Pure-play oil and gas explorer Murphy Oil Corp. posted a fourth quarter and full year loss as low commodity prices wreaked havoc on the industry.
Houston-based Murphy Oil, formerly headquartered in El Dorado, posted a fourth quarter loss of $171.9 million, or $1.11 per share, on revenue of $330.2 million. One year ago, Murphy Oil showed a fourth quarter loss of $71.7 million, or 47 cents per share, on revenue of $637.4 million.
For the full year, Murphy Oil recorded a net loss of $1.15 billion, or $7.43 per share, on revenue of $1.97 billion. In 2019, the company made a $1.15 billion profit, or 52 cents per share, on revenue of $2.82 billion.
“We quickly responded to the major pullback in commodity prices by drastically reducing our capital budget and cost structure while adjusting our operational plans and continued supporting capital allocation to our major offshore projects,” said Roger W. Jenkins, President and CEO. “Our efforts resulted in strong liquidity, cash on hand and paying a dividend to our shareholders.”
Murphy Oil said production was impacted during the fourth quarter by two “subsea equipment issues” in the Gulf of Mexico, resulting in unplanned downtime.
“The subsea repairs are ongoing, with a return to full production expected during the first quarter 2021. Our onshore assets were able to offset the impact of the subsea matters due to strong well performance,” the company said.