The Annual Offshore Oil & Gas Event
logo

The 25thBeijing International Offshore Oil & Gas Exhibition

ufi

BEIJING,CHINA

March 26-28,2025

LOCATION :Home> News > Industry News

Murphy Oil signs $2.13-billion Malaysian divestiture deal

Pubdate:2019-03-22 11:34 Source:liyanping Click:

EL DORADO, Ark. -- Murphy Oil Corporation has announced that a subsidiary has signed a sale and purchase agreement to divest the fully issued share capital of its two primary Malaysian subsidiaries, Murphy Sabah Oil Co., Ltd. and Murphy Sarawak Oil Co., Ltd., to a subsidiary of PTT Exploration and Production Public Company Limited (“PTTEP”). PTTEP will pay Murphy $2.127 billion in an all-cash transaction, payable upon closing and subject to customary closing adjustments, plus up to a $100 million bonus payment contingent upon certain future exploratory drilling results prior to October 2020.

The transaction has an effective economic valuation date of Jan. 1, 2019, with the closing expected to occur by the end of the second quarter 2019. Closing of the transaction is subject to customary conditions precedent including, among other things, necessary regulatory approvals. Under the terms of the transaction, Murphy will exit the country of Malaysia.

The year-end 2018 proved reserves (1P) net to Murphy were 816 MMboe of which 16% 129 MMboe were attributable to Malaysia. Of the 129 MMboe of proved reserves, 70 MMboe are characterized as proved undeveloped. The proved reserves are comprised of 468 Bcfg and 51 MMbbl of liquids. Total production net to Murphy in 2018 for the properties to be divested was over 48,000 Boepd, comprised of 62% liquids.

Proceeds from transaction

Murphy intends to allocate the proceeds from the transaction to advance its strategic priorities. This includes returning cash to shareholders through share repurchases and strengthening the company’s balance sheet by reducing debt.

Murphy’s Board of Directors has approved a new $500 million share repurchase program, expiring on Dec. 31, 2020, of which approximately $300 million is planned to be executed in the first tranche, with the remaining $200 million expected in the second tranche. In addition, the company intends to use a portion of the proceeds to pay down approximately $750 million of outstanding debt, with $325 million allocated to pay off Murphy’s senior credit facility to a zero balance and $425 million targeted to the repurchase or redemption of outstanding senior notes.

The company plans to continue its current oil-weighted strategy in both the Eagle Ford Shale and the Gulf of Mexico, while maintaining its focused exploration plan. To this end, $750 million of the remaining proceeds will remain on the balance sheet earmarked for U.S. oil-weighted opportunities through potential acquisitions and/or the funding of both deep water projects and U.S. onshore opportunities. The company will continue to employ a measured, disciplined approach to capital allocation that is aimed at generating the greatest value for Murphy’s shareholders.

Murphy expects to record a book gain on the sale between $0.9 billion to $1.0 billion, and plans to repatriate essentially all of the cash proceeds to the United States.

“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. “We would like to congratulate PTTEP on their purchase and we will support them in a smooth business transition over the coming months. I would like to thank our long-term partners in Malaysia, PETRONAS, PETRONAS Carigali and Pertamina. Most importantly, I would like to thank our committed Malaysian staff for their hard work and endless dedication to our company and we look forward to their successful transition to PTTEP,” Jenkins added.

New 2019 plan

The new 2019 annual plan reflects the company’s ongoing commitment to the goal of aligning spending within cash flows, while simultaneously returning cash to shareholders. The company’s previously announced annual production guidance was 202,000 to 210,000 boepd, of which 46,000 to 48,000 boepd was attributable to Malaysia. Murphy’s previously announced capital plan for 2019 was expected to be in the range of $1.25 to $1.45 billion, of which $106 million was attributable to Malaysia.

Beginning with the first quarter 2019 earnings release, the Malaysian operations will be reported as a “discontinued operation” and classified as “held for sale” for financial reporting purposes.

Multi-year plan

The company is well-positioned for long-term value creation. Following the Malaysia divestiture, $500 million share repurchase authorization and $750 million debt reduction, the company believes it can generate over $1.2 billion of free cash flow, before dividend payments between 2019 to 2023, when applying a $55/bbl WTI flat price. Over the same time frame, it plans to generate approximately an 8% compound annual growth rate from its three core producing assets in U.S. onshore, Canada onshore, and North America offshore.

“Our strategy of delivering moderate production growth over the next few years while generating free cash flow above our planned dividend levels continues when applying conservative oil prices even following the risk-free monetization of our Malaysia assets. We will continue with our plans of investing in our high margin, oil-weighted Western Hemisphere opportunities, especially the Eagle Ford Shale and the Gulf of Mexico while maintaining our focused low-cost exploration program,” Jenkins added.

Bank of America Merrill Lynch served as advisor to Murphy on the transaction and Tudor, Pickering, Holt & Co. served as financial advisor to Murphy. Gibson, Dunn & Crutcher LLP acted as legal counsel to Murphy.

主站蜘蛛池模板: 亚洲永久精品ww47| 午夜爽爽爽男女免费观看影院| 久久久精品一区| 真实国产乱子伦在线视频不卡| 国产麻豆媒一区一区二区三区| 九九在线观看精品视频6| 精品无人区乱码麻豆1区2区| 国产网站麻豆精品视频| 人妻蜜と1~4中文字幕月野定规| 又大又硬又爽又粗又快的视频免费| 日本一在线中文字幕天堂| 亚洲色图第一页| 18pao国产成视频永久免费| 无码精品国产一区二区三区免费 | 欧美福利电影在线| 国产乱码一区二区三区| aaaaaav| 日韩人妻潮喷中文在线视频 | 伊人久久大香线蕉综合爱婷婷 | 国产情侣一区二区| 好吊日在线观看| 亚洲色偷偷色噜噜狠狠99网| 黄色三级电影网| 天堂/在线中文在线资源官网| 久久精品国产亚洲av水果派| 狠狠干最新网址| 国产人与禽zoz0性伦多活几年| 97色婷婷成人综合在线观看| 日日摸日日碰夜夜爽亚洲| 亚洲电影在线免费观看| 翁公厨房嫒媛猛烈进出| 国产精品久久国产三级国不卡顿| 一本大道香蕉中文在线高清| 日韩精品福利在线| 亚洲精品福利你懂| 美村妇真湿夹得我好爽| 国产男人的天堂| 丰满白嫩大屁股ass| 欧美乱人妖大交xxxx| 免费看美女吃男生私人部位| 香瓜七兄弟第二季|