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Murphy Oil Corporation Announces Strategic Deep Water, Oil-Weighted Gulf of Mexico Acquisition

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Accretive Cash Flow Generating Acquisition that Increases
Operatorship in the Region

Murphy Continues Strategic Multi-Year Transformation

Murphy Oil Corporation (NYSE:MUR) announced today that its wholly owned
subsidiary, Murphy Exploration & Production Company – USA ("Murphy"),
has entered into a definitive agreement to acquire deep water Gulf of
Mexico assets from LLOG Exploration Offshore, L.L.C. and LLOG Bluewater
Holdings, L.L.C., ("LLOG"). The accretive, cash flow providing Gulf of
Mexico assets currently produce approximately 38,000 barrels of oil
equivalent per day net (Boepd) and are expected to add approximately 66
million barrels of oil equivalent net (Mmboe) of Proven (1P) reserves
and 122 Mmboe of Proven and Probable (2P) reserves1. The
transaction will have an effective date of January 1, 2019 and is
expected to close in the second quarter, subject to normal closing
adjustments.

Murphy will pay a cash consideration of $1.375 billion. Additional
contingent consideration payments are based on the following: up to $200
million in the event that revenue from certain properties exceeds
certain contractual thresholds between 2019 and 2022; and $50 million
following first oil from certain development projects.

The acquisition will be funded by a combination of cash on hand and
availability under the company's $1.6 billion revolving credit facility.
Total outstanding borrowings under the revolving credit facility,
including the current balance of $325 million, are expected to be fully
repaid immediately following the closing of the previously announced
$2.127 billion divestiture of Murphy's Malaysian assets. The company
still intends to execute the previously announced $500 million share
repurchase program, expiring on December 31, 2020, of which $300 million
is planned in the first tranche, with the remaining $200 million
expected in the second tranche. The previously announced $750 million
debt repayment has been revised to only include the $325 million that
was drawn on the revolving credit facility as the company will no longer
plan to repurchase or redeem outstanding senior notes at this time.

TRANSACTION HIGHLIGHTS

The acquired assets will be fully owned by Murphy and not part of MP
Gulf of Mexico, LLC ("MP GOM"), the entity which currently owns all of
Murphy's producing Gulf of Mexico assets.

  • Adds approximately 32,000 to 35,000 net Boepd on an annualized basis
    for full year 2019 to Murphy's Gulf of Mexico production, comprised of
    approximately 60 percent oil
  • Total Murphy Gulf of Mexico full year annualized 2019 production is
    anticipated to be approximately 85,000 net Boepd, excluding
    non-controlling interest
  • Increases deep water offshore footprint with the addition of 26 Gulf
    of Mexico blocks containing seven producing fields, four development
    projects with future start-ups, in the Mississippi Canyon and Green
    Canyon areas
  • Expands operated production throughout the Gulf of Mexico to 66
    percent of daily production, an increase from the current 49 percent,
    excluding non-controlling interest
  • Lease operating expense for acquired assets of approximately $10 to
    $12 per barrel of oil equivalent
  • Adds approximately 66 Mmboe of Proven (1P) reserves and 122 Mmboe of
    Proven and Probable (2P) reserves1, of which 72 percent is
    oil

"This immediately accretive transaction continues to strengthen our Gulf
of Mexico portfolio by adding quality assets at a very attractive price.
We expect these newly acquired assets to generate meaningful cash flow
over the next several years that will provide us with additional
flexibility for future capital allocation," stated Roger W. Jenkins,
President and Chief Executive Officer. "Since selling our refining
business and successfully spinning-out our retail gasoline business over
five years ago, we have implemented significant strategic changes in
revamping Murphy's portfolio. Specifically, over the last few months
alone we have increased our deepwater, oil-weighted, tax advantaged,
Gulf of Mexico assets while we simplified our company by divesting our
Malaysian portfolio, again at a very attractive price. What I am most
proud of is that through these transactions we have created significant
shareholder value. As a result, we have increased our ability to
generate meaningfully more cash flow in our long term plan as Murphy is
now positioned to grow oil production with an overall compound annual
growth rate of seven to nine percent, all while maintaining our
compelling dividend, repurchasing our stock, and decreasing our debt
levels."

ATTRACTIVE ACQUISITION METRICS

The acquisition cost of the acquired asset is approximately $20.75 per
barrel of oil equivalent (BOE) for the estimated Proven (1P) reserves
and approximately $11.25 per BOE for estimated Proven and Probable (2P)
reserves. The implied cost per flowing barrel of oil equivalent, based
on current production, is approximately $36,200 per BOE.

An investor presentation is available on the company's website at www.murphyoilcorp.com.

CONFERENCE CALL AND WEBCAST SCHEDULED FOR APRIL 23 2019

Murphy will host a conference call and webcast to discuss the
transaction on April 23, 2019, at 9:00 a.m. (EDT). The call can be
accessed either via the Internet through the Investor Relations section
of Murphy's website at http://ir.murphyoilcorp.com
or via the telephone by dialing toll free 1-888-396-8049, reservation
number 37858321.

Scotia Capital (USA) Inc. and Baker Botts L.L.P. are serving as advisors
to Murphy on the transaction.

Barclays is serving as exclusive financial advisor and Jones Walker LLP,
Gieger, Laborde, & Laperouse, LLC and Kirkland & Ellis LLP are serving
as legal advisors to LLOG on the transaction.

1Transaction reserves are based on internal engineering
estimates as of January 1, 2019, using strip prices in effect on April
3, 2019.

ABOUT MURPHY OIL CORPORATION

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, Tupper Montney and Placid Montney, as well as
offshore Gulf of Mexico, Canada and Southeast Asia. Additional
information is available on the company's website 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 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 ability to complete the
acquisition of the Gulf of Mexico assets or the Malaysia divestiture due
to the failure to obtain regulatory approvals, the failure of the
respective counterparties to perform their obligations under the
relevant transaction agreements, the failure to satisfy all closing
conditions, or otherwise, 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; 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
http://ir.murphyoilcorp.com.
Murphy Oil Corporation undertakes no duty to publicly update or revise
any forward-looking statements.

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