Murphy Oil Corp announced successful appraisal results at the Bubale West-1X well offshore Cote d'Ivoire and an exploration discovery at the Lac Da Trang (White Camel) North-1X well offshore Vietnam. The company also confirmed first oil from the Lac Da Vang (Golden Camel) field and production from the Chinook #8 development well in the Gulf of America.

This operational update follows the company's decision to raise its 2026 capital expenditure estimate to $1.55 billion from $1.25 billion, driven by the significant oil discovery in Cote d'Ivoire and accelerated development in the Eagle Ford. Second-quarter production stood at 169,000 barrels of oil equivalent per day (boe/d), exceeding guidance midpoints and generating $110 million in free cash flow.

Strategic capital allocation shifts

The revised capital program focuses on high-value organic growth opportunities. Approximately $190 million is allocated to the Bubal discovery in Cote d'Ivoire, including $100 million for the discovery well and $90 million for the initial appraisal well. An additional $70 million is directed toward the Eagle Ford asset, expected to add 5,000 to 6,000 boe/d in production by 2027.

Management emphasized that this increase is not a reaction to commodity prices but a deliberate decision to fund specific projects. The Eagle Ford acceleration serves as a cash flow engine to support the longer-term exploration and appraisal activities in West Africa and Vietnam.

Exploration updates and asset performance

The Bubale West-1X well in Block CI-103 was drilled to a total measured depth of approximately 19,357 feet (5,900 meters) in 9,039 feet (2,755 meters) of water. It encountered approximately 88 feet (27 meters) of net oil pay in the Turonian reservoir, with additional hydrocarbons found in the deeper Albian reservoir. Preliminary analysis indicates high-quality oil. Murphy holds an 85 percent working interest in Block CI-103 and serves as operator.

In Vietnam, the Hai Su Vang-4X well resulted in a dry hole, leading to a reduced resource estimate. However, the field remains a material opportunity of 200 to 300 million barrels of oil equivalent. The Lac Da Vang project achieved first oil on September 27, 2026. Development is expected to ramp up through 2028, with net peak production of approximately 10 to 15 MBOEPD in 2028-2029. The newly announced exploration discovery at Lac Da Trang North-1X encountered 131 feet (40 meters) of net oil pay. This discovery offers potential tieback options to the now-producing Lac Da Vang asset, creating a pathway to capital-efficient development.

In the Gulf of America, the Chinook #8 development well is online, producing through the Pioneer floating production, storage and offloading vessel (FPSO). The well achieved an initial gross production rate of approximately 15 MBOEPD, consistent with pre-drill expectations. Murphy holds an 86.7 percent working interest in Chinook #8.

Financial position and shareholder returns

The company maintained a strong balance sheet with approximately $2.5 billion in liquidity. Despite the higher capital spend, Murphy Oil expects positive free cash flow for the full year at current commodity prices. The dividend policy remains unchanged, with share buybacks considered only if the stock price significantly undervalues intrinsic value. The company returned $50 million to shareholders via dividends in the second quarter.

What the numbers show

A divergence exists between the immediate cash generation from mature assets and the long-term growth investments. The $70 million incremental spend in the Eagle Ford is strategically linked to funding the $190 million Bubal program. This indicates a reliance on near-term, high-return onshore production to subsidize higher-risk, longer-lead offshore exploration, rather than utilizing the balance sheet or external financing for growth capital. Furthermore, the proximity of the new Lac Da Trang North discovery to the producing Lac Da Vang field suggests lower future development costs compared to standalone offshore projects.

Murphy Oil Corporation (NYSE: MUR) plans to release its third quarter 2026 financial and operating results after market close on Wednesday, November 4, 2026. The company will discuss these results in a conference call and webcast scheduled for the following morning.

The earnings call is set for 9:00 am ET on Thursday, November 5, 2026. Investors and analysts can access the webcast link and accompanying presentation material via the Investor Relations section of the company’s website at ir.murphyoilcorp.com.

Conference call details

Participants may join the discussion using the following dial-in information:

Company profile

Murphy Oil is an independent oil and natural gas company with a multi-basin onshore and offshore portfolio. The company operates extensive inventory located onshore in the Eagle Ford Shale, Tupper Montney, and Kaybob Duvernay, as well as offshore in the Gulf of America and Canada.

The company also pursues offshore exploration and development opportunities in the Gulf of America, Vietnam, and Côte d’Ivoire. Murphy Oil emphasizes financial discipline and full-cycle development capabilities to drive shareholder returns.