Murphy sheds Malaysian assets to focus on Eagle Ford, US offshore

By Luke Geiver | March 22, 2019

Murphy Oil Corp. will use the proceeds from a $2.1 billion sale of its Malaysian oil assets to enhance U.S. onshore and offshore operations. The Arkansas-based exploration and production company has agreed to sell its ownership of producing areas capable of netting Marathon roughly 48,000 barrels of oil equivalent per day.

The proceed money will be used to return cash to shareholders through share repurchases along with debt reduction.

Roughly $750 million of the proceeds will be used to continue Murphy’s development of the Eagle Ford and U.S. offshore assets. The money could be used for further development or put towards acquisitions.

“After 20 years of successful operations in Malaysia, I am pleased to announce this all-cash transaction benefiting our shareholders by fully monetizing our proved and probable reserves. The tactical repositioning of Murphy allows us to simplify our business and focus on our core assets in the Western Hemisphere. The transaction will provide us with greater financial flexibility and allow us to continue returning cash to our shareholders through share repurchases,” commented Roger W. Jenkins, president and CEO. 

Murphy operates roughly 135,000 gross acres in South Texas. Since 2017, the company has produced more than 41,000 barrels of oil per day. The company’s main focus is on the liquids rich portion of the play.

In addition to its offices in Arkansas, Murphy has offices in Houston, Calgary, Kuala Lumpur, Perth, Australia and Ho Chi Minh City, Vietnam.