Murphy Oil profit jumps sixfold as crude rally offsets lower US volumes
Houston producer earned $225.8 million adjusted net in Q2, lifted by oil prices that compensated for a 5% production decline and weaker gas realizations.
Murphy Oil Corp reported $225.8 million in adjusted net income for the second quarter ended June 2026, nearly six times the $38 million it earned a year earlier, as crude prices surged while the company's production fell and natural gas prices weakened.6
The Houston-based independent credited the higher crude environment — WTI averaged $88/bbl in the quarter, up from $72/bbl in Q2 2025, according to NYMEX settlement data — with covering declines in both oil and gas volumes. Net crude and condensate output dropped 5% year-on-year to 90,746 barrels per day, while natural gas production fell 19% to 437.71 million cubic feet per day, despite increased contributions from Canadian onshore and offshore fields.6
Net profit reached $232.18 million for the April-June period, up from $22.28 million a year earlier. Sales revenue climbed to $926.33 million from $683.07 million.6
Murphy did not buy back shares in the quarter but retained $550 million in repurchase authorization. The firm increased the midpoint of its 2026 capital expenditure guidance to $1.55 billion from $1.25 billion, citing plans to advance "high-impact appraisal and development opportunities."6
The earnings fit a broader pattern of oil producer windfalls tied to Middle East disruptions. BP's Q2 profit more than doubled to $5.73 billion, while Shell beat analyst expectations as higher oil and gas prices and record refinery utilization boosted results. Equinor reported $3.23 billion in adjusted net income, up 93% year-on-year on Wednesday (2026-07-22).3,4
War in Iran tightened fuel supply during the quarter as crude struggled to move through the Strait of Hormuz, driving oil prices and refining margins to multi-year highs. The disruptions also resulted in elevated product exports from the US as refineries ran at unseasonably high levels, processing the most crude for a quarter since 2019, according to EIA data.5,2
Murphy expects to produce 167,000-175,000 barrels of oil equivalent per day in 2026.6
US refineries' quarterly average gasoline crack spread rose 60% from a year earlier, while distillate and jet fuel cracks also widened substantially. Jet fuel production ran 24% above the five-year average on higher refinery runs and yields, and EIA estimates Q2 distillate exports averaged 1.56 million barrels per day, 30% higher than the five-year average. Jet fuel exports averaged 356,000 b/d, more than double the five-year norm.2
Not all producers benefited equally. PetroChina's profit from operations fell to RMB41.045 billion in Q1 from RMB46.888 billion a year earlier, driven by lower oil and gas sales prices and reduced crude oil sales volumes. Unit lifting costs rose 0.6% to $9.82 per barrel.1
The quarterly global crude inventory draw is estimated at 5.1 million barrels per day, reflecting the Strait disruptions and stronger-than-expected refinery demand. Murphy's guidance increase suggests it sees the elevated price environment lasting long enough to justify higher appraisal and development spending, though it has not disclosed specific project locations or expected returns on the incremental $300 million.2,6