MUR

How does the company's on‑shore and offshore portfolio compare to peers in terms of cost per barrel and reserve replacement rates?

Created August 06, 2025 at 08:39 PM

Short answer:

The press release you cited does not disclose any quantitative metrics on Murphy Oil’s on‑shore versus offshore cost‑per‑barrel figures or its reserve‑replacement rates, nor does it provide a side‑by‑side benchmark against peer companies. Consequently, we cannot give a precise, data‑driven comparison from this document alone.

Why the press release can’t answer the question

Item requested	Information in the release	Comments
On‑shore cost per barrel	Not mentioned	No operating‑cost or “cash‑net‑back per barrel” numbers are provided.
Offshore cost per barrel	Not mentioned	Same as above – no offshore‑specific cost metrics are disclosed.
Reserve‑replacement rate (RRR)	Not mentioned	The release talks about the company’s legacy and geographic footprint, but does not give the RRR (often expressed as a percentage of production replaced in a year).
Peer comparison	Not mentioned	No peer‑group data (e.g., cost per barrel for other mid‑size independents) are included.

The news item is essentially a stockholder update that highlights:

The 75‑year anniversary of the company.
A qualitative statement that Murphy Oil “is different” because it operates both on‑shore and offshore assets in the United States and internationally.

No financial metrics, operating‑cost breakdowns, or reserve‑replacement figures are included.

How you can obtain the data you need

While the press release itself is silent on these metrics, the information you’re looking for is typically disclosed in the following sources:

Source	What you’ll find	How to access
Quarterly/Annual Form 10‑Q & 10‑K filings (SEC)	Detailed cost‑per‑barrel (cash net back), operating expense per BOE, and reserve‑replacement percentages (often broken out by region or asset type).	Search `MUR` on the SEC’s EDGAR database or on Murphy Oil’s investor‑relations website.
Investor presentations / earnings call slides	Often include a slide titled “Cost Structure” or “Operating Cost per Barrel” with a split between on‑shore and offshore operations, plus a “Reserve Replacement” metric (e.g., “Reserve Replacement Ratio = 115%”).	Available on the “Investors → Presentations” section of Murphy Oil’s website.
Annual Sustainability/Reserves Reports	Independent reserves audit (e.g., from Ernst & Young) giving the proved/ probable reserve base and the RRR, sometimes with a geographic breakdown.	Same investor‑relations portal.
Industry benchmarking reports (e.g., Rystad, IHS Markit, Wood Mackenzie)	Comparative cost‑per‑barrel figures for peers of similar size (U.S. mid‑cap independents) and average reserve‑replacement performance.	Usually subscription‑based, but summaries are sometimes quoted in analyst research notes or press releases.
Analyst coverage notes (e.g., JPMorgan, BofA, Credit Suisse)	Analysts often compute “cost per barrel” and “reserve replacement” and compare the company to its peer set in their earnings‑release commentary.	Available through brokerage platforms or public filings (e.g., on Bloomberg, Thomson Reuters).

What we do know about Murphy Oil’s asset mix (from the release)

Attribute	What the release tells us
Geographic footprint	Operates both U.S. on‑shore (e.g., Texas, Louisiana) and offshore (U.S. Gulf of Mexico, as well as international locations).
Business model differentiation	Emphasizes that having both on‑shore and offshore assets is uncommon for a company of its size, potentially providing diversification benefits.
Strategic focus	Implied focus on maintaining a balanced portfolio, but quantitative performance (cost efficiency, reserve growth) is not disclosed.

Typical industry context (for perspective only)

Metric	Typical range for U.S. mid‑size independents (2024‑2025)	Why it matters
Cash‑net‑back per barrel (on‑shore)	$8 – $12	Indicates profitability of on‑shore assets after operating costs.
Cash‑net‑back per barrel (offshore)	$5 – $9	Offshore projects often have higher capex but can benefit from lower operating cost per barrel in mature fields.
Reserve Replacement Ratio (RRR)	100 % – 130 % (annual)	RRR > 100 % means the company is adding more reserves than it is producing, a sign of long‑term sustainability.
Peer average cost per barrel (blended)	$7 – $10	Blended cost combines on‑shore and offshore assets; companies with strong offshore exposure may have a slightly lower blended cost if they have high‑margin offshore wells.

These figures are *industry averages** and not specific to Murphy Oil. The actual numbers for Murphy Oil could be higher or lower, depending on the maturity of its fields, the mix of oil vs. gas, and recent capital‑expenditure programs.*

Bottom line

The press release does not contain the quantitative cost‑per‑barrel or reserve‑replacement data you’re asking for.
To answer the question accurately, you’ll need to consult Murphy Oil’s SEC filings (10‑Q/10‑K), investor presentations, or analyst research where those metrics are disclosed and often broken out by on‑shore vs. offshore assets.
Once you have those numbers, you can compare them to peer‑group data from industry reports or analyst benchmarks to evaluate whether Murphy Oil’s on‑shore and offshore portfolio is more or less cost‑efficient and whether its reserve‑replacement performance is above, at, or below the peer average.