Murphy Oil Corporation announced today that net income was $129.4 million ($0.72 per diluted share) in the 2014 second quarter, down from $402.6 million ($2.12 per diluted share) in the second quarter 2013. Income from continuing operations in the 2014 second quarter was $142.7 million ($0.79 per diluted share) compared to $259.9 million ($1.37 per diluted share) earned in the second quarter a year ago.
Adjusted earnings, which exclude both the results of discontinued operations and certain other items that affect comparability of results between periods, in the second quarter of 2014 was $161.7 million ($0.90 per diluted share). This was a decrease of $100.0 million ($0.48 per diluted share) compared to the prior year's quarter. Adjusted earnings were lower in the 2014 quarter compared to the prior year primarily due to higher exploration expenses, higher extraction costs in Malaysia associated with several new field start ups, lower realized oil and natural gas sales prices for Sarawak production, unfavorable effects in the U.S. from commodity contracts, and higher financing costs. Realized Sarawak oil and gas prices in the current quarter were unfavorably impacted by larger revenue sharing payments required under the production sharing contracts.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for continuing operations totaled $792.3 million in the second quarter 2014, down from $850.7 million in the second quarter of 2013. EBITDA per barrel of oil equivalent sold was $40.20 in the 2014 quarter compared to $44.95 in the 2013 quarter. EBITDA was lower in 2014 mostly due to higher exploration costs, increased revenue sharing in Malaysia and the effects of oil commodity contracts.