Exceeds Production Guidance, Accelerates Debt Reduction Plan,

Publishes 2021 Sustainability Report

Murphy Oil Corporation (NYSE: MUR) today announced its financial and operating results for the second quarter ended June 30, 2021, including a net loss attributable to Murphy of $63 million, or $0.41 net loss per diluted share. Adjusted net income, which excludes discontinued operations and other one-off items, was $91 million, or $0.59 net income per diluted share.

Unless otherwise noted, the financial and operating highlights and metrics discussed in this commentary exclude noncontrolling interest. ¹

Highlights for the second quarter include:

• Produced 171 thousand barrels of oil equivalent per day, exceeding the high end of guidance, with 100 thousand barrels of oil per day
• Generated $405 million of adjusted earnings before interest, taxes, depreciation and amortization, and exploration, or $25.86 per barrel of oil equivalent
• Increased cash position by approximately $190 million through higher production volumes, disciplined spending and operational efficiencies, including noncontrolling interest
• Continued significant drilling projects in the Gulf of Mexico with drilling Samurai #3 and spudding Khaleesi #3 during the quarter
• Completed construction of King’s Quay floating production system, on track to arrive at shore base in the Gulf of Mexico by third quarter-end
• Drilled a discovery in non-operated Block CA-1 in Brunei with the Jagus SubThrust-1X exploration well

Subsequent to the second quarter:

• Continued delevering by announcing the redemption of $150 million of 6.875 percent senior notes due 2024 and establishing a new debt reduction target for 2021
• Furthered negotiations on an agreement with partners to restructure the Terra Nova project ownership
• Published 2021 Sustainability Report with enhanced disclosures and accountability, including a third-party assurance of 2020 Scope 1 and 2 greenhouse gas emissions. This report can be accessed at www.murphyoilcorp.com/sustainability-report

“We had a very positive quarter as we continued to progress on our strategy to delever, execute and explore. I am especially proud of our enhanced operational efficiencies allowing us to significantly exceed production guidance while maintaining our annual capital spending budget. Combined with higher realized crude oil prices, we are able to accelerate our delevering plan with the announced partial redemption of our 2024 senior notes and increase in our debt reduction target for 2021. Further, we are pleased with our progress on exploration prospects this year, as well as the recent discovery in Brunei,” said Roger W. Jenkins, President and Chief Executive Officer.

SECOND QUARTER 2021 RESULTS

The company recorded a net loss, attributable to Murphy, of $63 million, or $0.41 net loss per diluted share, for the second quarter 2021. This includes net realized and unrealized after-tax losses on crude oil derivative contracts of $179 million. Adjusted net income, which excludes both the results of discontinued operations and certain other items that affect comparability of results between periods, was $91 million, or $0.59 net income per diluted share for the same period. The adjusted net income from continuing operations excludes the following primary after-tax items: $103 million non-cash mark-to-market loss on crude oil derivative contracts and $49 million non-cash mark-to-market loss on contingent consideration. Details for second quarter results can be found in the attached schedules.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations attributable to Murphy was $391 million, or $25.00 per barrel of oil equivalent (BOE) sold. Adjusted earnings before interest, tax, depreciation, amortization and exploration expenses (EBITDAX) from continuing operations attributable to Murphy was $405 million, or $25.86 per BOE sold. Details for second quarter EBITDA and EBITDAX reconciliations can be found in the attached schedules.

Second quarter production averaged 171 thousand barrels of oil equivalent per day (MBOEPD) with 58 percent oil and 64 percent liquids. Production was 7 MBOEPD, or 4 percent, above the midpoint of guidance for the quarter due to higher onshore volumes of 3,700 barrels of oil equivalent per day (BOEPD) in the Eagle Ford Shale and 12 million cubic feet per day (MMCFD), or 2,000 BOEPD, in Tupper Montney. Total oil volumes of 100 thousand barrels of oil per day (MBOPD) were 5 MBOPD, or 5 percent, above the guidance midpoint for the quarter. Details for second quarter results can be found in the attached schedules.

FINANCIAL POSITION

Murphy had approximately $2.0 billion of liquidity as of the end of second quarter 2021, comprised of the $1.6 billion senior unsecured credit facility and approximately $418 million of cash and cash equivalents.

Total debt of $2.8 billion as of June 30, 2021 consists of long-term, fixed-rate notes with a weighted average maturity of 7.5 years and a weighted average coupon of 6.3 percent.

As announced on July 15, Murphy will redeem $150 million of its 6.875 percent senior notes due 2024 on August 16 for a redemption price of 101.719 percent, plus any accrued and unpaid interest. This announcement is consistent with the company’s previously disclosed goal of further reducing long-term debt in 2021 following the reduction achieved in the first quarter 2021.

“Delevering our company remains a top priority of our long-term strategy, and we took the first steps in accomplishing this by fully repaying the outstanding balance on our revolver in the first quarter and establishing a goal of $200 million in long-term debt reduction by year-end 2021. With excellent operational execution, consistent capital discipline and stronger oil prices, we now believe we can expand this goal to $300 million,” stated Jenkins.

OPERATIONS SUMMARY

Onshore

The onshore business produced approximately 93 MBOEPD with 47 percent liquids volumes in the second quarter.

Eagle Ford Shale – Production averaged 42 MBOEPD with 75 percent oil volumes during the quarter. Murphy brought online three operated wells in Catarina during the quarter with an average gross 30-day (IP30) rate of approximately 1,080 BOEPD. An additional 29 gross non-operated wells, primarily in Karnes, were brought online in the second quarter, with an average gross IP30 rate of approximately 1,700 BOEPD.

Tupper Montney – In the second quarter, natural gas production averaged 248 MMCFD. The company brought online 10 wells, completing activity in the area for the year.

Kaybob Duvernay – Second quarter production averaged 8 MBOEPD with 73 percent liquids volumes. No activity is scheduled to occur in 2021.

Offshore

The offshore business produced 78 MBOEPD for the second quarter, comprised of 80 percent oil. This excludes production from noncontrolling interest.

Gulf of Mexico – During the quarter, production averaged 74 MBOEPD, consisting of 79 percent oil. Murphy’s major projects continue to advance on schedule, as Murphy drilled Samurai #3 and spud Khaleesi #3 in the second quarter. Fabrication was completed on the King’s Quay floating production system, which sailed away to shore base in the Gulf of Mexico at the end of the quarter. Additionally, the final well of the non-operated St. Malo waterflood was drilled and is scheduled to come online in late 2021.

Canada – Production averaged 4 MBOEPD in the second quarter, comprised of 100 percent oil. Operations at the Terra Nova field have remained offline since December 2019.

During the second quarter, partners continued to negotiate on an agreement to restructure the Terra Nova project ownership and renew the asset life extension project, with the intent to move to a sanction decision in the third quarter 2021. The agreement is subject to finalized terms and approval from all parties involved, and is contingent upon the previously disclosed royalty and financial support from the Government of Newfoundland and Labrador.

EXPLORATION

Gulf of Mexico – During the second quarter, Murphy and its operating partner spud the Silverback exploration well (Mississippi Canyon 35).

Brunei – In the second quarter, Murphy reclassified its working interest in Block CA-1 of Brunei as no longer held for sale, while Block CA-2 retains that classification. During the quarter, Murphy and its partners drilled a discovery in Block CA-1 in Brunei with the Jagus SubThrust-1X exploration well for a net cost of $2.8 million at approximately 8 percent working interest.

CAPITAL EXPENDITURE AND PRODUCTION GUIDANCE

Production for third quarter 2021 is estimated to be in the range of 162 to 170 MBOEPD and includes assumed storm downtime of 4,100 BOEPD. Murphy tightened its 2021 capital expenditures (CAPEX) guidance to $685 to $715 million while adjusting full year 2021 production guidance to 157.5 to 165.5 MBOEPD. Full year production is forecast to be comprised of approximately 55 percent oil and 61 percent total liquids volumes.

In addition to forecasted third quarter storm impacts, annual production guidance includes fourth quarter impacts of 1,300 BOEPD of assumed offshore storm downtime and 7,900 BOEPD of net planned offshore downtime. Both production and CAPEX guidance ranges exclude Gulf of Mexico noncontrolling interest (NCI).

Accrual CAPEX, based on midpoint of guidance range and excluding NCI

* Excludes King’s Quay CAPEX of $17 million, includes $20 million Lucius working interest acquisition

SUSTAINABILITY REPORT

Subsequent to quarter-end, Murphy published its 2021 Sustainability Report, taking into consideration various third-party reporting standards and ratings, and including additional disclosures and a third-party assurance on 2020 Scope 1 and Scope 2 greenhouse gas emissions. New to this year’s report, the company announced its goal of zero routine flaring by 2030, expanded metrics on diversity and a new Human Rights Policy. The 2021 Sustainability Report can be found on the website at www.murphyoilcorp.com/sustainability-report.

“Our 2021 Sustainability Report continues to expand our disclosures surrounding environmental, social and governance matters, and align with the goals of global organizations, including the United Nations Sustainability Development Goals. We remain committed to reporting in an authentic and transparent manner as we continue developing sustainable efforts and goals to actively participate in the global energy transition,” stated Jenkins.

CONFERENCE CALL AND WEBCAST SCHEDULED FOR AUGUST 5, 2021

Murphy will host a conference call to discuss second quarter 2021 financial and operating results on Thursday, August 5, 2021, at 9:00 a.m. EDT. The call can be accessed either via the Internet through the Investor Relations section of Murphy Oil’s website at http://ir.murphyoilcorp.com or via the telephone by dialing toll free 1-888-886-7786, reservation number 11711715.

FINANCIAL DATA

Summary financial data and operating statistics for second quarter 2021, with comparisons to the same period from the previous year, are contained in the following schedules. Additionally, a schedule indicating the impacts of items affecting comparability of results between periods, a reconciliation of EBITDA and EBITDAX between periods, as well as guidance for the third quarter and full year 2021, are also included.

¹In accordance with GAAP, Murphy reports the 100 percent interest, including a 20 percent noncontrolling interest (NCI), in its subsidiary, MP Gulf of Mexico, LLC (MP GOM). The GAAP financials include the NCI portion of revenue, costs, assets and liabilities and cash flows. Unless otherwise noted, the financial and operating highlights and metrics discussed in this news release, but not the accompanying schedules, exclude the NCI, thereby representing only the amounts attributable to Murphy.

ABOUT MURPHY OIL CORPORATION

As an independent oil and natural gas exploration and production company, Murphy Oil Corporation believes in providing energy that empowers people by doing right always, staying with it and thinking beyond possible. Murphy challenges the norm, taps into its strong legacy and uses its foresight and financial discipline to deliver inspired energy solutions. The company sees a future where it is an industry leader who is positively impacting lives for the next 100 years and beyond. Additional information can be found on the company’s website at www.murphyoilcorp.com.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified through the inclusion of words such as “aim”, “anticipate”, “believe”, “drive”, “estimate”, “expect”, “expressed confidence”, “forecast”, “future”, “goal”, “guidance”, “intend”, “may”, “objective”, “outlook”, “plan”, “position”, “potential”, “project”, “seek”, “should”, “strategy”, “target”, “will” or variations of such words and other similar expressions. These statements, which express management’s current views concerning future events or results, are subject to inherent risks and uncertainties. Factors that could cause one or more of these future events or results not to occur as implied by any forward-looking statement include, but are not limited to: macro conditions in the oil and gas industry, including supply/demand levels, actions taken by major oil exporters and the resulting impacts on commodity prices; increased volatility or deterioration in the success rate of our exploration programs or in our ability to maintain production rates and replace reserves; reduced customer demand for our products due to environmental, regulatory, technological or other reasons; adverse foreign exchange movements; political and regulatory instability in the markets where we do business; the impact on our operations or market of health pandemics such as COVID-19 and related government responses; other natural hazards impacting our operations or markets; any other deterioration in our business, markets or prospects; any failure to obtain necessary regulatory approvals; any inability to service or refinance our outstanding debt or to access debt markets at acceptable prices; or adverse developments in the U.S. or global capital markets, credit markets or economies in general. For further discussion of factors that could cause one or more of these future events or results not to occur as implied by any forward-looking statement, see “Risk Factors” in our most recent Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K that we file, available from the SEC’s website and from Murphy Oil Corporation’s website at http://ir.murphyoilcorp.com. Murphy Oil Corporation undertakes no duty to publicly update or revise any forward-looking statements.

NON-GAAP FINANCIAL MEASURES

This news release contains certain non-GAAP financial measures that management believes are useful tools for internal use and the investment community in evaluating Murphy Oil Corporation’s overall financial performance. These non-GAAP financial measures are broadly used to value and compare companies in the crude oil and natural gas industry. Not all companies define these measures in the same way. In addition, these non-GAAP financial measures are not a substitute for financial measures prepared in accordance with GAAP and should therefore be considered only as supplemental to such GAAP financial measures. Please see the attached schedules for reconciliations of the differences between the non-GAAP financial measures used in this news release and the most directly comparable GAAP financial measures.

¹ Net cash provided by discontinued operations is not part of the cash flow reconciliation.

Non-GAAP Financial Measures

Presented above is a reconciliation of Net (loss) income to Adjusted income (loss) from continuing operations attributable to Murphy. Adjusted income (loss) excludes certain items that management believes affect the comparability of results between periods. Management believes this is important information to provide because it is used by management to evaluate the Company’s operational performance and trends between periods and relative to its industry competitors. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company’s financial results. Adjusted income (loss) is a non-GAAP financial measure and should not be considered a substitute for Net (loss) income as determined in accordance with accounting principles generally accepted in the United States of America.

Amounts shown above as reconciling items between Net (loss) income and Adjusted income (loss) are presented net of applicable income taxes based on the estimated statutory rate in the applicable tax jurisdiction. The pretax and income tax impacts for adjustments shown above are as follows by area of operations and exclude the share attributable to non-controlling interests.

¹ Depreciation, depletion, and amortization expense, impairment of assets and accretion of asset retirement obligations used in the computation of Adjusted EBITDA exclude the portion attributable to the non-controlling interest (NCI).

Non-GAAP Financial Measures

Presented above is a reconciliation of Net (loss) income to Earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA. Management believes EBITDA and adjusted EBITDA are important information to provide because they are used by management to evaluate the Company’s operational performance and trends between periods and relative to its industry competitors. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company’s financial results. EBITDA and adjusted EBITDA are non-GAAP financial measures and should not be considered a substitute for Net (loss) income or Cash provided by operating activities as determined in accordance with accounting principles generally accepted in the United States of America.

Presented above is adjusted EBITDA per barrel of oil equivalent sold. Management believes adjusted EBITDA per barrel of oil equivalent sold is important information because it is used by management to evaluate the Company’s profitability of one barrel of oil equivalent sold in that period. Adjusted EBITDA per barrel of oil equivalent sold is a non-GAAP financial metric.

¹ Depreciation, depletion, and amortization expense, impairment of assets and accretion of asset retirement obligations used in the computation of adjusted EBITDAX exclude the portion attributable to the non-controlling interest (NCI).

Non-GAAP Financial Measures

Presented above is a reconciliation of Net (loss) income to Earnings before interest, taxes, depreciation and amortization, and exploration expenses (EBITDAX) and adjusted EBITDAX. Management believes EBITDAX and adjusted EBITDAX are important information to provide because they are used by management to evaluate the Company’s operational performance and trends between periods and relative to its industry competitors. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company’s financial results. EBITDAX and adjusted EBITDAX are non-GAAP financial measures and should not be considered a substitute for Net (loss) income or Cash provided by operating activities as determined in accordance with accounting principles generally accepted in the United States of America.

Presented above is adjusted EBITDAX per barrel of oil equivalent sold. Management believes adjusted EBITDAX per barrel of oil equivalent sold is important information because it is used by management to evaluate the Company’s profitability of one barrel of oil equivalent sold in that period. Adjusted EBITDAX per barrel of oil equivalent sold is a non-GAAP financial metric.

¹ Includes results attributable to a noncontrolling interest in MP Gulf of Mexico, LLC (MP GOM).

² For the three months ended June 30, 2021, results of operations include no impairment charges (2020: $19.6 million). For the six months ended June 30, 2021, results of operations include impairment charge of $171.3 million in Canada for Terra Nova due to the status of agreements with the partners as of March 31, 2021 (2020: U.S. impairment charge of $947.4 million, Other impairment charge $39.7 million).

¹ Includes results attributable to a noncontrolling interest in MP GOM.

¹ Includes results attributable to a noncontrolling interest in MP GOM.

¹ For the six months ended June 30, 2021, lease operating expense (LOE) per barrel of oil equivalents (BOE) sold for the U.S. Gulf of Mexico excluding cost associated with well workovers was $8.45 (2020: $9.35), respectively. Workovers for the six months ended June 30, 2021 principally relate to St. Malo (2020: Dalmatian and Cascade).

² For the six months ended June 30, 2021, total LOE per BOE excluding NCI and costs associated with Gulf of Mexico well workovers was $7.78 (2020: $7.89), respectively.

¹ For the three and six months ended June 30, 2021, total capital expenditures include noncontrolling interest (NCI) capital expenditures of $9.4 million (2020: $5.2 million) and $13.0 million (2020: $15.5 million), respectively.

² For the six months ended June 30, 2021, total includes capital expenditures associated with the King’s Quay project of $17.3 million (2020: $61.4 million). King’s Quay was sold to ArcLight Capital Partners, LLC (ArcLight) on March 17, 2021 for proceeds of $267.7 million which reimburses the Company for previously incurred capital expenditures.

³ For the three and six months ended June 30, 2021, charges to exploration expense exclude amortization of undeveloped leases of $4.3 million (2020: $7.2 million) and $8.9 million (2020: $14.7 million), respectively.