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MURPHY OIL CORPORATION ANNOUNCES PRELIMINARY FIRST QUARTER 2016 FINANCIAL AND OPERATING RESULTS

(GLOBE NEWSWIRE via COMTEX) -- EL DORADO, Arkansas, May 4, 2016 - Murphy Oil Corporation MUR, -1.85% today announced its preliminary financial and operating results for the first quarter ended March 31, 2016, including a net loss of $198.8 million, or $1.16 per diluted share, during the quarter. The net loss during the first quarter includes a non-cash impairment of oil and natural gas properties of $95.1 million, or $68.9 million net of tax, and restructuring charges of $9.3 million, or $6.2 million net of tax. Details are provided in the first quarter financial results section below.

Operating and financial highlights for the first quarter 2016 include:

- Produced volumes of approximately 196,600 boepd in the first quarter

- Spent $144.9 million capital, in line with reduced annual capital spending plan

- Reduced lease operating expense per barrel by over 22 percent quarter-over-quarter, excluding Syncrude

- Lowered G&A expense by approximately 26 percent quarter-over-quarter, excluding restructuring charges

- Lowered Eagle Ford Shale well costs by over 25 percent quarter-over-quarter

- Achieved quarterly safety record of zero recordable incidents

FIRST QUARTER FINANCIAL RESULTS

The net loss of $198.8 million, or $1.16 per diluted share, includes a non-cash impairment of oil and natural gas properties of $95.1 million, or $68.9 million net of tax, as a result of further market price declines at the end of the first quarter compared to the year-end 2015. The non-cash impairments occurred at the Seal heavy oil field in Western Canada and the non-operated Terra Nova oil field offshore Canada. The net loss also includes $9.3 million, or $6.2 million net of tax, related to restructuring charges.

The company reported an adjusted loss, which excludes both the results of discontinued operations and certain other items that affect comparability of results between periods, of $112.8 million, or $0.66 per diluted share, in the first quarter of 2016. In addition to the previously mentioned items, the company also incurred a mark-to-market unrealized, non-cash loss of $13.3 million after tax related to a change in value of open crude oil contracts at the end of the first quarter of 2016. Details for first quarter can be found in the attached schedules.

Earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations in the first quarter 2016 totaled $146.5 million, or $8.35 per barrel of oil equivalent (boe) sold. Earnings before interest, taxes, depreciation, amortization and exploration expenses (EBITDAX) in the first quarter 2016 totaled $173.4 million, or $9.88 per boe sold. Both EBITDA and EBITDAX were significantly impacted by more than 30 percent decreases in oil and natural gas prices from first quarter of 2015. Details for first quarter EBITDA and EBITDAX can be found in the attached schedules.

First quarter 2016 production averaged nearly 196,600 barrels of oil equivalent per day (boepd), ahead of our first quarter production guidance range, primarily due to higher oil production from the Eagle Ford area in Texas, increased uptime at Syncrude, higher natural gas production from the Montney area in Western Canada, and higher oil production in both offshore Sabah, Malaysia and offshore Canada. These increases were partially offset by delays in bringing on the Kodiak well in the Gulf of Mexico, as well as increased downtime for natural gas at both Sarawak and Kikeh in offshore Malaysia. Details for first quarter production can be found in the attached schedules.

"Murphy remains focused on driving down operating and administrative costs across all segments of our business as demonstrated with our first quarter results. The leaner organization and reduced costs better position the company to weather a possible 'lower-for-longer' commodity price environment. We had strong first quarter production while executing on our aggressive capital reduction plan. Our onshore base production and type curves in the Eagle Ford Shale and Montney continue to show strong performance as compared to our original plans. Furthermore, following quarter end, we announced additional portfolio rationalization of non-core assets as we focus more on our unconventional North American onshore business," stated Roger W. Jenkins, President and Chief Executive Officer. "We are maintaining our capital spending of $580.0 million as previously announced in late February and our annual production guidance of 180,000 to 185,000 barrels of oil equivalent, which has not...


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