Oil and natural gas price volatility
Revenue is tied to market prices for crude oil, gas and NGLs, which can move sharply with supply/demand and geopolitics.
- Scope
- All producing assets
- Materiality
- High
Murphy Oil Corporation
Murphy Oil Corp. is an independent oil and gas exploration and production company focused on crude oil, natural gas and natural gas liquids. It develops and produces hydrocarbons across onshore U.S. shale and offshore/international assets, with reserves management and capital allocation as core operating disciplines.
47,0 %
100,0 %
3,8 %
−10,2 %
0.77
0.71
| % | |
|---|---|
| Upstream oil production | 55% Development and production of crude oil from onshore and offshore fields. |
| Natural gas production | 25% Production and sale of natural gas from U.S. and Canadian assets. |
| Natural gas liquids | 10% NGL volumes produced alongside oil and gas operations and sold into market channels. |
| Exploration and appraisal | 5% Seismic, drilling and appraisal activity to add reserves and future production. |
| Reserve management and technical services | 5% Internal reserve estimation, audits and reporting processes supporting SEC filings. |
Murphy sells primarily into commodity markets rather than to a narrow customer base, so its end buyers are refiners,...
- Commodity market buyersprimary
Refiners, marketers and traders buy crude oil and NGLs at market prices for downstream processing or resale.
- Natural gas purchasersprimary
Utilities, industrial users and gas marketers buy gas from Murphy's U.S. and Canadian production.
- Hedging and contract counterpartiessecondary
Financial and physical counterparties enter swaps and fixed-price sales to manage price risk and secure volumes.
- Project and asset partnerssecondary
Working-interest partners and joint venture participants share development costs and production in selected assets.
Murphy's core operating footprint spans the United States, Canada and selected international offshore basins, including...
- •United States: Eagle Ford and Gulf of America are core operating areas
- •Canada: natural gas-weighted business and fixed-price gas sales
- •Vietnam: offshore development at Lac Da Vang and appraisal drilling
- •Côte d'Ivoire: planned three-well exploration program
- •Geography matters because commodity pricing, regulation and logistics differ by basin
Murphy is prioritizing disciplined capital deployment into projects that can add reserves and production while...
01
Fund development with operating cash flow and liquidityshort-term
The business is highly exposed to commodity prices, so self-funding protects the capital program in weak markets.
02
Grow reserves through exploration and appraisalmedium-term
Reserve replacement is essential for sustaining long-term production in an upstream business.
03
Advance Vietnam development to first oilmedium-term
New field start-up can diversify production and add higher-quality future volumes.
04
Manage price exposure with hedging and fixed-price salesshort-term
Commodity volatility can quickly change cash flow and capital spending capacity.
Murphy's earnings and cash flow are highly sensitive to crude oil and natural gas prices, reserve revisions and...
Reserve estimation and revision risk
Downward reserve revisions can reduce future production expectations and create impairment or depreciation impacts.
- Scope
- Proved reserves base
- Materiality
- High
Environmental and remediation liabilities
Contamination, spills and legacy site cleanup can require investigation, remediation and third-party claim settlements.
- Scope
- Current and former operating sites
- Materiality
- High
Exploration and appraisal execution risk
Dry holes or sub-commercial discoveries would reduce returns on drilling capital.
- Scope
- Vietnam, Côte d'Ivoire, Gulf of America
- Materiality
- High
Hydraulic fracturing and water disposal constraints
Fracturing uses significant water and wastewater disposal can face regulatory or seismic restrictions.
- Scope
- Eagle Ford, Kaybob Duvernay, Tupper Montney
- Materiality
- Medium
Proved reserves estimation
Can materially change earnings and asset values
Asset retirement obligations
Affects liabilities and accretion expense
Derivative and fixed-price contract accounting
Can smooth or amplify quarterly results
Environmental remediation accruals
Can create material charges and liabilities
: 28.4.2026