Note E – Discontinued Operations and Assets Held for Sale

On March 21, 2019, Murphy Oil Corporation announced that a subsidiary had signed a sale and purchase agreement to divest the fully issued share capital of its two primary Malaysian subsidiaries, Murphy Sabah Oil Co., Ltd. and Murphy Sarawak Oil Co., Ltd., to a subsidiary of PTT Exploration and Production Public Company Limited (PTTEP). PTTEP will pay Murphy $2.127 billion in an all-cash transaction, payable upon closing and subject to customary closing adjustments, plus up to a $100 million bonus payment contingent upon certain future exploratory drilling results prior to October 2020.

The transaction has an effective date of January 1, 2019, with the closing expected to occur by the end of the second quarter 2019. Closing of the transaction is subject to customary conditions precedent including, among other things, necessary regulatory approvals. Murphy will exit the country of Malaysia.

The Company has accounted for its Malaysian exploration and production operations, along with the former U.K., U.S. refining and marketing operations as discontinued operations for all periods presented. The results of operations associated with discontinued operations for the three-month period ended March 31, 2019 and 2018 were as follows:


	Three Months Ended
	March 31,
(Thousands of dollars)		2019	2018
Revenues	$	195,412	210,815
Costs and expenses
Lease operating expenses		62,716	47,610
Depreciation, depletion and amortization		31,353	47,991
Other costs and expenses (benefits)		13,080	(2,451)
Total costs and expenses		88,263	117,665
Income tax expense		38,417	39,993
Income from discontinued operations	$	49,846	77,672

Note E – Discontinued Operations and Assets Held for Sale (Contd.)

The following table presents the carrying value of the major categories of assets and liabilities of the Malaysian exploration and production and the U.K. refining and marketing operations reflected as held for sale on the Company’s Consolidated Balance Sheets at March 31, 2019 and December 31, 2018.



		March 31,	December 31,
(Thousands of dollars)		2019	2018
Current assets
Cash	$	93,072	44,669
Accounts receivable		98,268	103,158
Inventories		8,881	7,887
Prepaid expenses and other		28,248	18,151
Property, Plant, and Equipment, net		1,316,985
Deferred income taxes and other assets		214,103
Operating lease asset		120,011
Total current assets associated with assets held for sale		1,879,568	173,865
Non-current assets
Property, Plant, and Equipment, net		–	1,325,431
Deferred income taxes and other assets		–	219,577
Operating lease asset		–	–
Total non-current assets associated with assets held for sale	$	–	1,545,008
Current liabilities
Accounts payable	$	209,012	203,236
Other accrued liabilities		50,524	55,273
Current maturities of long-term debt		10,067	9,915
Taxes payable		35,032	18,034
Current operating lease liabilities		45,982	–
Long-term debt		115,264
Asset retirement obligation		279,784	–
Non-current operating lease liabilities		74,029	–
Total current liabilities associated with assets held for sale	$	819,694	286,458
Non-current liabilities
Long-term debt		–	117,816
Asset retirement obligation		–	274,904
Total non-current liabilities associated with assets held for sale	$	–	392,720