Murphy Oil, an established Houston-based exploration and production company, reported a decrease in earnings for the fourth quarter. This decline was primarily due to reduced production in a prominent Texas shale oil play and in the Gulf of Mexico. In spite of this, Murphy Oil has decided to reward its shareholders by raising its quarterly dividend by 9%, from 27.5 cents a share to 30 cents.
During the quarter ending in December, Murphy Oil recorded earnings of $116 million, or 75 cents per share, a decrease from the previous year’s $199.4 million, or $1.26 per share. When excluding specific one-time items, the adjusted earnings from continuing operations were 90 cents per share. This figure fell short of the mean Wall Street estimate of $1.04 per share.
Revenue for the fourth quarter also experienced a decline of 13%, amounting to $844.2 million. This figure fell below the average analyst target of $857 million.
Murphy Oil revealed that it produced approximately 185,000 barrels of oil equivalent per day during this period. Production levels were slightly lower in both the Eagle Ford, Texas, and the Gulf of Mexico. As the year concluded, the company reported proven reserves of 724 million barrels of oil equivalent.
Looking ahead to 2024, Murphy Oil plans for capital expenditure ranging between $920 million and $1.02 billion. Roughly $320 million will be allocated towards onshore operations in the Eagle Ford shale oilfield, with an additional $300 million dedicated to offshore drilling in the Gulf of Mexico. The company expects to produce between 180,000 and 188,000 barrels of oil equivalent per day for the current year.