Murphy Oil Corp. again reduced its 2020 capital plan to a new midpoint of $780 million, down from the previous midpoint of $950 million announced in March.
The new midpoint represents a 46% decrease from the original guidance midpoint of $1.45 billion, according to an April 1 news release.
In addition, Murphy's board approved a 12.5 cent-per-share quarterly cash dividend, which is 50% lower than the previous dividend of 25 cents per share. The dividend is payable June 1 to stockholders of record as of May 18.
The company's board also approved executive salary reductions. The president and CEO's salary was cut by 35%, while other executives received salary reductions of as much as 30% with an average of 22%. The changes are effective April 1. Murphy's board also agreed to lower the cash retainers for all directors by 35%, with the chairman seeing a 70% reduction, beginning in the second quarter.
"Murphy recognizes the reality of the current situation in the commodity markets, and we believe the reduction in dividends, capital expenditures, salaries and retainers are prudent steps to sustain the company for the long term," Murphy Board Chairman Claiborne Deming said.
Murphy previously lowered its 2020 budget to approximately $950 million, representing a decrease of roughly $500 million from the previous budget range of $1.4 billion to $1.5 billion.
