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

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.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified through the inclusion of words such as “aim”, “anticipate”, “believe”, “drive”, “estimate”, “expect”, “expressed confidence”, “forecast”, “future”, “goal”, “guidance”, “intend”, “may”, “objective”, “outlook”, “plan”, “position”, “potential”, “project”, “seek”, “should”, “strategy”, “target”, “will” or variations of such words and other similar expressions. These statements, which express management’s current views concerning future events or results, are subject to inherent risks and uncertainties. Factors that could cause one or more of these future events or results not to occur as implied by any forward-looking statement include, but are not limited to: our ability to complete the divestiture of the Malaysia assets due to the failure to obtain regulatory approvals, the failure of the respective counterparties to perform their obligations under the relevant transaction agreements, the failure to satisfy all closing conditions, or otherwise, increased volatility or deterioration in the success rate of our exploration programs or in our ability to maintain production rates and replace reserves; reduced customer demand for our products due to environmental, regulatory, technological or other reasons; adverse foreign exchange movements; political and regulatory instability in the markets where we do business; natural hazards impacting our operations; any other deterioration in our business, markets or prospects; any failure to obtain necessary regulatory approvals; any inability to service or refinance our outstanding debt or to access debt markets at acceptable prices; and adverse developments in the U.S. or global capital markets, credit markets or economies in general. For further discussion of factors that could cause one or more of these future events or results not to occur as implied by any forward-looking statement, see “Risk Factors” in our most recent Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K that we file, available from the SEC’s website and from Murphy Oil Corporation’s website at http://ir.murphyoilcorp.com. Murphy Oil Corporation undertakes no duty to publicly update or revise any forward-looking statements.

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