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Murphy Oil Finalizes Multi-Billion Dollar Malaysian Transaction

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Murphy Oil Corporation has closed its Malaysian portfolio.

Today, the El Dorado-based company announced that it had finalized its divestment of all its Malaysian operations. Murphy Oil has sold its interests to a subsidiary of PTT Exploration and Production Public Company Limited (PTTEP), a Thai national petroleum exploration company.

According to a Murphy Oil news release, Murphy Oil will receive approximately $2.035 billion as part of the transaction, with a net gain of roughly $1 billion.

The company announced in March that it would be selling two Malaysian subsidiaries. The deal as outlined in March was for an all-cash transaction and possible bonus of up to $100 billion dependent on drilling results before October 2019.

Following the initial announcement of the transaction, Murphy Oil said it would be using the net proceeds as part of its 2019 strategic plan and to pay down outstanding debt.

“We would like to congratulate PTTEP on the purchase of their new asset. As our talented and committed Malaysia team transitions to their new owner, I am confident they will diligently work to ensure continued success in the country. Also, I would like to thank our long-term partners PETRONAS, PETRONAS Carigali and Pertamina. They too have diligently worked to ensure our long-term success in the region,” Roger W. Jenkins, Murphy Oil President and CEO, said in a statement.

In other news, Murphy Oil completed a share buy-back worth $300 million. The company purchased 11.4 million shares outstanding at roughly $26.34 per share.

“Murphy remains committed to spending within cash flow while investing in our new Gulf of Mexico assets. We continue to strongly support our shareholders with industry-leading dividend and share buybacks this year. Murphy’s recent transactions further align our high-margin and oil-weighted production, with approximately 90 percent of oil volumes expected to receive premium realizations to WTI,” Jenkins said. “We have repositioned our portfolio with multiple successful transactions while maintaining our strong balance sheet and liquidity position. Following our three major transactions over the last nine months, we are now set up for a transformed future with no revolver borrowings and liquidity of more than $2.0 billion.”

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