (0.3) Mark-to-market loss on derivative instruments 1.3   —  1.3   —  Mark-to-market loss on contingent consideration —   —  —   7.1  Total adjustments, before taxes 6.7   (8.6) 51.3   23.9  Income tax (benefit) expense related to adjustments (1.7) 2.2  (10.5) (1.4) Tax benefits on investments in foreign areas (34.0) —  (34.0) —  Total adjustments after taxes (29.0) (6.4) 6.8   22.5  Adjusted net income from continuing operations attributable to Murphy (Non-GAAP) $ 110.7   $ 249.3  $ 365.7   $ 568.5  Adjusted net income from continuing operations per average diluted share (Non-GAAP) $ 0.74   $ 1.59  $ 2.40   $ 3.62  1  Excludes amounts attributable to a noncontrolling interest in MP Gulf of Mexico, LLC (MP GOM). Non-GAAP Financial Measures Presented above is a reconciliation of Net income to Adjusted net income from continuing operations attributable to Murphy. Adjusted net income excludes certain items that management believes affect the comparability of results between periods. Management believes this is important information to provide because it is used by management to evaluate the Company’s operational performance and trends between periods and relative to its industry competitors. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company’s financial results. Adjusted net income is a non-GAAP financial measure and should not be considered a substitute for Net income as determined in accordance with accounting principles generally accepted in the United States of America. The pretax and income tax impacts for adjustments in the above table are shown below by area of operation and geographical location, and exclude the share attributable to noncontrolling interests. Three Months Ended September 30, 2024 Nine Months Ended September 30, 2024 (Millions of dollars) Pretax Tax Net Pretax Tax Net Exploration & Production: United States $ —  $ —  $ —  $ 60.6  $ (12.9) $ 47.7  Other International —  (34.0) (34.0) —  (34.0) (34.0) Corporate 6.7  (1.7) 5.0  (9.3) 2.4  (6.9) Total adjustments $ 6.7   $ (35.7) $ (29.0) $ 51.3   $ (44.5) $ 6.8   10 MURPHY OIL CORPORATION SCHEDULE OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, (Millions of dollars) 2024 2023 2024 2023 Net income attributable to Murphy (GAAP) 1 $ 139.1   $ 255.3  $ 356.8   $ 545.3  Income tax expense 2.2   78.1  64.9   166.8  Interest expense, net 21.3   30.0  62.3   88.7  Depreciation, depletion and amortization expense 1 215.7   231.5  625.8   630.8  EBITDA attributable to Murphy (Non-GAAP) $ 378.3   $ 594.9  $ 1,109.8   $ 1,431.6  Impairment of asset —   —  34.5   —  Write-off of previously suspended exploration well —   —  26.1   17.1  Accretion of asset retirement obligations 1 11.7   10.4  34.9   30.4  Foreign exchange loss (gain) 5.4   (8.6) (10.6) (0.3) Mark-to-market loss on derivative instruments 1.3   —  1.3   —  Mark-to-market loss on contingent consideration —   —  —   7.1  Discontinued operations loss 0.6   0.4  2.1   0.7  Adjusted EBITDA attributable to Murphy (Non-GAAP) $ 397.3   $ 597.1  $ 1,198.1   $ 1,486.6  1  Excludes amounts attributable to a noncontrolling interest in MP GOM. Non-GAAP Financial Measures Presented above is a reconciliation of Net income to Earnings before interest, taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA. Management believes EBITDA and Adjusted EBITDA are important information to provide because they are used by management to evaluate the Company’s operational performance and trends between periods and relative to its industry competitors. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company’s financial results. EBITDA and Adjusted EBITDA are non-GAAP financial measures and should not be considered a substitute for Net income or Cash provided by operating activities as determined in accordance with accounting principles generally accepted in the United States of America.    11 MURPHY OIL CORPORATION SCHEDULE OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION AND EXPLORATION (EBITDAX) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, (Millions of dollars) 2024 2023 2024 2023 Net income attributable to Murphy (GAAP) 1 $ 139.1   $ 255.3  $ 356.8   $ 545.3  Income tax expense 2.2   78.1  64.9   166.8  Interest expense, net 21.3   30.0  62.3   88.7  Depreciation, depletion and amortization expense 1 215.7   231.5  625.8   630.8  EBITDA attributable to Murphy (Non-GAAP) 378.3   594.9  1,109.8   1,431.6  Exploration expenses 1 31.3   23.0  118.4   122.6  EBITDAX attributable to Murphy (Non-GAAP) 409.6   617.9  1,228.2   1,554.2  Impairment of asset —   —  34.5   —  Accretion of asset retirement obligations 1 11.7   10.4  34.9   30.4  Foreign exchange loss (gain) 5.4   (8.6) (10.6) (0.3) Mark-to-market loss on derivative instruments 1.3   —  1.3   —  Mark-to-market loss on contingent consideration —   —  —   7.1  Discontinued operations loss 0.6   0.4  2.1   0.7  Adjusted EBITDAX attributable to Murphy (Non-GAAP) $ 428.6   $ 620.1  $ 1,290.4   $ 1,592.1  1  Excludes amounts attributable to a noncontrolling interest in MP GOM. Non-GAAP Financial Measures Presented above is a reconciliation of Net income to Earnings before interest, taxes, depreciation and amortization, and exploration expenses (EBITDAX) and Adjusted EBITDAX. Management believes EBITDAX and Adjusted EBITDAX are important information to provide because they are used by management to evaluate the Company’s operational performance and trends between periods and relative to its industry competitors. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company’s financial results. EBITDAX and Adjusted EBITDAX are non-GAAP financial measures and should not be considered a substitute for Net income or Cash provided by operating activities as determined in accordance with accounting principles generally accepted in the United States of America.  12 MURPHY OIL CORPORATION FUNCTIONAL RESULTS OF OPERATIONS (unaudited) Three Months Ended September 30, 2024 Three Months Ended September 30, 2023 (Millions of dollars) Revenues Income (Loss) Revenues Income (Loss) Exploration and production United States 1 $ 597.0   $ 138.8   $ 823.7  $ 310.3  Canada 157.9   24.2   129.3  10.5  Other (0.8) 22.4   3.4  (12.5) Total exploration and production 754.1   185.4   956.4  308.3  Corporate 4.2   (33.7) 3.2  (30.1) Income from continuing operations 758.3   151.7   959.6  278.2  Discontinued operations, net of tax —   (0.6) —  (0.4) Net income including noncontrolling interest $ 758.3   $ 151.1   $ 959.6  $ 277.8  Net income attributable to Murphy $ 139.1   $ 255.3  Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023 (Millions of dollars) Revenues Income (Loss) Revenues Income (Loss) Exploration and production United States 1 $ 1,936.1   $ 459.0   $ 2,202.2  $ 705.2  Canada 413.8   52.5   403.3  34.9  Other 3.4   1.5   7.1  (50.0) Total exploration and production 2,353.3   513.0   2,612.6  690.1  Corporate 4.2   (88.9) 3.3  (105.4) Income from continuing operations 2,357.5   424.1   2,615.9  584.7  Discontinued operations, net of tax —   (2.1) —  (0.7) Net income including noncontrolling interest $ 2,357.5   $ 422.0   $ 2,615.9  $ 584.0  Net income attributable to Murphy $ 356.8   $ 545.3  1  Includes amounts attributable to a noncontrolling interest in MP GOM. 13 MURPHY OIL CORPORATION OIL AND GAS OPERATING RESULTS (unaudited) THREE MONTHS ENDED SEPTEMBER 30, 2024, AND 2023 (Millions of dollars) United States 1 Canada Other Total Three Months Ended September 30, 2024 Oil and gas sales and other operating revenues $ 597.0   $ 157.9   $ (0.8) $ 754.1   Sales of purchased natural gas —   —   —   —   Lease operating expenses 168.8   53.8   0.3   222.9   Severance and ad valorem taxes 10.2   0.3   —   10.5   Transportation, gathering and processing 26.3   21.2   —   47.5   Costs of purchased natural gas —   —   —   —   Depreciation, depletion and amortization 179.3   42.8   —   222.1   Accretion of asset retirement obligations 10.9   2.1   0.2   13.2   Exploration expenses Dry holes and previously suspended exploration costs 10.8   —   0.4   11.2   Geological and geophysical 9.8   0.1   2.8   12.7   Other exploration 1.5   0.1   3.8   5.4   Undeveloped lease amortization 1.1   —   0.8   1.9   Total exploration expenses 23.2   0.2   7.8   31.2   Selling and general expenses (1.6) 4.7   1.9   5.0   Other 5.9   0.2   0.6   6.7   Results of operations before taxes 174.0   32.6   (11.6) 195.0   Income tax provisions (benefits) 35.2   8.4   (34.0) 9.6   Results of operations (excluding Corporate segment) $ 138.8   $ 24.2   $ 22.4   $ 185.4   Three Months Ended September 30, 2023 Oil and gas sales and other operating revenues $ 823.7  $ 121.4  $ 3.4  $ 948.5  Sales of purchased natural gas —  7.9  —  7.9  Lease operating expenses 153.2  39.5  0.7  193.4  Severance and ad valorem taxes 10.6  0.3  —  10.9  Transportation, gathering and processing 41.9  19.6  —  61.5  Costs of purchased natural gas —  5.5  —  5.5  Depreciation, depletion and amortization 193.6  40.4  0.7  234.7  Accretion of asset retirement obligations 9.6  2.0  0.1  11.7  Exploration expenses Dry holes and previously suspended exploration costs 11.3  —  —  11.3  Geological and geophysical 1.9  —  2.4  4.3  Other exploration 2.4  —  5.6  8.0  Undeveloped lease amortization 2.1  —  0.7  2.8  Total exploration expenses 17.7  —  8.7  26.4  Selling and general expenses 3.4  4.3  3.0  10.7  Other 4.1  3.4  0.3  7.8  Results of operations before taxes 389.6  14.3  (10.1) 393.8  Income tax provisions 79.3  3.8  2.4  85.5  Results of operations (excluding Corporate segment) $ 310.3  $ 10.5  $ (12.5) $ 308.3  1  Includes amounts attributable to a noncontrolling interest in MP GOM. 14 MURPHY OIL CORPORATION OIL AND GAS OPERATING RESULTS (unaudited) NINE MONTHS ENDED SEPTEMBER 30, 2024, AND 2023 (Millions of dollars) United States 1 Canada Other Total Nine Months Ended September 30, 2024 Oil and gas sales and other operating revenues $ 1,936.1   $ 410.1   $ 3.4   $ 2,349.6   Sales of purchased natural gas —   3.7   —   3.7   Lease operating expenses 567.7   148.1   1.0   716.8   Severance and ad valorem taxes 30.0   1.0   —   31.0   Transportation, gathering and processing 97.1   60.4   —   157.5   Costs of purchased natural gas —   3.1   —   3.1   Depreciation, depletion and amortization 528.3   114.1   0.9   643.3   Impairment of assets 34.5   —   —   34.5   Accretion of asset retirement obligations 32.0   6.4   0.6   39.0   Exploration expenses Dry holes and previously suspended exploration costs 67.9   —   1.6   69.5   Geological and geophysical 13.5   0.2   8.6   22.3   Other exploration 4.5   0.2   14.2   18.9   Undeveloped lease amortization 5.2   —   2.5   7.7   Total exploration expenses 91.1   0.4   26.9   118.4   Selling and general expenses (5.2) 14.3   4.9   14.0   Other (8.2) 2.4   1.1   (4.7) Results of operations before taxes 568.8   63.6   (32.0) 600.4   Income tax provisions (benefits) 109.8   11.1   (33.5) 87.4   Results of operations (excluding Corporate segment) $ 459.0   $ 52.5   $ 1.5   $ 513.0   Nine Months Ended September 30, 2023 Oil and gas sales and other operating revenues $ 2,202.2  $ 338.7  $ 7.1  $ 2,548.0  Sales of purchased natural gas —  64.6  —  64.6  Lease operating expenses 472.4  113.8  1.4  587.6  Severance and ad valorem taxes 34.1  1.0  —  35.1  Transportation, gathering and processing 119.1  56.2  —  175.3  Costs of purchased natural gas —  47.4  —  47.4  Depreciation, depletion and amortization 531.8  107.0  1.6  640.4  Accretion of asset retirement obligations 28.0  5.8  0.3  34.1  Exploration expenses Dry holes and previously suspended exploration costs 90.9  —  16.9  107.8  Geological and geophysical 2.6  0.1  12.9  15.6  Other exploration 5.7  0.2  15.0  20.9  Undeveloped lease amortization 6.2  0.1  1.9  8.2  Total exploration expenses 105.4  0.4  46.7  152.5  Selling and general expenses 7.9  11.3  5.8  25.0  Other 14.1  13.2  1.7  29.0  Results of operations before taxes 889.4  47.2  (50.4) 886.2  Income tax provisions (benefits) 184.2  12.3  (0.4) 196.1  Results of operations (excluding Corporate segment) $ 705.2  $ 34.9  $ (50.0) $ 690.1  1  Includes amounts attributable to a noncontrolling interest in MP GOM. 15 MURPHY OIL CORPORATION PRODUCTION-RELATED EXPENSES (unaudited) Three Months Ended September 30, Nine Months Ended September 30, (Dollars per barrel of oil equivalents sold) 2024 2023 2024 2023 United States – Onshore Lease operating expense $ 11.03   $ 11.38  $ 13.00   $ 12.42  Severance and ad valorem taxes 3.30   2.91  3.53   3.54  Depreciation, depletion and amortization expense 29.60   26.35  29.25   26.35  United States – Offshore 1 Lease operating expense $ 20.54   $ 13.42  $ 21.52   $ 14.27  Severance and ad valorem taxes 0.06   0.06  0.06   0.07  Depreciation, depletion and amortization expense 13.78   12.05  13.55   11.57  Canada – Onshore Lease operating expense $ 4.96   $ 5.33  $ 5.28   $ 5.97  Severance and ad valorem taxes 0.05   0.05  0.05   0.06  Depreciation, depletion and amortization expense 4.87   5.53  4.87   5.70  Canada – Offshore Lease operating expense $ 18.51   $ 12.12  $ 21.67   $ 12.45  Depreciation, depletion and amortization expense 8.27   10.02  9.58   9.59  Total E&P continuing operations 1 Lease operating expense $ 12.60   $ 10.12  $ 14.05   $ 11.16  Severance and ad valorem taxes 0.59   0.57  0.61   0.67  Depreciation, depletion and amortization expense 2 12.56   12.43  12.61   12.33  Total oil and gas continuing operations – excluding noncontrolling interest Lease operating expense 3 $ 11.99   $ 9.94  $ 13.75   $ 10.98  Severance and ad valorem taxes 0.61   0.59  0.63   0.69  Depreciation, depletion and amortization expense 2 12.54   12.50  12.61   12.41  1  Includes amounts attributable to a noncontrolling interest in MP GOM. 2  Excludes expenses attributable to the Corporate segment. 3 Lease operating expense per barrel of oil equivalent sold for total oil and gas continuing operations, excluding NCI and workover costs, was $9.70 and $9.56 for the three months ended September 30, 2024 and 2023, respectively and $10.28 and $10.26 for the nine months ended September 30, 2024 and 2023, respectively. 16 MURPHY OIL CORPORATION CAPITAL EXPENDITURES (unaudited) Three Months Ended September 30, Nine Months Ended September 30, (Millions of dollars) 2024 2023 2024 2023 Exploration and production United States 1 $ 160.8   $ 143.9  $ 575.1   $ 644.0  Canada 13.5   27.1  123.0   170.6  Other 29.6   11.0  62.1   55.7  Total 203.9   182.0  760.2   870.3  Corporate 8.0   5.5  16.4   15.4  Total capital expenditures - continuing operations 1 211.9   187.5  776.6   885.7  Less: capital expenditures attributable to noncontrolling interest 0.7   18.4  9.6   57.2  Total capital expenditures - continuing operations attributable to Murphy 2 211.2   169.1  767.0   828.5  Charged to exploration expenses 3 United States 1 22.1   15.5  85.9   99.2  Canada 0.2   0.1  0.4   0.3  Other 7.0   8.0  24.4   44.8  Total charged to exploration expenses - continuing operations 1,3 29.3   23.6  110.7   144.3  Less: charged to exploration expenses attributable to noncontrolling interest —   3.6  —   29.9  Total charged to exploration expenses - continuing operations attributable to Murphy 4 29.3   20.0  110.7   114.4  Total capitalized - continuing operations attributable to Murphy $ 181.9   $ 149.1  $ 656.3   $ 714.1  1 Includes amounts attributable to a noncontrolling interest in MP GOM. 2  For the three months ended September 30, 2024, total capital expenditures attributable to Murphy, excluding acquisition-related costs of nil (2023: $7.5 million), is $211.2 million (2023: $161.6 million). For the nine months ended September 30, 2024, total capital expenditures attributable to Murphy, excluding acquisition-related costs of nil (2023: $39.8 million), is $767.0 million (2023: $788.7 million). 3  For the three-month and nine-month ended September 30, 2024, total charged to exploration expense attributable to Murphy, excludes amortization of undeveloped leases of $1.9 million (2023: $2.8 million) and $7.7 million (2023 $8.2 million), respectively. 4 For the three months ended September 30, 2024, total charged to exploration expense attributable to Murphy, excluding previously suspended exploration costs of nil (2023: nil), is $29.3 million (2023: $20.0 million). For the nine months ended September 30, 2024, total charged to exploration expense excluding previously suspended exploration costs of $26.1 million (2023: $17.1 million), is $84.6 million (2023: $97.3 million). 17 MURPHY OIL CORPORATION CONSOLIDATED BALANCE SHEETS (unaudited) (Thousands of dollars) September 30, 2024 December 31, 2023 ASSETS Current assets Cash and cash equivalents $ 271,223   $ 317,074  Accounts receivable, net 263,110   343,992  Inventories 51,048   54,454  Prepaid expenses 44,234   36,674  Total current assets 629,615   752,194  Property, plant and equipment, at cost less accumulated depreciation, depletion and amortization 8,189,942   8,225,197  Operating lease assets 859,706   745,185  Deferred income taxes —   435  Deferred charges and other assets 37,156   43,686  Total assets $ 9,716,419   $ 9,766,697  LIABILITIES AND EQUITY Current liabilities Current maturities of long-term debt, finance lease $ 748   $ 723  Accounts payable 429,832   446,891  Income taxes payable 21,778   21,007  Other taxes payable 34,321   29,339  Operating lease liabilities 253,336   207,840  Other accrued liabilities 144,818   140,745  Total current liabilities 884,833   846,545  Long-term debt, including finance lease obligation 1,279,324   1,328,352  Asset retirement obligations 929,965   904,051  Deferred credits and other liabilities 278,831   309,605  Non-current operating lease liabilities 620,058   551,845  Deferred income taxes 318,233   276,646  Total liabilities $ 4,311,244   $ 4,217,044  Equity Common Stock, par $1.00 $ 195,101   $ 195,101  Capital in excess of par value 835,655   880,297  Retained earnings 6,766,706   6,546,079  Accumulated other comprehensive loss (552,707) (521,117) Treasury stock (1,995,018) (1,737,566) Murphy Shareholders' Equity 5,249,737   5,362,794  Noncontrolling interest 155,438   186,859  Total equity 5,405,175   5,549,653  Total liabilities and equity $ 9,716,419   $ 9,766,697  18 MURPHY OIL CORPORATION PRODUCTION SUMMARY (unaudited) Three Months Ended September 30, Nine Months Ended September 30, (Barrels per day unless otherwise noted) 2024 2023 2024 2023 Net crude oil and condensate United States - Onshore 23,320   27,772  21,199   24,674  United States - Offshore 1 59,282   74,843  64,042   74,185  Canada - Onshore 3,425   2,935  2,888   3,104  Canada - Offshore 7,880   2,956  7,219   2,778  Other 171   262  221   247  Total net crude oil and condensate 94,078   108,768  95,569   104,988  Net natural gas liquids United States - Onshore 4,640   5,272  4,312   4,590  United States - Offshore 1 4,739   5,882  4,644   6,170  Canada - Onshore 768   732  572   705  Total net natural gas liquids 10,147   11,886  9,528   11,465  Net natural gas – thousands of cubic feet per day United States - Onshore 26,223   28,312  24,556   25,571  United States - Offshore 1 58,747   70,240  56,565   71,764  Canada - Onshore 437,316   426,725  400,012   361,852  Total net natural gas 522,286   525,277  481,133   459,187  Total net hydrocarbons - including NCI 2,3 191,273   208,200  185,286   192,984  Noncontrolling interest Net crude oil and condensate – barrels per day (6,188) (5,989) (6,467) (6,181) Net natural gas liquids – barrels per day (193) (191) (207) (209)    Net natural gas – thousands of cubic feet per day (1,947) (1,887) (2,008) (1,996) Total noncontrolling interest 2,3 (6,706) (6,495) (7,009) (6,723) Total net hydrocarbons - excluding NCI 2,3 184,567   201,705  178,277   186,261  1  Includes net volumes attributable to a noncontrolling interest in MP GOM. 2  Natural gas converted on an energy equivalent basis of 6:1. 3  NCI – noncontrolling interest in MP GOM. 19 MURPHY OIL CORPORATION WEIGHTED AVERAGE PRICE SUMMARY (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Crude oil and condensate – dollars per barrel United States - Onshore $ 75.49   $ 81.19  $ 77.55   $ 76.40  United States - Offshore 1 75.65   82.94  78.42   76.73  Canada - Onshore 2 66.18   76.33  68.62   73.01  Canada - Offshore 2 80.06   94.85  82.83   84.13  Other 2 —   77.19  78.20   82.87  Natural gas liquids – dollars per barrel United States - Onshore 19.05   20.52  19.71   19.76  United States - Offshore 1 22.50   20.16  23.20   22.01  Canada - Onshore 2 34.00   37.72  34.64   39.08  Natural gas – dollars per thousand cubic feet United States - Onshore 1.77   2.32  1.77   2.24  United States - Offshore 1 2.28   2.84  2.30   2.82  Canada - Onshore 2 1.34   1.93  1.56   2.07  1  Prices include the effect of noncontrolling interest in MP GOM. 2 U.S. dollar equivalent. 20 MURPHY OIL CORPORATION FIXED PRICE FORWARD SALES AND COMMODITY HEDGE POSITIONS AS OF NOVEMBER 5, 2024 (unaudited) Volumes (MMCF/d) Price/MCF Remaining Period Area Commodity Type 1 Start Date End Date Canada Natural Gas Fixed price forward sales 162 C$2.39 10/1/2024 12/31/2024 Canada Natural Gas Fixed price forward sales 40 C$2.75 1/1/2025 12/31/2025 Canada Natural Gas Fixed price forward sales 50 C$3.03 1/1/2026 12/31/2026 Canada Natural Gas Fixed price forward sales 25 US$1.98 10/1/2024 10/31/2024 Canada Natural Gas Fixed price forward sales 15 US$1.98 11/1/2024 12/31/2024 1 Fixed price forward sale contracts are accounted for as normal sales and purchases for accounting purposes. Volumes (MMCF/d) Price/MCF Remaining Period Area Commodity Type Start Date End Date United States Natural Gas Fixed price derivative swap 20 US$3.20 1/1/2025 12/31/2025 21 MURPHY OIL CORPORATION FOURTH QUARTER 2024 GUIDANCE Oil BOPD NGLs BOPD Gas MCFD Total BOEPD Production – net United States – Eagle Ford Shale 24,200  4,800  27,300  33,600  – Gulf of Mexico excluding NCI 59,900  4,900  60,500  74,900  Canada – Tupper Montney 400  —  388,800  65,200  – Kaybob Duvernay 2,400  600  9,400  4,600  – Offshore 7,000  —  —  7,000  Other 200  —  —  200  Total net production (BOEPD) - excluding NCI 1 181,500 to 189,500 Exploration expense ($ millions) $38 FULL YEAR 2024 GUIDANCE Total net production (BOEPD) - excluding NCI 2 180,000 to 182,000 Capital expenditures – excluding NCI ($ millions) 3 $920 to $1,020 ¹ Excludes noncontrolling interest of MP GOM of 7,500 BOPD of oil, 300 BOPD of NGLs, and 2,900 MCFD gas. ² Excludes noncontrolling interest of MP GOM of 6,700 BOPD of oil, 200 BOPD of NGLs, and 2,200 MCFD gas. ³ Excludes noncontrolling interest of MP GOM of $17 million.          22