Murphy Oil Corporation Announces Closing of Transaction for King’s Quay Floating Production System

HOUSTON–(BUSINESS WIRE)–Murphy Oil Corporation (NYSE: MUR) today announced that its subsidiary, Murphy Exploration & Production Company – USA, has completed the previously announced transaction with a fund managed by ArcLight Capital Partners, LLC for the sale of all Murphy’s 50% interest in the King’s Quay Floating Production System (King’s Quay FPS) and Associated Laterals export pipelines to be located in the Gulf of Mexico. The King’s Quay FPS and Associated Laterals will be co-owned in a joint venture with entities managed by Ridgewood Energy Corporation, including ILX Holdings III, LLC.

This transaction reimburses Murphy’s past capital expenditures of approximately $270 million related to the King’s Quay FPS and associated laterals.

Murphy intends to use the proceeds to repay borrowings under the $1.6 billion senior unsecured credit facility, with the remainder to be held for general corporate purposes. With the previously announced pending repayment of its 2022 notes, Murphy will have no short-term debt maturities until the November 2023 expiration of its revolving credit facility.

The King’s Quay FPS is over 90% built and is expected to go live in mid-2022. King’s Quay FPS is designed to process 80,000 barrels of oil per day and 100 million cubic feet of natural gas per day, and will handle anticipated production from the Khaleesi/Mormont and Samurai fields.

“We are pleased to announce the completion of this transaction. Coupled with receiving the necessary regulatory permits for our entire drilling campaign scheduled to begin on April 1, 2021, we remain on target for first oil in mid-2022 in the Khaleesi/Mormont and Samurai fields,” said Roger W. Jenkins, President and CEO. Chief Executive Officer. “Using the proceeds from the King’s Quay FPS transaction to repay our revolver loans, as well as our recent bond issue to extend our debt maturity profile, Murphy has a well-positioned balance sheet with ample liquidity as we we are entering the execution phase of this key project.

ABOUT MURPHY OIL CORPORATION

As an independent oil and natural gas exploration and production company, Murphy Oil Corporation believes in delivering energy that empowers people by always doing good, sticking to it, and thinking about the good. beyond the possible. Murphy defies the norm, taps into his strong heritage and uses his foresight and financial discipline to deliver inspired energy solutions. The company sees a future where it is an industry leader that will positively impact lives for the next 100 years and beyond. Additional information is available on the Company’s website at www.murphyoilcorp.com.

ABOUT ARCLIGHT CAPITAL PARTNERS, LLC

ArcLight Capital Partners, LLC (“ArcLight”) is a leading energy infrastructure company. Founded in 2001, the firm helped pioneer an asset-based approach to investing in the energy sector. ArcLight has invested approximately $23 billion in 111 transactions since its inception. Based in Boston, the firm’s investment team employs a hands-on value creation strategy that utilizes its in-house technical, operational and business specialists, as well as the firm’s 1,500-person asset management subsidiary. For more information about ArcLight and a complete list of ArcLight portfolio companies, visit www.arclight.com.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified by the inclusion of words such as “aims”, “anticipates”, “believes”, “leads” , “estimate”, “expect”, “expressed confidence”, “plan”, “future”, “goal”, “direction”, “intend”, “may”, “goal”, ” perspective”, “plan”, “position”, “potential”, “project”, “seek”, “should”, “strategy”, “target”, “will” or variations of these words and other similar expressions. These statements, which express management’s current beliefs regarding future events or results, include planned capital expenditures, use of proceeds from the sale, planned drilling program, estimated completion and project service, future production and processing and other matters and are subject to inherent risks and uncertainties. Factors that could cause one or more of these future events or results not to occur, as implied by any forward-looking statement, include, but are not limited to: macroeconomic conditions in the oil and gas industry , reduced customer demand for our products due to environmental, regulatory, technological or other factors; political and regulatory instability in the markets in which we operate; any inability to service or refinance our outstanding debt or access debt markets at acceptable prices; or adverse developments in the US or global capital markets, credit markets or economies generally. For a further discussion of factors that could prevent one or more of these future events or results from occurring, as implied by any forward-looking statement, see “Risk Factors” in our most recent Annual Report on Form 10-K filed with the US Securities and Exchange Commission (“SEC”), available on the SEC website and on the Murphy Oil Corporation website at http://ir.murphyoilcorp.com. Murphy Oil Corporation assumes no obligation to publicly update or revise any forward-looking statements.