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Murphy’s Eagle Ford Keeps Getting Better

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   |    Wednesday,November 12,2025

Murphy Oil walked into Q3 2025 with a simple message: operations are clicking again, and the company is delivering production and cost performance that gives them flexibility heading into a choppier macro.

They beat the high end of guidance for the second straight quarter, posting 200 Mboe/d total production and 94 Mbbl/d oil. The most striking number in the quarter was cost: operating costs averaged $9.39/boe, down ~20% vs Q2, helped by both strong volumes and fewer offshore workovers. Capital spending also came in light at $164MM, partly timing-driven but also reflecting continued capital efficiency gains.

Internationally, the story is about pipeline of catalysts. Murphy reached a major milestone in Vietnam by starting its first development well at Lac Da Vang (Golden Camel), and they’re actively appraising Hai Su Vang with the HSV-2X well focused on defining reservoir continuity and oil-water contact — the critical data needed to shape development planning. In West Africa, Murphy’s Côte d’Ivoire campaign is about to kick off: Civette is expected to spud in December, with initial results likely to be discussed at the January Q4 call. Murphy also re-sequenced its third exploration test from Kobus to Bubale, saying Bubale offers lower cost, lower risk, and still very large upside.

Eagle Ford update (the key)

Murphy made it clear that Eagle Ford is outperforming and the improvements look durable. Management said recent Eagle Ford wells (and Montney) are some of the strongest they’ve ever brought online — with early production in some cases 50% to 100% above historical performance — driven by longer laterals, improved targeting, tailored completion designs, and better flowback strategies. Importantly, they emphasized this is happening with equal or lower capital, not by simply spending more.

For Q4, Murphy guided Eagle Ford production lower not because performance is fading, but because no new Eagle Ford wells are coming online in Q4 and the strong 2025 wells are naturally declining off high initial rates. They also highlighted that more than half of Eagle Ford production in Q3 came from wells turned to sales in 2025, which is why the modeled Q4 decline looks steep — it’s the math of a “young” production mix. Management said early declines so far are in line or even shallower than history, reinforcing confidence in the upgraded well results.

Source : Murphy's Investor Presentation via Slide Manager

Bottom line: Q3 was a clean operational quarter, Murphy’s international catalysts stack up into 2026, and Eagle Ford performance is improving in a repeatable way, even as Q4 volumes ease due to timing and decline profile — not a deterioration in well quality.