Two of the larger U.S.-based independents, Murphy Oil Corp. and Newfield Exploration Co., on Tuesday both reported higher net income for the second quarter. Production-wise, Murphy’s oil and gas volumes increased substantially on the strength of higher output in the Gulf of Mexico, while Newfield’s remained flat over 2Q2003.

Murphy, headquartered in El Dorado, AR, reported second quarter net income was a record $349.9 million ($3.75/share), compared with $79.7 million (86 cents) in 2Q2003. Quarterly profit included income from discontinued operations of $181.8 million ($1.95/share), $166.7 million of which was a net gain on sale of most of its conventional oil and gas assets in Western Canada.

Murphy’s North American natural gas sales volumes from continuing operations increased to 123 MMcf/d from 112 MMcf/d in 2Q2003, mostly because of production from the Medusa and Habanero fields in the Gulf of Mexico (GOM). Exploration expenses were $23.2 million in the second quarter of 2004 compared to $28.1 million in the same period of 2003.

Murphy’s total crude oil and natural gas liquids production from continuing operations was 97,375 bbl/d in the quarter, up from 75,624 bbl/d in 2Q2003, with the net increase also primarily attributed to production at the Medusa and Habanero fields in deepwater Gulf of Mexico, which began production in the fourth quarter of 2003, and higher volumes at the West Patricia field in Malaysia.

For the second quarter of 2004, Houston-based Newfield reported net income of $67.4 million ($1.18/share), compared with $53.1 million (95 cents) for the same period a year ago. Revenues in the quarter were $282.7 million, and net cash provided by operating activities was $185.1 million.

Newfield, whose production is centered in the GOM, U.S. onshore Gulf Coast and the Anadarko and Arkoma Basins, reported 2Q production of 56.0 Bcfe, which was flat compared with last year’s 56.2 Bcfe. Natural gas production for the quarter was 47.5 Bcf, a 1% rise from last year’s 46.8 Bcf.

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