Murphy Oil posts adjusted Q1 net loss, plans office closures

Murphy Oil Corp. on May 6 reported an adjusted net loss from continuing operations attributable to the company of $45.7 million, or 30 cents per share, for the first quarter, down from the adjusted net income of $26.5 million, or 15 cents per share, noted for the first quarter of 2019.

The S&P Global Market Intelligence consensus normalized earnings estimate for the first quarter was a loss of 44 cents per share.

On a GAAP basis, net loss attributable to Murphy came in at $416.1 million for the first quarter, compared to the net income of $40.2 million seen during the same period a year ago. Total revenues and other income came in at $1.00 billion for the first quarter, up from the $630.5 million posted during the same quarter a year ago.

Murphy reported total net hydrocarbons from continuing operations, excluding noncontrolling interest in MP Gulf of Mexico LLC, of 185,767 barrels per day in the first quarter, compared to 148,212 bbl/d a year earlier.

In a separate May 6 release, Murphy Oil said that it would close its legacy headquarters in El Dorado, Ark., and its office in Calgary, Alberta, in response to the drop in crude oil prices. The company's El Dorado office has 80 employees while its Calgary office has 110 employees. Murphy will also be consolidating all of its worldwide staff activities to its existing office in Houston, Texas, as its new headquarters.

"Over the past several months, we have taken several actions to significantly reduce costs, including cutting this year's capital expenditures by approximately 50%, or $700 million, lowering the company's dividend by 50 percent, or $76.5 million on an annualized basis, and lowering executive officers' salaries on average 22%, with the [CEO]'s reduced by 35%," said Murphy's chairman of the board Claiborne Deming. "We realize, reluctantly, that we need to consolidate our offices to capture additional cost savings to remain competitive in this unprecedented industry environment."