EX-99.1 2 dex991.htm NEWS RELEASE News Release

 

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.