The Board of Directors of Murphy Oil Corporation declared on April 1 a quarterly cash dividend on the Common Stock of Murphy Oil Corporation of $0.125 per share, or $0.50 per share on an annualized basis.
As a result of ongoing crude oil and natural gas market weakness, the Board believes this 50% reduction from the previous quarterly level of $0.25 per share is prudent. The dividend is payable on June 1 to stockholders of record as of May 18, 2020.
The company also announced it has made an additional reduction in the 2020 capital plan down to the new midpoint of $780 million from the previously announced $950 million in March 2020. This represents a 46% decrease from the original guidance midpoint of $1.45 billion.
The company had announced last month that capital expenditures would be cut by 35%. Further details of the revised plan will be released at a later date.
Concurrently, the Board of Directors has approved significant salary reductions for company executives.
The president and chief executive officer’s annual salary has been reduced by 35%, while remaining executives received salary reductions of as much as 30% with an average of 22%. These changes became effective April 1, 2020.
Being mindful of the challenging economic environment, Murphy directors have agreed to align with reductions to corporate executives’ salaries.
Beginning in second quarter 2020, cash retainers for all directors will be lowered by 35%, with the chairman reducing his cash retainer by 70%.
“Murphy recognizes the reality of the current situation in the commodity markets, and we believe the reduction in dividends, capital expenditures, salaries and retainers are prudent steps to sustain the company for the long term,” said Claiborne P. Deming, Chairman of the Board for Murphy Oil Corporation. “We will continue to review our dividend and other items throughout the course of the year and make further adjustments if warranted.”