June 2007 -- Murphy Oil Corp. reported net income of $110.6 million in the first quarter of 2007. This compares with $116 million in the first quarter of 2006.
The company's refining and marketing operations income was offset by lower income in exploration and production operations. The increased refining income was due to the Meraux, La., refinery coming back on line after having been shut down for repairs due to Hurricane Katrina. The decline in exploration and production earnings was primarily caused by lower oil and natural gas production and lower sales prices in the just completed quarter.
"Crude oil sales prices have risen since the end of the first quarter, and our worldwide production volumes are expected to average about 88,000 barrels of oil equivalent per day in the second quarter," said CEO Claiborne P. Deming in an April 25, 2007 earnings statement. "Margins at the company's two U.S. refineries have been robust so far in April due to a combination of tight refining capacity, lower product inventories and strong fuel demand. The effect of higher wholesale fuel prices has resulted in tight U.S. retail fuel margins,"
