HOUSTON - Murphy Oil Corporation (NYSE: NYSE:MUR) announced the pricing of a $600 million offering of 6.000% Senior Notes due in 2032. The transaction is expected to finalize on October 3, 2024, subject to standard closing conditions. The company aims to use the proceeds, along with its available cash, to fund its ongoing tender offers for purchasing certain outstanding notes.
Specifically, Murphy Oil seeks to buy back up to $600 million of its existing 5.875% Senior Notes due 2027, 6.375% Senior Notes due 2028, and 7.050% Senior Notes due 2029. The buyback is governed by the terms outlined in the Offer to Purchase related to the tender offers. The company will also cover related premiums, fees, and expenses through the funds raised.
J.P. Morgan Securities LLC, BofA Securities, Inc., and MUFG Securities Americas Inc. are serving as the joint book-running managers for the offering. The offering is made through an automatic shelf registration statement on Form S-3, filed by Murphy Oil with the Securities and Exchange Commission (SEC), and is available via a prospectus supplement and accompanying prospectus.
Murphy Oil Corporation, an independent energy company, engages in the exploration and production of oil and natural gas. It focuses on delivering energy solutions with financial discipline and foresight.
The press release also contains forward-looking statements regarding the company's future operations and financial performance. However, these statements are subject to various risks and uncertainties and are not guarantees of future performance.
This news release does not represent an offer to sell or a solicitation of an offer to buy the securities described, nor is it a solicitation for the sale of the Tender Notes in any jurisdiction where such an offer, solicitation, or sale would be unlawful without registration or qualification under the securities laws of that jurisdiction.
The information provided in this article is based on a press release statement from Murphy Oil Corporation.
In other recent news, Murphy Oil Corporation has initiated a series of tender offers to buy back up to $600 million of its outstanding senior notes. The offers target notes due in 2027, 2028, and 2029 and are contingent on the company securing at least $600 million through debt financing transactions. Concurrently, Murphy Oil plans to offer $600 million of Senior Notes due in 2032, with the intention to fund these tender offers.
The company has also announced a $120 million exploration budget for 2024, which includes drilling two wells in the Gulf of Mexico and two in Vietnam. In terms of financial performance, Murphy Oil exceeded its production guidance in the second quarter of 2024, reporting a net income of $128 million and adjusted EBITDA of $396 million.
In analysts' updates, Wells Fargo revised its outlook on Murphy Oil, reducing the price target to $41 while maintaining an Equal Weight rating. This adjustment came after Murphy Oil revised its Shareholder Returns Framework, launching a phase called "MUR 3.0," which allows the company to increase its long-term debt threshold. Conversely, JPMorgan downgraded the company's stock from Overweight to Neutral, reducing the price target to $47, influenced by factors such as near-record U.S. oil supply levels and a mixed macroeconomic environment. These are the recent developments impacting Murphy Oil Corporation.
InvestingPro Insights
As Murphy Oil Corporation (NYSE: MUR) proceeds with its strategic financial restructuring through the offering of Senior Notes, investors and stakeholders may find the following data and insights from InvestingPro valuable for assessing the company's current market position and future outlook.
InvestingPro data indicates that Murphy Oil has a market capitalization of $5.41 billion, which provides a sense of the company's size and market influence. The company's price-to-earnings (P/E) ratio stands at 9.39, with an adjusted P/E ratio for the last twelve months as of Q2 2024 at 8.78. This relatively low P/E ratio could suggest that the stock is undervalued compared to its earnings. Additionally, the company maintains a price to book ratio of 1.02, indicating that its market value is in line with its book value, which could be a sign of fair valuation.
InvestingPro Tips reveal some mixed signals. On one hand, Murphy Oil has maintained dividend payments for 54 consecutive years, which could be a testament to its commitment to shareholder returns and financial stability. This is further supported by the company's dividend yield of 3.4% as of the latest data, indicating a potentially attractive return for income-focused investors. On the other hand, 8 analysts have revised their earnings downwards for the upcoming period, suggesting potential headwinds or challenges that could impact profitability.
For those considering investing in Murphy Oil or monitoring its financial maneuvers, InvestingPro offers additional insights. There are currently 6 more InvestingPro Tips available, which can be accessed for a deeper analysis and more comprehensive understanding of the company's financial health and market performance. These additional tips can be found at InvestingPro.
Overall, the data and insights provided by InvestingPro could be instrumental in making informed decisions regarding investments in Murphy Oil, especially in the context of its current financial activities such as the Senior Notes offering and tender offers for purchasing certain outstanding notes.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.