(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices, including zip code) |
Registrant’s telephone number, including area code | |||||||||||
Not applicable | |||||||||||
(Former Name or Former Address, if Changed Since Last Report) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
MURPHY OIL CORPORATION | ||||||||
Date: November 4, 2021 | ||||||||
By: | /s/ Christopher D. Hulse | |||||||
Christopher D. Hulse | ||||||||
Vice President and Controller |
Exhibit No. | |||||
101. INS | XBRL Instance Document | ||||
101. SCH | XBRL Taxonomy Extension Schema Document | ||||
101. CAL | XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101. DEF | XBRL Taxonomy Extension Definition Linkbase Document | ||||
101. LAB | XBRL Taxonomy Extension Labels Linkbase Document | ||||
101. PRE | XBRL Taxonomy Extension Presentation Linkbase |
CAPEX by Quarter ($ MMs) | |||||||||||||||||
1Q 2021A* | 2Q 2021A | 3Q 2021A | 4Q 2021E | FY 2021E | |||||||||||||
$230 | $198 | $103 | $149 | $680 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(Thousands of dollars, except per share amounts) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Revenues and other income | |||||||||||||||||||||||
Revenue from sales to customers | $ | 687,549 | 425,324 | $ | 2,038,905 | 1,311,627 | |||||||||||||||||
(Loss) gain on derivative instruments | (59,164) | (5,290) | (499,794) | 319,502 | |||||||||||||||||||
Gain on sale of assets and other income | 2,315 | 1,831 | 21,217 | 6,006 | |||||||||||||||||||
Total revenues and other income | 630,700 | 421,865 | 1,560,328 | 1,637,135 | |||||||||||||||||||
Costs and expenses | |||||||||||||||||||||||
Lease operating expenses | 130,131 | 124,491 | 403,708 | 478,283 | |||||||||||||||||||
Severance and ad valorem taxes | 11,670 | 6,781 | 32,215 | 22,645 | |||||||||||||||||||
Transportation, gathering and processing | 44,588 | 41,322 | 137,196 | 126,779 | |||||||||||||||||||
Exploration expenses, including undeveloped lease amortization | 24,517 | 12,092 | 49,840 | 61,686 | |||||||||||||||||||
Selling and general expenses | 27,210 | 28,509 | 85,826 | 104,381 | |||||||||||||||||||
Restructuring expenses | — | 4,982 | — | 46,379 | |||||||||||||||||||
Depreciation, depletion and amortization | 189,806 | 231,603 | 615,372 | 769,151 | |||||||||||||||||||
Accretion of asset retirement obligations | 12,198 | 10,778 | 34,854 | 31,213 | |||||||||||||||||||
Impairment of assets | — | 219,138 | 171,296 | 1,206,284 | |||||||||||||||||||
Other (benefit) expense | (32,791) | 20,224 | 58,616 | (2,957) | |||||||||||||||||||
Total costs and expenses | 407,329 | 699,920 | 1,588,923 | 2,843,844 | |||||||||||||||||||
Operating income (loss) from continuing operations | 223,371 | (278,055) | (28,595) | (1,206,709) | |||||||||||||||||||
Other income (loss) | |||||||||||||||||||||||
Interest income and other (loss) | (1,593) | (5,177) | (11,459) | (10,107) | |||||||||||||||||||
Interest expense, net | (46,925) | (45,182) | (178,399) | (124,877) | |||||||||||||||||||
Total other loss | (48,518) | (50,359) | (189,858) | (134,984) | |||||||||||||||||||
Income (loss) from continuing operations before income taxes | 174,853 | (328,414) | (218,453) | (1,341,693) | |||||||||||||||||||
Income tax expense (benefit) | 36,838 | (62,584) | (62,498) | (248,890) | |||||||||||||||||||
Income (loss) from continuing operations | 138,015 | (265,830) | (155,955) | (1,092,803) | |||||||||||||||||||
(Loss) from discontinued operations, net of income taxes | (706) | (778) | (600) | (6,907) | |||||||||||||||||||
Net income (loss) including noncontrolling interest | 137,309 | (266,608) | (156,555) | (1,099,710) | |||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | 28,853 | (23,055) | 85,509 | (122,869) | |||||||||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO MURPHY | $ | 108,456 | (243,553) | $ | (242,064) | (976,841) | |||||||||||||||||
INCOME (LOSS) PER COMMON SHARE – BASIC | |||||||||||||||||||||||
Continuing operations | $ | 0.70 | (1.58) | $ | (1.57) | (6.31) | |||||||||||||||||
Discontinued operations | — | (0.01) | — | (0.05) | |||||||||||||||||||
Net income (loss) | $ | 0.70 | (1.59) | $ | (1.57) | (6.36) | |||||||||||||||||
INCOME (LOSS) PER COMMON SHARE – DILUTED | |||||||||||||||||||||||
Continuing operations | $ | 0.70 | (1.58) | $ | (1.57) | (6.31) | |||||||||||||||||
Discontinued operations | — | (0.01) | — | (0.05) | |||||||||||||||||||
Net income (loss) | $ | 0.70 | (1.59) | $ | (1.57) | (6.36) | |||||||||||||||||
Cash dividends per Common share | $ | 0.125 | 0.125 | 0.375 | 0.500 | ||||||||||||||||||
Average Common shares outstanding (thousands) | |||||||||||||||||||||||
Basic | 154,439 | 153,596 | 154,239 | 153,480 | |||||||||||||||||||
Diluted | 155,932 | 153,596 | 154,239 | 153,480 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(Thousands of dollars) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Operating Activities | |||||||||||||||||||||||
Net income (loss) including noncontrolling interest | $ | 137,309 | (266,608) | $ | (156,555) | (1,099,710) | |||||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by continuing operations activities | |||||||||||||||||||||||
Loss from discontinued operations | 706 | 778 | 600 | 6,907 | |||||||||||||||||||
Depreciation, depletion and amortization | 189,806 | 231,603 | 615,372 | 769,151 | |||||||||||||||||||
Dry hole and previously suspended exploration costs | 17,266 | 578 | 17,899 | 8,255 | |||||||||||||||||||
Amortization of undeveloped leases | 4,990 | 7,181 | 13,872 | 21,951 | |||||||||||||||||||
Accretion of asset retirement obligations | 12,198 | 10,778 | 34,854 | 31,213 | |||||||||||||||||||
Impairment of assets | — | 219,138 | 171,296 | 1,206,284 | |||||||||||||||||||
Deferred income tax (benefit) expense | 36,046 | (63,846) | (65,149) | (231,748) | |||||||||||||||||||
Mark to market loss (gain) on contingent consideration | 28,434 | 14,053 | 105,111 | (29,476) | |||||||||||||||||||
Mark to market loss (gain) on derivative instruments | (55,863) | 69,385 | 228,497 | (104,463) | |||||||||||||||||||
Noncash restructuring expense | — | — | — | 17,565 | |||||||||||||||||||
Long-term non-cash compensation | 16,762 | 12,440 | 42,080 | 35,200 | |||||||||||||||||||
Net decrease (increase) in noncash working capital | 90,765 | (27,596) | 117,330 | (26,261) | |||||||||||||||||||
Other operating activities, net | (73,418) | 768 | (33,924) | (26,837) | |||||||||||||||||||
Net cash provided by continuing operations activities | 405,001 | 208,652 | 1,091,283 | 578,031 | |||||||||||||||||||
Investing Activities | |||||||||||||||||||||||
Property additions and dry hole costs | (118,916) | (111,124) | (564,230) | (648,725) | |||||||||||||||||||
Proceeds from sales of property, plant and equipment | 675 | — | 270,038 | — | |||||||||||||||||||
Property additions for King's Quay FPS | — | (23,301) | (17,734) | (74,936) | |||||||||||||||||||
Net cash required by investing activities | (118,241) | (134,425) | (311,926) | (723,661) | |||||||||||||||||||
Financing Activities | |||||||||||||||||||||||
Borrowings on revolving credit facility | — | 80,000 | 165,000 | 450,000 | |||||||||||||||||||
Repayment of revolving credit facility | — | (50,000) | (365,000) | (250,000) | |||||||||||||||||||
Retirement of debt | (150,000) | — | (726,358) | (12,225) | |||||||||||||||||||
Debt issuance, net of cost | (61) | — | 541,913 | (613) | |||||||||||||||||||
Early redemption of debt cost | (2,579) | — | (36,756) | — | |||||||||||||||||||
Distributions to noncontrolling interest | (25,642) | (11,273) | (100,880) | (43,673) | |||||||||||||||||||
Cash dividends paid | (19,306) | (19,200) | (57,896) | (76,790) | |||||||||||||||||||
Withholding tax on stock-based incentive awards | (1,078) | 153 | (4,973) | (7,094) | |||||||||||||||||||
Proceeds from term loan and other loans | — | (371) | — | — | |||||||||||||||||||
Capital lease obligation payments | (272) | (178) | (643) | (514) | |||||||||||||||||||
Net cash (required) provided by financing activities | (198,938) | (869) | (585,593) | 59,091 | |||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (855) | 773 | 697 | (585) | |||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 86,967 | 74,131 | 194,461 | (87,124) | |||||||||||||||||||
Cash and cash equivalents at beginning of period | 418,100 | 145,505 | 310,606 | 306,760 | |||||||||||||||||||
Cash and cash equivalents at end of period | $ | 505,067 | 219,636 | $ | 505,067 | 219,636 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(Millions of dollars, except per share amounts) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Net income (loss) attributable to Murphy (GAAP) | $ | 108.5 | (243.6) | $ | (242.1) | (976.8) | |||||||||||||||||
Discontinued operations loss | 0.7 | 0.8 | 0.6 | 6.9 | |||||||||||||||||||
Income (loss) from continuing operations | 109.2 | (242.8) | (241.5) | (969.9) | |||||||||||||||||||
Adjustments (after tax): | |||||||||||||||||||||||
Mark-to-market (gain) loss on derivative instruments | (44.1) | 54.8 | 180.5 | (82.5) | |||||||||||||||||||
Impairment of assets | — | 145.9 | 128.0 | 854.2 | |||||||||||||||||||
Mark-to-market loss (gain) on contingent consideration | 22.4 | 11.1 | 83.0 | (23.3) | |||||||||||||||||||
Asset retirement obligation (gains) losses | (53.6) | — | (53.6) | — | |||||||||||||||||||
Early redemption of debt cost | 2.7 | — | 31.9 | — | |||||||||||||||||||
Unutilized rig charges | 2.5 | 4.1 | 6.7 | 10.4 | |||||||||||||||||||
Charges related to Kings Quay transaction | — | — | 3.9 | — | |||||||||||||||||||
Foreign exchange (gains) losses | (2.0) | 0.8 | (1.1) | (1.7) | |||||||||||||||||||
Restructuring expenses | — | 3.9 | — | 35.5 | |||||||||||||||||||
(Gain) loss on extinguishment of debt | — | — | — | (4.2) | |||||||||||||||||||
Inventory loss | — | — | — | 3.8 | |||||||||||||||||||
Seal insurance proceeds | — | (1.3) | — | (1.3) | |||||||||||||||||||
Total adjustments after taxes | (72.1) | 219.3 | 379.3 | 790.9 | |||||||||||||||||||
Adjusted income (loss) from continuing operations attributable to Murphy | $ | 37.1 | (23.5) | $ | 137.8 | (179.0) | |||||||||||||||||
Adjusted income (loss) from continuing operations per average diluted share | $ | 0.24 | (0.15) | $ | 0.89 | (1.17) |
Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||||||
(Millions of dollars) | Pretax | Tax | Net | Pretax | Tax | Net | |||||||||||||||||||||||||||||
Exploration & Production: | |||||||||||||||||||||||||||||||||||
United States | $ | 31.6 | (6.6) | 25.0 | $ | 118.5 | (24.9) | 93.6 | |||||||||||||||||||||||||||
Canada | (71.8) | 18.2 | (53.6) | 99.5 | (25.1) | 74.4 | |||||||||||||||||||||||||||||
Total E&P | (40.2) | 11.6 | (28.6) | 218.0 | (50.0) | 168.0 | |||||||||||||||||||||||||||||
Corporate: | (55.2) | 11.7 | (43.5) | 267.4 | (56.1) | 211.3 | |||||||||||||||||||||||||||||
Total adjustments | $ | (95.4) | 23.3 | (72.1) | $ | 485.4 | (106.1) | 379.3 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(Millions of dollars, except per barrel of oil equivalents sold) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Net income (loss) attributable to Murphy (GAAP) | $ | 108.5 | (243.6) | $ | (242.1) | (976.8) | |||||||||||||||||
Income tax expense (benefit) | 36.8 | (62.6) | (62.5) | (248.9) | |||||||||||||||||||
Interest expense, net | 46.9 | 45.2 | 178.4 | 124.9 | |||||||||||||||||||
Depreciation, depletion and amortization expense ¹ | 182.8 | 219.7 | 588.4 | 725.1 | |||||||||||||||||||
EBITDA attributable to Murphy (Non-GAAP) | $ | 375.0 | (41.3) | $ | 462.2 | (375.7) | |||||||||||||||||
Mark-to-market (gain) loss on derivative instruments | (55.9) | 69.3 | 228.5 | (104.5) | |||||||||||||||||||
Impairment of assets ¹ | — | 186.5 | 171.3 | 1,072.5 | |||||||||||||||||||
Mark-to-market loss (gain) on contingent consideration | 28.4 | 14.0 | 105.1 | (29.5) | |||||||||||||||||||
Asset retirement obligation (gains) losses | (71.8) | — | (71.8) | — | |||||||||||||||||||
Accretion of asset retirement obligations ¹ | 10.8 | 10.8 | 30.8 | 31.2 | |||||||||||||||||||
Unutilized rig charges | 3.2 | 5.2 | 8.5 | 13.2 | |||||||||||||||||||
Foreign exchange (gains) losses | (2.8) | 0.8 | (1.5) | (2.5) | |||||||||||||||||||
Discontinued operations loss | 0.7 | 0.8 | 0.6 | 6.9 | |||||||||||||||||||
Restructuring expenses | — | 5.0 | — | 46.4 | |||||||||||||||||||
Inventory loss | — | — | — | 4.8 | |||||||||||||||||||
Seal insurance proceeds | — | (1.7) | — | (1.7) | |||||||||||||||||||
Adjusted EBITDA attributable to Murphy (Non-GAAP) | $ | 287.6 | 249.4 | $ | 933.7 | 661.1 | |||||||||||||||||
Total barrels of oil equivalents sold from continuing operations attributable to Murphy (thousands of barrels) | 14,219 | 14,166 | 43,536 | 46,478 | |||||||||||||||||||
Adjusted EBITDA per barrel of oil equivalents sold | $ | 20.23 | 17.61 | $ | 21.45 | 14.22 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(Millions of dollars, except per barrel of oil equivalents sold) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Net income (loss) attributable to Murphy (GAAP) | $ | 108.5 | (243.6) | $ | (242.1) | (976.8) | |||||||||||||||||
Income tax expense (benefit) | 36.8 | (62.6) | (62.5) | (248.9) | |||||||||||||||||||
Interest expense, net | 46.9 | 45.2 | 178.4 | 124.9 | |||||||||||||||||||
Depreciation, depletion and amortization expense ¹ | 182.8 | 219.7 | 588.4 | 725.1 | |||||||||||||||||||
EBITDA attributable to Murphy (Non-GAAP) | 375.0 | (41.3) | 462.2 | (375.7) | |||||||||||||||||||
Exploration expenses | 24.5 | 12.1 | 49.8 | 61.7 | |||||||||||||||||||
EBITDAX attributable to Murphy (Non-GAAP) | 399.5 | (29.2) | 512.0 | (314.0) | |||||||||||||||||||
Mark-to-market (gain) loss on derivative instruments | (55.9) | 69.3 | 228.5 | (104.5) | |||||||||||||||||||
Impairment of assets ¹ | — | 186.5 | 171.3 | 1,072.5 | |||||||||||||||||||
Mark-to-market loss (gain) on contingent consideration | 28.4 | 14.0 | 105.1 | (29.5) | |||||||||||||||||||
Asset retirement obligation (gains) losses | (71.8) | — | (71.8) | — | |||||||||||||||||||
Accretion of asset retirement obligations ¹ | 10.8 | 10.8 | 30.8 | 31.2 | |||||||||||||||||||
Unutilized rig charges | 3.2 | 5.2 | 8.5 | 13.2 | |||||||||||||||||||
Foreign exchange (gains) losses | (2.8) | 0.8 | (1.5) | (2.5) | |||||||||||||||||||
Discontinued operations loss | 0.7 | 0.8 | 0.6 | 6.9 | |||||||||||||||||||
Restructuring expenses | — | 5.0 | — | 46.4 | |||||||||||||||||||
Inventory loss | — | — | — | 4.8 | |||||||||||||||||||
Seal insurance proceeds | — | (1.7) | — | (1.7) | |||||||||||||||||||
Adjusted EBITDAX attributable to Murphy (Non-GAAP) | $ | 312.1 | 261.5 | $ | 983.5 | 722.8 | |||||||||||||||||
Total barrels of oil equivalents sold from continuing operations attributable to Murphy (thousands of barrels) | 14,219 | 14,166 | 43,536 | 46,478 | |||||||||||||||||||
Adjusted EBITDAX per barrel of oil equivalents sold | $ | 21.95 | 18.46 | $ | 22.59 | 15.55 |
Three Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | |||||||||||||
(Millions of dollars) | Revenues | Income (Loss) | Revenues | Income (Loss) | ||||||||||
Exploration and production | ||||||||||||||
United States 1,2 | $ | 565.2 | 168.1 | $ | 330.8 | (172.6) | ||||||||
Canada | 124.6 | 73.9 | 96.3 | (8.6) | ||||||||||
Other | — | (5.2) | — | (11.7) | ||||||||||
Total exploration and production | 689.8 | 236.8 | 427.1 | (192.9) | ||||||||||
Corporate | (59.1) | (98.8) | (5.2) | (72.9) | ||||||||||
Continuing operations | 630.7 | 138.0 | 421.9 | (265.8) | ||||||||||
Discontinued operations, net of tax | — | (0.7) | — | (0.8) | ||||||||||
Total including noncontrolling interest | $ | 630.7 | 137.3 | $ | 421.9 | (266.6) | ||||||||
Net income (loss) attributable to Murphy | 108.5 | (243.6) |
Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2020 | |||||||||||||
(Millions of dollars) | Revenues | Income (Loss) | Revenues | Income (Loss) | ||||||||||
Exploration and production | ||||||||||||||
United States 1,2 | $ | 1,704.4 | 481.8 | $ | 1,070.6 | (1,011.7) | ||||||||
Canada 2 | 349.2 | (37.7) | 245.2 | (35.0) | ||||||||||
Other 2 | — | (22.5) | 1.8 | (73.0) | ||||||||||
Total exploration and production | 2,053.6 | 421.6 | 1,317.6 | (1,119.7) | ||||||||||
Corporate | (493.3) | (577.6) | 319.5 | 26.9 | ||||||||||
Continuing operations | 1,560.3 | (156.0) | 1,637.1 | (1,092.8) | ||||||||||
Discontinued operations, net of tax | — | (0.6) | — | (6.9) | ||||||||||
Total including noncontrolling interest | $ | 1,560.3 | (156.6) | $ | 1,637.1 | (1,099.7) | ||||||||
Net loss attributable to Murphy | (242.1) | (976.8) |
(Millions of dollars) | United States 1 | Canada | Other | Total | ||||||||||
Three Months Ended September 30, 2021 | ||||||||||||||
Oil and gas sales and other operating revenues | $ | 565.2 | 124.6 | — | 689.8 | |||||||||
Lease operating expenses | 96.7 | 33.4 | 0.1 | 130.2 | ||||||||||
Severance and ad valorem taxes | 10.8 | 0.8 | — | 11.6 | ||||||||||
Transportation, gathering and processing | 28.4 | 16.2 | — | 44.6 | ||||||||||
Depreciation, depletion and amortization | 147.0 | 39.7 | 0.1 | 186.8 | ||||||||||
Accretion of asset retirement obligations | 9.3 | 2.9 | — | 12.2 | ||||||||||
Exploration expenses | ||||||||||||||
Dry holes and previously suspended exploration costs | 17.3 | — | — | 17.3 | ||||||||||
Geological and geophysical | — | — | 0.3 | 0.3 | ||||||||||
Other exploration | 1.3 | 0.1 | 0.5 | 1.9 | ||||||||||
18.6 | 0.1 | 0.8 | 19.5 | |||||||||||
Undeveloped lease amortization | 3.1 | 0.1 | 1.8 | 5.0 | ||||||||||
Total exploration expenses | 21.7 | 0.2 | 2.6 | 24.5 | ||||||||||
Selling and general expenses | 4.2 | 4.0 | 1.2 | 9.4 | ||||||||||
Other ² | 39.1 | (71.7) | 2.0 | (30.6) | ||||||||||
Results of operations before taxes | 208.0 | 99.1 | (6.0) | 301.1 | ||||||||||
Income tax provisions (benefits) | 39.9 | 25.2 | (0.8) | 64.3 | ||||||||||
Results of operations (excluding Corporate segment) | $ | 168.1 | 73.9 | (5.2) | 236.8 | |||||||||
Three Months Ended September 30, 2020 | ||||||||||||||
Oil and gas sales and other operating revenues | $ | 330.8 | 96.3 | — | 427.1 | |||||||||
Lease operating expenses | 91.5 | 32.6 | 0.4 | 124.5 | ||||||||||
Severance and ad valorem taxes | 6.4 | 0.3 | — | 6.7 | ||||||||||
Transportation, gathering and processing | 29.3 | 12.0 | — | 41.3 | ||||||||||
Depreciation, depletion and amortization | 166.2 | 59.6 | 0.5 | 226.3 | ||||||||||
Accretion of asset retirement obligations | 9.4 | 1.4 | — | 10.8 | ||||||||||
Impairment of assets | 205.1 | — | — | 205.1 | ||||||||||
Exploration expenses | ||||||||||||||
Dry holes and previously suspended exploration costs | 0.6 | — | — | 0.6 | ||||||||||
Geological and geophysical | 0.1 | — | (0.1) | — | ||||||||||
Other exploration | 0.6 | 0.1 | 3.6 | 4.3 | ||||||||||
1.3 | 0.1 | 3.5 | 4.9 | |||||||||||
Undeveloped lease amortization | 4.9 | 0.1 | 2.3 | 7.3 | ||||||||||
Total exploration expenses | 6.2 | 0.2 | 5.8 | 12.2 | ||||||||||
Selling and general expenses | 5.3 | 3.4 | 1.6 | 10.3 | ||||||||||
Other | 22.5 | (1.5) | 2.5 | 23.5 | ||||||||||
Results of operations before taxes | (211.1) | (11.7) | (10.8) | (233.6) | ||||||||||
Income tax (benefits) provisions | (38.5) | (3.1) | 0.9 | (40.7) | ||||||||||
Results of operations (excluding Corporate segment) | $ | (172.6) | (8.6) | (11.7) | (192.9) |
(Millions of dollars) | United States 1 | Canada | Other | Total | ||||||||||
Nine Months Ended September 30, 2021 | ||||||||||||||
Oil and gas sales and other operating revenues | $ | 1,704.4 | 349.2 | — | 2,053.6 | |||||||||
Lease operating expenses | 303.3 | 100.0 | 0.4 | 403.7 | ||||||||||
Severance and ad valorem taxes | 30.6 | 1.6 | — | 32.2 | ||||||||||
Transportation, gathering and processing | 90.5 | 46.7 | — | 137.2 | ||||||||||
Depreciation, depletion and amortization | 476.6 | 128.0 | 1.1 | 605.7 | ||||||||||
Accretion of asset retirement obligations | 27.5 | 7.4 | — | 34.9 | ||||||||||
Impairment of assets | — | 171.3 | — | 171.3 | ||||||||||
Exploration expenses | ||||||||||||||
Dry holes and previously suspended exploration costs | 17.9 | — | — | 17.9 | ||||||||||
Geological and geophysical | 2.7 | — | 1.3 | 4.0 | ||||||||||
Other exploration | 4.2 | 0.2 | 9.6 | 14.0 | ||||||||||
24.8 | 0.2 | 10.9 | 35.9 | |||||||||||
Undeveloped lease amortization | 7.9 | 0.2 | 5.8 | 13.9 | ||||||||||
Total exploration expenses | 32.7 | 0.4 | 16.7 | 49.8 | ||||||||||
Selling and general expenses | 15.0 | 12.0 | 4.7 | 31.7 | ||||||||||
Other ² | 133.5 | (67.7) | (1.2) | 64.6 | ||||||||||
Results of operations before taxes | 594.7 | (50.5) | (21.7) | 522.5 | ||||||||||
Income tax provisions (benefits) | 112.9 | (12.8) | 0.8 | 100.9 | ||||||||||
Results of operations (excluding Corporate segment) | $ | 481.8 | (37.7) | (22.5) | 421.6 | |||||||||
Nine Months Ended September 30, 2020 | ||||||||||||||
Oil and gas sales and other operating revenues | $ | 1,070.6 | 245.2 | 1.8 | 1,317.6 | |||||||||
Lease operating expenses | 386.5 | 90.6 | 1.2 | 478.3 | ||||||||||
Severance and ad valorem taxes | 21.6 | 1.0 | — | 22.6 | ||||||||||
Transportation, gathering and processing | 95.4 | 31.4 | — | 126.8 | ||||||||||
Depreciation, depletion and amortization | 589.5 | 161.3 | 1.5 | 752.3 | ||||||||||
Accretion of asset retirement obligations | 27.1 | 4.1 | — | 31.2 | ||||||||||
Impairment of assets | 1,152.5 | — | 39.7 | 1,192.2 | ||||||||||
Exploration expenses | ||||||||||||||
Dry holes and previously suspended exploration costs | 8.3 | — | — | 8.3 | ||||||||||
Geological and geophysical | 9.4 | 0.1 | 4.1 | 13.6 | ||||||||||
Other exploration | 4.3 | 0.4 | 13.1 | 17.8 | ||||||||||
22.0 | 0.5 | 17.2 | 39.7 | |||||||||||
Undeveloped lease amortization | 14.8 | 0.3 | 6.9 | 22.0 | ||||||||||
Total exploration expenses | 36.8 | 0.8 | 24.1 | 61.7 | ||||||||||
Selling and general expenses | 16.6 | 13.2 | 5.5 | 35.3 | ||||||||||
Other | 1.0 | (2.5) | 1.4 | (0.1) | ||||||||||
Results of operations before taxes | (1,256.4) | (54.7) | (71.6) | (1,382.7) | ||||||||||
Income tax (benefits) provisions | (244.7) | (19.7) | 1.4 | (263.0) | ||||||||||
Results of operations (excluding Corporate segment) | $ | (1,011.7) | (35.0) | (73.0) | (1,119.7) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(Dollars per barrel of oil equivalents sold) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Continuing operations | |||||||||||||||||||||||
United States – Eagle Ford Shale | |||||||||||||||||||||||
Lease operating expense | $ | 8.85 | 8.11 | $ | 8.50 | 8.97 | |||||||||||||||||
Severance and ad valorem taxes | 3.00 | 2.04 | 2.95 | 2.08 | |||||||||||||||||||
Depreciation, depletion and amortization (DD&A) expense | 27.01 | 27.09 | 28.02 | 25.72 | |||||||||||||||||||
United States – Gulf of Mexico | |||||||||||||||||||||||
Lease operating expense 1 | $ | 11.13 | 10.16 | $ | 10.55 | 12.60 | |||||||||||||||||
Severance and ad valorem taxes | 0.08 | — | 0.08 | — | |||||||||||||||||||
DD&A expense | 9.16 | 12.33 | 9.63 | 13.82 | |||||||||||||||||||
Canada – Onshore | |||||||||||||||||||||||
Lease operating expense | $ | 5.59 | 4.73 | $ | 6.02 | 4.56 | |||||||||||||||||
Severance and ad valorem taxes | 0.17 | 0.05 | 0.11 | 0.07 | |||||||||||||||||||
DD&A expense | 6.87 | 10.78 | 7.93 | 9.94 | |||||||||||||||||||
Canada – Offshore | |||||||||||||||||||||||
Lease operating expense | $ | 13.25 | 20.30 | $ | 12.72 | 16.71 | |||||||||||||||||
DD&A expense | 11.53 | 12.58 | 13.08 | 11.48 | |||||||||||||||||||
Total oil and gas continuing operations | |||||||||||||||||||||||
Lease operating expense | $ | 8.69 | 8.23 | $ | 8.74 | 9.61 | |||||||||||||||||
Severance and ad valorem taxes | 0.78 | 0.45 | 0.70 | 0.45 | |||||||||||||||||||
DD&A expense | 12.67 | 15.31 | 13.33 | 15.45 | |||||||||||||||||||
Total oil and gas continuing operations – excluding noncontrolling interest | |||||||||||||||||||||||
Lease operating expense 2 | $ | 8.51 | 8.13 | $ | 8.53 | 9.36 | |||||||||||||||||
Severance and ad valorem taxes | 0.82 | 0.48 | 0.74 | 0.49 | |||||||||||||||||||
DD&A expense | 12.84 | 15.51 | 13.51 | 15.60 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(Millions of dollars) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Capital expenditures for continuing operations | |||||||||||||||||||||||
Exploration and production | |||||||||||||||||||||||
United States | $ | 111.4 | 116.6 | $ | 473.8 | 521.7 | |||||||||||||||||
Canada | (5.2) | (1.6) | 67.1 | 116.6 | |||||||||||||||||||
Other | 0.4 | 5.8 | 15.1 | 32.7 | |||||||||||||||||||
Total | 106.6 | 120.8 | 556.0 | 671.0 | |||||||||||||||||||
Corporate | 3.9 | 1.9 | 12.7 | 9.3 | |||||||||||||||||||
Total capital expenditures - continuing operations 1,2 | 110.5 | 122.7 | 568.7 | 680.3 | |||||||||||||||||||
Charged to exploration expenses 3 | |||||||||||||||||||||||
United States | 18.6 | 1.3 | 24.8 | 22.0 | |||||||||||||||||||
Canada | 0.1 | 0.1 | 0.2 | 0.5 | |||||||||||||||||||
Other | 0.8 | 3.5 | 10.9 | 17.2 | |||||||||||||||||||
Total charged to exploration expenses - continuing operations | 19.5 | 4.9 | 35.9 | 39.7 | |||||||||||||||||||
Total capitalized | $ | 91.0 | 117.8 | $ | 532.8 | 640.6 |
(Millions of dollars) | September 30, 2021 | December 31, 2020 | |||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 505.1 | 310.6 | ||||||||
Accounts receivable | 186.7 | 262.0 | |||||||||
Inventories | 57.4 | 66.1 | |||||||||
Prepaid expenses | 40.6 | 33.9 | |||||||||
Assets held for sale | 41.0 | 327.7 | |||||||||
Total current assets | 830.7 | 1,000.3 | |||||||||
Property, plant and equipment, at cost | 8,112.1 | 8,269.0 | |||||||||
Operating lease assets | 918.7 | 927.7 | |||||||||
Deferred income taxes | 442.2 | 395.3 | |||||||||
Deferred charges and other assets | 27.1 | 28.6 | |||||||||
Total assets | $ | 10,330.9 | 10,620.9 | ||||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities | |||||||||||
Current maturities of long-term debt, finance lease | $ | 0.6 | — | ||||||||
Accounts payable | 615.4 | 407.1 | |||||||||
Income taxes payable | 18.0 | 18.0 | |||||||||
Other taxes payable | 27.0 | 22.5 | |||||||||
Operating lease liabilities | 157.3 | 103.8 | |||||||||
Other accrued liabilities | 316.2 | 150.6 | |||||||||
Liabilities associated with assets held for sale | — | 14.4 | |||||||||
Total current liabilities | 1,134.6 | 716.3 | |||||||||
Long-term debt, including finance lease obligation | 2,613.7 | 2,988.1 | |||||||||
Asset retirement obligations | 797.6 | 816.3 | |||||||||
Deferred credits and other liabilities | 723.7 | 680.6 | |||||||||
Non-current operating lease liabilities | 781.1 | 845.1 | |||||||||
Deferred income taxes | 166.1 | 180.3 | |||||||||
Total liabilities | 6,216.9 | 6,226.7 | |||||||||
Equity | |||||||||||
Common Stock, par $1.00 | 195.1 | 195.1 | |||||||||
Capital in excess of par value | 921.2 | 941.7 | |||||||||
Retained earnings | 5,069.6 | 5,369.5 | |||||||||
Accumulated other comprehensive loss | (580.2) | (601.3) | |||||||||
Treasury stock | (1,656.2) | (1,690.7) | |||||||||
Murphy Shareholders' Equity | 3,949.5 | 4,214.3 | |||||||||
Noncontrolling interest | 164.4 | 179.8 | |||||||||
Total equity | 4,113.9 | 4,394.1 | |||||||||
Total liabilities and equity | $ | 10,330.9 | 10,620.9 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
Barrels per day unless otherwise noted | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Continuing operations | ||||||||||||||||||||||||||
Net crude oil and condensate | ||||||||||||||||||||||||||
United States | Onshore | 26,193 | 24,851 | 26,552 | 27,945 | |||||||||||||||||||||
Gulf of Mexico 1 | 53,011 | 56,517 | 61,905 | 67,377 | ||||||||||||||||||||||
Canada | Onshore | 4,963 | 9,595 | 5,598 | 8,106 | |||||||||||||||||||||
Offshore | 3,779 | 4,428 | 4,016 | 5,136 | ||||||||||||||||||||||
Other | 299 | — | 243 | 114 | ||||||||||||||||||||||
Total net crude oil and condensate - continuing operations | 88,245 | 95,391 | 98,314 | 108,678 | ||||||||||||||||||||||
Net natural gas liquids | ||||||||||||||||||||||||||
United States | Onshore | 5,847 | 5,489 | 5,043 | 5,459 | |||||||||||||||||||||
Gulf of Mexico 1 | 3,459 | 3,521 | 4,296 | 5,131 | ||||||||||||||||||||||
Canada | Onshore | 1,085 | 1,513 | 1,159 | 1,311 | |||||||||||||||||||||
Total net natural gas liquids - continuing operations | 10,391 | 10,523 | 10,498 | 11,901 | ||||||||||||||||||||||
Net natural gas – thousands of cubic feet per day | ||||||||||||||||||||||||||
United States | Onshore | 31,478 | 27,520 | 27,750 | 29,054 | |||||||||||||||||||||
Gulf of Mexico 1 | 46,339 | 53,046 | 63,557 | 67,850 | ||||||||||||||||||||||
Canada | Onshore | 309,709 | 260,895 | 277,077 | 262,279 | |||||||||||||||||||||
Total net natural gas - continuing operations | 387,526 | 341,461 | 368,384 | 359,183 | ||||||||||||||||||||||
Total net hydrocarbons - continuing operations including NCI 2,3 | 163,224 | 162,824 | 170,209 | 180,443 | ||||||||||||||||||||||
Noncontrolling interest | ||||||||||||||||||||||||||
Net crude oil and condensate – barrels per day | (7,546) | (9,298) | (8,834) | (10,674) | ||||||||||||||||||||||
Net natural gas liquids – barrels per day | (243) | (327) | (322) | (443) | ||||||||||||||||||||||
Net natural gas – thousands of cubic feet per day 2 | (2,331) | (3,269) | (3,498) | (4,137) | ||||||||||||||||||||||
Total noncontrolling interest | (8,178) | (10,170) | (9,739) | (11,807) | ||||||||||||||||||||||
Total net hydrocarbons - continuing operations excluding NCI 2,3 | 155,046 | 152,654 | 160,470 | 168,636 | ||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Weighted average Exploration and Production sales prices | ||||||||||||||||||||||||||
Continuing operations | ||||||||||||||||||||||||||
Crude oil and condensate – dollars per barrel | ||||||||||||||||||||||||||
United States | Onshore | $ | 69.30 | 37.83 | $ | 64.16 | $ | 35.56 | ||||||||||||||||||
Gulf of Mexico 1 | 68.93 | 40.82 | 64.44 | 38.08 | ||||||||||||||||||||||
Canada 2 | Onshore | 63.76 | 36.65 | 58.70 | 30.29 | |||||||||||||||||||||
Offshore | 72.64 | 43.81 | 68.93 | 37.85 | ||||||||||||||||||||||
Natural gas liquids – dollars per barrel | ||||||||||||||||||||||||||
United States | Onshore | 30.37 | 13.39 | 24.29 | 10.78 | |||||||||||||||||||||
Gulf of Mexico 1 | 34.71 | 14.71 | 27.17 | 9.43 | ||||||||||||||||||||||
Canada 2 | Onshore | 45.12 | 19.97 | 37.05 | 16.95 | |||||||||||||||||||||
Natural gas – dollars per thousand cubic feet | ||||||||||||||||||||||||||
United States | Onshore | 3.85 | 1.78 | 3.23 | 1.76 | |||||||||||||||||||||
Gulf of Mexico 1 | 4.09 | 2.01 | 3.28 | 1.91 | ||||||||||||||||||||||
Canada 2 | Onshore | 2.47 | 1.74 | 2.33 | 1.62 |
Volumes (MMcf/d) | Price/Mcf | Remaining Period | ||||||||||||||||||||||||||||||||||||
Area | Commodity | Type | Start Date | End Date | ||||||||||||||||||||||||||||||||||
Montney | Natural Gas | Fixed price forward sales | 196 | C$2.55 | 10/1/2021 | 12/31/2021 | ||||||||||||||||||||||||||||||||
Montney | Natural Gas | Fixed price forward sales | 186 | C$2.36 | 1/1/2022 | 1/31/2022 | ||||||||||||||||||||||||||||||||
Montney | Natural Gas | Fixed price forward sales | 176 | C$2.34 | 2/1/2022 | 4/30/2022 | ||||||||||||||||||||||||||||||||
Montney | Natural Gas | Fixed price forward sales | 205 | C$2.34 | 5/1/2022 | 5/31/2022 | ||||||||||||||||||||||||||||||||
Montney | Natural Gas | Fixed price forward sales | 247 | C$2.34 | 6/1/2022 | 10/31/2022 | ||||||||||||||||||||||||||||||||
Montney | Natural Gas | Fixed price forward sales | 266 | C$2.36 | 11/1/2022 | 12/31/2022 | ||||||||||||||||||||||||||||||||
Montney | Natural Gas | Fixed price forward sales | 269 | C$2.35 | 1/1/2023 | 3/31/2023 | ||||||||||||||||||||||||||||||||
Montney | Natural Gas | Fixed price forward sales | 250 | C$2.35 | 4/1/2023 | 12/31/2023 | ||||||||||||||||||||||||||||||||
Montney | Natural Gas | Fixed price forward sales | 162 | C$2.39 | 1/1/2024 | 12/31/2024 | ||||||||||||||||||||||||||||||||
Montney | Natural Gas | Fixed price forward sales | 45 | US$2.05 | 10/1/2021 | 12/31/2022 | ||||||||||||||||||||||||||||||||
Montney | Natural Gas | Fixed price forward sales | 25 | US$1.98 | 1/1/2023 | 10/31/2024 | ||||||||||||||||||||||||||||||||
Montney | Natural Gas | Fixed price forward sales | 15 | US$1.98 | 11/1/2024 | 12/31/2024 |
Commodity | Type | Volumes (Bbl/d) | Price (USD/Bbl) | Remaining Period | ||||||||||||||||||||||||||||||||||
Area | Start Date | End Date | ||||||||||||||||||||||||||||||||||||
United States | WTI ¹ | Fixed price derivative swap | 45,000 | $42.77 | 10/1/2021 | 12/31/2021 | ||||||||||||||||||||||||||||||||
United States | WTI ¹ | Fixed price derivative swap | 20,000 | $44.88 | 1/1/2022 | 12/31/2022 |
Volumes (Bbl/d) | Average Put (USD/Bbl) | Average Call (USD/Bbl) | Remaining Period | |||||||||||||||||||||||||||||||||||||||||
Area | Commodity | Type | Start Date | End Date | ||||||||||||||||||||||||||||||||||||||||
United States | WTI ¹ | Derivative collars | 23,000 | $62.652 | $74.774 | 1/1/2022 | 12/31/2022 |
Oil BOPD | NGLs BOPD | Gas MCFD | Total BOEPD | ||||||||||||||||||||
Production – net | |||||||||||||||||||||||
U.S. – Eagle Ford Shale | 22,600 | 5,100 | 27,200 | 32,200 | |||||||||||||||||||
– Gulf of Mexico excluding NCI | 50,500 | 3,400 | 49,800 | 62,200 | |||||||||||||||||||
Canada – Tupper Montney | — | — | 258,600 | 43,100 | |||||||||||||||||||
– Kaybob Duvernay and Placid Montney | 4,500 | 1,000 | 16,600 | 8,300 | |||||||||||||||||||
– Offshore | 3,400 | — | — | 3,400 | |||||||||||||||||||
Other | 300 | — | — | 300 | |||||||||||||||||||
Total net production (BOEPD) - excluding NCI 1 | 145,500 to 153,500 | ||||||||||||||||||||||
Exploration expense ($ millions) | $32 | ||||||||||||||||||||||
FULL YEAR 2021 GUIDANCE | |||||||||||||||||||||||
Total net production (BOEPD) - excluding NCI 2 | 156,500 to 158,500 | ||||||||||||||||||||||
Capital expenditures – excluding NCI ($ millions) 3 | $675 to $685 | ||||||||||||||||||||||
¹ Excludes noncontrolling interest of MP GOM of 8,400 BOPD of oil, 200 BOPD of NGLs, and 2,300 MCFD gas. | |||||||||||||||||||||||
² Excludes noncontrolling interest of MP GOM of 8,700 BOPD of oil, 300 BOPD of NGLs, and 3,200 MCFD gas. | |||||||||||||||||||||||
³ Excludes noncontrolling interest of MP GOM of $25 MM. |
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