Market Overview

Murphy Oil Corporation Announces Strategic Sale of Malaysian Portfolio in All-Cash Transaction Valued at US$2.127 Billion


Strategic Exit from Malaysia Simplifies the Company and Enables
Enhanced Focus on Western Hemisphere Assets

Cash Proceeds Will be Allocated to Share Repurchases, Debt
Reduction and

Support Sustained Oil-Weighted Growth

Board Authorizes $500 Million Share Repurchase Program

Murphy Oil Corporation (NYSE:MUR) ("Murphy") announced today that a
subsidiary has signed a sale and purchase agreement to divest the fully
issued share capital of its two primary Malaysian subsidiaries, Murphy
Sabah Oil Co., Ltd. and Murphy Sarawak Oil Co., Ltd., to a subsidiary of
PTT Exploration and Production Public Company Limited ("PTTEP"). PTTEP
will pay Murphy US$2.127 billion in an all-cash transaction, payable
upon closing and subject to customary closing adjustments, plus up to a
US$100 million bonus payment contingent upon certain future exploratory
drilling results prior to October 2020.

The transaction has an effective economic valuation date of January 1,
2019, with the closing expected to occur by the end of the second
quarter 2019. Closing of the transaction is subject to customary
conditions precedent including, among other things, necessary regulatory
approvals. Under the terms of the transaction, Murphy will exit the
country of Malaysia.

The year-end 2018 proved reserves (1P) net to Murphy were 816 million
barrels of oil equivalent (Mmboe) of which 16 percent or 129 Mmboe were
attributable to Malaysia. Of the 129 Mmboe of proved reserves, 70 Mmboe
are characterized as proved undeveloped. The proved reserves are
comprised of 468 billion cubic feet (Bcf) of natural gas and 51 million
barrels (Mmbbl) of liquids. Total production net to Murphy in 2018 for
the properties to be divested was over 48,000 barrel of oil equivalent
per day (Boepd), comprised of 62 percent liquids.


Murphy intends to allocate the proceeds from the transaction to advance
its strategic priorities. This includes returning cash to shareholders
through share repurchases and strengthening the company's balance sheet
by reducing debt.

Murphy's Board of Directors has approved a new $500 million share
repurchase program, expiring on December 31, 2020, of which
approximately $300 million is planned to be executed in the first
tranche, with the remaining $200 million expected in the second tranche.
In addition, the company intends to use a portion of the proceeds to pay
down approximately $750 million of outstanding debt, with $325 million
allocated to pay off Murphy's senior credit facility to a zero balance
and $425 million targeted to the repurchase or redemption of outstanding
senior notes.

The company plans to continue its current oil-weighted strategy in both
the Eagle Ford Shale and the Gulf of Mexico, while maintaining its
focused exploration plan. To this end, $750 million of the remaining
proceeds will remain on the balance sheet earmarked for U.S.
oil-weighted opportunities through potential acquisitions and/or the
funding of both deep water projects and U.S. onshore opportunities. The
company will continue to employ a measured, disciplined approach to
capital allocation that is aimed at generating the greatest value for
Murphy's shareholders.

Murphy expects to record a book gain on the sale between $0.9 billion to
$1.0 billion, and plans to repatriate essentially all of the cash
proceeds to the United States.

"After 20 years of successful operations in Malaysia, I am pleased to
announce this all-cash transaction benefiting our shareholders by fully
monetizing our proved and probable reserves. The tactical repositioning
of Murphy allows us to simplify our business and focus on our core
assets in the Western Hemisphere. The transaction will provide us with
greater financial flexibility and allow us to continue returning cash to
our shareholders through share repurchases," commented Roger W. Jenkins,
President and Chief Executive Officer. "We would like to congratulate
PTTEP on their purchase and we will support them in a smooth business
transition over the coming months. I would like to thank our long-term
partners in Malaysia, PETRONAS, PETRONAS Carigali and Pertamina. Most
importantly, I would like to thank our committed Malaysian staff for
their hard work and endless dedication to our company and we look
forward to their successful transition to PTTEP," Jenkins added.


The new 2019 annual plan reflects the company's ongoing commitment to
the goal of aligning spending within cash flows, while simultaneously
returning cash to shareholders. The company's previously announced
annual production guidance was 202 to 210 Mboepd, of which 46 to 48
Mboepd was attributable to Malaysia. Murphy's previously announced
capital plan for 2019 was expected to be in the range of $1.25 to $1.45
billion, of which $106 million was attributable to Malaysia.

Beginning with the first quarter 2019 earnings release, the Malaysian
operations will be reported as a "discontinued operation" and classified
as "held for sale" for financial reporting purposes.


The company is well-positioned for long-term value creation. Following
the Malaysia divestiture, $500 million share repurchase authorization
and $750 million debt reduction, the company believes it can generate
over $1.2 billion of free cash flow, before dividend payments between
2019 to 2023, when applying a $55 per barrel WTI flat price. Over the
same time frame, it plans to generate approximately an 8 percent
compound annual growth rate from its three core producing assets in U.S.
onshore, Canada onshore, and North America offshore.

"Our strategy of delivering moderate production growth over the next few
years while generating free cash flow above our planned dividend levels
continues when applying conservative oil prices even following the
risk-free monetization of our Malaysia assets. We will continue with our
plans of investing in our high margin, oil-weighted Western Hemisphere
opportunities, especially the Eagle Ford Shale and the Gulf of Mexico
while maintaining our focused low-cost exploration program," Jenkins

Bank of America Merrill Lynch served as advisor to Murphy on the
transaction and Tudor, Pickering, Holt & Co. served as financial advisor
to Murphy. Gibson, Dunn & Crutcher LLP acted as legal counsel to Murphy.


Murphy will host a conference call and webcast to discuss the
transaction on March 21, 2019, at 8:30 a.m. (EDT). The call can be
accessed either via the Internet through the Investor Relations section
of Murphy's website at
or via the telephone by dialing 1-888-886-7786 (North America toll-free)
or 1-800-81-7426 (Malaysia toll-free), reservation number 01850616.


Murphy Oil Corporation is a global independent oil and natural gas
exploration and production company. The company's diverse resource base
includes production from North America onshore plays in the Eagle Ford
Shale, Kaybob Duvernay and Montney, as well as offshore Gulf of Mexico,
Canada and Southeast Asia. Additional information can be found on the
company's website at


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 or results, are subject to inherent risks and
uncertainties. Factors that could cause one or more of these future
events or results not to occur as implied by any forward-looking
statement include, but are not limited to: our inability to complete the
Malaysia divestiture due to the failure to obtain regulatory approvals,
the failure of our counterparty to perform its obligations under the
transaction agreement, the failure to satisfy all closing conditions, or
otherwise; increased volatility or deterioration in the level of crude
oil and natural gas prices; 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; natural hazards impacting our operations;
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; and adverse developments in the U.S. or global
capital markets, credit markets or economies in general. 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 U.S. 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
Murphy Oil Corporation undertakes no duty to publicly update or revise
any forward-looking statements.


This news release contains certain non-GAAP financial measures that
management believes are good tools for internal use and the investment
community in evaluating Murphy'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, although 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.

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