Murphy Oil (MUR) Q1 FY26 earnings call: guidance and Q&A

Can you provide color on the geological concept for Bubale, drilling progress, and why it's taking longer?

The main objective is the Cenomanian target, with a shallower Turonian secondary objective where drilling is currently underway. Slower drilling progress than hoped for, due to hard rock in the Turonian section, is causing delays. No definitive results yet as the primary objective has not been reached.

“We are currently drilling the well in the Turonian section. We have experienced slightly slower drilling progress than we had hoped for. So the well is taking a little longer to announce a result because we're still drilling it, and we've had a little bit slower rate of progress drilling.”

asked by Arun Jayaram · answered by Eric Hambly

What development options are being considered for the Hai Su Vang (HSV) field in Vietnam?

Two primary options are being evaluated: an FSO paired with a series of platforms (processing and/or wellhead) or an FPSO concept (new build or redeployment). Data from the ongoing appraisal program will inform the optimal development plan, with clarity expected about a year after the program concludes.

“The first would be an FSO paired with a series of platforms that would be processing platforms and/or wellhead platforms. And the alternative to that would be an FPSO concept, either a new build FPSO or a potential redeployment of an existing FPSO.”

asked by Arun Jayaram · answered by Eric Hambly

What is the status of the Paon development plan in Cote d'Ivoire, why is it taking longer, and would a Bubale discovery impact it?

The field development plan was submitted, but an agreement on gas pricing with the Ivorian government, critical for the gas-heavy field's economics, has not been reached. Any resource discovered near Paon, including at Bubale, could add scale and potentially make the project commercial at a lower gas price, justifying the cost of a gas pipeline.

“We were so far unsuccessful in agreeing with the Ivorian government on a gas pricing structure that would inspire us to sanction the project.”

asked by Carlos Andres E. Escalante · answered by Eric Hambly

How is Murphy thinking about share buybacks for the rest of the year given high oil prices and the focus on flexibility?

The company remains committed to competitive dividends and consistent stock repurchases but will be opportunistic with timing. If the share price is cheap, they may move quickly; if higher, they may be more patient, anticipating potential oil price and share price declines after geopolitical resolutions.

“We will likely approach share buyback with a bit of a more opportunistic assessment. And if we think that our share price is really cheap, then we'll probably move more quickly. If we think our share price is a little higher in the range, we may be a little more patient.”

asked by Christopher Baker · answered by Eric Hambly

What is the broad strategy for entering new countries like Cameroon and Morocco versus focusing on established basins?

The strategy involves regional study to identify opportunities in emerging basins where large resources can be tested with low-cost wells and inexpensive entry. This contrasts with the Gulf of America, where large opportunities are limited and well costs are high. The risk profile varies, with Morocco being the highest risk frontier opportunity.

“What we're trying to do is use regional study to guide entry into opportunities that we like. So instead of saying, hey, there's a prospect in one block in one country, let's go get it. We're actively assessing opportunities over a large geography, doing detailed regional study and identifying opportunities where we think we can assess -- cheaply assess and test large opportunities.”

asked by Joshua Silverstein · answered by Eric Hambly