Fitch moves Murphy Oil view to positive

Fitch Ratings said it revised its outlook for Murphy Oil Corp. to positive from stable and affirmed the BB+ ratings on the company and its senior unsecured guaranteed revolver and senior unsecured notes. The RR4 recovery rating on the revolver and the notes is unchanged.

“The positive outlook reflects clear visibility into significant gross debt reduction by Murphy resulting in materially improved credit metrics alongside increased production from offshore development opportunities in the medium term,” Fitch said in a press release.

Murphy plans to shave $300 million off its debt in 2024, which Fitch said it considers doable.

“Under our projections, Murphy's total debt will decline to around $1 billion in 2024. Currently, Murphy allocates 75% of FCF to debt reduction with 25% to shareholder returns,” the agency said.

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