Market Overview

Murphy Oil Corporation Announces Close of Gulf of Mexico Acquisition and Provides Updated Guidance

Share:

Accretive Cash Flow Generating Acquisition Increases Operatorship
in the Region

Murphy Oil Corporation (NYSE:MUR) ("Murphy") announced that its wholly
owned subsidiary, Murphy Exploration & Production Company - USA, has
closed the previously announced strategic deep water Gulf of Mexico
acquisition from LLOG Exploration Offshore, L.L.C. and LLOG Bluewater
Holdings, L.L.C., ("LLOG"). The transaction was previously announced on
April 23, 2019, with an effective date of January 1, 2019.

After taking into account customary closing adjustments, Murphy's total
cash consideration paid was $1.227 billion, which was funded primarily
through the company's $1.6 billion revolver and other sources of
liquidity.

The acquired assets will be fully owned by Murphy Exploration &
Production Company – USA and not part of MP Gulf of Mexico, LLC ("MP
GOM"), the entity which currently owns all of Murphy's legacy producing
Gulf of Mexico assets. During the month of June, after accounting for a
planned curtailment from a third-party downstream pipeline outage, the
average net production for the acquired assets is expected to be
approximately 22,000 to 24,000 Boepd. Following the temporary downstream
pipeline outage, Murphy anticipates production for the acquired assets
for the second half of the year to be 31,000 to 33,000 Boepd, which is
in line with previously disclosed annualized production of 32,000 to
35,000 Boepd.

"We are excited to close another accretive Gulf of Mexico transaction as
we continue to transform the company. After our third-party reserve
engineers1 audited these newly acquired assets, we were able
to increase the proved reserve volumes by 13 percent, to 73 Mmboe which
further enhances the attractive acquisition metrics. Our newly expanded
Gulf of Mexico portfolio is consistent with Murphy's long-term vision of
increasing high-margin, oil-weighted production in an area where we have
a long history of operational success," stated Roger W. Jenkins,
President and Chief Executive Officer.

1 Transaction reserves are based on external third party
engineering estimates by Ryder Scott Petroleum Consultants as of January
1, 2019, using strip prices in effect on April 12, 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 at http://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
divestiture of the Malaysia assets 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.

View Comments and Join the Discussion!