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MUR Prices $500M of 6.5% Senior Notes to Redeem Debts With Proceeds
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Key Takeaways
Murphy Oil priced $500M of 6.5% senior notes due 2034 to refinance notes maturing in 2027 and 2028.
Proceeds will redeem notes, repay revolver borrowings, and support general corporate purposes.
MUR has cut debt, targets $1B long-term debt, and saw shares rise 24.6% over the past three months.
Murphy Oil Corporation (MUR - Free Report) recently announced that it has priced an offering of $500 million of 6.500% senior notes due 2034. It is expected to close the offering of senior notes on Jan. 23, 2026, subject to customary closing conditions.
The company expected to utilize the proceeds from the offering for the redemption of 5.875% notes due 2027 and 6.375% notes due 2028, along with payment of related premiums, fees and expenses in connection with the foregoing. Excess proceeds will be used to repay outstanding borrowings under its revolving credit facility and for general corporate purposes.
Since the pricing of the senior notes, Murphy’s shares have gained 2.2%, closing at $33.27 per share on Jan. 13, 2026.
MUR’S Debt Management
Refinancing of debt is a common practice among corporates, and Murphy Oil also follows the same approach. Earlier, on Sept. 19, 2024, the company issued 600 million of 6.000% senior notes due 2032 to redeem up to an aggregate of $600 million of principal amount of 5.875% senior notes due in 2027, 6.375% senior notes due 2028 and 7.050% senior notes due in 2029. It is evident that the refinancing of the existing debts has been beneficial for Murphy, as it has not only extended the debt period but also lowered the interest burden of the company.
MUR lowered its debt by $50 million in the third quarter of 2025 and aims to further reduce its long-term debt, bringing the long-term debt level to $1 billion. The ongoing debt reduction is also reducing its annual interest payment.
The times interest earned ratio of Murphy at the end of the third quarter of 2025 was 3. As the ratio is greater than one, it is indicative of the company’s ability to meet interest obligations without any difficulty.
The debt-to-capital ratio of Murphy Oil is much better than its industry peers. The company’s current debt-to-capital ratio is 21.35%, significantly lower compared with its industry’s 48.86%.
Capital-Intensive Oil-Energy Sector Relies on Debt Financing
The oil-energy sector is capital-intensive, and the internal source of funds is often insufficient to fund the long-term capital projects. The companies operating in this space frequently borrow funds from the market to meet their capital requirements. The decline in the interest rate to the range of 3.50% to 3.75% will be beneficial for these capital-intensive stocks.
Oil and gas companies continue issuing new debts to fund their capital projects and redeem the debts when they have excess funds.
Last year, Cenovus Energy Inc. (CVE - Free Report) completed a public offering in Canada and the United States for $2.6 billion in senior notes; the proceeds were utilized to redeem outstanding selective notes.
MUR Price Movement
In the past three months, MUR’s share price has risen 24.3% against the industry’s 0.8% decline.
Image: Bigstock
MUR Prices $500M of 6.5% Senior Notes to Redeem Debts With Proceeds
Key Takeaways
Murphy Oil Corporation (MUR - Free Report) recently announced that it has priced an offering of $500 million of 6.500% senior notes due 2034. It is expected to close the offering of senior notes on Jan. 23, 2026, subject to customary closing conditions.
The company expected to utilize the proceeds from the offering for the redemption of 5.875% notes due 2027 and 6.375% notes due 2028, along with payment of related premiums, fees and expenses in connection with the foregoing. Excess proceeds will be used to repay outstanding borrowings under its revolving credit facility and for general corporate purposes.
Since the pricing of the senior notes, Murphy’s shares have gained 2.2%, closing at $33.27 per share on Jan. 13, 2026.
MUR’S Debt Management
Refinancing of debt is a common practice among corporates, and Murphy Oil also follows the same approach. Earlier, on Sept. 19, 2024, the company issued 600 million of 6.000% senior notes due 2032 to redeem up to an aggregate of $600 million of principal amount of 5.875% senior notes due in 2027, 6.375% senior notes due 2028 and 7.050% senior notes due in 2029. It is evident that the refinancing of the existing debts has been beneficial for Murphy, as it has not only extended the debt period but also lowered the interest burden of the company.
MUR lowered its debt by $50 million in the third quarter of 2025 and aims to further reduce its long-term debt, bringing the long-term debt level to $1 billion. The ongoing debt reduction is also reducing its annual interest payment.
The times interest earned ratio of Murphy at the end of the third quarter of 2025 was 3. As the ratio is greater than one, it is indicative of the company’s ability to meet interest obligations without any difficulty.
The debt-to-capital ratio of Murphy Oil is much better than its industry peers. The company’s current debt-to-capital ratio is 21.35%, significantly lower compared with its industry’s 48.86%.
Capital-Intensive Oil-Energy Sector Relies on Debt Financing
The oil-energy sector is capital-intensive, and the internal source of funds is often insufficient to fund the long-term capital projects. The companies operating in this space frequently borrow funds from the market to meet their capital requirements. The decline in the interest rate to the range of 3.50% to 3.75% will be beneficial for these capital-intensive stocks.
Oil and gas companies continue issuing new debts to fund their capital projects and redeem the debts when they have excess funds.
Last year, Cenovus Energy Inc. (CVE - Free Report) completed a public offering in Canada and the United States for $2.6 billion in senior notes; the proceeds were utilized to redeem outstanding selective notes.
MUR Price Movement
In the past three months, MUR’s share price has risen 24.3% against the industry’s 0.8% decline.
Image Source: Zacks Investment Research
MUR's Zacks Rank & Stocks to Consider
Murphy currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks to consider from the same sector are KLX Energy (KLXE - Free Report) and W&T Offshore (WTI - Free Report) . Each stock presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for 2026 sales for KLXE and WTI has moved up to 1.86% and 0.38%, respectively.