EX-13 4 dex13.htm 2008 ANNUAL REPORT TO SECURITY HOLDERS 2008 Annual Report to Security Holders

Exhibit 13

Murphy Oil at a Glance

Murphy Oil Corporation (“Murphy” or “the Company”) is an international oil and gas company that conducts business through various operating subsidiaries. The Company produces oil and/or natural gas in the United States, Canada, the United Kingdom, Malaysia and Ecuador and conducts exploration activities worldwide. Murphy also has an interest in a Canadian synthetic oil operation, owns two petroleum refineries in the United States and one refinery in the United Kingdom. The Company operates a growing retail marketing gasoline station chain on the parking lots of Walmart Supercenters and at stand-alone locations in the United States and also markets petroleum products under various brand names and to unbranded wholesale customers in the United States and the United Kingdom. Murphy is headquartered in El Dorado, Arkansas and has 8,277 employees worldwide. The Company’s common stock is traded on the New York Stock Exchange under the ticker symbol “MUR”.

Offices

El Dorado, Arkansas

Houston, Texas

Calgary, Alberta, Canada

St. Albans, Hertfordshire, England

Kuala Lumpur, Malaysia

Pointe-Noire, Republic of the Congo

Jakarta, Indonesia

Perth, Western Australia, Australia

Major Operating Subsidiaries of Murphy Oil Corporation

Murphy Exploration & Production Company, through various operating subsidiaries and affiliates, is engaged in crude oil and natural gas exploration and production in the United States, the U.K. sector of the North Sea, Malaysia, Ecuador, and the Republic of the Congo. The subsidiary conducts business from its office in Houston, Texas, and has offices in Kuala Lumpur, Malaysia; St. Albans, England; Pointe-Noire, Republic of the Congo; Jakarta, Indonesia; and Perth, Western Australia.

Murphy Oil Company Ltd. is engaged in conventional crude oil and natural gas exploration and production in Western Canada and offshore Eastern Canada as well as the extraction and sale of synthetic crude oil from oil sands. The subsidiary is headquartered in Calgary, Alberta and is operated as a component of the Company’s worldwide exploration and production operation directed from Houston.

Murphy Oil USA, Inc. is engaged in refining and marketing of petroleum products in the United States. It is headquartered in El Dorado, Arkansas. Its refineries in Meraux, Louisiana, and Superior, Wisconsin, produce petroleum products that are sold to numerous third parties and to the Company’s high-volume, low-cost Murphy USA® branded gasoline stations located on-site at Walmart Supercenters and at stand-alone Murphy Express® locations in 21 southern and Midwestern states. Murphy Oil USA also operates a network of 12 Company-owned terminals. These terminals, along with a number of third-party terminals, supply fuel to retail and wholesale stations in 24 states and to asphalt and marine fuel customers in the upper Midwest.

Murco Petroleum Limited is engaged in refining and marketing of petroleum products in the United Kingdom. Headquartered near London, England, Murco owns a refinery in Milford Haven, Wales and operates three terminals and a network of fueling stations in the United Kingdom.

 

1


Dear Fellow Shareholders

LOGO  

The year 2008 was a successful one for Murphy Oil Corporation with record net income of $1.74 billion ($9.06 per share), helped in no small part by record high oil prices during the first half of the year. New earnings milestones were reached in both our Upstream and Downstream businesses and as a result, strengthened an already sound balance sheet. We exited 2008 with a debt to capital employed ratio of 14%, a reduction from 23% the previous year. The rapid collapse of world oil prices in the second half of 2008, a “wobbly” world economy and uncertainty about the timing of future economic recovery do not point to the likelihood of us duplicating the same level of earnings in 2009. However, there will be interesting opportunities for a financially sound company like ours; our aim is to position ourselves to benefit.

 

The oil and gas business has a long history of being cyclical; I recall several of these “unannounced” downturns in my thirty-plus year career. In this setting, our conservative, disciplined outlook, solid balance sheet, quality assets and a view to the horizon will, as in past downturns, stand us in good stead as we look forward to new value-enhancing opportunities for our Company.

 

Exploration and Production Production during 2008 grew 25% over the previous year and averaged 127,500 barrels of oil equivalent per day. The primary catalyst was the production ramp-up at Kikeh (80%) which started flowing oil in August 2007. The field continues to perform well and reached its multi-year plateau rate during December 2008 as planned. Natural gas production from Kikeh began in December 2008 and is contracted to supply a third party methanol plant onshore. We expect to recoup our Kikeh investment at some point during the first half of 2009. For years to come, this field will be an important contributor to a very robust and rising production portfolio.

 

Near term meaningful sources of additional production growth will come from projects including: Tupper (100%), Thunder Hawk (37.5%), Azurite (50%), Sarawak natural gas (85%), and Kakap (14%). With the exception of Kakap, which is scheduled to commence production in 2012, the remainder of these fields will contribute to production in 2009 and are all operated by Murphy.

 

Tupper, our lead-off entry into a North American natural gas resource play, commenced production in December 2008, barely 16 months after first investment. To date we have accumulated land holdings totaling 131 net sections (84,000 acres) in British Columbia as we target the Montney formation. Wells thus far have flowed at rates within our expected range. With our very competitive cost structure, we expect to receive benefit for many years to come as our Tupper program moves forward.

 

Later in 2009, a new wave of production begins. Thunder Hawk, located in Mississippi Canyon Block 734 in the Gulf of Mexico, is slated to start producing oil and natural gas late in the second quarter. Azurite, located in the Mer Profonde Sud (MPS) Block offshore Republic of the Congo, is our first oil development in the region and is also scheduled to begin producing late in the second quarter. Sarawak natural gas production in Malaysia is expected to commence in the third quarter with initial gross volumes of up to 250 million cubic feet per day. In addition to the first three dedicated fields, planned exploitation of nearby existing discoveries should keep this development producing well into the future.

 

2


Exploration results on balance for 2008 were disappointing. We made two tie-back sized natural gas discoveries in the Eastern Gulf of Mexico: Diamond (62.5%) and Dalmatian (50%). For the remainder of 2009, we will slow the pace of exploration as we look to hold our capital spending to within the level of cash flow while relooking at the risks and costs of our program. We still have exposure to individually significant upside in the five exploration wells planned for the balance of the year. The first of these will be an oil and natural gas prospect named Samurai in Green Canyon Block 432. We own a 33.33% working interest in this nonoperated well that is scheduled to spud later in the first quarter. An Eastern Gulf of Mexico well targeting natural gas is also planned. We will drill one deepwater well in Malaysia and the remaining two wells will target oil offshore Republic of the Congo in our MPS block.

 

In a continuing effort to improve our prospects, offshore acreage was acquired during 2008 in Indonesia in the Semai II Block (33.33%) as well as in the Browse Basin of Australia where we picked up Block WA-423-P (70%). We will likely farm down our interest in the new Australian block to 40%. We operate both areas and plan to shoot 3D seismic before drilling. In South America, on our Suriname acreage acquired during 2007, 3D seismic has been shot and is currently being processed ahead of potential 2010 drilling.

Refining and Marketing Downstream operations contributed nicely to the bottom line once again in 2008. United Kingdom refining led in the first half of the year while United States retail marketing performed exceptionally well during the second half of the year. Net income of $313.8 million set an all-time downstream record. My sense is that many are starting to realize the type of earnings potential that, given the right market conditions, can be realized from the asset mix we now have in place.

 

As you recall at the end of 2007, we purchased the remaining 70% interest in the Milford Haven, Wales refinery and now own and operate this asset outright. As anticipated, blending this facility into our overall refining mix provided us with broader coverage to the often differing markets on opposite sides of the Atlantic. Also, we have now been able to capture a low cost plant expansion and optimization opportunity that will be implemented by early 2010. While we remain long on gasoline in the U.K., we expanded our retail network during the year not only in England and Wales, but also in Scotland, where we are testing the market for the first time.

 

In the United States, our refineries at Meraux and Superior went through planned turnarounds and were margin challenged for a good portion of 2008. Our retail business in the United States performed exceptionally well on multiple fronts. Not only were earnings healthy, but in an environment where overall gasoline demand in the U.S. was weakening our network of stations grew market share, collectively selling over 2.5% of total gasoline volumes in the country, and with year-on-year margin growth for non-fuel sales. We ended 2008 with 1,025 retail outlets. Of these sites, 992 are Murphy USA sites located on Walmart Supercenter parking lots and 33 are our new larger, independently located Murphy Express convenience stores.

 

3


In Closing We have a multi-faceted oil and gas business with worldwide scope. Collectively our operations provide a balance of risk and reward which in the current environment, and the foreseeable future, serves us well. In the past, exploration has been one key value driver for us. While costs are high and prices low, it makes sense, absent stellar results, to moderate that program but still keep an important exposure to its upsides. Adding other growth initiatives, such as joint ventures or selected acquisitions, makes sense. Our simple goal is to add reserves in the most cost effective way possible. Our downstream business has carved out its own niche and, while not collectively large, has components that can deliver attractive returns. As we saw late last year, this return often occurs out of cycle with the upstream business and thus lends support to an integrated model.

My predecessor, Claiborne Deming, who worked long and tirelessly to make this company an even greater success, often remarked “you do your best work in times of adversity” – he is right on for the times we are in. We have a great company with a long history of success through many cycles, great people who take pride in our collective accomplishments as well as a great opportunity to move forward and reshape our company to achieve even higher levels of success in the future. I am honored to be in my position looking out to the horizon, working with my colleagues to enhance the value for all our shareholders. I thank you for your support.

LOGO
David M. Wood
President and Chief Executive Officer
February 16, 2009
El Dorado, Arkansas

 

4


Financial and Operating Highlights

 

(Thousands of dollars except per share data)

   2008    2007    % Change
2008–2007
    2006    % Change
2007–2006
 

For the Year

             

Revenues

   $ 27,512,540    $ 18,439,098    49 %   $ 14,307,387    29 %

Net income

     1,739,986      766,529    127 %     644,669    19 %

Cash dividends paid

     166,501      127,353    31 %     98,162    30 %

Capital expenditures

     2,364,686      2,357,347    0 %     1,262,539    87 %

Net cash provided by operating activities

     3,039,912      1,740,420    75 %     975,478    78 %

Average common shares outstanding – diluted (thousands)

     192,134      191,141    1 %     189,158    1 %

At End of Year

             

Working capital

   $ 958,818    $ 777,530    23 %   $ 795,986    -2 %

Net property, plant and equipment

     7,727,718      7,109,822    9 %     5,106,282    39 %

Total assets

     11,149,098      10,535,849    6 %     7,483,161    41 %

Long-term debt

     1,026,222      1,516,156    -32 %     840,275    80 %

Stockholders’ equity

     6,278,945      5,066,174    24 %     4,121,273    23 %

Per Share of Common Stock

             

Net income – diluted

   $ 9.06    $ 4.01    126 %   $ 3.41    18 %

Cash dividends paid

     .875      .675    30 %     .525    29 %

Stockholders’ equity

     32.92      26.70    23 %     21.97    22 %

Net Crude Oil and Gas Liquids Produced – barrels per day1

     118,254      91,522    29 %     87,817    4 %

United States

     10,668      12,989    -18 %     21,112    -38 %

Canada

     37,902      43,939    -14 %     39,653    11 %

Malaysia

     57,403      20,367    182 %     11,298    80 %

Other International

     12,281      14,227    -14 %     15,754    -10 %

Net Natural Gas Sold – thousands of cubic feet per day1

     55,518      61,082    -9 %     75,262    -19 %

United States

     45,785      45,139    1 %     56,810    -21 %

Canada

     1,910      9,922    -81 %     9,752    2 %

United Kingdom

     6,424      6,021    7 %     8,700    -31 %

Malaysia

     1,399      —      N/A       —      —    

Crude Oil Refined – barrels per day1

     219,227      175,183    25 %     119,231    47 %

North America

     121,706      139,183    -13 %     89,195    56 %

United Kingdom

     97,521      36,000    171 %     30,036    20 %

Petroleum Products Sold – barrels per day

     539,000      457,770    18 %     385,271    19 %

North America

     427,490      416,668    3 %     350,601    19 %

United Kingdom

     111,510      41,102    171 %     34,670    19 %

Stockholder and Employee Data

             

Common shares outstanding (thousands)*

     190,714      189,714    1 %     187,572    1 %

Number of stockholders of record*

     2,564      2,655    -3 %     2,758    -4 %

Number of employees*

     8,277      7,539    10 %     7,296    3 %

Average number of employees

     7,890      7,340    7 %     7,019    5 %

 

* At December 31.

 

5


Exploration and Production Statistical Summary

 

     2008    2007    2006    2005    2004    2003    2002

Net crude oil, condensate and natural gas liquids production – barrels per day

                    

United States

     10,668    12,989    21,112    25,897    19,314    4,526    4,128

Canada –    light

     46    596    443    563    650    1,213    1,567

                             heavy

     8,484    11,524    12,613    11,806    5,838    4,705    3,609

                             offshore

     16,826    18,871    14,896    23,124    25,407    28,534    24,037

                             synthetic

     12,546    12,948    11,701    10,593    11,794    10,483    11,362

United Kingdom

     4,869    5,281    7,146    7,992    11,011    14,686    18,302

Malaysia

     57,403    20,367    11,298    13,503    11,885    7,301    —  

Ecuador

     7,412    8,946    8,608    7,871    7,735    5,172    4,544
                                    

Continuing operations

     118,254    91,522    87,817    101,349    93,634    76,620    67,549

Discontinued operations

     —      —      —      —      3,106    6,832    8,821
                                    

Total liquids produced

     118,254    91,522    87,817    101,349    96,740    83,452    76,370
                                    

Net crude oil, condensate and natural gas liquids sold – barrels per day

                    

United States

     10,668    12,989    21,112    25,897    19,314    4,526    4,128

Canada –    light

     46    596    443    563    650    1,213    1,567

                             heavy

     8,484    11,524    12,613    11,806    5,838    4,705    3,609

                             offshore

     16,690    18,839    15,360    22,443    26,306    28,542    23,935

                             synthetic

     12,546    12,948    11,701    10,593    11,794    10,483    11,362

United Kingdom

     5,739    5,218    6,678    8,303    10,924    14,722    18,358

Malaysia

     61,907    16,018    11,986    13,818    11,020    7,235    —  

Ecuador

     7,774    9,470    10,349    9,821    3,414    4,997    4,293
                                    

Continuing operations

     123,854    87,602    90,242    103,244    89,260    76,423    67,252

Discontinued operations

     —      —      —      —      3,106    6,832    8,821
                                    

Total liquids sold

     123,854    87,602    90,242    103,244    92,366    83,255    76,073
                                    

Net natural gas sold – thousands of cubic feet per day

                    

United States

     45,785    45,139    56,810    70,452    88,621    82,281    88,067

Canada

     1,910    9,922    9,752    10,323    13,972    19,946    12,709

United Kingdom

     6,424    6,021    8,700    9,423    6,859    9,564    6,973

Malaysia

     1,399    —      —      —      —      —      —  
                                    

Continuing operations

     55,518    61,082    75,262    90,198    109,452    111,791    107,749

Discontinued operations

     —      —      —      —      30,760    103,543    189,182
                                    

Total natural gas sold

     55,518    61,082    75,262    90,198    140,212    215,334    296,931
                                    

Net hydrocarbons produced – equivalent barrels1,2 per day

     127,507    101,702    100,361    116,382    120,109    119,341    125,859

Estimated net hydrocarbon reserves – million equivalent barrels1,2,3

     402.8    405.1    388.3    353.6    385.6    425.5    455.3

Weighted average sales prices4

                    

Crude oil, condensate and natural gas liquids – dollars per barrel

                    

United States

   $ 95.74    65.57    57.30    47.48    35.35    24.22    24.25

Canada5 –    light

     70.37    50.98    50.45    44.27    32.96    26.02    20.38

          heavy

     59.05    32.84    25.87    21.30    20.26    12.36    16.83

          offshore

     96.69    69.83    62.55    51.37    36.60    27.08    25.36

          synthetic

     100.10    74.35    63.23    58.12    40.35    24.97    25.64

United Kingdom

     90.16    68.38    64.30    52.83    36.82    29.59    24.39

Malaysia6

     87.83    74.58    51.78    46.16    41.35    29.42    —  

Ecuador7

     27.83    36.47    33.79    32.54    24.78    22.99    19.64

Natural gas – dollars per thousand cubic feet

                    

United States

     9.67    7.38    7.76    8.52    6.45    5.29    3.37

Canada5

     6.40    6.34    6.49    7.88    5.64    4.47    2.59

United Kingdom5

     10.98    7.54    7.34    5.80    4.52    3.50    2.76

Malaysia6

     0.23    —      —      —      —      —      —  

 

1

Natural gas converter data 6:1 ratio.

2

Includes synthetic oil.

3

At December 31.

4

Includes intercompany transfers at market prices.

5

U.S. dollar equivalent.

6

Prices in 2008–2005 are net of payments under the terms of the production sharing contracts for Blocks K and SK 309.

7

Includes prices attained in 2006 and 2005 for recoupment of a portion of 2004 Block 16 crude oil production formerly owed to the Company. The prices in 2008–2006 are adversely affected by revenue sharing with the Ecuadorian government beginning in April 2006 and further increased in October 2007.

 

6


Refining and Marketing Statistical Summary

 

     2008    2007    2006    2005    2004    2003    2002

Refining

                    

Crude capacity* of refineries – barrels per stream day

     268,000    268,000    192,400    192,400    192,400    192,400    167,400
                                    

Refinery inputs – barrels per day

                    

Crude –Meraux, Louisiana

     95,126    106,446    55,129    73,371    101,644    60,403    83,721

                           Superior, Wisconsin

     26,580    32,737    34,066    34,768    31,598    30,466    30,468

                           Milford Haven, Wales

     97,521    36,000    30,036    26,983    31,033    28,412    29,640

Other feedstocks

     23,300    10,805    6,423    9,131    12,170    10,113    11,013
                                    

Total inputs

     242,527    185,988    125,654    144,253    176,445    129,394    154,842
                                    

Refinery yields – barrels per day

                    

Gasoline

     86,310    74,395    48,314    54,869    68,663    52,162    63,409

Kerosene

     23,824    5,371    5,067    7,805    7,734    6,568    9,446

Diesel and home heating oils

     75,526    67,111    42,137    48,535    66,225    41,277    48,344

Residuals

     27,170    18,910    15,244    18,231    17,445    14,595    16,589

Asphalt, LPG and other

     24,815    17,546    12,855    13,268    14,693    11,986    12,651

Fuel and loss

     4,882    2,655    2,037    1,545    1,685    2,806    4,403
                                    

Total yields

     242,527    185,988    125,654    144,253    176,445    129,394    154,842
                                    

Average cost of crude inputs to refineries – dollars per barrel

                    

North America

   $ 96.46    69.40    59.54    49.73    40.00    29.79    24.76

United Kingdom

     100.61    81.53    66.66    56.15    39.60    30.24    25.83

Marketing

                    

Products sold – barrels per day

                    

North America –    Gasoline

     313,827    298,833    266,353    233,191    207,786    162,911    112,281

                                          Kerosene

     4,606    1,685    2,269    5,671    4,811    4,388    5,818

                                          Diesel and home heating oils

     86,933    91,344    62,196    60,228    66,648    43,373    35,995

                                          Residuals

     14,837    15,422    11,696    15,330    13,699    10,972    13,759

                                          Asphalt, LPG and other

     7,287    9,384    8,087    8,294    8,857    8,232    8,574
                                    
     427,490    416,668    350,601    322,714    301,801    229,876    176,427
                                    

United Kingdom –    Gasoline

     34,125    14,356    12,425    12,739    11,435    12,101    12,058

                                             Kerosene

     14,835    4,020    3,619    2,410    2,756    2,526    2,685

                                             Diesel and home heating oils

     34,560    14,785    11,803    14,910    14,649    13,506    14,574

                                             Residuals

     12,744    3,728    3,825    3,242    4,062    3,816    3,127

                                             LPG and other

     15,246    4,213    2,998    2,240    4,205    3,103    1,760
                                    
     111,510    41,102    34,670    35,541    37,107    35,052    34,204
                                    

Total products sold

     539,000    457,770    385,271    358,255    338,908    264,928    210,631
                                    

Branded retail outlets*

                    

North America –    Murphy USA®

     992    971    987    864    752    623    506

                                          Murphy Express®

     33    2    —      —      —      —      —  

                                          Other

     129    153    177    337    375    371    408

                                          Total

     1,154    1,126    1,164    1,201    1,127    994    914

United Kingdom

     454    389    402    412    358    384    416

 

* At December 31.

LOGO

 

7


Board of Directors

 

       
LOGO  

William C. Nolan, Jr.

Partner, Nolan & Alderson, Attorneys,

El Dorado, Arkansas.

Director since 1977.

Chairman of the Board, ex-officio member of all other committees

    LOGO  

R. Madison Murphy

Managing Member, Murphy Family Management, LLC, El Dorado, Arkansas.

Director since 1993;

Chairman from 1994–2002.

Committees: Executive; Audit (Chairman)

LOGO  

David M. Wood

President and Chief Executive Officer, Murphy Oil Corporation, El Dorado, Arkansas.

Director since January 2009.

Committees: Executive

    LOGO  

Ivar B. Ramberg

Executive Officer, Ramberg Consulting AS, Osteraas, Norway.

Director since 2003.

Committees: Nominating and Governance; Environmental, Health & Safety

LOGO  

Frank W. Blue

Attorney, Santa Barbara, California. Director since 2003.

Committees: Audit; Nominating and Governance

    LOGO  

Neal E. Schmale

President and Chief Operating Officer, Sempra Energy, San Diego, California.

Director since 2004.

Committees: Audit; Executive Compensation

LOGO  

Claiborne P. Deming

President and Chief Executive Officer, Retired, Murphy Oil Corporation, El Dorado, Arkansas.

Director since 1993.

Committees: Executive (Chairman)

    LOGO  

David J. H. Smith

Chief Executive Officer, Retired, Whatman plc, Maidstone, Kent, England.

Director since 2001.

Committees: Executive Compensation (Chairman); Environmental, Health & Safety

LOGO  

Robert A. Hermes

Chairman of the Board, Retired, Purvin & Gertz, Inc., Houston, Texas.

Director since 1999.

Committees: Nominating and Governance (Chairman); Environmental, Health & Safety

    LOGO  

Caroline G. Theus

President, Inglewood Land and Development Co., Alexandria, Louisiana.

Director since 1985.

Committees: Executive; Environmental, Health & Safety (Chairman)

LOGO  

James V. Kelley

President and Chief Operating Officer, BancorpSouth, Inc., Tupelo, Mississippi.

Director since 2006.

Committees: Audit; Executive Compensation

     

 

8


CORPORATE INFORMATION

CORPORATE OFFICE

200 Peach Street

P.O. Box 7000

El Dorado, Arkansas 71731-7000

(870) 862-6411

 

STOCK EXCHANGE LISTINGS

Trading Symbol: MUR

New York Stock Exchange

 

TRANSFER AGENT AND REGISTRAR

Computershare Investor Services, L.L.C.

2 North LaSalle St.

Chicago, Illinois 60602

Toll-free (888) 239-5303

Local Chicago (312) 360-5303

 

ELECTRONIC PAYMENT OF DIVIDENDS

Shareholders may have dividends deposited directly into their bank accounts by electronic funds transfer. Authorization forms may be obtained from:

        Computershare Investor

          Services, L.L.C.

        2 North LaSalle St.

        Chicago, Illinois 60602

        Toll-free (888) 239-5303

        Local Chicago (312) 360-5303

  

ANNUAL MEETING

The annual meeting of the Company’s shareholders will be held at 10:00 a.m. on May 13, 2009, at the South Arkansas Arts Center, 110 East 5th Street, El Dorado, Arkansas. A formal notice of the meeting, together with a proxy statement and proxy form, will be provided to all shareholders.

 

E-MAIL ADDRESS

murphyoil@murphyoilcorp.com

 

WWW.MURPHYOILCORP.COM

Murphy Oil’s website provides frequently updated information about the Company and its operations, including:

•     News releases

•     Annual report

•     Quarterly reports

•     Live webcasts of quarterly conference calls

•     Links to the Company’s SEC filings

•     Stock quotes

•     Profiles of the Company’s operations

•     On-line stock investment accounts

•     Murphy USA station locator

  

INQUIRIES

Inquiries regarding shareholder account matters should be addressed to:

        Walter K. Compton

        Vice President and Secretary

        Murphy Oil Corporation

        P.O. Box 7000

        El Dorado, Arkansas 71731-7000

        wcompton@murphyoilcorp.com

 

Members of the financial community should direct their inquiries to:

        Dory J. Stiles

        Manager of Investor Relations

        Murphy Oil Corporation

        P.O. Box 7000

        El Dorado, Arkansas 71731-7000

        (870) 864-6496

        dstiles@murphyoilcorp.com

 

CERTIFICATIONS

The Company has filed the required certifications under Section 302 of the Sarbanes-Oxley Act of 2002 regarding the quality of our public disclosures as Exhibits 31.1 and 31.2 to our annual report on Form 10-K for the fiscal year ended December 31, 2008. In 2008 after our annual meeting of stockholders, the Company filed with the New York Stock Exchange the CEO certification regarding its compliance with the NYSE corporate governance listing standards as required by NYSE Rule 303A.12(a)

EXECUTIVE OFFICERS

David M. Wood

President and Chief Executive Officer and Director and Member of the Executive Committee since January 2009. Mr. Wood served as Executive Vice President and President of Murphy Exploration & Production Company from January 2007 until December 2008, President of Murphy Exploration & Production Company-International from March 2003 through December 2006 and Senior Vice President of Frontier Exploration & Production from April 1999 through February 2003.

 

Steven A. Cossé

Executive Vice President since February 2005 and General Counsel since August 1991. Mr. Cossé was elected Senior Vice President in 1994 and Vice President in 1993.

  

Harvey Doerr

Executive Vice President and President of Murphy Oil USA, Inc. since January 2007. Mr. Doerr served as President of Murphy Oil Company Ltd. from September 1997 through December 2006.

 

Kevin G. Fitzgerald

Senior Vice President and Chief Financial Officer since January 2007. Mr. Fitzgerald was Treasurer from July 2001 through December 2006 and Director of Investor Relations from 1996 through June 2001.

  

Bill H. Stobaugh

Senior Vice President since February 2005. Mr. Stobaugh joined the Company as Vice President in 1995.

 

Mindy K. West

Vice President and Treasurer since January 2007. Ms. West was Director of Investor Relations from July 2001 through December 2006.

 

John W. Eckart

Vice President and Controller since January 2007. Mr. Eckart has been Controller since March 2000.

 

Walter K. Compton

Vice President since February 2009. Secretary since December 1996.