U.S. oil producer Murphy Oil Corp. may raise shareholder returns, potentially with buybacks, before it reaches its target to cut debt to $850 million within one year, CEO Roger Jenkins said on June 23.

Oil producers including Murphy Oil are using cash from oil sales to clean their balance sheets and boost distributions to shareholders.

“Deleveraging remains a big focus for us and we have been increasing our dividends,” Jenkins said during a webcast organized by JPMorgan. “I do believe that, while we may set that deleveraging goal, there is a way to have additional returns to shareholders along the way.”

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The company, which holds operations in the U.S., Mexico, Brazil and Vietnam, is currently considering exercising its preferential rights and buy assets in the Gulf of Mexico that are partially owned by Brazil’s Petroleo Brasileiro SA.

Murphy has 80% of the joint venture that includes 14 blocks in the U.S. Gulf, with production around 50,000 bbl/d in 2021. Petrobras put its 20% stake for sale earlier this year.

“It’s very simple. We will buy it at a good price. Or we will pass at a very high price,” Jenkins said.

The oil producer is also ramping up its Gulf of Mexico production with its 85,000 bbl/d platform Kings Quay, which started operations in April.

“The platform is running like anything, nothing I have ever seen in my career. And I have a 39-year career working in the Gulf,” Jenkins said.