Murphy earnings plunge 97 percent; production sets record

Petroleum News Alaska Staff

Murphy Oil Co. pumped more oil and gas in the first quarter of 2002 than it has in any other quarter, but profits still plummeted 97 percent as low prices and refinery maintenance cut results.

Net income was $2.5 million, down from $97.8 million a year earlier and 28.8 million in the fourth quarter.

Murphy, based in El Dorado, Ark., pulled an average of 74,292 barrels of crude and condensate out of the ground every day in the quarter, up 8 percent compared with the 2001 period as the Terra Nova field off eastern Canada started producing. Higher gas volumes at the Ladyfern field in western Canada offset declines in the Gulf of Mexico to lift gas production 24 percent to 309 million cubic feet daily.

But with gas prices down 65 percent to $2.28 per thousand cubic feet, and oil down 13 percent to $19.76, profits were tough to find. Exploration and production showed a profit of $20.7 million, barely a fourth of the $80.6 million a year ago.

Meanwhile, refining and marketing showed a $13.7 million loss as costly downtime for repairs hit both U.S. refineries, cutting throughput to 112,468 barrels a day from 146,592 barrels in the 2001 quarter. Downstream operations and a Canadian pipeline sold last year brought in $19.6 million in profit a year ago.

Revenues eased 30 percent to $830 million from $1,189 million a year ago. The figure was also smaller than the fourth quarter’s $849 million.