Announced Discovery at Ocotillo #1 Exploration Well in the Gulf of Mexico,

Repurchased $56 Million of Shares Outstanding and $50 Million of Senior Notes

Murphy Oil Corporation (NYSE: MUR) today announced its financial and operating results for the second quarter ended June 30, 2024, including net income attributable to Murphy of $128 million, or $0.83 net income per diluted share. Excluding discontinued operations and other items affecting comparability between periods, adjusted net income attributable to Murphy was $124 million, or $0.81 adjusted net income per diluted share.

Unless otherwise noted, the financial and operating highlights and metrics discussed in this commentary exclude noncontrolling interest (NCI).¹

Highlights for the second quarter include:

• Produced 181 thousand barrels of oil equivalent per day (MBOEPD), with 91 thousand barrels of oil per day (MBOPD)
• Achieved record high peak gross production rate of 496 million cubic feet per day (MMCFD) in Tupper Montney
• Drilled a discovery at the non-operated Ocotillo #1 exploration well in Mississippi Canyon 40 in the Gulf of Mexico
• Repurchased $56 million of stock, or 1.4 million shares, at an average price of $41.03 per share
• Repurchased $50 million of senior notes due 2027 and 2028 in open market transactions
• Maintained quarterly dividend of $0.30 per share or $1.20 per share annualized

Subsequent to the second quarter:

• Revised capital allocation framework, progressing to Murphy 3.0, which increases shareholder returns while maintaining $1.0 billion total long-term debt goal
• Repurchased $44 million of stock, or 1.1 million shares, at an average price of $38.62 per share
• Increased share repurchase authorization by $500 million, with $800 million currently remaining
• Published the company’s sixth annual sustainability report

“We have made incredible progress advancing our priorities of Delever, Execute, Explore, Return since they were first announced more than three years ago. From outperformance across our onshore assets to continued execution offshore in the second quarter, we have generated ample cash flow to fund our operations and repurchase more than $50 million of stock and $50 million of long-term debt. I am pleased with our recent exploration success at the non-operated Ocotillo well in the Gulf of Mexico, and I look forward to drilling our two exploration wells in Vietnam beginning in the third quarter,” said Roger W. Jenkins, Chief Executive Officer. “Further, I am excited to announce today that we are moving into Murphy 3.0 of our capital allocation framework so that we may increase our shareholder returns primarily through share repurchases, while remaining focused on achieving our $1.0 billion total long-term debt goal.”

SECOND QUARTER 2024 RESULTS

The company recorded net income attributable to Murphy of $128 million, or $0.83 net income per diluted share, for the second quarter 2024. Adjusted net income, which excludes both the results of discontinued operations and certain other items that affect comparability of results between periods, was $124 million, or $0.81 adjusted net income per diluted share for the same period. Details for second quarter results and an adjusted net income reconciliation can be found in the attached schedules.

Earnings before interest, taxes, depreciation and amortization (EBITDA) attributable to Murphy were $389 million. Earnings before interest, tax, depreciation, amortization and exploration expenses (EBITDAX) attributable to Murphy were $431 million. Adjusted EBITDA attributable to Murphy was $396 million. Adjusted EBITDAX attributable to Murphy was $438 million. Reconciliations for second quarter EBITDA, EBITDAX, adjusted EBITDA and adjusted EBITDAX can be found in the attached schedules.

Second quarter production averaged 181 MBOEPD and included 50 percent oil volumes, or 91 MBOPD. Onshore production was approximately 5.4 MBOEPD above guidance for the quarter primarily due to stronger well performance. This offset 2.4 MBOEPD of unplanned downtime in the Gulf of Mexico and 2.4 MBOEPD of additional downtime at non-operated Terra Nova.

Accrued capital expenditures (CAPEX) for second quarter 2024 totaled $292 million, excluding NCI. Details for second quarter production and CAPEX can be found in the attached schedules.

CAPITAL ALLOCATION FRAMEWORK

Murphy had approximately $1.1 billion of liquidity on June 30, 2024, with no borrowings on the $800 million senior unsecured credit facility and $334 million of cash and cash equivalents, inclusive of NCI.

Debt Reduction

During the second quarter, Murphy repurchased $50 million of senior notes in open market transactions, comprised of $26.5 million of 5.875 percent senior notes due 2027 and $23.5 million of 6.375 percent senior notes due 2028. As of June 30, 2024, Murphy’s total debt was $1.28 billion, and consisted of long-term, fixed-rate notes with a weighted average maturity of 7.8 years and a weighted average coupon of 6.2 percent.

Share Repurchases

During the second quarter, Murphy repurchased $56 million of stock, or 1.4 million shares, at an average price of $41.03 per share. Subsequent to second quarter, Murphy repurchased $44 million of stock, or 1.1 million shares, at an average price of $38.62 per share. Additionally, the Board of Directors increased the share repurchase authorization by $500 million.

As of August 7, 2024, Murphy had repurchased $150 million of stock in 2024, or 3.8 million shares, at an average price of $39.70 per share. Murphy currently has $800 million remaining under the share repurchase authorization and 150.1 million shares outstanding.

Accelerating Shareholder Returns

Murphy’s Board of Directors has approved a revision to the capital allocation framework that allows the company to move into Murphy 3.0 when the company reaches long-term debt of $1.3 billion, which it has achieved. Murphy will now allocate a minimum of 50 percent of adjusted free cash flow to shareholder returns, primarily through share buybacks. The remainder of adjusted free cash flow will be allocated to the balance sheet. Murphy is committed to maintaining a $1.0 billion total long-term debt goal, which it is forecast to achieve by mid-2025 assuming a $75 per barrel West Texas Intermediate price.

“We first announced our capital allocation framework in August 2022, which detailed our plans to reduce debt, build an industry-leading balance sheet and return capital to shareholders. Since that time, I am pleased that we have repurchased $300 million of stock and increased our dividend by 70 percent. Additionally, since year-end 2020 we have reduced debt by $1.75 billion, or 57 percent, and achieved $87 million in annual interest expense savings,” said Jenkins. “During this time, we have maintained a disciplined capital program, supporting existing asset development and exploration, proved reserve growth, acquisitions and a field development project. As we approach our $1.0 billion total long-term debt goal, we wanted to accelerate returns to our shareholders.”

OPERATIONS SUMMARY

Onshore

In the second quarter of 2024, the onshore business produced approximately 99 MBOEPD, which included 28 percent liquids volumes.

Eagle Ford Shale – Production averaged 28 MBOEPD with 71 percent oil volumes and 86 percent liquids volumes in the second quarter, which exceeded guidance by 1,700 BOEPD primarily due to wells producing above expectation. Murphy brought online 11 operated wells in Catarina and four non-operated wells in Tilden during the quarter.

Tupper Montney – During the second quarter, natural gas production averaged 400 million cubic feet per day (MMCFD), which exceeded guidance by 20 MMCFD primarily due to improved well performance. As planned, Murphy brought online 13 wells during the quarter, completing its 2024 program. During the quarter, Murphy achieved a record high peak gross production rate of 496 MMCFD.

Kaybob Duvernay – Production averaged 4 MBOEPD with 72 percent liquids volumes in the second quarter. Murphy brought online three operated wells in the second quarter as planned.

Offshore

Excluding NCI, in the second quarter of 2024, the offshore business produced approximately 81 MBOEPD, which included 83 percent oil.

Gulf of Mexico – Production averaged approximately 74 MBOEPD, consisting of 82 percent oil during the second quarter. Murphy drilled the operated Mormont #3 (Green Canyon 478) well, and brought online the operated Khaleesi #4 (Green Canyon 389) well and non-operated Lucius #11 (Keathley Canyon 919) well as planned during the quarter. The company also progressed the operated Neidermeyer #1 (Mississippi Canyon 208) sidetrack well and the non-operated Kodiak #3 (Mississippi Canyon 727) well workover, and both wells were brought online in the third quarter.

Canada – In the second quarter, production averaged 8 MBOEPD, consisting of 100 percent oil.

Vietnam – Murphy advanced its Lac Da Vang field development project during the second quarter and awarded facilities and pipeline contracts. The remaining major contracts are expected to be awarded by year-end 2024. The project remains on schedule to achieve first oil in late 2026.

EXPLORATION

Gulf of Mexico – During the quarter, Murphy drilled a discovery at the non-operated Ocotillo #1 (Mississippi Canyon 40) exploration well and found 100 feet of net pay across two zones. Murphy holds a 33.33 percent working interest in the well.

Also during the quarter, Murphy concluded drilling the non-operated Orange #1 (Mississippi Canyon 216) exploration well. The well encountered non-commercial hydrocarbons and has been plugged and abandoned. Approximately $26 million of the net well cost before tax was expensed in the second quarter. Murphy holds a 50 percent working interest in the well.

2024 CAPITAL EXPENDITURE AND PRODUCTION GUIDANCE

Murphy maintains its 2024 accrued CAPEX range of $920 million to $1.02 billion. The company also maintains its full year 2024 production range of 180 to 188 MBOEPD, consisting of approximately 95 MBOPD oil and 105 MBOEPD liquids volumes, equating to 52 percent oil and 57 percent liquids volumes, respectively. Currently the company expects to be at the lower end of the production range due to operational impacts in the Gulf of Mexico. The development plan of an operated well in the Samurai field was altered to a single zone to maximize total field recovery. Additionally, extended operations at the planned Neidermeyer #1 sidetrack well delayed the rig from commencing a well workover in the Dalmatian field.

Production for third quarter 2024 is estimated to be in the range of 181.5 to 189.5 MBOEPD with 91.5 MBOPD, or approximately 50 percent, oil volumes. This range is impacted by 9.4 MBOEPD of total downtime, comprised of 3.9 MBOEPD of assumed Gulf of Mexico storm downtime, 2.9 MBOEPD of planned onshore downtime and 2.6 MBOEPD of planned Gulf of Mexico downtime. Both production and CAPEX guidance ranges exclude NCI.

Detailed guidance for the third quarter and full year 2024 is contained in the attached schedules.

FIXED PRICE FORWARD SALES CONTRACTS

Murphy maintains fixed price forward sales contracts in Canada to lessen its dependence on variable AECO prices. These contracts are for physical delivery of natural gas volumes at a fixed price, with no mark-to-market income adjustments. Details for the current fixed price contracts can be found in the attached schedules.

CONFERENCE CALL AND WEBCAST SCHEDULED FOR AUGUST 8, 2024

Murphy will host a conference call to discuss second quarter 2024 financial and operating results on Thursday, August 8, 2024, at 9:00 a.m. EDT. The call can be accessed either via the Internet through the events calendar on the Murphy Oil Corporation Investor Relations website at http://ir.murphyoilcorp.com or via telephone by dialing toll-free 800-717-1738, reservation number 55528. For additional information, please refer to the Second Quarter 2024 Earnings Presentation available under the News and Events section of the Investor Relations website.

FINANCIAL DATA

Summary financial data and operating statistics for second quarter 2024, with comparisons to the same period from the previous year, are contained in the attached schedules. Additionally, a schedule indicating the impacts of items affecting comparability of results between periods, a reconciliation of EBITDA, EBITDAX, adjusted EBITDA and adjusted EBITDAX between periods, as well as guidance for the third quarter and full year 2024, are also included.

¹In accordance with GAAP, Murphy reports the 100 percent interest, including a 20 percent noncontrolling interest (NCI), in its subsidiary, MP Gulf of Mexico, LLC (MP GOM). The GAAP financials include the NCI portion of revenue, costs, assets and liabilities and cash flows. Unless otherwise noted, the financial and operating highlights and metrics discussed in this news release, but not the accompanying schedules, exclude the NCI, thereby representing only the amounts attributable to Murphy.

CAPITAL ALLOCATION FRAMEWORK

This news release contains references to the company’s capital allocation framework and adjusted free cash flow. In an effort to accelerate shareholder returns, Murphy’s Board of Directors has approved a revision to the framework that allows the company to move into Murphy 3.0 when the company reaches long-term debt of $1.3 billion, which the company has achieved. As a result, the company will begin allocating a minimum of 50 percent of adjusted free cash flow to share buybacks and potential dividend increases, with the remainder of adjusted free cash flow allocated to the balance sheet as the company maintains the $1.0 billion total long-term debt goal.

Adjusted free cash flow is defined as cash flow from operations before working capital change, less capital expenditures, distributions to NCI and projected payments, quarterly dividend and accretive acquisitions.

ABOUT MURPHY OIL CORPORATION

As an independent oil and natural gas exploration and production company, Murphy Oil Corporation believes in providing energy that empowers people by doing right always, staying with it and thinking beyond possible. Murphy challenges the norm, taps into its strong legacy and uses its foresight and financial discipline to deliver inspired energy solutions. Murphy sees a future where it is an industry leader who is positively impacting lives for the next 100 years and beyond. Additional information can be found on the company’s website at 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, results and plans, are subject to inherent risks, uncertainties and assumptions (many of which are beyond our control) and are not guarantees of performance. In particular, statements, express or implied, concerning the company’s future operating results or activities and returns or the company's ability and decisions to replace or increase reserves, increase production, generate returns and rates of return, replace or increase drilling locations, reduce or otherwise control operating costs and expenditures, generate cash flows, pay down or refinance indebtedness, achieve, reach or otherwise meet initiatives, plans, goals, ambitions or targets with respect to emissions, safety matters or other ESG (environmental/social/governance) matters, make capital expenditures or pay and/or increase dividends or make share repurchases and other capital allocation decisions are forward-looking statements. Factors that could cause one or more of these future events, results or plans not to occur as implied by any forward-looking statement, which consequently could cause actual results or activities to differ materially from the expectations expressed or implied by such forward-looking statements, include, but are not limited to: macro conditions in the oil and gas industry, including supply/demand levels, actions taken by major oil exporters and the resulting impacts on commodity prices; geopolitical concerns; 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; the impact on our operations or market of health pandemics such as COVID-19 and related government responses; other natural hazards impacting our operations or markets; 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; or adverse developments in the U.S. or global capital markets, credit markets, banking system or economies in general, including inflation. 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. Investors and others should note that we may announce material information using SEC filings, press releases, public conference calls, webcasts and the investors page of our website. We may use these channels to distribute material information about the company; therefore, we encourage investors, the media, business partners and others interested in the company to review the information we post on our website. The information on our website is not part of, and is not incorporated into, this news release. Murphy Oil Corporation undertakes no duty to publicly update or revise any forward-looking statements.

NON-GAAP FINANCIAL MEASURES

This news release contains certain non-GAAP financial measures that management believes are useful tools for internal use and the investment community in evaluating Murphy Oil Corporation’s overall financial performance. These non-GAAP financial measures are broadly used to value and compare companies in the crude oil and natural gas industry. Not all companies define these measures in the same way. In addition, these non-GAAP financial measures are not a substitute for financial measures prepared in accordance with GAAP and should therefore be considered only as supplemental to such GAAP financial measures. Please see the attached schedules for reconciliations of the differences between the non-GAAP financial measures used in this news release and the most directly comparable GAAP financial measures.

Non-GAAP Financial Measures

Presented above is a reconciliation of Net income to Adjusted net income from continuing operations attributable to Murphy. Adjusted net income excludes certain items that management believes affect the comparability of results between periods. Management believes this is important information to provide because it is used by management to evaluate the Company’s operational performance and trends between periods and relative to its industry competitors. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company’s financial results. Adjusted net income is a non-GAAP financial measure and should not be considered a substitute for Net income as determined in accordance with accounting principles generally accepted in the United States of America.

The pretax and income tax impacts for adjustments in the above table are shown below by area of operation and geographical location, and exclude the share attributable to noncontrolling interests.

Non-GAAP Financial Measures

Presented above is a reconciliation of Net income to Earnings before interest, taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA. Management believes EBITDA and Adjusted EBITDA are important information to provide because they are used by management to evaluate the Company’s operational performance and trends between periods and relative to its industry competitors. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company’s financial results. EBITDA and Adjusted EBITDA are non-GAAP financial measures and should not be considered a substitute for Net income or Cash provided by operating activities as determined in accordance with accounting principles generally accepted in the United States of America.

Non-GAAP Financial Measures

Presented above is a reconciliation of Net income to Earnings before interest, taxes, depreciation and amortization, and exploration expenses (EBITDAX) and Adjusted EBITDAX. Management believes EBITDAX and Adjusted EBITDAX are important information to provide because they are used by management to evaluate the Company’s operational performance and trends between periods and relative to its industry competitors. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company’s financial results. EBITDAX and Adjusted EBITDAX are non-GAAP financial measures and should not be considered a substitute for Net income or Cash provided by operating activities as determined in accordance with accounting principles generally accepted in the United States of America.