Murphy Oil Corporation (MUR): Marketing Mix Analysis [Dec-2025 Updated]

You're digging into the late 2025 strategy for Murphy Oil Corporation, trying to see past the daily commodity swings to their core plan. Well, after two decades in this game, I can tell you their marketing mix-the four P's-is less about flashy advertising and more about disciplined capital allocation. We're looking at a company guiding production near 180 MBOEPD, but the real story is in the 'Price' and 'Promotion' pillars: they're committed to returning at least 50 percent of adjusted free cash flow to shareholders, backing that up with a CAPEX plan between \$1,135 million and \$1,285 million. Dive in below to see exactly how their Product focus on the deepwater Gulf of America and their Place strategy directly feeds this shareholder-centric model.

Murphy Oil Corporation (MUR) - Marketing Mix: Product

The product element for Murphy Oil Corporation centers on the exploration, development, and production of crude oil and natural gas, which are then processed into end-user products like petrol, diesel, and jet fuel.

The company's production profile for the full year 2025 is guided by specific output expectations, which reflect the current asset base and planned activities. This guidance excludes noncontrolling interests (NCI).

Full-year 2025 production guidance is set between 174.5 to 182.5 MBOEPD. The expected production mix for this full-year guidance is approximately 50 percent oil and 55 percent liquids volumes. To give you a sense of the components making up that guidance, preliminary figures suggested approximately 91 MBOPD oil and 101 MBOEPD liquids volumes, equating to 51 percent oil and 57 percent liquids volumes, respectively, based on earlier estimates.

The core focus for Murphy Oil Corporation remains anchored in its established, high-quality assets in the deepwater Gulf of America and North American onshore plays. Capital allocation for 2025 reflects this priority, with approximately $410 million allocated to the Gulf of Mexico for operated and non-operated development drilling and field development projects.

The product offering is heavily weighted toward oil-rich assets, as seen in the Q2 2025 offshore production, which averaged approximately 72 MBOEPD, with 82 percent being oil. On the onshore side, Q1 2025 production was about 86 MBOEPD, which included 28 percent liquids volumes.

Murphy Oil Corporation is actively pursuing growth through exploration and development projects in key international areas, which represent future product inventory. These include assets in Vietnam and Côte d'Ivoire.

The development pipeline includes specific targets for bringing new production online, ensuring the long-term viability of the product portfolio. For instance, the Lac Da Vang development is planned to continue through the financial year 2029. Furthermore, exploration success in Vietnam, such as the Lac Da Hong-1X well, encountered 106 feet of net oil pay.

The overall 2025 Capital Expenditure (CAPEX) plan, based on the midpoint of guidance, was approximately $1,210 million (excluding NCI). This capital is distributed across the product-generating areas:

• Offshore US: 36 percent
• Onshore US: 30 percent
• Canada: 12 percent
• Onshore Exploration: 12 percent
• Corporate: 9 percent
• Acquisitions: 2 percent

The product portfolio is defined by these geographically concentrated, high-quality reserves. Finance: draft 13-week cash view by Friday.

Murphy Oil Corporation (MUR) - Marketing Mix: Place

The Place strategy for Murphy Oil Corporation centers on the physical location and accessibility of its upstream assets, which dictates where and how its produced commodities-crude oil and natural gas-are brought to market through existing infrastructure and sales points.

Offshore operations concentrated in the Gulf of America and non-operated Canada define a significant portion of Murphy Oil Corporation's distribution footprint. For the first quarter of 2025, excluding noncontrolling interest (NCI), the offshore business produced approximately 71 MBOEPD, with 83 percent being oil. Specifically, Gulf of America production averaged approximately 62 MBOEPD, consisting of 81 percent oil in the first quarter. Offshore Canada contributed 9 MBOEPD, which was 100 percent oil in Q1 2025. Infrastructure enhancements in the Gulf of America included the acquisition of the BW Pioneer FPSO for a net purchase price of $104 million. Also in the Gulf of America, Murphy Oil acquired working interests in five blocks near the Zephyrus field for $1.4 million. By the second quarter of 2025, offshore production (excluding NCI) was approximately 72 MBOEPD, with 82 percent oil.

The onshore US presence primarily in the Eagle Ford Shale on private lands in Texas represents a key area for domestic supply. In the first quarter of 2025, the Eagle Ford Shale asset produced 25 MBOEPD, characterized by 67 percent oil volumes and 83 percent liquids volumes. The company closed an acquisition in the Eagle Ford Shale for $23 million on July 1st. The asset base supports approximately ~1,100 future locations across ~120,000 net acres. The planned 2025 capital expenditure (CAPEX) in the Eagle Ford Shale was approximately $360 million, intended to drill 34 operated wells and 28 non-operated wells.

Canadian onshore assets include the Tupper Montney and Kaybob Duvernay, which primarily contribute natural gas volumes. For the first quarter of 2025, Tupper Montney natural gas production averaged 340 MMCFD, equivalent to 57 MBOEPD. By the second quarter of 2025, Tupper Montney production increased to 447 MMCFD or 74.7 MBOEPD. Kaybob Duvernay production in Q1 2025 averaged 4 MBOEPD. The 2025 CAPEX allocation for Canada onshore was approximately $140 million. The Tupper Montney asset has approximately ~750 future locations on ~120,000 net acres, while Kaybob Duvernay has approximately ~420 future locations on ~110,000 net acres.

Exploration focus areas are Gulf of America, Vietnam, and Côte d'Ivoire, representing future supply points. Total allocated CAPEX for 2025 exploration activities was $145 million. In Vietnam, the company allocated $110 million of its 2025 CAPEX for offshore operations, including $90 million for Lac Da Vang field development activities. The exploration program included plans for the Lac Da Hong-1X well and a Hai Su Vang appraisal well in Vietnam, two operated exploration wells in the Gulf of Mexico, and one exploration well in Côte d'Ivoire. For Côte d'Ivoire, $5 million was designated for Paon field development, and the company planned to submit a field development plan by 4Q 2025.

The distribution and development focus areas for Murphy Oil Corporation as of late 2025 can be summarized by the following asset breakdown and capital focus:

The company's commitment to bringing product online is further detailed by the planned well activity across its key onshore development areas for 2025:

• Eagle Ford Shale operated wells planned online: 35.
• Eagle Ford Shale non-operated wells planned online: 28.
• Tupper Montney operated wells planned online: 10.
• Kaybob Duvernay operated wells planned online: 4.

The overall capital deployment for production and development, which directly supports the 'Place' strategy by bringing future supply online, was guided to be between $1,135 million and $1,285 million for the full year 2025.

Murphy Oil Corporation (MUR) - Marketing Mix: Promotion

You're looking at how Murphy Oil Corporation communicates its value proposition, and honestly, for a company like this, the promotion is heavily weighted toward the financial community rather than broad consumer advertising. The primary communication channels are decidedly corporate and financial.

Primary communication is through Investor Relations and quarterly earnings webcasts. These events are where leadership delivers the core message about operational execution, strategic progress, and financial discipline. For instance, the Q2 2025 earnings call on August 7, 2025, emphasized three key takeaways, including sequential production increases to 190,000 barrels of oil equivalents per day (BOEPD) and capital expenditure coming in better than guidance at $251 million for the quarter.

There is a strong emphasis on a Capital Allocation Plan and shareholder returns. This plan is central to the promotional narrative, signaling commitment to capital discipline and direct value return to you, the stockholder. The plan allocates a minimum of 50 percent of adjusted free cash flow to share buybacks and potential dividend increases, with the remainder bolstering the balance sheet.

The results of this focus are concrete. Murphy Oil Corporation returned $193 million to shareholders in the first half of 2025. This return was comprised of $100 million in share repurchases and $93 million in dividends during that period. Looking across a slightly longer timeframe, during the first three quarters of 2025, the company distributed $139.8 million in dividends alone. As of September 30, 2025, the company had 142.7 million shares outstanding after repurchasing 3.6 million shares in the first quarter.

Here's a quick look at how the shareholder return components stack up for the first half of 2025:

Further reinforcing the commitment to responsible operations and governance, Murphy Oil Corporation published the 2025 Sustainability Report to address ESG (Environmental, Social, and Governance) matters. This report serves as a key communication tool to stakeholders beyond just financial performance. Highlights from the 2025 report show continued progress against long-term goals:

• Goal to reduce Scope 1 and 2 GHG emissions intensity by 15%-20% by 2030, compared to 2019 levels.
• On track to achieve zero routine flaring by 2030.
• Achieved 68% water recycling ratio for onshore assets.
• Reported 56% reduction in Methane Intensity since 2019.
• Reported 65% reduction in Flaring Intensity since 2019.
• 58% of US onshore natural gas pneumatics have been replaced.
• Conducted over 400+ face-to-face interactions with investors.

Finally, the Quarterly Stockholder Update provides deeper leadership perspectives, supplementing the formal earnings release. This document offers a more narrative approach from management, contextualizing the quarterly results within the broader Capital Allocation Plan and operational outlook. For example, the Q3 2025 update discussed the success of new Catarina wells in the Eagle Ford Shale, which had an average break-even oil price as low as $22 per barrel WTI for some wells.

Murphy Oil Corporation (MUR) - Marketing Mix: Price

Price for Murphy Oil Corporation centers on how the company structures its capital returns and manages commodity price exposure through hedging, which directly impacts the perceived value and accessibility of the stock to investors.

You're looking at the financial levers Murphy Oil Corporation uses to price its value proposition to the market, which in this context, is heavily weighted toward shareholder returns and managing revenue volatility. Here's the quick math on the key financial commitments shaping their pricing strategy as of late 2025.

• 2025 accrued CAPEX is guided between \$1,135 million and \$1,285 million.
• Quarterly cash dividend is set at \$0.325 per share, or \$1.30 annualized.
• Hedging strategy includes Q4 2025 natural gas swaps at \$3.74 per MCF.
• Minimum of 50 percent of adjusted free cash flow is allocated to buybacks/dividends.
• \$550 million remained under the share repurchase authorization as of Q3 2025.

The commitment to shareholder returns is formalized in the Capital Allocation Plan. This policy dictates a clear floor for capital deployment back to investors, which is a key component of the stock's valuation and, by extension, its market price.

Looking at the actual deployment through the first three quarters of 2025, Murphy Oil Corporation returned significant capital. Through the third quarter of 2025, the company had returned \$240 million to shareholders in total. This comprised \$140 million in dividends and \$100 million of share repurchases executed in the first quarter alone. With 142.7 million shares outstanding as of September 30, 2025, these actions directly influence earnings per share, a critical factor in price setting.

The dividend itself, while consistent, shows a high payout ratio based on recent earnings. The reported dividend payout ratio stands at 132.65%. This suggests the current dividend level is being supported by more than just the current period's earnings, which is something to watch, especially given the volatility in realized commodity prices.

To manage the revenue side of the pricing equation, Murphy Oil Corporation actively uses derivatives. For instance, the Q4 2025 natural gas production is partially locked in via swaps at \$3.74 per MCF. This contrasts with the realized natural gas price in the third quarter of 2025, which was \$1.50 per MCF. The oil component, which is a larger part of their mix, realized \$66.18 per barrel in Q3 2025.

The company's forward-looking price management via hedging can be summarized by the volumes and prices set for the final quarter of 2025:

• Q4 2025 Natural Gas Swaps: 60 MMCFD at \$3.74 per MCF.
• Q3 2025 Realized Natural Gas Price: \$1.50 per MCF.
• Q3 2025 Realized Oil Price: \$66.18 per barrel.

The overall capital spending plan sets the stage for future production, which underpins long-term value. The full year 2025 CAPEX guidance remains between \$1,135 million and \$1,285 million. This investment level is a direct input into the company's long-term supply capacity, which ultimately affects its revenue-generating potential and the attractiveness of its price to the market.