Moody's views Murphy Oil positively

Moody's Ratings said it changed the outlook for Murphy Oil Corp. to positive from stable and affirmed its ratings, including the Ba2 corporate family rating, Ba2-PD probability of default rating and Ba2 senior unsecured notes ratings. The speculative grade liquidity rating remains unchanged at SGL-1.

"Murphy's positive outlook reflects its improving credit metrics and Moody's expectation that the company will generate positive free cash flow in 2024-2025 that will be applied to debt reduction in line with management's target of $1 billion in balance sheet debt," stated James Wilkins, a Moody's vice president, in a press release.

For 2024, Murphy plans to shave $300 million of debt to reduce its senior notes' balance to $1 billion. Moody's analytical adjustments for leases and unfunded pension obligations add $984 million to debt and Moody's notes the company also has material asset retirement obligations of $915 million as of year-end 2023.

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