Shares of Murphy Oil (MUR) rose 2.34% after hours to $38.59 on Sept. 9 as CEO Eric Hambly presented the company’s latest operational and investment outlook at Barclays’ 40th Annual Energy-Power Conference in New York.
Hambly argued that the cash flows generated from the company’s offshore Gulf of America and Eagle Ford positions are "not properly captured by the market," calling it a mispricing. He also pointed to upside optionality from its offshore Vietnam and Côte d’Ivoire exploration plays, and noted the company continues to return capital through dividends paid every year since 1961.
In the Eagle Ford, Murphy expects 2026 production to exceed 38,000 barrels per day, surpassing prior targets of 30,000–35,000 b/d. The company plans to drill 25–30 operated wells annually to hold flat production, with Hambly citing a "very fine control" over activity levels that lets Murphy spend slightly more, grow output and generate additional free cash flow. A future plateau of 50,000–60,000 b/d is seen, with production life extending into the mid-2040s under a faster-growth scenario.
In Canada’s Montney, Murphy has more than 700 remaining drilling locations — enough for 50 to 70-plus years of inventory at current investment rates. Ten wells were brought online last year, keeping the processing plant fully loaded for five months; eight wells are scheduled for this year. Hambly noted that a plant expansion follows roughly a three-year timeline.
Murphy recently joined the Montney in 2006 and the Eagle Ford in 2009–2010. Capital spending has run $1.2 billion–$1.3 billion annually in recent years, with slightly higher outlays this cycle driven by exploration success.
Internationally, Murphy holds a 40% working interest in Vietnam’s Lac Da Vang (Golden Camel) field, where first production is expected in Q4 2024. Appraisal of the Hai Su Vang (HSV) field — including 2X, 3X and 4X wells — is ongoing. Hambly said estimates remain open-ended: “We still don't know how big it is, but it has potential to be toward the higher end of our prior range or even beyond.”
In Côte d’Ivoire, Murphy’s Bubale discovery is undergoing appraisal, with 90% and 85% interests across the blocks. The appraisal program is estimated to take 18–24 months.
Near Delta House in the Gulf of Mexico, Murphy’s Front Runner, Medusa, Thunder Hawk and Sarawak discoveries are progressing, while Cello and Banjo are expected to reach first production in Q4 2027.
At the conference, shares of Murphy Oil had previously traded at $38.23, up 1.73% from a prior close of $37.58, against a 52-week range of $24.80 to $43.34 and a dividend yield of 3.73%.
