June 2009 -- Murphy Oil Corp.'s first-quarter 2009 net income was way off from the year-earlier period. Income in 2009 was $171.1 million, or 89 cents per share, compared with net income of $409 million, or $2.14 per share, in the first quarter of 2008.
A drop in crude oil and North American natural gas sales prices led to much lower earnings in the company's exploration and production business. Earnings in the refining and marketing business in the 2009 first quarter were about even with the prior year as improved U.S. refining margins were mostly offset by much tighter U.S. retail marketing margins and lower margins for operations in the U.K, the company explained.
Exploration expense in the 2009 period was $111.1 million compared with $66.5 million in 2008, which can be traced to unsuccessful drilling of the Abalone Deep #1 prospect offshore Western Australia, plus unsuccessful wells in Block P offshore Malaysia and in the U.S.
"Quite naturally, lower oil and natural gas prices in early 2009 led to reduced net income for our company and the oil industry in the first quarter. We are pleased with our quarter over quarter oil and natural gas production increases of 23% and 61%, respectively. We have three projects set to start up in the next two quarters that will further add to our production volumes in the second half of the year," said David M. Wood, President and CEO.
