U.S. oil producer Murphy Oil Corp. may raise shareholder returns, potentially with buybacks, before it reaches its target to cut debt to $850 million within one year, CEO Roger Jenkins said on June 23.
Oil producers including Murphy Oil are using cash from oil sales to clean their balance sheets and boost distributions to shareholders.
“Deleveraging remains a big focus for us and we have been increasing our dividends,” Jenkins said during a webcast organized by JPMorgan. “I do believe that, while we may set that deleveraging goal, there is a way to have additional returns to shareholders along the way.”
RELATED:
Exclusive: Chesapeake’s Journey to Becoming ‘Most Compelling Investment Opportunity’
The company, which holds operations in the U.S., Mexico, Brazil and Vietnam, is currently considering exercising its preferential rights and buy assets in the Gulf of Mexico that are partially owned by Brazil’s Petroleo Brasileiro SA.
Murphy has 80% of the joint venture that includes 14 blocks in the U.S. Gulf, with production around 50,000 bbl/d in 2021. Petrobras put its 20% stake for sale earlier this year.
“It’s very simple. We will buy it at a good price. Or we will pass at a very high price,” Jenkins said.
The oil producer is also ramping up its Gulf of Mexico production with its 85,000 bbl/d platform Kings Quay, which started operations in April.
“The platform is running like anything, nothing I have ever seen in my career. And I have a 39-year career working in the Gulf,” Jenkins said.
Recommended Reading
Diamondback’s Van’t Hof Plays Coy on Potential Delaware Divestiture
2024-05-16 - Diamondback Energy’s President and CFO Kaes Van't Hof also addressed new Permian exploration and the lack of “fun” dealing with the FTC on its deal to buy Endeavor Energy Resources.
ONEOK CEO: ‘Huge Competitive Advantage’ to Upping Permian NGL Capacity
2024-03-27 - ONEOK is getting deeper into refined products and adding new crude pipelines through an $18.8 billion acquisition of Magellan Midstream. But the Tulsa company aims to capitalize on NGL output growth with expansion projects in the Permian and Rockies.
Sold in 66 Days: Inside the Diamondback-Endeavor Deal
2024-03-26 - Diamondback Chairman and CEO Travis Stice first offered “at least $25 billion” for Endeavor Energy Resources on Dec. 8. The deal closed just weeks later for $26 billion.
Is Double Eagle IV the Most Coveted PE-backed Permian E&P Left?
2024-04-22 - Double Eagle IV is quietly adding leases and drilling new oil wells in core parts of the Midland Basin. After a historic run of corporate consolidation, is it the most attractive private equity-backed E&P still standing in the Permian Basin?
Chevron, Exxon in Dispute Over Hess Stake in Guyana Oil Block
2024-02-27 - Chevron’s $53 billion deal to buy Hess’ interests in the Stabroek Block offshore Guyana could be derailed as Exxon, CNOOC say they have first rights of refusal on the block’s interests.