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Murphy Oil Corp., based in El Dorado, said Wednesday that it has closed on the sale of its operations in Malaysia to a subsidiary of PTT Exploration and Production Public Co. Ltd.

Murphy announced the $2 billion deal on March 21. The company said Wednesday that it expects to report a gain of about $1 billion, after closing adjustments, with no tax liabilities related to the transaction. PTT is in Thailand.

Murphy also announced that it has completed $300 million in share repurchases as of the end of the second quarter. The repurchases are part of a previously authorized and disclosed $500 million program. Murphy purchased 11.4 million shares outstanding, a 6.6% reduction from 173.6 million shares outstanding as of April 30, at an average price of $26.34 per share. The current share repurchase program expires at the end of 2020.

Murphy shares rose 38 cents, or 1.54%, to close Wednesday at $24.98.

"Murphy remains committed to spending within cash flow while investing in our new Gulf of Mexico assets," Roger Jenkins, Murphy's president and chief executive officer, said in a news release. He said the sale was one of three major transactions for the company in the past nine months.

Murphy Oil, he said, is "now set up for a transformed future with no revolver borrowings and liquidity of more than $2 billion."

The Malaysian properties contributed 129 million barrels of oil equivalent, or 16%, of Murphy's 816 million barrels of oil equivalent in year-end proved reserves, the company said. The properties being sold produced more than 48,000 barrels of oil equivalent per day.

Business on 07/11/2019

Print Headline: Asia sale complete, Murphy Oil states

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