Murphy Oil Corporation (MUR) will cut its quarterly dividend by 50.0 percent to $0.125 per share in 2020. The company already cut its dividend by 28.6 percent to 25 cents quarterly in 2016.

The next dividend is payable on June 1, 2020, to stockholders of record as of May 18, 2020 and a new annual dividend rate of 50 cents per share yields 17.9% at a stock price of $5.60.

In the company's press release the dividend cut is explained as a result of ongoing crude oil and natural gas market weakness. The Board of Murphy states that it believes this 50 percent reduction from the previous quarterly level of $0.25 per share is prudent. “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.”

Murphy Oil Corporation is a global oil and natural gas exploration and production company. The Company was originally incorporated in Louisiana in 1950 as Murphy Corporation. Murphy’s exploration and production activities are subdivided into three geographic segments, including the United States, Canada, and all other countries. Additionally, Corporate activities include interest income, interest expense, foreign exchange effects, corporate risk management activities and administrative costs not allocated to the segments. The company’s corporate headquarters are located in El Dorado, Arkansas.