Murphy’s Exit: Good But Not Great


Dateline 2019-03-27, Seeking Alpha (Not Susan):

Murphy Oil Corp. (MUR) decided to exit Malaysia by selling its assets to PTT Exploration and Production (OTCPK:PEXNY) for $2.13B, which represents a full monetization of its 2P (Proved and Probable) reserves. Although the deal is positive because it materializes the firm’s geographic strategy to focus on US opportunities, we believe the true impact of the transaction in the long term will be determined by the way management will reinvest the money.

At stake are $750M, which MUR determined to be destined to fund potential acquisitions and fund both deep-water projects (probably Gulf of Mexico) and U.S. onshore opportunities (Eagle Ford).

At the moment, Norwegian Equinor (EQNR) and Pioneer Natural Resources (PXD) are marketing their respective acreage in the Eagle Ford, which could spark MUR’s interest considering the company’s plans on increasing activity at Karnes, Tilden, and Catarina.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: