Murphy Oil moving to Houston

Murphy Oil will move its headquarters to Houston from its longtime home in Arkansas as it consolidates operations in the face of the severe energy downturn.

Murphy announced the move after reporting a $416 million first quarter loss, compared to a $40.2 million profit during same period a year earlier. Revenues fell nearly 60 percent to $630.5 million from $1 billion i n the first quarter of 2019.

Murphy attributed the loss to writing down the value of $928 million of assets in the United States. The company will close its offices in Arkansas and Calgary in Canada and cut its capital spending by $700 million

In a statement, Murphy Oil Board Chair Claiborne Deming said to consolidate offices was done to remain competitive in the middle of an unprecedented industry downturn and will not affect field operations.

“The El Dorado (Ark.) office closure is particularly painful and difficult, because the company was founded here by C. H. Murphy, Jr. and has been an integral and important part of the community for many years," Deming said. “This decision is one we take with sadness, but with the understanding that our only path forward is to consolidate into one office in Houston."

Founded in 1950, Murphy Oil has operations in Mexico, Brazil, Southeast Asia, Australia, Canada and the United States. The company, which is active in the Eagle Ford shale of South Texas, filed 79 drilling permits for projects in Texas last year.