Murphy Oil Corporation Announces Close of Gulf of Mexico Acquisition and Provides Updated Guidance

Accretive Cash Flow Generating Acquisition Increases Operatorship in the Region

EL DORADO, Ark.–(BUSINESS WIRE)–Murphy Oil Corporation (NYSE: MUR) (“Murphy”) announced that its wholly owned subsidiary, Murphy Exploration & Production Company – USA, has closed the previously announced strategic deep water Gulf of Mexico acquisition from LLOG Exploration Offshore, L.L.C. and LLOG Bluewater Holdings, L.L.C., (“LLOG”). The transaction was previously announced on April 23, 2019, with an effective date of January 1, 2019.

After taking into account customary closing adjustments, Murphy’s total cash consideration paid was $1.227 billion, which was funded primarily through the company’s $1.6 billion revolver and other sources of liquidity.

The acquired assets will be fully owned by Murphy Exploration & Production Company – USA and not part of MP Gulf of Mexico, LLC (“MP GOM”), the entity which currently owns all of Murphy’s legacy producing Gulf of Mexico assets. During the month of June, after accounting for a planned curtailment from a third-party downstream pipeline outage, the average net production for the acquired assets is expected to be approximately 22,000 to 24,000 Boepd. Following the temporary downstream pipeline outage, Murphy anticipates production for the acquired assets for the second half of the year to be 31,000 to 33,000 Boepd, which is in line with previously disclosed annualized production of 32,000 to 35,000 Boepd.

“We are excited to close another accretive Gulf of Mexico transaction as we continue to transform the company. After our third-party reserve engineers¹ audited these newly acquired assets, we were able to increase the proved reserve volumes by 13 percent, to 73 Mmboe which further enhances the attractive acquisition metrics. Our newly expanded Gulf of Mexico portfolio is consistent with Murphy’s long-term vision of increasing high-margin, oil-weighted production in an area where we have a long history of operational success,” stated Roger W. Jenkins, President and Chief Executive Officer.

¹ Transaction reserves are based on external third party engineering estimates by Ryder Scott Petroleum Consultants as of January 1, 2019, using strip prices in effect on April 12, 2019.

ABOUT MURPHY OIL CORPORATION

Murphy Oil Corporation is a global independent oil and natural gas exploration and production company. The company’s diverse resource base includes production from North America onshore plays in the Eagle Ford Shale, Kaybob Duvernay, Tupper Montney and Placid Montney, as well as offshore Gulf of Mexico, Canada and Southeast Asia. Additional information is available on the company’s website at http://www.murphyoilcorp.com.