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): July 27, 2011

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 July 27, 2011, Murphy Oil Corporation issued a news release announcing its preliminary earnings for the second quarter that ended on June 30, 2011. 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 July 27, 2011 announcing preliminary earnings for the second quarter that ended on June 30, 2011 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: July 27, 2011

Exhibit Index

99.1 News release dated July 27, 2011, as issued by Murphy Oil Corporation.

EX-99.1

Exhibit 99.1

MURPHY OIL ANNOUNCES PRELIMINARY SECOND QUARTER EARNINGS

AND DRILLING RESULTS

EL DORADO, Arkansas, July 27, 2011 – Murphy Oil Corporation (NYSE: MUR) announced today that net income in the second quarter of 2011 was $311.6 million ($1.60 per diluted share) compared to net income of $272.3 million ($1.41 per diluted share) in the second quarter of 2010. Income improved in 2011 in both the upstream and downstream businesses of the Company. Upstream earnings improved primarily due to higher crude oil sales prices, while downstream earnings improved due to stronger U.S. refining and retail marketing margins.

For the first six months of 2011, net income totaled $580.5 million ($2.98 per diluted share) compared to net income of $421.2 million ($2.18 per diluted share) for the same period in 2010.

Net Income

	Three Mos. Ended June 30						Six Mos. Ended June 30
(Millions of Dollars)	2011			2010			2011			2010
Exploration and Production	$	243.3			219.1			503.7			466.1
Refining and Marketing		91.7			83.8			122.4			54.1
Corporate		(23.4	)		(30.6	)		(45.6	)		(99.0	)
Net income	$	311.6			272.3			580.5			421.2
Income per diluted share		1.60			1.41			2.98			2.18

Second Quarter 2011 vs. Second Quarter 2010

Exploration and Production (E&P)

The Company’s income from exploration and production operations was $243.3 million in the second quarter of 2011 compared to $219.1 million in the same quarter of 2010. Income in the 2011 quarter exceeded 2010 primarily due to higher crude oil sales prices in the current period. Additionally, the Company generated an after-tax gain of $13.1 million in the 2011 quarter from sale of natural gas storage assets in Spain. Exploration expenses were $122.5 million in the second quarter of 2011 compared to $53.2 million in the same period of 2010, with the increase mainly attributable to a dry hole expensed in the 2011 quarter in Indonesia at the Lengkuas prospect in the Semai II area.

Worldwide production totaled 170,457 barrels of oil equivalent per day in the second quarter 2011, compared to 189,951 barrels of oil equivalent per day in the same quarter in 2010.

Total crude oil and gas liquids production was 94,242 barrels per day in the second quarter of 2011 compared to 131,983 barrels per day in the 2010 quarter, with the decrease primarily attributable to lower gross production at the Kikeh field, offshore Sabah, where several high-rate wells were shut-in awaiting rig workovers. The first well workover at Kikeh was successfully completed in July 2011. Additionally, oil production in the Seal area and at Syncrude in Western Canada was adversely affected in the 2011 quarter by severe forest fires in Northern Alberta. Crude oil production at Terra Nova, offshore Eastern Canada, was lower in the 2011 quarter primarily due to curtailment associated with equipment constraints on the production facility. In addition, 2011 crude oil production in the Gulf of Mexico was below year ago levels primarily due to the delay in permitting of drilling operations by U.S. government regulators following the Macondo incident in April 2010. Crude oil and gas liquids sales volumes averaged 90,004 barrels per day in the second quarter of 2011 compared to 131,810 barrels per day in the 2010 quarter. Natural gas sales volumes averaged a Company record 457 million cubic feet per day in the second quarter of 2011 compared to 348 million cubic feet per day in the 2010 quarter. The increase in natural gas sales volumes in 2011 included continued ramp-up of gas production volumes at the Tupper West area in British Columbia, Canada, where production commenced in the first quarter 2011, and higher production from fields offshore Sarawak, Malaysia. The Company’s worldwide crude oil and condensate sales prices averaged $99.37 per barrel for the second quarter of 2011 compared to $64.68 per barrel in the second quarter 2010. North American natural gas sales prices averaged $4.26 per thousand cubic feet (MCF) in the 2011 quarter compared to $4.16 per MCF in the same quarter of 2010. Natural gas produced offshore Sarawak, Malaysia was sold at an average price of $6.40 per MCF during the second quarter 2011 compared to an average price of $5.10 per MCF in the second quarter 2010.

E&P Metrics

	Three Mos. Ended June 30				Six Mos. Ended June 30
	2011		2010		2011		2010
Oil Production Volume – Bbls. per day		94,242		131,983		103,725		135,502
Natural gas Sales Volume – MCF per day		457,288		347,806		435,283		345,414
Total BOE Production Volume – BOE per day		170,457		189,951		176,272		193,071
Average Realized Oil Sales Price – $ per Bbl.	$	99.37		64.68		93.04		64.59
Average Realized North American Gas Sales Price – $ per MCF	$	4.26		4.16		4.30		4.61
Average Realized Sarawak Gas Sales Price – $ per MCF	$	6.40		5.10		6.15		4.87

Refining and Marketing (R&M)

The Company previously announced its intent to sell its U.S. refining and U.K. R&M assets. On July 25, we signed an agreement to sell the Superior, Wisconsin refinery for $214 million plus the value of hydrocarbon inventories. Ongoing sale activities related to the other refining and marketing assets offered for sale continue to progress.

The Company’s refining and marketing operations generated income of $91.7 million in the second quarter 2011 compared to income of $83.8 million in the same quarter of 2010. The R&M earnings improvement in the 2011 second quarter occurred in the United States, where quarterly earnings were $107.5 million in 2011 compared to $79.4 million in 2010. U.S. manufacturing income of $27.3 million in the 2011 quarter exceeded income of $9.8 million in the 2010 quarter primarily due to improved U.S. refining margins, which averaged $2.54 per barrel in 2011 compared to $0.69 per barrel in 2010. Additionally, the refineries ran well during the 2011 quarter processing a record 170,475 barrels of crude oil per day.

U.S. marketing operations generated a profit of $80.2 million in the 2011 quarter compared to $69.6 million in the 2010 quarter. The 2011 quarter had average retail marketing margins of $0.199 per gallon, up from $0.162 per gallon in the prior year. Fuel sales volume per store was about 10% below 2010 levels, while merchandise sales per store were up 2% in the 2011 quarter compared to the prior year quarter.

The United Kingdom R&M business had an after-tax loss of $15.8 million in the 2011 second quarter compared to a profit of $4.4 million in the 2010 second quarter. The unfavorable result in the U.K. in 2011 compared to 2010 was primarily due to significantly weaker refining margins at the Milford Haven, Wales refinery. In addition, marketing operations had lower average product margins in the 2011 quarter due to weak motor fuel demand. Milford Haven processed a record quarterly volume of crude oil, achieving 136,428 barrels per day during the 2011 quarter. Throughput for the 2010 quarter was adversely affected by a turnaround at Milford Haven early in the period and the refinery was slow to return to normal operations upon restart. The 2010 quarter included a $6.0 million benefit for U.K. income tax adjustments.

R&M Metrics

	Three Mos. Ended June 30					Six Mos. Ended June 30
	2011			2010		2011			2010
Total Refinery Inputs – Bbls. per day		314,388			207,186		304,342			188,497
Total Petroleum Product Sales – Bbls. per day		601,498			508,117		583,019			493,486
U.S. Refining Unit Margin – Per Bbl.	$	2.54			0.69		2.73			(1.23	)
U.S. Retail Fuel Margin – Per Gallon	$	0.199			0.162		0.146			0.123
U.K. R&M Unit Margin – Per Bbl.	$	(1.76	)		0.52		(1.22	)		(1.65	)

Corporate

Corporate functions incurred net costs of $23.4 million in the 2011 second quarter compared to net costs of $30.6 million in the 2010 second quarter, with the improved result in 2011 primarily related to favorable impacts on transactions denominated in foreign currencies. After-tax foreign currency effects were a gain of $4.9 million in the 2011 quarter compared to a loss of $1.6 million in the 2010 quarter.

First Six Months 2011 vs. First Six Months 2010

Exploration and Production (E&P)

The Company’s E&P business earned $503.7 million in the first six months of 2011 compared to earnings of $466.1 million in the same period of 2010. Earnings in 2011 were favorably affected by higher sales prices for crude oil and Sarawak natural gas compared to a year ago. The Company also benefited from higher natural gas sales volumes in 2011 compared to 2010, while crude oil sales volumes in 2011 were well below prior year levels. Exploration expenses were $218.8 million in 2011 compared to $119.5 million in 2010, with the higher costs in the 2011 period primarily from unsuccessful wildcat drilling offshore Indonesia and Suriname. The 2011 period included a $13.1 million after-tax gain on sale of gas storage assets in Spain.

Worldwide production amounted to 176,272 barrels of oil equivalents per day during the first six months of 2011 compared to 193,071 barrel equivalents per day in the same period a year ago. Crude oil and gas liquids production for the first six months of 2011 averaged 103,725 barrels per day compared to 135,502 barrels per day in 2010. The oil production decrease in 2011 was mostly caused by lower gross crude oil volumes produced at the Kikeh field, offshore Sabah, Malaysia. Other unfavorable crude oil production variances in 2011 included the Gulf of Mexico, Terra Nova and the United Kingdom. Natural gas sales volumes were 435 million cubic feet per day in 2011 compared to 345 million cubic feet per day in 2010, with the increase primarily resulting from new volumes produced at Tupper West in British Columbia, following start-up in February 2011, and higher gas volumes at Tupper Main and offshore Sarawak, Malaysia. Crude oil and condensate sales prices averaged $93.04 per barrel in the 2011 period compared to $64.59 per barrel in 2010. North American natural gas was sold at an average price of $4.30 per MCF in 2011, compared to $4.61 per MCF in 2010. Sarawak natural gas production was sold at an average of $6.15 per MCF during the first six months of 2011 compared to $4.87 per MCF during 2010.

Refining and Marketing (R&M)

The Company’s refining and marketing earnings were $122.4 million in the first six months of 2011, compared to earnings of $54.1 million in the same 2010 period. U.S. manufacturing results improved from a loss of $13.8 million in the 2010 period to a profit of $56.0 million in 2011 due to significantly better refining margins in 2011, coupled with the favorable effect of significantly higher crude oil throughput volumes at the Meraux, Louisiana, refinery. The 2010 period was unfavorably impacted by downtime for a plant-wide four-week turnaround at Meraux. Refining margins in the U.S. averaged $2.73 per barrel in the 2011 six months compared to a loss of $1.23 per barrel in 2010.

U.S. marketing operations had income of $90.9 million in the first six months of 2011, well above the $78.5 million of income in the same period in 2010. U.S. retail marketing margins averaged $0.146 per gallon in 2011 six-month period compared to $0.123 per gallon in 2010. Fuel sales per store month in 2011 were about 9% lower than in 2010. Merchandise sales per store increased 4% in 2011 compared to 2010, with the current period including more than a 5% higher margin on sales.

R&M operations in the U.K. showed a six-month 2011 loss of $24.5 million, compared to a loss of $10.6 million in the prior year, as the operation continued to experience weak refining margins at the Milford Haven, Wales, refinery as well as weaker margins across the marketing network in 2011. The Milford Haven refinery processed significantly higher crude oil volumes in the 2011 period compared to 2010. The prior year six-month period included a full-plant turnaround. The increase in crude oil processed during 2011 led to higher product sales volumes into the unprofitable U.K. product market.

Corporate and Other

Corporate after-tax costs were $45.6 million in the first six months of 2011 compared to after-tax costs of $99.0 million in the 2010 period. The 2011 results included $3.9 million of after-tax gains on transactions denominated in foreign currencies compared to after-tax losses of $42.9 million in 2010. Additionally, lower net interest expense in 2011 compared to 2010 was attributable to a combination of lower average interest rates on borrowed funds and higher amounts of interest capitalized to ongoing oil and natural gas development projects in the current period.

David M. Wood, President and Chief Executive Officer, commented, “While we are disappointed in the results of the Lengkaus well in Indonesia, we are using this data to reevaluate other prospects on this and surrounding blocks. Our next exploration wells will be on the Deep Blue prospect in the Gulf of Mexico and our first well offshore Brunei in the third quarter. Our Eagle Ford Shale presence and production volumes continue to grow. We had a record production day of 7,200 barrels of oil equivalent in this area in July and we added over 20,000 acres in the heart of the play in the second quarter. We are proud to partner with Walmart U.S. to offer a 10-cent per gallon discount opportunity to retail customers at the majority of our gasoline stations beginning in July and continuing through September 30. Our ethanol production facility in Hereford, Texas, has essentially lined out its operations following start-up near the end of the first quarter this year. Consistent with our repositioning strategy previously announced, on July 25 we signed an agreement to sell our Superior, Wisconsin refinery. The sale process for the Meraux, Louisiana refinery and U.K. downstream assets continues to progress.

“We anticipate total worldwide production volumes of about 173,000 barrels of oil equivalent per day in the third quarter of 2011. Sales volumes of oil and natural gas are projected to average 171,500 barrels of oil equivalent per day in the third quarter 2011. We anticipate full year 2011 production volumes of 185,000 barrels of oil equivalent per day, with an expected 2011 year-end exit rate of 220,000 barrel equivalents per day. At the current time, we expect net income in the third quarter to range between $1.05 and $1.15 per diluted share. The earnings projection includes approximately $15 million of income tax charges associated with a 12% higher tax rate recently enacted on oil and gas profits in the U.K. Exploration expense should total between $100 million and $130 million during the quarter. The third quarter estimate includes projected earnings from our downstream businesses of approximately $60 million. Results could vary based on commodity prices, drilling results, timing of crude oil and natural gas sales, refining and marketing margins, and foreign exchange movements.”

The public is invited to access the Company’s conference call to discuss second quarter 2011 results on Thursday, July 28, 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 telephone by dialing 1-800-967-7141. The telephone reservation number for the call is 9943385. 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 August 1 by calling 1-888-203-1112 and using the same reservation number shown above. Audio downloads of the conference will be available on Murphy’s Web site through September 1, 2011 and via Thomson StreetEvents for their service subscribers.

Summary financial data and operating statistics for the second quarter and first six months of 2011 with comparisons to 2010 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, customer demand for our products, political and regulatory instability, and uncontrollable natural hazards. For further discussion of risk factors, see Murphy’s 2010 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 June 30, 2011						Three Months Ended June 30, 2010
	Revenues			Income			Revenues			Income
Exploration and production
United States	$	198.3			52.1			167.6			14.5
Canada		328.7			95.8			240.9			62.3
Malaysia		439.8			166.0			429.4			158.2
United Kingdom		33.5			9.3			29.1			8.4
Republic of the Congo		33.1			(3.3	)		25.4			(8.9	)
Other		23.1			(76.6	)		.3			(15.4	)
		1,056.5			243.3			892.7			219.1
Refining and marketing
United States Manufacturing		2,069.4			27.3			1,258.1			9.8
United States Marketing		5,735.1			80.2			4,080.9			69.6
United Kingdom		1,641.8			(15.8	)		416.6			4.4
		9,446.3			91.7			5,755.6			83.8
		10,502.8			335.0			6,648.3			302.9
Intersegment transfers elimination		(1,789.6	)		—			(1,055.9	)		—
		8,713.2			335.0			5,592.4			302.9
Corporate		8.3			(23.4	)		(.5	)		(30.6	)
Total revenues/net income	$	8,721.5			311.6			5,591.9			272.3
	Six Months Ended June 30, 2011						Six Months Ended June 30, 2010
	Revenues			Income			Revenues			Income
Exploration and production
United States	$	366.5			68.6			342.6			33.2
Canada		615.0			182.2			463.8			111.5
Malaysia		957.3			361.8			933.3			331.7
United Kingdom		63.7			18.3			81.5			25.0
Republic of the Congo		67.7			.3			53.7			(6.4	)
Other		24.4			(127.5	)		2.6			(28.9	)
		2,094.6			503.7			1,877.5			466.1
Refining and marketing
United States Manufacturing		3,744.3			56.0			2,014.5			(13.8	)
United States Marketing		10,534.0			90.9			7,686.5			78.5
United Kingdom		2,946.9			(24.5	)		959.0			(10.6	)
		17,225.2			122.4			10,660.0			54.1
		19,319.8			626.1			12,537.5			520.2
Intersegment transfers elimination		(3,260.5	)		—			(1,715.7	)		—
		16,059.3			626.1			10,821.8			520.2
Corporate		13.9			(45.6	)		(49.7	)		(99.0	)
Total revenues/net income	$	16,073.2			580.5			10,772.1			421.2

MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (Unaudited)

THREE MONTHS ENDED JUNE 30, 2011 AND 2010

	United States			Canada					Malaysia			United Kingdom		Republic of the Congo
(Millions of dollars)				Conventional			Synthetic										Other			Total
Three Months Ended June 30, 2011
Oil and gas sales and other revenues	$	198.3			195.7			133.0		439.8			33.5		33.1			23.1			1,056.5
Production expenses		36.4			37.4			58.3		84.7			8.9		11.2			—			236.9
Depreciation, depletion and amortization		42.8			71.4			12.8		75.9			3.7		18.9			.4			225.9
Accretion of asset retirement obligations		2.5			1.2			2.0		2.7			.8		.1			.1			9.4
Exploration expenses
Dry holes		(.3	)		—			—		(.1	)		—		.8			69.1			69.5
Geological and geophysical		2.4			1.0			—		5.8			.2		.8			2.1			12.3
Other		4.0			.3			—		—			.1		—			5.2			9.6
		6.1			1.3			—		5.7			.3		1.6			76.4			91.4
Undeveloped lease amortization		19.9			7.1			—		—			—		—			4.1			31.1
Total exploration expenses		26.0			8.4			—		5.7			.3		1.6			80.5			122.5
Selling and general expenses		11.0			3.3			.2		(1.3	)		.9		.7			10.3			25.1
Results of operations before taxes		79.6			74.0			59.7		272.1			18.9		.6			(68.2	)		436.7
Income tax provisions		27.5			21.9			16.0		106.1			9.6		3.9			8.4			193.4
Results of operations (excluding corporate overhead and interest)	$	52.1			52.1			43.7		166.0			9.3		(3.3	)		(76.6	)		243.3
Three Months Ended June 30, 2010
Oil and gas sales and other revenues	$	167.6			140.9			100.0		429.4			29.1		25.4			.3			892.7
Production expenses		33.7			26.5			47.7		70.3			5.0		14.6			—			197.8
Depreciation, depletion and amortization		80.1			47.0			12.2		90.9			5.8		12.7			.3			249.0
Accretion of asset retirement obligations		1.7			1.2			1.6		2.4			.6		—			.1			7.6
Exploration expenses
Dry holes		—			—			—		7.9			—		.1			(.5	)		7.5
Geological and geophysical		4.7			(.1	)		—		.8			.1		3.1			1.3			9.9
Other		3.1			.1			—		—			.1		(.3	)		5.2			8.2
		7.8			—			—		8.7			.2		2.9			6.0			25.6
Undeveloped lease amortization		18.3			8.0			—		—			—		—			1.3			27.6
Total exploration expenses		26.1			8.0			—		8.7			.2		2.9			7.3			53.2
Terra Nova working interest redetermination		—			5.4			—		—			—		—			—			5.4
Selling and general expenses		5.4			2.9			.2		.2			.7		.3			8.0			17.7
Results of operations before taxes		20.6			49.9			38.3		256.9			16.8		(5.1	)		(15.4	)		362.0
Income tax provisions		6.1			15.0			10.9		98.7			8.4		3.8			—			142.9
Results of operations (excluding corporate overhead and interest)	$	14.5			34.9			27.4		158.2			8.4		(8.9	)		(15.4	)		219.1

MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (Unaudited)

SIX MONTHS ENDED JUNE 30, 2011 AND 2010

	United States		Canada					Malaysia		United Kingdom		Republic of the Congo
(Millions of dollars)			Conventional			Synthetic									Other			Total
Six Months Ended June 30, 2011
Oil and gas sales and other revenues	$	366.5		355.2			259.8		957.3		63.7		67.7			24.4			2,094.6
Production expenses		77.5		68.3			116.8		187.8		14.5		16.8			—			481.7
Depreciation, depletion and amortization		91.3		124.2			26.6		171.7		8.3		37.8			.8			460.7
Accretion of asset retirement obligations		4.9		2.5			3.9		5.3		1.6		.3			.2			18.7
Exploration expenses
Dry holes		.6		—			—		—		—		2.9			101.8			105.3
Geological and geophysical		20.6		2.5			—		5.8		.3		1.6			2.5			33.3
Other		7.3		.6			—		—		.2		.1			11.5			19.7
		28.5		3.1			—		5.8		.5		4.6			115.8			158.3
Undeveloped lease amortization		38.3		14.0			—		—		—		—			8.2			60.5
Total exploration expenses		66.8		17.1			—		5.8		.5		4.6			124.0			218.8
Terra Nova working interest redetermination		—		(5.4	)		—		—		—		—			—			(5.4	)
Selling and general expenses		20.4		6.6			.4		—		1.7		.3			18.1			47.5
Results of operations before taxes		105.6		141.9			112.1		586.7		37.1		7.9			(118.7	)		872.6
Income tax provisions		37.0		41.7			30.1		224.9		18.8		7.6			8.8			368.9
Results of operations (excluding corporate overhead and interest)	$	68.6		100.2			82.0		361.8		18.3		.3			(127.5	)		503.7
Six Months Ended June 30, 2010
Oil and gas sales and other revenues	$	342.6		276.1			187.7		933.3		81.5		53.7			2.6			1,877.5
Production expenses		66.5		52.3			99.5		154.1		14.2		26.5			—			413.1
Depreciation, depletion and amortization		155.5		93.1			22.2		196.8		14.1		22.1			.6			504.4
Accretion of asset retirement obligations		3.4		2.4			3.2		4.7		1.1		.1			.2			15.1
Exploration expenses
Dry holes		.1		—			—		30.5		—		(.3	)		(.5	)		29.8
Geological and geophysical		17.1		.5			—		1.0		.5		3.4			3.4			25.9
Other		5.7		.2			—		—		.2		—			9.3			15.4
		22.9		.7			—		31.5		.7		3.1			12.2			71.1
Undeveloped lease amortization		31.2		14.7			—		—		—		—			2.5			48.4
Total exploration expenses		54.1		15.4			—		31.5		.7		3.1			14.7			119.5
Terra Nova working interest redetermination		—		10.9			—		—		—		—			—			10.9
Selling and general expenses		13.4		6.5			.4		.3		1.6		(.6	)		15.2			36.8
Results of operations before taxes		49.7		95.5			62.4		545.9		49.8		2.5			(28.1	)		777.7
Income tax provisions		16.5		28.6			17.8		214.2		24.8		8.9			.8			311.6
Results of operations (excluding corporate overhead and interest)	$	33.2		66.9			44.6		331.7		25.0		(6.4	)		(28.9	)		466.1

MURPHY OIL CORPORATION

SUMMARIZED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(Thousands of dollars, except per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Revenues	$	8,721,491			5,591,931			16,073,158			10,772,091
Costs and expenses
Crude oil and product purchases		7,068,906			4,253,167			12,948,722			8,232,126
Operating expenses		600,918			460,244			1,153,902			925,851
Exploration expenses		122,538			53,093			218,812			119,457
Selling and general expenses		86,033			68,851			161,500			133,982
Depreciation, depletion and amortization		270,816			288,212			548,156			580,892
Accretion of asset retirement obligations		9,658			7,844			19,145			15,457
Redetermination of Terra Nova working interest		—			5,346			(5,351	)		10,862
Interest expense		12,600			13,893			24,319			28,702
Interest capitalized		(2,639	)		(3,696	)		(9,072	)		(6,361	)
		8,168,830			5,146,954			15,060,133			10,040,968
Income before income taxes		552,661			444,977			1,013,025			731,123
Income tax expense		241,048			172,688			432,509			309,943
Net income	$	311,613			272,289			580,516			421,180
Net income per Common share
Basic	$	1.61			1.42			3.00			2.20
Diluted		1.60			1.41			2.98			2.18
Cash dividends per Common share	$	0.275			0.25			0.55			0.50
Average Common shares outstanding (thousands)
Basic		193,482			191,586			193,267			191,395
Diluted		194,916			193,169			194,642			192,821

MURPHY OIL CORPORATION

SUMMARIZED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(Thousands of dollars)

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Operating Activities
Net income	$	311,613			272,289			580,516			421,180
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation, depletion and amortization		270,816			288,212			548,156			580,892
Amortization of deferred major repair costs		11,735			8,969			23,520			16,150
Expenditures for asset retirements		(9,962	)		(17,759	)		(16,441	)		(25,280	)
Dry hole costs		69,503			7,567			105,307			29,841
Amortization of undeveloped leases		31,143			27,521			60,530			48,378
Accretion of asset retirement obligations		9,658			7,844			19,145			15,457
Deferred and noncurrent income tax charges		7,626			14,961			6,220			33,233
Pretax gain from disposition of assets		(23,079	)		(113	)		(23,132	)		(789	)
Net decrease (increase) in operating working capital other than cash and cash equivalents		(315,233	)		2,034			(455,655	)		249,780
Other - net		31,222			7,664			69,776			78,901
Net cash provided by operating activities		395,042			619,189			917,942			1,447,743
Investing Activities
Property additions and dry holes		(731,964	)		(511,251	)		(1,258,731	)		(992,256	)
Proceeds from sale of assets		27,462			247			27,538			1,792
Purchases of investment securities*		(247,353	)		(632,857	)		(675,606	)		(1,263,026	)
Proceeds from maturity of investment securities*		166,287			725,739			754,082			1,239,290
Expenditures for major repairs		(645	)		(38,586	)		(680	)		(89,102	)
Other - net		2,104			(15,530	)		6,753			(23,110	)
Net cash required by investing activities		(784,109	)		(472,238	)		(1,146,644	)		(1,126,412	)
Financing Activities
Increase (decrease) in notes payable		559,990			(19	)		594,980			(122,019	)
Decrease in nonrecourse debt of a subsidiary		—			(2,269	)		—			(2,269	)
Proceeds from exercise of stock options and employee stock purchase plans		1,084			9,178			7,900			14,798
Excess tax benefits related to exercise of stock options		(185	)		292			4,068			483
Withholding tax on stock-based incentive awards		—			(1,083	)		(8,014	)		(5,170	)
Issue cost of debt facility		(7,672	)		—			(7,672	)		—
Cash dividends paid		(53,208	)		(47,889	)		(106,312	)		(95,700	)
Net cash provided (required) by financing activities		500,009			(41,790	)		484,950			(209,877	)
Effect of exchange rate changes on cash and cash equivalents		885			(6,314	)		9,173			(13,778	)
Net increase in cash and cash equivalents		111,827			98,847			265,421			97,676
Cash and cash equivalents at beginning of period		689,419			299,973			535,825			301,144
Cash and cash equivalents at end of period	$	801,246			398,820			801,246			398,820

* 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, 2010)

(Millions of dollars)

					June 30, 2011		Dec. 31, 2010
Total current assets					$	4,213.5		3,550.7
Total current liabilities						3,343.1		2,930.9
Total assets						15,567.0		14,233.2
Long-term debt						1,184.5		939.4
Stockholders’ equity						8,829.2		8,199.6
	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Capital expenditures
Exploration and production
United States	$	285.0		122.0		372.4		270.4
Canada		217.8		193.4		425.5		351.0
Malaysia		158.9		112.5		242.2		205.4
Other		78.1		36.7		216.8		80.0
		739.8		464.6		1,256.9		906.8
Refining and marketing
United States Manufacturing		20.6		44.0		52.4		59.8
United States Marketing		14.2		36.0		28.3		66.2
United Kingdom		5.6		28.7		7.6		63.5
		40.4		108.7		88.3		189.5
Corporate		1.9		1.4		3.5		3.1
Total capital expenditures		782.1		574.7		1,348.7		1,099.4
Charged to exploration expenses*
United States		6.1		7.8		28.5		22.9
Canada		1.3		—		3.1		0.7
Malaysia		5.7		8.7		5.8		31.5
Other		78.3		9.1		120.9		16.0
Total charged to exploration expenses		91.4		25.6		158.3		71.1
Total capitalized	$	690.7		549.1		1,190.4		1,028.3
*  Excludes amortization of undeveloped leases of	$	31.1		27.6		60.5		48.4

MURPHY OIL CORPORATION

STATISTICAL SUMMARY

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Exploration and Production
Net crude oil, condensate and gas liquids produced – barrels per day		94,242		131,983		103,725		135,502
United States		17,050		20,755		16,934		21,199
Canada – light		79		31		57		41
– heavy		5,726		5,920		6,762		6,200
– offshore		9,279		12,210		9,043		12,404
– synthetic		12,720		14,499		13,805		13,445
Malaysia		41,995		69,597		48,569		73,824
United Kingdom		2,369		4,103		2,725		4,095
Republic of the Congo		5,024		4,868		5,830		4,294
Net crude oil, condensate and gas liquids sold – barrels per day		90,004		131,810		101,341		138,758
United States		17,050		20,755		16,934		21,199
Canada – light		79		31		57		41
– heavy		5,726		5,920		6,762		6,200
– offshore		8,778		12,833		8,933		12,509
– synthetic		12,720		14,499		13,805		13,445
Malaysia		39,279		70,351		48,447		76,434
United Kingdom		2,906		3,654		2,741		5,427
Republic of the Congo		3,466		3,767		3,662		3,503
Net natural gas sold – thousands of cubic feet per day		457,288		347,806		435,283		345,414
United States		50,487		57,649		52,363		50,764
Canada		194,850		87,862		156,286		83,845
Malaysia – Sarawak		176,265		126,469		173,425		142,434
– Kikeh		31,631		69,971		48,140		62,586
United Kingdom		4,055		5,855		5,069		5,785
Total net hydrocarbons produced – equivalent barrels per day1		170,457		189,951		176,272		193,071
Total net hydrocarbons sold – equivalent barrels per day1		166,219		189,778		173,888		196,327
Weighted average sales prices
Crude oil, condensate and gas liquids – dollars per barrel2
United States	$	109.21	$	74.81	$	102.47	$	75.20
Canada3 – light		99.94		74.87		97.56		76.83
– heavy		64.55		47.83		58.03		51.01
– offshore		115.50		75.14		108.70		74.98
– synthetic		114.98		75.84		104.03		76.59
Malaysia4		90.05		57.71		86.88		57.78
United Kingdom		112.37		77.43		111.46		76.32
Republic of the Congo		105.16		74.27		102.19		71.48
Natural gas – dollars per thousand cubic feet
United States2	$	4.43	$	4.23	$	4.31	$	4.88
Canada3		4.22		4.11		4.29		4.44
Malaysia – Sarawak		6.40		5.10		6.15		4.87
– Kikeh		0.24		0.23		0.24		0.23
United Kingdom3		10.10		5.97		9.98		5.88

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 and K.

MURPHY OIL CORPORATION

STATISTICAL SUMMARY (Continued)

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Refining and Marketing
Refinery inputs – barrels per day		314,388			207,186			304,342			188,497
United States		174,502			158,635			171,874			130,883
Crude oil - Meraux, Louisiana		135,528			119,187			132,864			93,127
- Superior, Wisconsin		34,947			33,662			34,889			32,770
Other feedstocks		4,027			5,786			4,121			4,986
United Kingdom		139,886			48,551			132,468			57,614
Crude oil - Milford Haven,Wales		136,428			45,104			128,919			53,029
Other feedstocks		3,458			3,447			3,549			4,585
Refinery yields – barrels per day		314,388			207,186			304,342			188,497
United States		174,502			158,635			171,874			130,883
Gasoline		70,174			66,087			70,403			54,944
Kerosine		15,098			13,484			15,289			10,493
Diesel and home heating oils		53,994			43,499			50,462			34,441
Residuals		17,176			22,180			16,091			18,072
Asphalt, LPG and other		16,320			12,955			18,645			12,150
Fuel and loss		1,740			430			984			783
United Kingdom		139,886			48,551			132,468			57,614
Gasoline		36,843			8,390			31,742			13,308
Kerosine		17,937			6,843			17,043			8,323
Diesel and home heating oils		49,499			13,577			46,180			15,915
Residuals		14,951			3,958			13,259			5,560
Asphalt, LPG and other		17,359			13,263			21,251			12,006
Fuel and loss		3,297			2,520			2,993			2,502
Petroleum products sold – barrels per day		601,498			508,117			583,019			493,486
Total United States		459,209			459,277			448,551			435,110
United States manufacturing		177,878			163,113			169,851			131,673
Gasoline		81,999			73,741			80,223			62,319
Kerosine		15,098			13,484			15,289			10,493
Diesel and home heating oils		53,030			43,499			50,063			34,441
Residuals		16,926			22,523			16,080			17,965
Asphalt, LPG and other		10,825			9,866			8,196			6,455
United States marketing		431,350			426,888			424,135			410,689
Gasoline		330,976			333,781			325,485			325,232
Kerosine		13,768			11,766			14,886			9,487
Diesel and other		86,606			81,341			83,764			75,970
United States intercompany elimination		(150,019	)		(130,724	)		(145,435	)		(107,252	)
Gasoline		(81,999	)		(73,743	)		(80,223	)		(62,319	)
Kerosine		(15,098	)		(13,482	)		(15,289	)		(10,492	)
Diesel and other		(52,922	)		(43,499	)		(49,923	)		(34,441	)
United Kingdom		142,289			48,840			134,468			58,376
Gasoline		39,943			15,535			33,349			16,235
Kerosine		16,664			6,763			16,115			8,314
Diesel and home heating oils		49,859			19,034			47,305			20,358
Residuals		17,526			2,142			14,543			5,192
LPG and other		18,297			5,366			23,156			8,277
Unit margins per barrel:
United States refining1	$	2.54		$	0.69		$	2.73		$	(1.23	)
United Kingdom refining and marketing		(1.76	)		0.52			(1.22	)		(1.65	)
United States retail marketing:
Fuel margin per gallon2	$	0.199		$	0.162		$	0.146		$	0.123
Gallons sold per store month		283,111			316,378			277,658			304,294
Merchandise sales revenue per store month	$	161,722		$	158,586		$	155,072		$	148,576
Merchandise margin as a percentage of merchandise sales		12.9%			12.9	%		13.3	%		12.6	%
Store count at end of period (Company operated)		1,118			1,067			1,118			1,067

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.