Murphy Oil Corporation has successfully priced an offering of $500 million aggregate principal amount of 6.500% senior notes due 2034, pursuant to a shelf registration statement previously filed with the SEC. The offering was heavily oversubscribed, drawing strong demand from both domestic and international investors. The notes will pay interest semi-annually and are expected to close on January 23, 2026, subject to customary closing conditions.

The company expects to use the net proceeds from the offering to redeem in full its outstanding 5.875% senior notes due 2027 and 6.375% senior notes due 2028, with a combined principal balance of approximately $475 million. This strategic refinancing will extend the weighted-average debt maturity by roughly seven years and reduce annual interest expense by an estimated $12 million on a run rate basis.

In parallel with the financing news, Murphy Oil reported a larger-than-forecasted oil interval at the Hai Su Vang-2X appraisal well offshore Vietnam. Initial petrophysical analysis indicates net oil pay of 85 feet, compared with 65 feet in the original discovery well. Early estimates suggest gross recoverable volumes could exceed 25 million barrels, surpassing the reservoir size of the company’s first Vietnam development that is scheduled to commence production in mid-2027.

Following the appraisal success, Murphy Oil plans to drill two follow-up wells later in the second quarter of 2026 to convert contingent resources into proven reserves. Management has reaffirmed its 2026 capital budget of $800 million, allocating 60% to U.S. onshore projects and 30% to Gulf of Mexico deepwater operations, with the remainder earmarked for international exploration and appraisal activities. The new debt issuance and strong exploration results position the company to maintain its investment grade credit profile while pursuing growth opportunities.