stockrowWhat it does
Murphy Oil Corporation explores for, develops and produces crude oil and natural gas. It sells the oil and gas it produces to customers, including Chevron Corporation and ExxonMobil Corporation. It also produces natural gas liquids, hydrocarbons separated from natural gas that are sold alongside its other products.
In the United States, Murphy produces mainly offshore in the Gulf of America and onshore in the Eagle Ford Shale of South Texas. In Canada, it has onshore interests in the Tupper Montney and Kaybob Duvernay, as well as interests in offshore fields. Murphy operates some properties itself and holds non-operated interests in others.
The company also explores and develops offshore assets outside North America. In Vietnam, it brought its operated Lac Da Vang development online in 2026. In Côte d’Ivoire, it is appraising the Bubale discovery. Murphy also has offshore exploration acreage in Brazil and an interest in a producing field in Brunei.
Murphy’s business depends on finding or acquiring resources, drilling wells and bringing the resulting production to market. Its reserves are estimates of oil and gas expected to be economically producible under existing conditions, rather than exact quantities. Eric Hambly is president and chief executive officer.
How it makes money
Murphy earns revenue by producing and selling oil and natural gas. Its production also includes natural gas liquids. The amount it earns changes with both the volume sold and the prices it receives. To generate a profit and cash, sales revenue must exceed production costs and expenses for exploration, administration and borrowing.
Net crude oil and condensate revenue was $2.2 billion in FY2025, representing 82.8% of revenue. Net natural gas revenue was $382.3 million in FY2025. Oil and gas sales recur as wells produce, but output from individual wells declines and can be interrupted by maintenance or other downtime. Murphy drills and develops additional wells to bring new production online.
Total hydrocarbon production in 2025 was 188,682 BOEPD, or barrels of oil equivalent per day. Production increased from 2024, principally because of higher output in the Eagle Ford Shale and onshore Canada, partly offset by lower Gulf production. Lower average oil prices and lower Gulf volumes contributed to a decline in production revenue.
The company’s exploration and production business operates across geographic areas, while corporate activities include interest, foreign-exchange effects, derivatives and overhead. Murphy may use fixed-price financial swaps or physical sales to reduce commodity-price risk. Its financial results also reflect depreciation, depletion and amortization as producing assets are used, as well as impairment charges when asset values are reduced.
| Product or service | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Net crude oil and condensate revenue | $2.2 billion | 82.8% | −15.5% |
| Net natural gas revenue | $382.3 million | 14.2% | 27.4% |
| Net natural gas liquids revenue | $80.2 million | 2.98% | 1.27% |
| Sales of purchased natural gas | $0.00 | 0.00% | −100.0% |
Customers and how it sells
Murphy sells its produced commodities to customers rather than operating a refining and marketing business as part of its continuing operations. Chevron Corporation accounted for 19.0% of revenue in FY2025, and ExxonMobil Corporation accounted for 12.0%.
In 2025, U.S. production came primarily from offshore Gulf fields and the Eagle Ford Shale. The U.S. accounted for 90% of Murphy’s worldwide liquids production and 17% of its worldwide natural gas production volumes that year. Liquids comprise crude oil and natural gas liquids.
Canadian onshore assets produce both liquids and natural gas. Murphy holds a 100% working interest in Tupper Montney and a 70% working interest in Kaybob Duvernay. Its Canadian offshore interests are non-operated and include the Hibernia and Terra Nova fields.
Outside North America, Murphy has a producing interest in Brunei, exploration blocks offshore Brazil and Côte d’Ivoire, and operated production-sharing contracts in Vietnam. Lac Da Vang in Vietnam started producing oil in 2026. Murphy has also said that its Vietnam infrastructure can support development of nearby opportunities.
Suppliers and costs
Murphy’s costs include operating its leases, transporting, gathering and processing production, exploration, administration and borrowing. It also spends capital to drill and develop reserves. The company has a procurement department focused on managing supply-chain and other input costs, and has observed higher costs for goods and services used in exploration and production.
Lease operating expenses fell in 2025, helped by lower Gulf workover costs, lower production-handling fees and lower operating costs following the acquisition of the Pioneer floating production, storage and offloading vessel. In the Eagle Ford, cost-saving initiatives included workforce reductions, lower repair and maintenance costs, and equipment optimization.
Murphy spent approximately $690 million in 2025 to convert proved undeveloped reserves into proved developed reserves. It expects to spend approximately $450 million to $800 million per year over the following three years to develop its current undeveloped proved reserves. The company reviews its capital program and may adjust spending as forecast cash flow changes.
- Revenue$2.7B
- Selling, general and administrative−$902.6M
- Other operating costs−$1.5B
- Operating income$301.2M
Competitive position
Murphy operates in competitive oil and natural gas markets. Its ability to grow depends in part on finding or acquiring, developing and producing reserves at costs below the prices it receives. No competitors are named.
Murphy holds acreage and working interests across onshore and offshore fields, including operated and non-operated assets. It also owns the Pioneer floating production facility. Chinook 8 came online through that facility in 2026 without the cost or lead time of new infrastructure. Murphy says Lac Da Vang establishes infrastructure for a broader hub-and-spoke strategy in Vietnam, where nearby opportunities could use an existing development as a hub.
Our reading: Murphy’s acreage and facilities provide a source of operating advantage, but that advantage is limited by the need to keep spending to develop reserves and replace production. Our reading: Existing offshore infrastructure can improve the economics of nearby wells, although the value of that advantage depends on finding and producing additional resources. Our reading: The company’s commodity-price exposure limits the protection those assets provide against industry-wide price declines.
Growth opportunities
Murphy develops existing reserves and explores for new resources to support future production. Its development areas include the Eagle Ford Shale, the Gulf of America, Tupper Montney and Kaybob Duvernay in Canada, and Vietnam. At December 31, 2025, proved undeveloped reserves represented 43% of the company’s total proved reserves.
In 2026, Chinook 8 began producing through the Pioneer facility, and Lac Da Vang achieved first oil in Vietnam. Murphy says the Vietnam development provides infrastructure for a hub-and-spoke strategy, under which nearby opportunities could use the existing facility. Murphy considers Lac Trang North likely to be developed as a subsea tieback without an appraisal well.
In Côte d’Ivoire, Murphy says the Bubale West-1X well confirmed oil in the Turonian reservoir and encountered hydrocarbons in a deeper reservoir. The company believes the likely Turonian resource range supports an economic development, but it is not yet ready to provide an updated resource range. Murphy says further appraisal is needed for the deeper reservoirs.
Murphy also holds exploration acreage offshore Brazil and operates other offshore contracts in Côte d’Ivoire and Vietnam. Exploration can add resources for development, while appraisal work tests the size and characteristics of discoveries before development decisions.
- $2.3BFY2021
- $3.9BFY2022
- $3.5BFY2023
- $3.0BFY2024
- $2.7BFY2025
Structural risks
- Commodity prices: Oil and natural gas prices are volatile and influenced by factors outside Murphy’s control. Lower prices reduce the sales value of production, cash flow and net income, and could lead to impairment charges.
- Reserves and production: Proved reserves are estimates, not exact quantities. Actual production can differ because of prices, costs, reservoir performance or government action. Gulf production has also experienced planned and unplanned downtime and natural well declines.
- Exploration and development: Wells may not find commercially producible hydrocarbons. Murphy says Bubale’s resource range remains uncertain and that more work is needed on its reservoirs; appraisal and development require capital before production begins.
- Funding and partners: Financing may not always be available on acceptable terms. Murphy also relies on joint venture partners for some operations and development funding, and partners may be unable to pay their share of costs.
- Environmental and operating obligations: Murphy is subject to laws governing emissions, spills, water, safety and decommissioning. Hydraulic fracturing carries risks of releases and potential surface or groundwater contamination.
Bottom line
Our reading
Murphy is an oil and gas producer whose earnings depend on commodity prices and continued investment in wells and reserves. [item1] [item7] Its producing North American assets and offshore infrastructure provide a base for development, while Vietnam and Côte d’Ivoire offer additional projects with different stages of maturity. [item1] [call_prepared] The balance is between maintaining production and funding those opportunities amid uncertain prices, reservoir outcomes and capital needs. [item1a] [call_qa]