Business Segments

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Business Segments

Note T – Business Segments

Murphy’s reportable segments are organized into geographic areas of operations. The Company’s exploration and production activity is subdivided into segments for the United States, Canada and all other countries. Each of these segments derives revenues primarily from the sale of crude oil, condensate, natural gas liquids and/or natural gas. The Company’s management evaluates segment performance based on income (loss) from operations, excluding interest income and interest expense. 

Customers that accounted for 10% or more of the Company’s sales revenue for each of the below three years ended December 31, are shown below.

	2022		2021		2020
Chevron Corporation	19	%	30	%	24	%
ExxonMobil Corporation	12	%	N/A		N/A
Phillips 66	N/A		N/A		18	%

Due to the quantity of active oil and natural gas purchasers in the markets where it produces hydrocarbons, the Company does not foresee any difficulty with selling its hydrocarbon production at fair market prices.

No assets were held for sale as of December 31, 2022. Assets held for sale as of December 31, 2021 include the net property, plant and equipment of the Brunei Block CA-2 and the Company’s office building in El Dorado, Arkansas (see Note E). The U.K. and Malaysian operations have been reported as discontinued operations for all periods presented in these consolidated financial statements.

Information about business segments and geographic operations is reported in the following tables. For geographic purposes, revenues are attributed to the country in which the sale occurs. Corporate and other activities, including interest income, other gains and losses (including foreign exchange gains/losses and realized/unrealized gains/losses on crude oil contracts), interest expense and unallocated overhead, are shown in the tables to reconcile the business segments to consolidated totals.

	Exploration and Production
(Millions of dollars)	United States 1		Canada		Other		Total E&P		Corporate and Other		Discontinued Operations		Consolidated Total
Year ended December 31, 2022
Segment income (loss) - including NCI 1	$	1,521.9	$	134.2	$	(77.0)	$	1,579.1	$	(438.3)	$	(2.1)	$	1,138.7
Revenues from external customers	3,461.2		762.9		23.0		4,247.1		(314.4)		—		3,932.7
Interest and other income (loss)	(6.6)		(1.9)		(0.5)		(9.0)		23.3		—		14.3
Interest expense, net of capitalization	(0.1)		—		(0.3)		(0.4)		(150.4)		—		(150.8)
Income tax expense (benefit)	370.8		43.6		2.9		417.3		(107.8)		—		309.5
Significant noncash charges (credits)
Depreciation, depletion and amortization	617.0		141.5		5.4		763.9		12.9		—		776.8
Accretion of asset retirement obligations	36.5		9.6		0.1		46.2		—		—		46.2
Amortization of undeveloped leases	8.7		0.2		4.4		13.3		—		—		13.3
Deferred and noncurrent income taxes	362.7		34.8		0.6		398.1		(112.0)		—		286.1
Additions to property, plant, equipment	838.6		208.5		(5.7)		1,041.4		21.9		—		1,063.3
Total assets at year-end	6,930.6		2,125.6		217.4		9,273.6		1,034.6		0.8		10,309.0
Year ended December 31, 2021
Segment income (loss) - including NCI 1	$	766.3	(16.1)		(33.5)		716.7		$	(668.0)	(1.2)		47.5
Revenues from external customers	2,337.5		476.3		4.9		2,818.7		(519.4)		—		2,299.3
Interest and other income (loss)	(11.6)		(1.9)		3.2		(10.3)		(6.5)		—		(16.8)
Interest expense, net of capitalization	—		—		(0.2)		(0.2)		(221.6)		—		(221.8)
Income tax expense (benefit)	183.9		(1.7)		(9.5)		172.7		(178.6)		—		(5.9)
Significant noncash charges (credits)
Impairment of assets	—		171.3		18.0		189.3		7.0		—		196.3
Depreciation, depletion and amortization	616.5		163.8		1.8		782.1		13.0		—		795.1
Accretion of asset retirement obligations	36.9		9.7		—		46.6		—		—		46.6
Amortization of undeveloped leases	11.1		0.2		7.6		18.9		—		—		18.9
Deferred and noncurrent income taxes	176.3		(1.9)		(8.0)		166.4		(170.5)		—		(4.1)
Additions to property, plant, equipment	519.5		52.7		13.1		585.3		—		—		585.3
Total assets at year-end	6,591.6		2,231.9		259.8		9,083.3		1,220.8		0.8		10,304.9

	Exploration and Production
(Millions of dollars)	United States 1		Canada		Other		Total E&P		Corporate and Other		Discontinued Operations		Consolidated Total
Year ended December 31, 2020
Segment income (loss) - including NCI 1	$	(1,014.3)	$	(35.0)	$	(85.6)	$	(1,134.9)	$	(120.3)	$	(7.2)	$	(1,262.4)
Revenues from external customers	1,411.8		345.8		1.8		1,759.4		207.9		—		1,967.3
Interest and other income (loss)	(9.9)		0.8		0.8		(8.2)		(9.1)		—		(17.3)
Interest expense, net of capitalization	—		(0.5)		(0.4)		(0.9)		(168.5)		—		(169.4)
Income tax expense (benefit)	(244.2)		(21.4)		2.1		(263.5)		(30.2)		—		(293.7)
Significant noncash charges (credits)
Impairment of assets	1,152.5		—		39.7		1,192.2		14.1		—		1,206.3
Depreciation, depletion and amortization	749.4		213.2		2.3		964.9		22.3		—		987.2
Accretion of asset retirement obligations	36.6		5.5		—		42.1		—		—		42.1
Amortization of undeveloped leases	17.2		0.4		9.1		26.7		—		—		26.7
Deferred and noncurrent income taxes	(244.2)		(10.6)		1.9		(252.9)		(25.1)		—		(278.0)
Additions to property, plant, equipment	623.1		118.3		15.2		756.6		—		—		756.6
Total assets at year-end	6,915.5		2,404.1		267.7		9,587.3		1,032.9		0.7		10,620.9

1 Includes results attributable to a noncontrolling interest in MP GOM.

Geographic Information	Certain long-lived assets at December 31 1
(Millions of dollars)	United States		Canada		Other		Total
2022	$	6,562.8	$	1,499.1	$	166.1	$	8,228.0
2021	6,371.4		1,566.9		189.6		8,127.9
2020	6,395.7		1,702.5		170.8		8,269.0

1 Certain long-lived assets at December 31 exclude investments, right-of-use operating lease assets, non-current receivables, deferred tax assets and other intangible assets.