MURPHY OIL CORP

The oil and natural gas industry is impacted by global commodity pricing. As a result, the prices for the Company’s primary products are often volatile and are affected by the levels of supply and demand for energy. As discussed in the “Results of Operations” section on revenues, on page 38, lower average crude oil price during 2025 directly impacted the Company’s product sales revenue.

As of close on February 23, 2026, forward price curves for existing forward contracts for the remainder of 2026 and 2027 are shown in the table below.

In 2025, liquids from continuing operations represented approximately 55% of total hydrocarbons produced on a barrels of oil equivalent basis. In 2026, the Company’s ratio of hydrocarbon production represented by liquids is expected to be 56%. If the prices for crude oil and natural gas are lower in 2026 or beyond, this will have an unfavorable impact on the Company’s operating profits; likewise, if prices are higher, this will have a favorable impact. The Company, from time to time, may choose to use a variety of commodity hedge instruments to reduce commodity price risk, including forward sale fixed financial swaps and long-term fixed-price physical commodity sales.

The Company currently expects average daily production in 2026 to be between 173,000 and 181,000 BOEPD (including a noncontrolling interest of 6,000 BOEPD). If significant price declines occur, the Company will review the option of production curtailments to avoid incurring losses on certain produced barrels.

The oil and natural gas industry and the Company continue to observe higher costs for goods and services used in E&P operations. Murphy continues to manage input costs through its dedicated procurement department focused on managing supply chain and other costs to deliver cash flow from operations.

We cannot predict what impact economic factors (including, but not limited to, inflation, evolving trade policy, global conflicts and possible economic recession) may have on future commodity pricing. Lower prices, should they occur, will result in lower profits and operating cash flows.

The Company’s capital expenditure spend for 2026 is expected to be between $1,200 million and $1,300 million, excluding NCI. Capital and other expenditures are routinely reviewed and planned capital expenditures may be adjusted to reflect differences between budgeted and forecast cash flow during the year. Capital expenditures may also be affected by asset purchases or sales, which often are not anticipated at the time a budget is prepared. The Company will primarily fund its capital program in 2026 using operating cash flow and available cash. If oil and/or natural gas prices weaken, actual cash flow generated from operations could be reduced such that capital spending reductions are required and/or borrowings under available credit facilities might be required during the year to maintain funding of the Company’s ongoing development projects.

The Company plans to utilize surplus cash (not planned to be used by operations, investing activities, dividends or payment to noncontrolling interests), in accordance with the Company’s capital allocation plan designed to allow for additional shareholder returns and debt reduction. Details of the plan can be found in the “Capital Allocation Framework” section of the Company’s Form 8-K filed on August 4, 2022 and Form 8-K filed on August 8, 2024. The Board has authorized a share repurchase program whereby the Company can repurchase up to $1,100 million of the Company’s common stock. As of December 31, 2025, the Company had $550.1 million of its common stock remaining available to repurchase under the program.

Subsequent to the balance sheet date, the Company completed a series of transactions regarding its long-term debt arrangements and RCF. In January 2026, the Company closed a public offering of $500.0 million aggregate principal amount of its 2034 Notes, used the proceeds to redeem an aggregate $227.5 million of its outstanding 2027 Notes and 2028 Notes, repaid $100.0 million that was outstanding on the previous RCF, as of December 31, 2025, and expects to use the remaining proceeds to cover transaction-related fees and expenses and for general corporate purposes. In addition, the Company entered into an amendment to its credit agreement which increased its RCF capacity from $1.35 billion to $2.0 billion and extended the term of the agreement to 2031. See Note F for additional information on these transactions.

On January 28, 2026, the Board of Directors declared a quarterly cash dividend on the Common Stock of Murphy Oil Corporation of $0.35 per share, which on an annualized basis would be $1.40 per share. The dividend is payable on March 2, 2026, to stockholders of record as of February 17, 2026.

The Company continues to monitor the impact of commodity prices on its financial position and is currently in compliance with the covenants related to the RCF (see Note F).

As of February 23, 2026, the Company has entered into forward fixed-price delivery contracts to manage risk associated with certain future oil and natural gas sales prices, as follows.