NEW YORK, Jan 9, 2026, 10:24 EST — Regular session
- Murphy Oil shares fall as the company prices $500 million of new 2034 notes
- Proceeds earmarked for redemptions of 2027/2028 notes and to pay down a credit line
- Next catalysts include the bond closing on Jan. 23 and earnings after the bell on Jan. 28
Murphy Oil shares were down 0.4% at $32.60 on Friday, a day after the company priced a $500 million bond sale that reshapes its near-term debt calendar.
The refinancing matters because oil producers are still trying to keep maturities pushed out, even when crude moves around and credit is picky. Senior notes are long-term bonds that sit ahead of other unsecured claims if a company runs into trouble.
Murphy’s new paper also comes with a cost. The company is swapping out 2027 and 2028 notes for a longer 2034 maturity, but the coupon is higher, and investors will do the math on what that means for free cash flow — the cash left after capital spending — and returns to shareholders.
Murphy said it priced $500 million of 6.500% senior notes due 2034 and expects to close the offering on Jan. 23, subject to customary conditions. It said it expects to use the net proceeds to redeem its 5.875% notes due 2027 and 6.375% notes due 2028, repay borrowings under its revolving credit facility (a bank credit line), cover fees and keep the rest for general corporate purposes. (Business Wire)
A regulatory filing showed the planned redemptions are conditional and depend on the successful completion of the offering, with the company expecting to issue a conditional notice of full redemption around pricing.
The stock’s move came against a mixed tape in energy: the U.S. Oil Fund was up 0.9% and a Brent-linked fund rose 0.5%, while an exploration-and-production ETF was down 1.0%. Occidental Petroleum gained 0.3% and Devon Energy fell 0.5%.
Still, bond deals can sour quickly if markets wobble. If the offering does not close, Murphy’s redemptions may not go through, and the company could be left carrying its older notes and whatever it has drawn on its credit line.
What’s next is calendar-driven: Murphy plans to release fourth-quarter results after the market closes on Jan. 28, followed by a conference call at 9 a.m. ET on Jan. 29. Investors will listen for cash-flow and spending signals for 2026 — and for any detail on how quickly the company executes the note redemptions once the new debt closes. (Business Wire)
