Murphy Oil Corp. operates as a holding company, which engages in the exploration and production of oil and gas. It operates through the following geographical segments: United States, Canada, Malaysia, and Other. Its products include oil and gas liquids, natural gas, and synthetic oil. The company was founded by Charles H. Murphy, Jr. in 1950 and is headquartered in El Dorado, AR.
United States E&P operations reported earnings of $249.2 million in the first half of 2019 compared to income of $108.7 million in the first half of 2018. Results were $140.5 million favorable in the 2019 quarter compared to the 2018 period due to higher revenues ($421.3 million), partially offset by higher depreciation, depletion and amortization ($115.2 million), lease operating expenses ($81.6 million), other operating expense ($50.8 million) and G&A ($5.3 million). Higher revenues were primarily due to higher volumes in the U.S. Gulf of Mexico (as a result of the MP GOM transaction in the fourth quarter of 2018 and the LLOG acquisition in the second quarter of 2019). Higher lease operating expenses and depreciation expense was due primarily to higher volumes. Higher other operating expense is due to higher business development spend relating to acquisition transaction costs and the fair market revaluation of acquisition contingent consideration.