Murphy Oil raises capital spending as net income climbs
The energy company reported net income attributable to the firm of $232.2 million for the second quarter.
Murphy Oil (MUR), the independent energy company, reported a significant increase in net income for the second quarter of 2026. The result was driven by stronger commodity prices and operational outperformance.
Net income attributable to Murphy rose to $232.2 million in the second quarter, compared to $22.3 million in the same period last year. Adjusted EBITDA attributable to the company increased to $592.7 million, up from $382.9 million in the first quarter and $334.9 million in the second quarter of 2025.
Total net production, excluding non-controlling interests, declined to 168,995 barrels of oil equivalent per day (BOEPD). This followed a decrease from 174,236 BOEPD in the first quarter and a further drop from 189,677 BOEPD in the second quarter of 2025.
Despite the production decline, the company reduced lease operating expenses from continuing operations to $8.83 per BOE, down from $11.80 per BOE in the prior-year quarter. Non-GAAP free cash flow rose to $110.0 million, an increase from $41.4 million in the first quarter and $17.8 million in the second quarter of 2025.
Murphy raised its full-year 2026 capital expenditure midpoint to $1.55 billion from a previous midpoint of $1.25 billion. The increase is intended to advance high-impact appraisal and development opportunities.
Exploration results were mixed during the period. The company announced a new oil discovery at the Bubale-1X exploration well in Côte d’Ivoire, which encountered 100 feet of net pay across two reservoirs. Conversely, the Hai Su Vang appraisal program in Vietnam concluded with the Hai Su Vang-4X well being expensed as a dry hole.
Liquidity increased to $2.48 billion as of June 30, 2026, up from $2.38 billion as of March 31, 2026. The rise was primarily due to an increase in cash and cash equivalents, which grew from $380 million to $480 million.