MURPHY OIL CORP (MUR)

ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read together with the unaudited consolidated financial statements and accompanying notes for the period ended June 30, 2026 included under “Item 1. Financial Statements” of this Form 10-Q and the audited consolidated financial statements and related notes and MD&A included in Item 8 and 7, respectively, of our Annual Report on Form 10-K for the year ended December 31, 2025. This MD&A includes forward-looking statements that involve certain risks and uncertainties. See “Forward-Looking Statements” at the end of this section.

Overview

Murphy is an independent oil and natural gas company with a multi-basin onshore and offshore portfolio and significant exploration opportunities. The Company boasts over a century of strong execution and innovative, full-cycle development capabilities, with a focus on value creation to enhance shareholder returns. The Company’s current operations include inventory located onshore in the Eagle Ford Shale, Tupper Montney and Kaybob Duvernay, as well as offshore in the Gulf of America and Canada. Murphy also strives to create long-term shareholder value through offshore exploration and development in the Gulf of America, Vietnam and Côte d’Ivoire.

The analysis and discussion in this section includes amounts attributable to the noncontrolling interest in MP GOM, unless otherwise noted.

Significant Company financial and operational highlights during the second quarter of 2026 were as follows:

•Production was 175,013 barrels of oil equivalent (BOE) per day (including NCI), a decrease from 196,315 BOE per day in the second quarter of 2025;

•Drilled an oil discovery at Bubale-1X (Block CI-709) exploration well in Côte d’Ivoire;

•Concluded the Hai Su Vang (Golden Sea Lion) appraisal program with the completion of Hai Su Vang-4X (Block 15-2/17) appraisal well, which was expensed as a dry hole;

•Completed drilling operations and initiated completion activities at the Chinook #8 (Walker Ridge 425) development well in the Gulf of America;

•Finalized pipeline installation and launched the FSO (Floating Storage and Offloading vessel) at the Lac Da Vang development project in Vietnam; and

•Brought online six Eagle Ford Shale wells and four Kaybob Duvernay wells.

Subsequent to the second quarter:

•Spud Bubale West-1X appraisal well in Block CI-103 offshore Côte d'Ivoire;

•Spud the Lac Da Trang (White Camel) North-1X exploration well in Block 15-1/05 in Vietnam; and

•Completed installation of topsides and mobilized FSO to final location for Lac Da Vang development project.

Murphy Oil Corporation’s net income from continuing operations, including noncontrolling interest, for the three months ended June 30, 2026 was $264.0 million compared to net income of $33.8 million for the same period in 2025. The increase in 2026 was primarily driven by higher revenues from production ($243.3 million), lower lease operating expenses ($71.8 million), higher other income ($43.6 million), and lower transportation, gathering and processing expenses ($8.8 million). These favorable items were partially offset by higher income tax expense ($76.0 million), higher exploration expense ($28.9 million), and higher other operating expenses ($12.9 million).

Higher revenues were primarily driven by higher realized crude oil prices in the United States, partially offset by lower oil sales volumes in the Gulf of America. Canada oil revenues also increased, driven by higher oil prices and increased production and sales at Terra Nova and Hibernia, as well as new wells at Kaybob; these items were partially offset by lower Canada natural gas revenues, primarily due to lower realized natural gas prices and reduced sales volumes at Tupper. Lower lease operating expenses were primarily driven by decreased costs in the Gulf of America, including the non-repeat of 2025 workover activity at Khaleesi, Marmalard and Samurai and

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ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

Overview (Continued)

lower production handling agreement costs at King’s Quay from lower volumes; these items were partially offset by higher U.S. Onshore costs from increased operated well counts in the Eagle Ford Shale. Higher other income was primarily due to foreign exchange gains driven by favorable currency movements in Canada. Higher income tax expense was primarily due to higher revenues and lower lease operating expenses, as well as certain exploration expenses that did not reduce income tax expense as they were incurred in foreign jurisdictions where no income tax benefits are currently available. Higher exploration expenses were largely due to exploration activities in the Gulf of America and costs related to second-quarter appraisal programs in Vietnam and Côte d’Ivoire. Higher other operating expenses were related to the increase in a joint venture settlement provision.

For the three months ended June 30, 2026 total hydrocarbon production was 175,013 barrels of oil equivalent per day, a decrease of 11% compared to the second quarter of 2025. The decrease was principally due to lower offshore production in the Gulf of America, primarily attributable to planned and unplanned downtime at multiple fields, partially offset by higher production in Canada Offshore. Higher Canada Offshore production was driven by increased production at Terra Nova and Hibernia, while higher Canada Onshore production was driven by new wells at Kaybob. Higher Eagle Ford Shale production was primarily the result of new wells online in the current year.

Net income from continuing operations, including noncontrolling interest, for the six months ended June 30, 2026 was $333.2 million, an increase of $209.3 million compared to the same period of 2025. Higher net income from continuing operations was primarily driven by higher revenues from production ($302.9 million), lower lease operating expenses ($133.4 million), higher other income ($51.0 million), and lower transportation, gathering and processing expenses ($10.6 million). These favorable items were partially offset by higher exploration expenses ($97.2 million), higher income tax expense ($93.2 million), higher DD&A ($63.0 million), and higher other operating expenses ($11.7 million).

Higher revenues were primarily driven by higher realized crude oil prices across all regions, with the United States contributing the majority of the increase from higher prices in the Gulf of America and both higher prices and volumes in the Eagle Ford Shale from new wells at Karnes and Catarina. Canada oil revenues increased from higher prices along with higher production at Kaybob from new wells; these items were partially offset by lower Canada natural gas revenues, primarily due to reduced production and sales volumes at Tupper. Lower lease operating expenses were primarily driven by decreased costs in the Gulf of America, including the non-repeat of 2025 workover activity at Samurai, Marmalard and Khaleesi, lower production handling agreement costs at King’s Quay from lower volumes, and lower FPSO rental fees at Cascade & Chinook following the vessel purchase in early 2025. Higher other income was primarily due to favorable foreign exchange movements. Higher exploration expenses were largely driven by higher dry hole costs related to the Civette-1X (Block CI-502) and Caracal-1X (Block CI-102) exploration wells in Côte d’Ivoire, both of which encountered non-commercial hydrocarbons, and the Hai Su Vang-4X (Golden Sea Lion) Block 15-2/17 appraisal well in Vietnam, which did not encounter hydrocarbons and was also expensed as a dry hole. Exploration activities in the Gulf of America also contributed to the higher exploration costs. Higher income tax expense was primarily due to higher revenues and lower lease operating expenses, and certain exploration expenses did not reduce income tax expense as they were incurred in foreign jurisdictions where no income tax benefits are currently available. Higher DD&A was primarily driven by higher sales volumes in the Eagle Ford Shale, combined with higher rates in the Eagle Ford Shale and the Gulf of America, and higher sales volumes at Kaybob from new wells; these items were partially offset by lower sales volumes in the Gulf of America and at Tupper. Higher other operating expenses were related to the increase in a joint venture settlement provision.

For the six months ended June 30, 2026, total hydrocarbon production was 177,519 barrels of oil equivalent per day, a decrease of 1% compared to the same period in 2025. The decrease was principally due to lower production in the Gulf of America, primarily from planned and unplanned downtime at multiple fields, and lower natural gas production at Tupper. These decreases were largely offset by higher production in the Eagle Ford Shale from new wells, higher Canada Offshore production from Terra Nova and Hibernia, and higher Canada Onshore production from new wells at Kaybob.

Murphy’s continuing operations generate revenues through the production and sale of crude oil, natural gas and natural gas liquids in the United States and Canada. Changes in the price of crude oil and natural gas have a significant impact on the profitability of the Company. In order to make a profit and generate cash in its exploration and production business, revenue generated from the sales of oil and natural gas produced must

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ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

Overview (Continued)

exceed the combined costs of producing these products and expenses related to exploration, administration and capital borrowing from lending institutions and note holders. International conflicts and geopolitical uncertainty surrounding domestic and foreign governmental regulations, including effects of trade policies, tariffs and other trade restrictions, can affect the demand for crude oil, natural gas and natural gas liquids, as well as the cost of oil field goods and services.

At June 30, 2026, the West Texas Intermediate (WTI) crude oil futures price was $68.96 per barrel, whereas the crude oil futures price at the end of July 2026 was $80.31, reflecting a 16% increase in price. As of August 3, 2026 closing, the NYMEX WTI forward curve price for the remainder of 2026 was $76.97 per barrel. Changes in commodity prices will directly affect the Company’s future profits and operating cash flows.

Results of Operations

Murphy’s Net income (loss) by type of business and geographic segment is presented below:

1 The Company has presented its former U.K., Malaysia and U.S. refining and marketing operations a

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Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read together with the consolidated financial statements and accompanying notes to consolidated financial statements, which are included in Item 8 of this Annual Report on Form 10-K. This MD&A includes forward-looking statements that involve certain risks and uncertainties. See “Forward-Looking Statements” at the end of this section and “Risk Factors” under Item 1A. Discussion and analysis of 2023 results and year-over-year comparisons between 2024 and 2023 are not included in this Form 10-K and can be found in “Item 7” of the 2024 Annual Report on Form 10-K available via the SEC’s website at www.sec.gov and on our website at www.murphyoilcorp.com.

Murphy Oil Corporation is a worldwide oil and natural gas E&P company with both onshore and offshore operations and properties. The Company produces oil and natural gas primarily in the U.S. and Canada and explores for crude oil, natural gas and NGLs in targeted areas worldwide. A more detailed description of the Company’s significant assets can be found in “Item 1” of this Form 10-K report.

The analysis and discussion in this section includes amounts attributable to a noncontrolling interest (NCI) in MP GOM, unless otherwise noted.

Significant Company financial and operational highlights during 2025 were as follows:

•Generated net income of $138.8 million ($104.2 million excluding NCI) and net cash provided by operating activities of $1,247.8 million;

•Produced 189 thousand BOEPD (182 thousand BOEPD excluding NCI);

•Repurchased 3.6 million shares of common stock under the share repurchase program for $100.0 million ($100.8 million including excise taxes and fees) under the capital allocation plan1;

•Achieved 101% (103% excluding NCI) total proved reserve replacement with year-end proved reserves of 730.0 million MMBOE (715.0 MMBOE excluding NCI);

•Closed the strategic acquisition of the Pioneer floating production, storage and offloading vessel (FPSO) in the Gulf of America for a gross purchase price of $125.0 million; and

•Drilled oil discoveries at the Lac Da Hong-1X (Pink Camel), Block 15-1/05 and Hai Su Vang-1X (Golden Sea Lion), Block 15-2/17 exploration wells in Vietnam.

Subsequent to year end:

•Issued $500.0 million of 6.50% senior notes due in 2034 and used proceeds to redeem an aggregate $227.5 million of senior notes due in 2027 and 2028;

•Upsized senior unsecured revolving credit facility from $1.35 billion to $2.00 billion and extended maturity from 2029 to 2031;

•Drilled oil discoveries at Cello #1 (Mississippi Canyon 385) and Banjo #1 (Mississippi Canyon 385) exploration wells in the Gulf of America, and announced a dry hole at Civette-1X (Block CI-502) and Caracal-1X (Block CI-102) in Côte d’Ivoire; and

•Increased the quarterly cash dividend to $0.35 per share, which on an annualized basis would be $1.40 per share.

1 Details of the capital allocation plan can be found as part of the Company’s Form 8-K filed on August 4, 2022 and Form 8-K filed on August 8, 2024. The Company’s Board of Directors has authorized a share repurchase program whereby the Company can repurchase up to $1,100.0 million of the Company’s common stock.

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PART II

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued

Murphy’s continuing operations generate revenue by producing oil and natural gas in the U.S. and Canada and then selling these products to customers. The Company’s revenue is affected by the prices of oil and natural gas. In order to make a profit and generate cash in its E&P business, revenue generated from the sales of oil and natural gas produced must exceed the combined costs of producing these products and expenses related to exploration, administration and capital borrowing from lending institutions and note holders.

For the year ended December 31, 2025, the Company’s net income from continuing operations was $138.3 million, a decrease of $351.0 million compared to 2024. Lower net income from continuing operations was largely driven by lower revenues and other income ($309.7 million), higher depreciation, depletion and amortization expense (DD&A) ($112.0 million), higher other losses ($93.2 million), higher impairment expense ($52.1 million) and higher selling and general expenses ($27.2 million). These items were partially offset by lower lease operating expenses ($171.7 million), lower income tax expense ($33.7 million), and lower exploration expenses ($21.9 million).

Lower revenues from production were primarily driven by lower average oil prices and lower volumes in the Gulf of America due to downtime and the natural decline of new wells, and was partially offset by increased production in the Eagle Ford Shale due to new wells and improved performance, as well as higher realized natural gas prices in Canada, at the Tupper Montney. Higher DD&A was primarily due to increased production and higher rates in the Eagle Ford Shale, and higher rates in the Gulf of America, and was partially offset by lower production in the Gulf of America. Higher other losses were mainly due to unrealized losses on foreign exchange related to our Canada business and were partially offset by lower interest expenses due to no debt repayment fees in the current year. Impairment expense of $115.0 million in 2025 was related to the impairment of the Dalmatian property due to reserve reductions, as certain projects in the field were less competitive for capital allocation. Higher selling and general expenses were due to higher salary and compensation costs in 2025. Lower lease operating expenses were due to lower workovers in the current year, combined with lower operating costs related to the purchase of the Pioneer FPSO. Lower income tax expense was primarily attributable to lower taxable income and was partially offset by the non-recurrence of an income tax deduction that occurred in 2024 relating to prior years’ Australian exploration spend. Lower exploration expenses were due to lower dry hole costs in the current period, which related to the Civette-1X (Block CI-502) exploration well in Côte d’Ivoire, and was partially offset by higher exploration, geological, geophysical and other costs related to the Company’s U.S. Offshore and Côte d’Ivoire exploration programs.

For the year ended December 31, 2025, total hydrocarbon production was 188,682 BOEPD, an increase of 2% compared to 2024. The increase was principally due to higher production in the Eagle Ford Shale and Canada Onshore and was partially offset by lower production in the Gulf of America. Increased production in the Eagle Ford Shale was driven primarily by the performance of new wells online in the current year at Karnes and Catarina. Higher production in Canada Onshore related to better well performance at the Tupper Montney. Lower production in the Gulf of America related to planned and unplanned downtime and was partially offset by new wells online.

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PART II

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued

Results of Operations

Murphy’s Net income (loss) by type of business and geographic segment is presented below:

1 The Company has presented its former U.K. and U.S. refining and marketing operations as discontinued operations in its consolidated financial statements.

E&P Continuing Operations: 2025 vs 2024

The following section of E&P continuing operations excludes the Corporate segment, unless otherwise noted.

Please also refer to “Schedule 6 – Results of Operations for Oil and Natural Gas Producing Activities” in the Supplemental Oil and Natural Gas Information section for additional supporting tables.

The following is a summarized statement of operations for E&P continuing operations.

1 Includes results attributable to the noncontrolling interest in MP GOM.

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued

Pricing

The following table contains the weighted average sales prices for the three years ended December 31, 2025:

1  Prices include the effect of the noncontrolling interest in MP GOM.

2 U.S. dollar equivalent.

The following table contains benchmark prices relevant to the Company for the three years ended December 31, 2025:

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