8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): November 3, 2010

MURPHY OIL CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	1-8590	71-0361522
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)
200 Peach Street P.O. Box 7000, El Dorado, Arkansas		71731-7000
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code 870-862-6411

Not applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ 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))

Item 2.02. Results of Operations and Financial Condition

The following information is furnished pursuant to Item 2.02, “Results of Operations and Financial Condition.”

On November 3, 2010, Murphy Oil Corporation issued a news release announcing its earnings for the third quarter and nine-month period that ended on September 30, 2010. The full text of this news release is attached hereto as Exhibit 99.1.

Item 9.01. Financial Statements and Exhibits

(d)   Exhibits

99.1 A news release dated November 3, 2010 announcing earnings for the third quarter and nine-month period that ended on September 30, 2010 is attached hereto as Exhibit 99.1.

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

MURPHY OIL CORPORATION
By:	/s/ John W. Eckart
	John W. Eckart
	Vice President and Controller

Date: November 3, 2010

Exhibit Index

99.1 News release dated November 3, 2010, as issued by Murphy Oil Corporation.

EX-99.1

Exhibit 99.1

MURPHY OIL ANNOUNCES PRELIMINARY QUARTERLY EARNINGS

EL DORADO, Arkansas, November 3, 2010 – Murphy Oil Corporation (NYSE: MUR) announced today that net income in the third quarter of 2010 was $202.8 million ($1.05 per diluted share) compared to net income of $188.9 million ($0.98 per diluted share) in the third quarter of 2009. The Company had higher income in 2010 compared to 2009 primarily due to better earnings from U.S. retail marketing and ethanol production operations.

For the first nine months of 2010, net income totaled $624.0 million ($3.24 per diluted share) compared to $518.8 million ($2.70 per diluted share) for the same period in 2009. The 2010 nine months had better earnings than 2009 mostly due to a combination of higher oil and natural gas sales volumes and sales prices, and improved profits in the U.S. retail marketing business. The first nine months of 2009 included income from discontinued operations of $97.8 million ($0.51 per diluted share) which arose primarily from a gain on sale of the Company’s operations in Ecuador in March 2009.

Third Quarter 2010 vs. Third Quarter 2009

Exploration and Production (E&P)

Reviewing quarterly results by type of business, the Company’s income contribution from E&P continuing operations was $186.7 million in the third quarter of 2010 compared to $184.1 million in the same quarter of 2009. The earnings improvement in 2010 compared to 2009 was mainly attributable to higher crude oil and natural gas sales prices and higher natural gas sales volumes, but these were partially offset by lower crude oil sales volumes and higher exploration and extraction costs. Total crude oil and gas liquids production from continuing operations was 119,899 barrels per day in the third quarter 2010 compared to 131,637 barrels per day in the 2009 quarter, with the decrease primarily attributable to lower gross production in 2010 at the Kikeh field, offshore Sabah, Malaysia. Crude oil sales volumes from continuing operations averaged 122,574 barrels per day in the third quarter of 2010 compared to 128,187 barrels per day in the 2009 period. The Company’s worldwide crude oil, condensate and natural gas liquids sales prices averaged $65.45 per barrel for the 2010 third quarter compared to $61.13 per barrel in the same quarter of 2009. Natural gas sales volumes were 371 million cubic feet per day in the third quarter 2010 compared to 182 million cubic feet per day in the third quarter of 2009, with the increase due to ramp up of production at natural gas fields offshore Sarawak,

Malaysia, where the first gas field commenced production in the third quarter of 2009, and higher 2010 production at the Tupper area in Western Canada. North American natural gas volumes were sold at an average of $4.24 per thousand cubic feet (MCF) during the 2010 third quarter compared to $3.01 per MCF during the 2009 quarter. Natural gas produced from Sarawak fields in Malaysia was sold at an average of $5.71 per MCF in the 2010 quarter compared to $3.31 per MCF in 2009. Exploration expenses were $62.0 million in the 2010 quarter compared to $37.9 million in the same period of 2009, with the increase primarily attributable to higher undeveloped leasehold amortization expense in 2010 associated with the Eagle Ford shale play in South Texas and recent leasehold acquisitions in Canada. Additionally, the 2010 quarter included 3D seismic costs covering a portion of the MPS and MPN blocks offshore Republic of the Congo, as well as costs associated with a dry hole offshore the United Kingdom.

Refining and Marketing (R&M)

The Company’s refining and marketing operations generated a quarterly profit of $50.6 million in the third quarter 2010 compared to a profit of $37.2 million in the 2009 third quarter. U.S. manufacturing operations earned $10.2 million in the 2010 period compared to $1.6 million in the 2009 period; the earnings improvement in 2010 was primarily attributable to profits generated at the Hankinson, North Dakota, ethanol plant that was acquired in the fourth quarter 2009. U.S. marketing operations had earnings in the 2010 quarter of $54.2 million compared to earnings of $44.7 million in the 2009 quarter with the improvement primarily resulting from higher merchandising and fuel margins for the retail marketing business during the 2010 quarter. The U.K. results in both the 2010 and 2009 third quarters were below break-even due to weak refining margins in each period.

Corporate

The after-tax costs of corporate functions were $34.5 million in the 2010 quarter compared to costs of $32.4 million in the 2009 quarter. The Company had higher administrative costs and lower income tax benefits in the 2010 third quarter compared to the same quarter of 2009. Net after-tax losses on transactions denominated in foreign currencies in the current quarter were $15.8 million compared to net losses of $17.0 million in the comparable 2009 period.

First Nine Months 2010 vs. First Nine Months 2009

Exploration and Production (E&P)

The Company’s E&P continuing operations earned $652.8 million in the first nine months of 2010 compared to $352.7 million in the same period of 2009. The primary reasons for the improved 2010 earnings were higher crude oil and natural gas sales prices and higher crude oil and natural gas sales volumes in the current period. Continuing operations excludes the results of discontinued operations in Ecuador, which had income of $97.8 million in the 2009 period primarily associated with a gain on sale of these assets in March 2009. Crude oil and gas liquids production from continuing operations during the nine months of 2010 averaged 130,244 barrels per day compared to 127,911 barrels per day in the similar 2009 period. The crude oil production increase in 2010 was primarily attributable to higher oil production at the Thunder Hawk field in the Gulf of Mexico and the Azurite field, offshore Republic of the Congo. Higher 2010 oil production at these two fields was partially offset by lower volumes produced at Kikeh and mature fields in the Gulf of Mexico. Natural gas sales were 354 million cubic feet per day in 2010 compared to 147 million cubic feet per day in 2009, with the 140% increase attributable to volumes produced at gas fields offshore Sarawak, continued ramp-up of production at the Tupper field, and more third party gas demand from the Kikeh field. Crude oil, condensate and gas liquids sales prices from continuing operations averaged $65.06 per barrel in the 2010 period compared to $52.59 per barrel in 2009. North American natural gas was sold at an average of $4.48 per MCF in 2010 compared to $3.50 per MCF in 2009. Sarawak natural gas was sold at an average price of $5.20 per MCF in 2010, while 2009 volumes averaged $3.31 per MCF. Exploration expenses were $181.5 million in 2010 compared to $184.0 million in 2009. The 2010 period included higher costs for 3D seismic offshore Republic of the Congo and in the Eagle Ford shale area in South Texas. Higher amortization expense in 2010 for undeveloped acreage in the Eagle Ford shale area was partially offset by lower amortization for Tupper West properties in British Columbia. The 2010 period included lower dry hole costs mostly associated with unsuccessful exploration drilling in the prior year offshore Australia. Additionally, the 2010 period had lower expense associated with the redetermination of Terra Nova working interests. The Company expects its interest in Terra Nova to decline from 12.0% to 10.5% upon completion of the redetermination process, which is anticipated by year-end 2010.

Refining and Marketing (R&M)

The Company’s refining and marketing operations generated a profit of $104.7 million in the first nine months of 2010 compared to a profit of $75.8 million in 2009. U.S. manufacturing

operations lost $3.6 million in 2010 compared to earnings of $24.2 million in 2009. The unfavorable manufacturing results in 2010 were primarily attributable to weaker refining margins and a complete turnaround at the Meraux, Louisiana, refinery during the 2010 period. Manufacturing results in 2010 benefited, however, from profitable operations at the Company’s Hankinson, North Dakota, ethanol facility. U.S. marketing operations had 2010 earnings of $132.7 million compared to earnings of $58.1 million in 2009. The Company’s average retail marketing margins in the 2010 period were $0.04 per gallon higher than in 2009. R&M results in the United Kingdom were losses in both years due to weak refining margins at the Milford Haven, Wales, refinery. Additionally, Milford Haven was shut down for approximately two months during 2010 for a plant-wide turnaround and a significant upgrade. The Company had previously announced its intention to sell its U.S. refining and U.K. downstream operations.

Corporate

Corporate after-tax costs were $133.5 million in the first nine months of 2010 compared to costs of $7.5 million in the 2009 period. The current period had foreign exchange losses of $58.8 million after taxes, whereas foreign exchange effects were net gains of $42.7 million in the 2009 period. The 2010 period also had increased net interest expense compared to 2009 due to higher average long-term borrowings and lower interest amounts capitalized to development projects during the current year. Additionally, the current year had higher administrative expenses compared to 2009 essentially related to higher staffing costs.

David M. Wood, President and Chief Executive Officer, commented, “Our exploration program is very active in the fourth quarter with three more wells offshore Republic of the Congo and our first drilling activities offshore Suriname and Indonesia. Additionally, we continue our development work in two North American resource plays – the Montney formation in Western Canada at Tupper and Tupper West and the Eagle Ford shale area in South Texas. During the quarter we completed the acquisition of our second ethanol plant at Hereford, Texas. We expect construction of the unfinished Hereford plant to be completed and the plant in operation by the end of the first quarter 2011. The process of selling our U.S. refining businesses, along with U.K. marketing operations, continues on track.

“Production in the fourth quarter of 2010 is expected to average 198,000 barrels of oil equivalent per day, but sales volumes are projected to average 188,000 barrels of oil equivalent per day. We currently expect earnings in the fourth quarter to be between $0.50 and $1.15 per diluted share, with the wide range due to a significant amount of exploration drilling in the

three-month period. These earnings are based on total exploration expense ranging from $50 to $190 million and projected profits of $23 million from our refining and marketing business. Projected results for the fourth quarter could be affected by commodity prices, drilling results, timing of oil sales and refining and marketing margins.”

The public is invited to access the Company’s conference call to discuss third quarter 2010 results on Thursday, November 4 at 12:00 p.m. CDT either via the Internet through the Investor Relations section of Murphy Oil’s Web Site at http://www.murphyoilcorp.com/ir or via the telephone by dialing 1-888-516-2446. The telephone reservation number for the call is 2649284. Replays of the call will be available through the same address on Murphy Oil’s Web site, and a recording of the call will be available through November 8 by calling 1-888-203-1112. Audio downloads will also be available on the Murphy Web site through December 1 and via Thomson StreetEvents for their service subscribers.

Summary financial data and operating statistics for the third quarter and nine months of 2010 with comparisons to 2009 are contained in the attached tables.

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express management’s current views concerning future events or results, are subject to inherent risks and uncertainties. Factors that could cause actual results to differ materially from those expressed or implied in our forward-looking statements include, but are not limited to, the volatility and level of crude oil and natural gas prices, the level and success rate of our exploration programs, our ability to maintain production rates and replace reserves, political and regulatory instability, and uncontrollable natural hazards. For further discussion of risk factors, see Murphy’s 2009 Annual Report on Form 10-K on file with the U.S. Securities and Exchange Commission. Murphy undertakes no duty to publicly update or revise any forward-looking statements.

#####

MURPHY OIL CORPORATION

FUNCTIONAL RESULTS OF OPERATIONS (Unaudited)

(Millions of dollars)

	Three Months Ended September 30, 2010						Three Months Ended September 30, 2009*
	Revenues			Income			Revenues			Income
Exploration and production
United States	$	155.2			14.6			138.5			6.0
Canada		204.0			39.1			185.4			44.6
Malaysia		453.4			167.6			416.3			156.2
United Kingdom		28.0			4.9			15.1			2.1
Republic of the Congo		46.6			(20.2	)		—			(11.5	)
Other		.4			(19.3	)		.3			(13.3	)
		887.6			186.7			755.6			184.1
Refining and marketing
United States Manufacturing		1,254.7			10.2			993.9			1.6
United States Marketing		4,017.0			54.2			3,529.0			44.7
United Kingdom		930.5			(13.8	)		751.7			(9.1	)
		6,202.2			50.6			5,274.6			37.2
		7,089.8			237.3			6,030.2			221.3
Intersegment transfers elimination		(1,017.1	)		—			(827.8	)		—
		6,072.7			237.3			5,202.4			221.3
Corporate		(8.9	)		(34.5	)		(18.6	)		(32.4	)
Total revenues/net income	$	6,063.8			202.8			5,183.8			188.9
	Nine Months Ended September 30, 2010						Nine Months Ended September 30, 2009*
	Revenues			Income			Revenues			Income
Exploration and production
United States	$	497.8			47.8			292.4			2.6
Canada		667.8			150.6			495.1			38.8
Malaysia		1,386.7			499.3			1,059.9			400.9
United Kingdom		109.5			29.9			41.9			9.1
Republic of the Congo		100.3			(26.6	)		—			(9.4	)
Other		3.0			(48.2	)		1.0			(89.3	)
		2,765.1			652.8			1,890.3			352.7
Refining and marketing
United States Manufacturing		3,269.2			(3.6	)		2,428.7			24.2
United States Marketing		11,703.5			132.7			8,966.4			58.1
United Kingdom		1,889.5			(24.4	)		1,925.6			(6.5	)
		16,862.2			104.7			13,320.7			75.8
		19,627.3			757.5			15,211.0			428.5
Intersegment transfers elimination		(2,732.8	)		—			(2,092.6	)		—
		16,894.5			757.5			13,118.4			428.5
Corporate		(58.6	)		(133.5	)		66.8			(7.5	)
Revenue/income from continuing operations		16,835.9			624.0			13,185.2			421.0
Discontinued operations, net of tax		—			—			—			97.8
Total revenues/net income	$	16,835.9			624.0			13,185.2			518.8

* Reclassified to conform to current presentation.

MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (Unaudited)

THREE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009

(Millions of dollars)	United States			Canada		Malaysia			United Kingdom		Republic of the Congo			Other			Synthetic Oil – Canada		Total
Three Months Ended September 30, 2010
Oil and gas sales and other revenues	$	155.2			121.0		453.4			28.0		46.6			.4			83.0		887.6
Production expenses		34.5			23.0		87.0			6.4		21.2			—			52.9		225.0
Depreciation, depletion and amortization		66.5			41.7		94.2			5.0		25.8			.4			10.8		244.4
Accretion of asset retirement obligations		1.8			1.2		2.5			.6		.1			.2			1.5		7.9
Exploration expenses
Dry holes		(.2	)		—		—			5.7		(.3	)		—			—		5.2
Geological and geophysical		2.1			.1		.9			.1		15.0			3.3			—		21.5
Other		.6			.1		—			—		—			6.2			—		6.9
		2.5			.2		.9			5.8		14.7			9.5			—		33.6
Undeveloped lease amortization		18.5			8.7		—			—		—			1.2			—		28.4
Total exploration expenses		21.0			8.9		.9			5.8		14.7			10.7			—		62.0
Terra Nova working interest redetermination		—			4.5		—			—		—			—			—		4.5
Selling and general expenses		9.3			2.4		.3			.7		(.5	)		8.4			.3		20.9
Results of operations before taxes		22.1			39.3		268.5			9.5		(14.7	)		(19.3	)		17.5		322.9
Income tax provisions		7.5			12.7		100.9			4.6		5.5			—			5.0		136.2
Results of operations (excluding corporate overhead and interest)		14.6			26.6		167.6			4.9		(20.2	)		(19.3	)		12.5		186.7
Three Months Ended September 30, 2009*
Oil and gas sales and other revenues	$	138.5			100.9		416.3			15.1		—			.3			84.5		755.6
Production expenses		31.9			23.3		85.4			7.8		—			—			41.5		189.9
Depreciation, depletion and amortization		79.9			41.3		76.9			3.1		—			.5			7.7		209.4
Accretion of asset retirement obligations		1.7			1.1		2.0			.4		—			.1			1.2		6.5
Exploration expenses
Dry holes		.9			—		.1			—		13.5			1.2			—		15.7
Geological and geophysical		1.2			3.0		.4			—		—			.5			—		5.1
Other		.6			.1		—			.1		(1.0	)		4.5			—		4.3
		2.7			3.1		.5			.1		12.5			6.2			—		25.1
Undeveloped lease amortization		10.3			1.3		—			—		—			1.2			—		12.8
Total exploration expenses		13.0			4.4		.5			.1		12.5			7.4			—		37.9
Terra Nova working interest redetermination		—			1.3		—			—		—			—			—		1.3
Selling and general expenses		2.8			4.3		(.6	)		.5		(1.0	)		5.6			.2		11.8
Results of operations before taxes		9.2			25.2		252.1			3.2		(11.5	)		(13.3	)		33.9		298.8
Income tax provisions		3.2			5.5		95.9			1.1		—			—			9.0		114.7
Results of operations (excluding corporate overhead and interest)		6.0			19.7		156.2			2.1		(11.5	)		(13.3	)		24.9		184.1

* Reclassified to conform to current presentation.

MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (Unaudited)

NINE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009

(Millions of dollars)	United States			Canada		Malaysia			United Kingdom		Republic of the Congo			Other			Synthetic Oil – Canada		Total
Nine Months Ended September 30, 2010
Oil and gas sales and other revenues	$	497.8			397.1		1,386.7			109.5		100.3			3.0			270.7		2,765.1
Production expenses		101.0			75.3		241.1			20.6		47.7			—			152.4		638.1
Depreciation, depletion and amortization		222.0			134.8		291.0			19.1		47.9			1.0			33.0		748.8
Accretion of asset retirement obligations		5.2			3.6		7.2			1.7		.2			.4			4.7		23.0
Exploration expenses
Dry holes		(.1	)		—		30.5			5.7		(.6	)		(.5	)		—		35.0
Geological and geophysical		19.2			.6		1.9			.6		18.4			6.7			—		47.4
Other		6.3			.3		—			.2		—			15.5			—		22.3
		25.4			.9		32.4			6.5		17.8			21.7			—		104.7
Undeveloped lease amortization		49.7			23.4		—			—		—			3.7			—		76.8
Total exploration expenses		75.1			24.3		32.4			6.5		17.8			25.4			—		181.5
Terra Nova working interest redetermination		—			15.4		—			—		—			—			—		15.4
Selling and general expenses		22.7			8.9		.6			2.3		(1.1	)		23.6			.7		57.7
Results of operations before taxes		71.8			134.8		814.4			59.3		(12.2	)		(47.4	)		79.9		1,100.6
Income tax provisions		24.0			41.3		315.1			29.4		14.4			.8			22.8		447.8
Results of operations (excluding corporate overhead and interest)	$	47.8			93.5		499.3			29.9		(26.6	)		(48.2	)		57.1		652.8
Nine Months Ended September 30, 2009*
Oil and gas sales and other revenues	$	292.4			302.5		1,059.9			41.9		—			1.0			192.6		1,890.3
Production expenses		62.8			71.7		174.5			13.3		—			—			131.3		453.6
Depreciation, depletion and amortization		167.4			122.8		212.4			8.4		.1			1.1			19.9		532.1
Accretion of asset retirement obligations		5.1			3.1		5.6			1.2		—			.4			3.2		18.6
Exploration expenses
Dry holes		11.7			—		13.9			—		13.5			45.1			—		84.2
Geological and geophysical		2.8			4.3		.6			—		—			13.4			—		21.1
Other		5.0			.3		—			.3		(3.2	)		9.8			—		12.2
		19.5			4.6		14.5			.3		10.3			68.3			—		117.5
Undeveloped lease amortization		23.2			40.2		—			—		—			3.1			—		66.5
Total exploration expenses		42.7			44.8		14.5			.3		10.3			71.4			—		184.0
Terra Nova working interest redetermination		—			36.4		—			—		—			—			—		36.4
Selling and general expenses		13.3			12.1		(1.4	)		2.1		(1.0	)		17.3			.6		43.0
Results of operations before taxes		1.1			11.6		654.3			16.6		(9.4	)		(89.2	)		37.6		622.6
Income tax provisions (benefits)		(1.5	)		2.6		253.4			7.5		—			.1			7.8		269.9
Results of operations (excluding corporate overhead and interest)	$	2.6			9.0		400.9			9.1		(9.4	)		(89.3	)		29.8		352.7

* Reclassified to conform to current presentation.

MURPHY OIL CORPORATION

SUMMARIZED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(Thousands of dollars, except per share amounts)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
Revenues	$	6,063,783			5,183,757			16,835,874			13,185,155
Costs and expenses
Crude oil and product purchases		4,759,402			4,092,713			12,991,528			10,223,288
Operating expenses		506,996			421,621			1,432,847			1,157,871
Exploration expenses		62,046			37,899			181,503			183,950
Selling and general expenses		69,422			56,712			203,404			175,146
Depreciation, depletion and amortization		285,280			245,539			866,172			637,737
Accretion of asset retirement obligations		8,104			6,717			23,561			19,134
Redetermination of Terra Nova working interest		4,491			1,301			15,353			36,392
Interest expense		12,751			12,611			41,453			37,783
Interest capitalized		(4,708	)		(4,135	)		(11,069	)		(26,585	)
		5,703,784			4,870,978			15,744,752			12,444,716
Income from continuing operations before income taxes		359,999			312,779			1,091,122			740,439
Income tax expense		157,167			123,902			467,110			319,478
Income from continuing operations		202,832			188,877			624,012			420,961
Income from discontinued operations, net of tax		—			—			—			97,790
Net income	$	202,832			188,877			624,012			518,751
Per Common share - Basic
Continuing operations	$	1.06			0.99			3.26			2.21
Discontinued operations		—			—			—			0.51
Total	$	1.06			0.99			3.26			2.72
Per Common share - Diluted
Continuing operations	$	1.05			0.98			3.24			2.19
Discontinued operations		—			—			—			0.51
Total	$	1.05			0.98			3.24			2.70
Cash dividends per Common share	$	0.275			0.25			0.775			0.75
Average Common shares outstanding (thousands)
Basic		191,944			190,811			191,577			190,692
Diluted		193,438			192,642			192,866			192,375

MURPHY OIL CORPORATION

SUMMARIZED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(Thousands of dollars)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
Operating Activities
Net income	$	202,832			188,877			624,012			518,751
Adjustments to reconcile net income to net cash provided by operating activities
Income from discontinued operations		—			—			—			(97,790	)
Depreciation, depletion and amortization		285,280			245,539			866,172			637,737
Amortization of deferred major repair costs		11,330			6,543			27,480			19,272
Expenditures for asset retirements		(9,096	)		(7,622	)		(34,376	)		(44,308	)
Dry hole costs		5,204			15,752			35,045			84,228
Amortization of undeveloped leases		28,438			12,870			76,816			66,534
Accretion of asset retirement obligations		8,104			6,717			23,561			19,134
Deferred and noncurrent income tax charges		9,035			22,215			42,268			46,454
Pretax gain from disposition of assets		(208	)		(151	)		(997	)		(3,736	)
Net (increase) decrease in operating working capital other than cash and cash equivalents		167,457			54,106			417,237			(139,029	)
Other - net		44,762			129,119			123,663			79,548
Net cash provided by continuing operations		753,138			673,965			2,200,881			1,186,795
Net cash required by discontinued operations		—			—			—			(328	)
Net cash provided by operating activities		753,138			673,965			2,200,881			1,186,467
Investing Activities
Property additions and dry holes		(619,400	)		(537,135	)		(1,611,656	)		(1,542,032	)
Proceeds from sale of assets		403			410			2,195			1,570
Purchases of investment securities*		(599,583	)		(569,427	)		(1,862,609	)		(1,755,184	)
Proceeds from maturity of investment securities*		772,096			359,796			2,011,386			1,381,211
Expenditures for major repairs		(6,898	)		(2,576	)		(96,000	)		(15,528	)
Other - net		(8,115	)		(10,903	)		(31,225	)		(26,154	)
Investing activities of discontinued operations
Sales proceeds		—			—			—			78,908
Other		—			—			—			(845	)
Net cash required by investing activities		(461,497	)		(759,835	)		(1,587,909	)		(1,878,054	)
Financing Activities
Increase (decrease) in notes payable		(125,009	)		(51,500	)		(247,028	)		453,500
Decrease in nonrecourse debt of a subsidiary		(79,731	)		—			(82,000	)		(2,572	)
Proceeds from exercise of stock options and employee stock purchase plans		11,302			3,165			26,100			8,594
Excess tax benefits related to exercise of stock options		9,102			444			9,585			2,475
Withholding tax on stock-based incentive awards		—			—			(5,170	)		—
Cash dividends paid		(52,739	)		(47,701	)		(148,439	)		(143,027	)
Net cash provided (required) by financing activities		(237,075	)		(95,592	)		(446,952	)		318,970
Effect of exchange rate changes on cash and cash equivalents		9,006			(10,554	)		(4,772	)		21,574
Net increase (decrease) in cash and cash equivalents		63,572			(192,016	)		161,248			(351,043	)
Cash and cash equivalents at beginning of period		398,820			507,083			301,144			666,110
Cash and cash equivalents at end of period	$	462,392			315,067			462,392			315,067

* Represents cash invested in Canadian government securities with maturities greater than 90 days at the date of acquisition.

MURPHY OIL CORPORATION

OTHER FINANCIAL DATA

(Unaudited, except for December 31, 2009)

(Millions of dollars)

					Sept. 30, 2010		Dec. 31, 2009
Total current assets					$	3,456.9		3,375.7
Total current liabilities						2,751.7		2,181.6
Total assets						13,732.6		12,756.4
Long-term debt						1,024.3		1,353.2
Stockholders’ equity						7,966.9		7,346.0
	Three Months Ended September 30,				Nine Months Ended September 30,
	2010		2009		2010		2009
Capital expenditures - continuing operations
Exploration and production
United States	$	64.7		75.3		335.1		288.8
Canada		232.5		91.6		583.5		252.1
Malaysia		175.0		256.9		380.4		630.1
Other		81.7		94.0		161.7		271.8
		553.9		517.8		1,460.7		1,442.8
Refining and marketing
United States manufacturing		62.2		28.8		122.0		68.9
United States marketing		42.0		17.2		108.2		42.1
United Kingdom		1.2		31.1		64.7		68.3
		105.4		77.1		294.9		179.3
Corporate		1.4		0.3		4.5		2.0
Total capital expenditures - continuing operations		660.7		595.2		1,760.1		1,624.1
Charged to exploration expenses*
United States		2.5		2.7		25.4		19.5
Canada		0.2		3.1		0.9		4.6
Malaysia		0.9		0.5		32.4		14.5
Other		30.0		18.8		46.0		78.9
Total charged to exploration expenses		33.6		25.1		104.7		117.5
Total capitalized	$	627.1		570.1		1,655.4		1,506.6
*    Excludes amortization of undeveloped leases of	$	28.4		12.8		76.8		66.5

MURPHY OIL CORPORATION

STATISTICAL SUMMARY

	Three Months Ended September 30,				Nine Months Ended September 30,
	2010		2009		2010		2009
Net crude oil, condensate and gas liquids produced – barrels per day		119,899		131,637		130,244		129,672
Continuing operations		119,899		131,637		130,244		127,911
United States		19,404		19,639		20,594		15,502
Canada – light		47		21		43		8
– heavy		5,749		6,581		6,048		6,976
– offshore		10,534		10,538		11,774		12,822
– synthetic		12,044		13,804		12,973		12,458
Malaysia		63,794		76,290		70,444		75,782
United Kingdom		2,831		2,165		3,669		3,487
Republic of the Congo		5,496		2,599		4,699		876
Discontinued operations		—		—		—		1,761
Net crude oil, condensate and gas liquids sold – barrels per day		122,574		128,187		133,304		124,988
Continuing operations		122,574		128,187		133,304		123,435
United States		19,404		19,639		20,594		15,502
Canada – light		47		21		43		8
– heavy		5,749		6,581		6,048		6,976
– offshore		10,055		9,554		11,682		13,087
– synthetic		12,044		13,804		12,973		12,458
Malaysia		64,547		76,386		72,428		72,970
United Kingdom		3,394		2,202		4,742		2,434
Republic of the Congo		7,334		—		4,794		—
Discontinued operations		—		—		—		1,553
Net natural gas sold – thousands of cubic feet per day		371,005		182,199		354,038		147,240
United States		56,159		63,304		52,582		55,141
Canada		81,869		55,115		83,179		45,982
Malaysia – Sarawak		167,773		3,042		150,973		1,025
– Kikeh		59,538		57,980		61,559		42,310
United Kingdom		5,666		2,758		5,745		2,782
Total net hydrocarbons produced – equivalent barrels per day1		181,733		162,004		189,250		154,212
Total net hydrocarbons sold – equivalent barrels per day1		184,408		158,554		192,310		149,528
Weighted average sales prices
Crude oil, condensate and natural gas liquids – dollars per barrel2
United States	$	73.10		65.57		74.53		54.50
Canada3 – light		68.33		66.66		73.75		62.82
– heavy		46.09		46.75		49.29		36.35
– offshore		75.52		67.94		75.29		54.25
– synthetic		74.80		66.54		76.04		56.62
Malaysia4		60.35		59.18		58.90		52.62
United Kingdom		77.22		68.93		76.53		56.75
Republic of the Congo		70.73		—		71.09		—
Natural gas – dollars per thousand cubic feet
United States2	$	4.51		3.33		4.75		3.96
Canada3		4.05		2.65		4.31		2.95
Malaysia – Sarawak		5.71		3.31		5.20		3.31
– Kikeh		0.23		0.24		0.23		0.23
United Kingdom3		7.24		3.91		6.33		5.15

¹ Natural gas converted on an energy equivalent basis of 6:1.

² Includes intracompany transfers at market prices.

³ U.S. dollar equivalent.

⁴ Prices are net of payments under the terms of the production sharing contracts for Blocks SK 309/311 and K.

MURPHY OIL CORPORATION

STATISTICAL SUMMARY (Continued)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2009			2010			2009
Refining and Marketing
Refinery inputs – barrels per day		267,988			250,081			215,285			244,627
United States		158,002			146,371			140,022			141,635
Crude oil – Meraux, Louisiana		111,543			102,865			99,333			101,472
– Superior, Wisconsin		36,568			33,295			34,050			32,771
Other feedstocks		9,891			10,211			6,639			7,392
United Kingdom		109,986			103,710			75,263			102,992
Crude oil – Milford Haven, Wales		105,552			95,753			70,729			97,244
Other feedstocks		4,434			7,957			4,534			5,748
Refinery yields – barrels per day		267,988			250,081			215,285			244,627
United States		158,002			146,371			140,022			141,635
Gasoline		62,873			64,594			57,616			61,615
Kerosine		8,950			9,581			9,973			11,084
Diesel and home heating oils		46,542			42,001			38,519			40,358
Residuals		19,105			15,707			18,420			15,290
Asphalt, LPG and other		18,684			12,637			14,352			11,905
Fuel and loss		1,848			1,851			1,142			1,383
United Kingdom		109,986			103,710			75,263			102,992
Gasoline		29,697			28,418			18,831			26,474
Kerosine		15,326			17,042			10,683			13,473
Diesel and home heating oils		34,503			33,831			22,179			35,688
Residuals		10,447			11,391			7,207			10,272
Asphalt, LPG and other		16,354			9,737			13,471			13,428
Fuel and loss		3,659			3,291			2,892			3,657
Petroleum products sold – barrels per day		584,306			553,698			524,092			532,240
Total United States		467,119			448,685			445,897			428,405
United States manufacturing		160,902			146,075			141,523			137,855
Gasoline		70,328			64,596			65,018			61,615
Kerosine		8,952			9,579			9,973			11,084
Diesel and home heating oils		46,542			42,006			38,519			40,704
Residuals		18,516			14,734			18,151			14,849
Asphalt, LPG and other		16,564			15,160			9,862			9,603
United States marketing		432,039			418,791			417,884			403,953
Gasoline		339,956			326,675			330,194			316,439
Kerosine		10,968			13,239			9,986			12,564
Diesel and other		81,115			78,877			77,704			74,950
United States intercompany elimination		(125,822	)		(116,181	)		(113,510	)		(113,403	)
Gasoline		(70,328	)		(64,596	)		(65,018	)		(61,615	)
Kerosine		(8,952	)		(9,579	)		(9,973	)		(11,084	)
Diesel and other		(46,542	)		(42,006	)		(38,519	)		(40,704	)
United Kingdom		117,187			105,013			78,195			103,835
Gasoline		30,389			28,491			21,005			29,272
Kerosine		15,587			16,853			10,765			12,541
Diesel and home heating oils		38,572			35,867			26,496			37,303
Residuals		11,786			10,068			7,414			9,696
LPG and other		20,853			13,734			12,515			15,023
Unit margins per barrel:
United States refining1	$	0.23		$	0.22		$	(0.68	)	$	1.03
United Kingdom refining and marketing		(1.84	)		(0.78	)		(1.75	)		0.15
United States retail marketing:
Fuel margin per gallon2	$	0.137		$	0.133		$	0.128		$	0.088
Gallons sold per store month		313,140			320,460			307,276			312,597
Merchandise sales revenue per store month	$	161,352		$	147,753		$	152,875		$	134,497
Merchandise margin as a percentage of merchandise sales		13.5	%		12.2	%		13.0	%		12.8	%
Store count at end of period (Company operated)		1,083			1,037			1,083			1,037

¹ Represents refinery sales realizations less cost of crude and other feedstocks and refinery operating and depreciation expenses.

² Represents net sales prices for fuel less purchased cost of fuel.