Murphy Oil posts Q2 adjusted loss YOY, further reduces FY'20 capex budget

Murphy Oil Corp. on Aug. 6 reported a second-quarter adjusted loss from continuing operations attributable to the corporation of $109.8 million, or a loss of 71 cents per share, compared with an adjusted income of $35.6 million, or 21 cents per share, a year ago.

The S&P Capital IQ consensus normalized earnings estimate for the second quarter was a loss of 93 cents per share.

Adjusted loss from continuing operations excludes a $146 million noncash mark-to-market loss on crude oil derivative contracts, a $32 million charge for restructuring expenses and a $16 million noncash asset impairment charge, among other after-tax items.

On a GAAP basis, second-quarter net loss attributable to Murphy Oil clocked in at $317.1 million, versus a net income of $92.3 million in the same period a year earlier.

Total revenues and other income hit $211.5 million for the second quarter, a sharp decline from $744.0 million in the prior-year quarter.

For the second quarter, Murphy posted total net hydrocarbons from continuing operations, excluding noncontrolling interest in MP Gulf of Mexico LLC, of 167,667 barrels per day, up from 158,516 bbl/d in the year-ago period.

In addition, Murphy slashed its full-year 2020 capital expenditure budget by an additional $40 million, to a range of $680 million to $720 million, due to the ongoing weak market conditions. The company's total capex for continuing operations for the second quarter was $179.6 million.

Murphy expects third-quarter production volume to be between 153,000 barrels of oil equivalent per day and 163,000 boe/d.

Murphy also decreased its expected full-year general and administrative expenses by about 40%, to a range of $130 million to $140 million. The cut includes the impacts of the company's previously announced closures of its legacy headquarters in El Dorado, Ark., and its office in Calgary, Alberta; restructuring; and a 30% staff reduction.