Oil and natural gas company Murphy Oil Corp. (MUR) said Wednesday after the markets closed that its second quarter profit fell 74% from last year, as lower crude oil and natural gas sales prices resulted in much lower earnings at its exploration and production business and weaker refinery margins in the U.K. hurt earnings at its refining and marketing business.
The El Dorado, Arkansas-based company reported net income for the second quarter of $158.8 million or $0.83 per share, compared to $619.2 million or $3.22 per share for the year-ago quarter.
The latest quarter results include a $24.7 million or $0.13 per share charge associated with an anticipated reduction of the company's working interest in the Terra Nova field, offshore Eastern Canada. The results also included $13.4 million or 0.07 per share gain from insurance settlements for fire and hurricane damages in prior years at the Meraux, Louisiana, refinery and a $2.1 million or $0.01 per share loss on discontinued operations for post-closing settlements and other adjustments on the sale of Ecuador properties that occurred in the first quarter. The year-ago quarter results included a $67.9 million or $0.35 per share gain on sale of the Lloydminster property in Western Canada.
On average, 13 analysts polled by Thomson Reuters expected the company to earn $0.65 per share for the second quarter. Analysts' estimates typically exclude special items.
Revenue for the second quarter fell 45% to $4.56 billion from $8.34 billion in the same quarter last year. Two analysts had a consensus revenue estimate of $3.95 billion for the second quarter.
Second quarter income from the company's continuing exploration and production operations fell to $118.3 million from $576.5 million a year ago, mainly due to lower crude oil and natural gas sales prices.
The company's total crude oil and gas liquids production increased to 118,145 barrels per day in the second quarter from 111,493 barrels per day in the second quarter of last year. The company attributed the increase in crude oil production volumes mostly to production at the Kikeh field, offshore Sabah, Malaysia.
Crude oil and gas liquids sales volumes averaged 112,538 barrels per day in the second quarter, up from 110,366 barrels per day in the prior year quarter.
The company's worldwide crude oil and condensate sales prices averaged $53.55 per barrel in the second quarter, down from $115.35 per barrel in the second quarter of last year.
Natural gas sales volumes in the second quarter improved to 147 million cubic feet per day from 55 million cubic feet per day a year earlier, mainly due to the December start-ups of gas production in the Tupper area in British Columbia, Canada, and at the Kikeh field.
North American natural gas sales prices averaged $3.25 per thousand cubic feet in the second quarter, down from $11.70 per thousand cubic feet in the same quarter last year.
Income from the company's refining and marketing operations fell to $27.8 million in the second quarter from $77.3 million in the year-ago quarter, mainly due to lower earnings in the United Kingdom because of much weaker refining margins.
For the first six months of the year, the company reported net income of $329.9 million or $1.72 per share, compared to $1,028.2 million or $5.36 per share for the same period last year.
Results of the 2009 first-half include gains of $103.6 million or $0.54 per share in discontinued operations from the sale of Ecuador properties. The year-ago first-half 2008 six-month period included after-tax gains from the sales of Canadian assets totaling $108.3 million or $0.57 per share.
Revenue for the first-half fell to $8.00 billion from $14.85 billion in the prior year period.
Looking forward, the company said it expects third quarter earnings to be in the range of $0.80 to $1.00 per share. Analysts currently expect the company to earn $0.91 per share for the third quarter.
Murphy Oil expects total worldwide production in the third quarter to be 169,000 barrels of oil equivalent per day. Sales volumes are expected to be 162,000 barrels of oil equivalent per day during the quarter.
British oil giant BP Plc (BP, BP.L) last week reported a sharp drop in second quarter profit, as revenues and other income nearly halved due primarily to a decline in oil and gas prices.
Also last week, Exxon Mobil Corp. (XOM) reported a 66% fall in second quarter profit, as revenues dropped 46% from last year, hurt by volatile commodity prices and reduced demand.
Chevron Corp. (CVX) last week reported a 71% slide in its second quarter profit, as earnings fell sharply in its upstream business hurt by lower prices for crude oil and natural gas.
Murphy Oil shares, which have traded in a range of $35.55 to $83.32 over the past year, closed Wednesday's regular trading session at $59.68, up 68 cents or 1.15% and gained an additional 2 cents in after hours trading.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.