MURPHY OIL CORPORATION (NYSE:MUR) Files An 8-K Entry into a Material Definitive Agreement
Item 7.01.
On March 21, 2019, Murphy Oil Corporation (the “Company”) announced that a subsidiary has signed a sale and purchase agreement to divest the fully issued share capital of the Company’s two primary Malaysian subsidiaries, Murphy Sabah Oil Co., Ltd. and Murphy Sarawak Oil Co., Ltd., to a subsidiary of PTT Exploration and Production Public Company Limited (“PTTEP”). PTTEP will pay the Company US$2.127 billion in an all-cash transaction, payable upon closing and subject to customary closing adjustments, plus up to a US$100 million bonus payment contingent upon certain future exploratory drilling results prior to October 2020.
The transaction has an effective economic valuation date of January 1, 2019, with the closing expected to occur by the end of the second quarter 2019. Closing of the transaction is subject to customary conditions precedent including, among other things, necessary regulatory approvals. Under the terms of the transaction, the Company will exit the country of Malaysia.
This Current Report on Form 8-K, including the information furnished to Item 7.01 and the related Item 7.01 hereof, contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified through the inclusion of words such as “aim”, “anticipate”, “believe”, “drive”, “estimate”, “expect”, “expressed confidence”, “forecast”, “future”, “goal”, “guidance”, “intend”, “may”, “objective”, “outlook”, “plan”, “position”, “potential”, “project”, “seek”, “should”, “strategy”, “target”, “will” or variations of such words and other similar expressions. These statements, which express management’s current views concerning future events or results, 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: the Company’s inability to complete the Malaysia divestiture transaction described above due to the failure to obtain regulatory approvals, the failure of the Company’s counterparty to perform its obligations under the sale and purchase agreement referred to above, the failure to satisfy all closing conditions, or otherwise; increased volatility or deterioration in the level of crude oil and natural gas prices; deterioration in the success rate of the Company’s exploration programs or in the Company’s ability to maintain production rates and replace reserves; reduced customer demand for the Company’s products due to environmental, regulatory, technological or other reasons; adverse foreign exchange movements; political and regulatory instability in the markets where the Company does business; natural hazards impacting the Company’s operations; any other deterioration in the Company’s business, markets or prospects; any failure to obtain necessary regulatory approvals; any inability to service or refinance the Company’s outstanding debt or to access debt markets at acceptable prices; and adverse developments in the U.S. or global capital markets, credit markets or economies in general. For further discussion of factors that could cause one or more of these future events or results not to occur as implied by any forward-looking statement, see “Risk Factors” in the Company’s most recent Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K that the Company files, available from the SEC’s website and from the Company’s website at http://ir.murphyoilcorp.com. The Company undertakes no duty to publicly update or revise any forward-looking statements.
| Item 7.01. | Regulation FD Disclosure. |
Attached hereto as Exhibit 99.1 is a copy of the news release issued by the Company announcing the Malaysia divestiture transaction described in Item 7.01 hereof, and attached hereto as Exhibit 99.2 is a copy of the investor presentation prepared by the Company in connection therewith.
The information in this Item 7.01, including Exhibits 99.1 and 99.2 attached hereto, is being furnished and shall not be deemed “filed” for the purposes of Section18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to the liabilities of that Section, and shall not be incorporated by reference into any registration statement or other document to the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly stated in such filing.
| Item 7.01. | Financial Statements and Exhibits. |
(d)Exhibits
| 99.1 | News release of the Company dated March 21, 2019. |
| 99.2 | Investor presentation of the Company dated March 21, 2019. |
MURPHY OIL CORP /DE Exhibit
EX-99.1 2 dp103938_ex9901.htm EXHIBIT 99.1 Exhibit 99.1 NEWS RELEASE MURPHY OIL CORPORATION ANNOUNCES STRATEGIC SALE OF MALAYSIAN PORTFOLIO IN ALL-CASH TRANSACTION VALUED AT US$2.127 BILLION Strategic Exit from Malaysia Simplifies the Company and Enables Enhanced Focus on Western Hemisphere Assets Cash Proceeds Will be Allocated to Share Repurchases,…
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About MURPHY OIL CORPORATION (NYSE:MUR)
Murphy Oil Corporation is an oil and gas exploration and production company. The Company’s exploration and production business explores for and produces crude oil, natural gas and natural gas liquids across the world. The Company’s exploration and production activities are subdivided into four geographic segments, including the United States, Canada, Malaysia and all other countries. The Company’s principal exploration and production activities are conducted in the United States by Murphy Exploration & Production Company-USA (Murphy Expro USA), in Malaysia, Australia, Brunei, Vietnam, and Namibia by Murphy Exploration & Production Company-International (Murphy Expro International) and its subsidiaries, and in Western Canada and offshore Eastern Canada by Murphy Oil Company Ltd. (MOCL) and its subsidiaries. The Company’s crude oil, condensate and natural gas liquids production averages to approximately 136,634 barrels per day.
