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): August 1, 2012

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 August 1, 2012, Murphy Oil Corporation issued a news release announcing its preliminary earnings for the second quarter that ended on June 30, 2012. 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 August 1, 2012 announcing preliminary earnings for the second quarter that ended on June 30, 2012 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
	Senior Vice President and Controller

Date: August 1, 2012

Exhibit Index

99.1 News release dated August 1, 2012, as issued by Murphy Oil Corporation.

EX-99.1

Exhibit 99.1

MURPHY OIL ANNOUNCES PRELIMINARY SECOND QUARTER EARNINGS

EL DORADO, Arkansas, August 1, 2012 – Murphy Oil Corporation (NYSE: MUR) announced today that income from continuing operations was $295.4 million ($1.52 per diluted share) in the 2012 second quarter, up from $280.0 million ($1.44 per diluted share) in the second quarter 2011. The increase in 2012 earnings from continuing operations was mostly attributable to improved downstream results compared to the prior year’s quarter. Net income in the second quarter of 2012 was also $295.4 million ($1.52 per diluted share) compared to net income of $311.6 million ($1.60 per diluted share) in the second quarter of 2011. Net income in the 2011 second quarter included income from discontinued operations of $31.6 million ($0.16 per diluted share), which related to operating results of two U.S. refineries that were sold in the second half of 2011.

For the first six months of 2012, income from continuing operations was $585.5 million ($3.01 per diluted share), an improvement from $518.5 million ($2.66 per diluted share) in 2011. For the six-month period of 2012, net income totaled the same $585.5 million ($3.01 per diluted share), but net income of $580.5 million ($2.98 per diluted share) for the first six months in 2011 included income from discontinued operations of $62.0 million ($0.32 per diluted share).

Net Income

	Three Mos. Ended June 30						Six Mos. Ended June 30
(Millions of Dollars)	2012			2011			2012			2011
Exploration and Production	$	230.1			243.3			551.7			503.7
Refining and Marketing		80.5			60.1			76.3			60.4
Corporate		(15.2	)		(23.4	)		(42.5	)		(45.6	)
Income from continuing operations		295.4			280.0			585.5			518.5
Income from discontinued operations		—			31.6			—			62.0
Net income	$	295.4			311.6			585.5			580.5
Income per Common share – Diluted:
Income from continuing operations	$	1.52			1.44			3.01			2.66
Net income	$	1.52			1.60			3.01			2.98

Second Quarter 2012 vs. Second Quarter 2011

Exploration and Production (E&P)

The Company’s income from E&P operations was $230.1 million in the second quarter of 2012 compared to $243.3 million in the same quarter of 2011. The 2011 quarter included an after-tax gain of $13.1 million associated with the sale of natural gas storage assets in Spain. Income in the 2012 quarter was unfavorably affected by lower average realized sales prices in the current period for the Company’s worldwide oil and North American natural gas production. The just completed quarter also had higher extraction costs, primarily due to the higher oil and gas sales volumes, but also due to higher facility and well maintenance costs and increased production in the Eagle Ford Shale area of South Texas, which has higher capital amortization unit costs compared to the Company’s average. The second quarter of 2012 had higher sales volumes for crude oil and natural gas compared to 2011. Exploration expenses were $96.6 million in the second quarter of 2012 compared to $122.5 million in the same period of 2011, with the reduction in 2012 mainly attributable to a prior year dry hole at the Lengkuas prospect in Indonesia. Dry hole expense was higher in the U.S. in the just completed quarter due to write-off of the unsuccessful Deep Blue prospect in the Gulf of Mexico.

Worldwide production averaged 188,575 barrels of oil equivalent per day in the second quarter 2012, compared to 170,457 barrels of oil equivalent per day in the same quarter in 2011. Total crude oil and gas liquids production was 104,012 barrels per day in the second quarter of 2012 compared to 94,242 barrels per day in the 2011 quarter. The increase in oil production in 2012 was primarily attributable to higher gross production at the Kikeh field, offshore Sabah, as wells have been brought on stream in association with the ongoing field development and well work program. In addition, 2012 crude oil production in the United States was higher than 2011 levels primarily due to an ongoing development program in the Eagle Ford Shale area. Increases in Eagle Ford production more than offset lower volumes produced at fields in the Gulf of Mexico. Oil production at Syncrude in Western Canada was adversely affected in the 2012 quarter by equipment maintenance. Crude oil production at Terra Nova, offshore Eastern Canada, was also lower in the 2012 quarter primarily due to the start of a 150 day shut-in for equipment maintenance in June 2012. The Azurite field, offshore Republic of the Congo, had lower crude oil production in 2012 due to well decline and one well being offline during the quarter pending a mechanical workover. Crude oil and gas liquids sales volumes averaged 104,768 barrels per day in the second quarter of 2012 compared to 90,004 barrels per day in the 2011 quarter. Natural gas sales volumes averaged 507 million cubic feet per day in the second quarter of 2012 compared to 457 million cubic feet per day in the 2011 quarter. The increase in natural gas sales volumes in 2012 was attributable to higher gas production at the Tupper West area in British Columbia, Canada. The Company’s worldwide crude oil and condensate sales

prices averaged $94.33 per barrel for the second quarter of 2012 compared to $99.37 per barrel in the second quarter 2011. North American natural gas sales prices averaged $2.15 per thousand cubic feet (MCF) in the 2012 quarter compared to $4.26 per MCF in the same quarter of 2011. Natural gas produced offshore Sarawak, Malaysia was sold at an average price of $7.88 per MCF during the second quarter 2012 compared to an average price of $6.40 per MCF in the second quarter 2011.

E&P Metrics

	Three Mos. Ended June 30				Six Mos. Ended June 30
	2012		2011		2012		2011
Oil Production Volume – Bbls. per day		104,012		94,242		105,751		103,725
Natural Gas Sales Volume – MCF per day		507,379		457,288		516,507		435,283
Total BOE Production Volume – BOE per day		188,575		170,457		191,836		176,272
Average Realized Oil Sales Price – Per Bbl.	$	94.33		99.37		97.21		93.04
Average Realized North American Gas Sales Price – Per MCF	$	2.15		4.26		2.36		4.30
Average Realized Sarawak Gas Sales Price – Per MCF	$	7.88		6.40		7.80		6.15

Refining and Marketing (R&M)

The Company previously announced its intent to sell its U.K. R&M assets. Ongoing sale activities related to these assets continue.

The Company’s refining and marketing operations generated income from continuing operations of $80.5 million in the second quarter 2012 compared to $60.1 million in the same quarter of 2011. The R&M earnings improvement in the 2012 second quarter occurred primarily in the United Kingdom, where the quarterly profit was $7.2 million in 2012 compared to a quarterly loss of $15.8 million in 2011.

U.S. income of $73.3 million in the 2012 quarter was slightly below the 2011 quarterly income of $75.9 million, primarily due to weaker results for ethanol production facilities in the current period. The ethanol production facilities incurred losses in the 2012 quarter resulting from lower margins as the average sales prices for ethanol fell more than the average decline in the price of corn compared to the second quarter of 2011. U.S. retail marketing margins averaged $0.197 per gallon in the 2012 quarter compared to $0.199 per gallon in 2011. Fuel sales volume per store in the 2012 quarter was 2.6% below 2011 levels, while merchandise sales per store were down 1.9% in the 2012 quarter compared to the prior year.

The favorable result in the U.K. in 2012 compared to 2011 was primarily due to improved refining margins at the Milford Haven, Wales refinery. In addition, marketing operations had better average product margins in the 2012 quarter. Total U.K. unit margins averaged a positive $1.26 per barrel in the 2012 quarter, compared to a negative margin of $1.76 per barrel a year ago. Milford Haven processed 130,059 barrels of crude oil per day in the 2012 quarter, down from a record quarterly crude oil throughput volume of 136,428 barrels per day during the 2011 quarter.

R&M Metrics

	Three Mos. Ended June 30					Six Mos. Ended June 30
	2012		2011			2012		2011
U.S. Retail Fuel Margin – Per gallon	$	0.197		0.199			0.137		0.146
U.S. Retail Merchandise Sales – Per store month	$	158,626		161,722			155,783		155,072
U.K. Refinery Inputs – Bbls. per day		133,158		139,886			131,954		132,468
U.K. R&M Unit Margin – Per Bbl.	$	1.26		(1.76	)		1.03		(1.22	)
Total Petroleum Product Sales – Bbls. per day*		483,561		601,498			467,049		583,019

* Includes 166,249 bbls. per day in the 2011 three-month period and 160,032 bbls. per day in the 2011 six-month period related to discontinued operations.

Corporate

Corporate functions incurred net costs of $15.2 million in the 2012 second quarter compared to net costs of $23.4 million in the 2011 second quarter, with the improved result in 2012 attributable to both lower net interest expense and favorable impacts on transactions denominated in foreign currencies. Net interest expense was favorable in 2012 primarily due to a higher proportion of financing costs being capitalized to ongoing oil development projects offshore Malaysia. Foreign currency effects were an after-tax gain of $10.7 million in the 2012 quarter compared to an after-tax gain of $4.9 million in the 2011 quarter.

First Six Months 2012 vs. First Six Months 2011

Exploration and Production (E&P)

The Company’s E&P business earned $551.7 million in the first six months of 2012 compared to earnings of $503.7 million in the same period of 2011. Earnings in 2012 were favorably affected by higher average sales prices for crude oil and Sarawak natural gas compared to a year ago. The Company also benefited from higher crude oil and natural gas sales volumes

in 2012 compared to 2011. North American natural gas prices were much weaker in 2012 than the previous year, but sales prices were higher for natural gas production in Malaysia in the current period. Exploration expenses were $149.6 million in 2012, down from $218.8 million in 2011, with the lower costs in the 2012 period primarily related to unsuccessful 2011 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 averaged 191,836 barrels of oil equivalents per day during the first six months of 2012 compared to 176,272 barrel equivalents per day in the same period a year ago. Crude oil and gas liquids production for the first six months of 2012 averaged 105,751 barrels per day compared to 103,725 barrels per day in 2011. The oil production increase in 2012 was mostly caused by higher crude oil volumes produced in the Eagle Ford Shale. Additionally, crude oil production in 2012 was higher in all areas of Malaysia. However, production in the Gulf of Mexico was lower in the current year due to continued field decline for mature properties. Also, crude oil production at the Azurite field in Republic of the Congo was lower in the current year due to decline and one well being offline since March 2012 pending a mechanical workover. Natural gas sales volumes were 516 million cubic feet per day in 2012 compared to 435 million cubic feet per day in 2011, with the increase primarily resulting from additional gas volumes produced at Tupper West in British Columbia. Tupper West came on production in February 2011. Crude oil and condensate sales prices averaged $97.21 per barrel in the 2012 period compared to $93.04 per barrel in 2011. North American natural gas was sold at an average price of $2.36 per MCF in 2012, significantly lower than the $4.30 per MCF in 2011. Sales prices for Sarawak natural gas production averaged $7.80 per MCF during the first six months of 2012 compared to $6.15 per MCF during 2011.

Refining and Marketing (R&M)

The Company’s refining and marketing earnings from continuing operations were $76.3 million in the first six months of 2012, compared to earnings of $60.4 million in the same 2011 period. R&M profit in the U.S. was $66.1 million in the first six months of 2012, down from $84.9 million in the 2011 period. The 2012 earnings reduction was primarily attributable to weaker U.S. retail marketing margins, which averaged $0.137 per gallon in the 2012 six-month period compared to $0.146 per gallon in the 2011 six months. Fuel sales per store month in 2012 were 4.5% lower than in 2011, while merchandise sales per store and merchandise margin as a percent of sales were about flat in 2012 compared to 2011. Ethanol margins were lower in 2012 than in 2011 as average ethanol prices declined more than corn prices in the current year.

R&M operations in the U.K. in the six-month 2012 period generated a profit of $10.2 million compared to a loss of $24.5 million in the prior year, as the business experienced improved margins for both the Milford Haven, Wales, refinery and marketing operations in the current period. U.K. unit margins averaged a positive $1.03 per barrel in the first six months of 2012 compared to a negative margin of $1.22 per barrel in the 2011 period.

Corporate

Corporate after-tax costs were $42.5 million in the first six months of 2012 compared to after-tax costs of $45.6 million in the 2011 period. The reduction in net costs was primarily attributable to lower net interest expense in 2012 compared to 2011 caused by a higher proportion of financing costs being capitalized to ongoing oil and natural gas development projects in the current period. The 2012 results included a $9.1 million after-tax gain on transactions denominated in foreign currencies compared to an after-tax gain of $3.9 million in 2011. Administrative expenses associated with corporate activities were higher in the 2012 period compared to the prior year due to additional costs for employee compensation and professional fees.

Steven A. Cossé, President and Chief Executive Officer, commented, “The second quarter of 2012 saw meaningful contributions from both the upstream and downstream business segments. Our Eagle Ford oil development activities have continued the growth momentum, with daily production volumes exceeding 14,000 net barrels of oil equivalent in recent days. Field development work at our important Kikeh oil field continues to go well. In the Gulf of Mexico, we were successful in acquiring 14 new exploration blocks in the recent lease sale and our Board recently sanctioned the development of the Dalmatian property in the DeSoto Canyon area. We continue to be encouraged about the Company’s exploration program, where in the Central Dohuk block in the Kurdistan region of Iraq our first well has reached target depth and is now being tested and our remaining 2012 drilling program calls for offshore wells in Malaysia, Congo, the Gulf of Mexico and Australia. Downstream operations remain steady in both the U.S. and U.K. as we continue to offer value priced fuel products to the driving public in both markets.

“We anticipate total worldwide production volumes of about 183,000 barrels of oil equivalent per day in the third quarter of 2012. Sales volumes of oil and natural gas are projected to average 179,000 barrels of oil equivalent per day during this period. We anticipate full year 2012 production volumes of 193,000 barrels of oil equivalent per day. At the current

time, we expect net income in the third quarter to range between $0.90 and $1.15 per diluted share. Exploration expense should total between $50 million and $120 million during the quarter. The third quarter estimate includes projected earnings from our downstream businesses of approximately $45 million. Results could vary based on commodity prices, drilling results, timing of crude oil and natural gas sales, retail marketing and U.K. refining margins, and foreign exchange movements.”

The public is invited to access the Company’s conference call to discuss second quarter 2012 results on Thursday, August 2, 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 1-800-946-0706. The telephone reservation number for the call is 2949778. 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 6 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 4 and via Thomson StreetEvents for their service subscribers.

Summary financial data and operating statistics for the second quarter and first six months of 2012 with comparisons to 2011 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 2011 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, 2012					Three Months Ended June 30, 2011
	Revenues		Income			Revenues			Income
Exploration and production
United States	$	201.7		(1.2	)		198.3			52.1
Canada		264.9		43.7			328.7			95.8
Malaysia		611.4		223.2			439.8			166.0
United Kingdom		32.7		4.1			33.5			9.3
Republic of the Congo		—		(5.3	)		33.1			(3.3	)
Other		0.1		(34.4	)		23.1			(76.6	)
		1,110.8		230.1			1,056.5			243.3
Refining and marketing
United States		4,512.1		73.3			4,763.8			75.9
United Kingdom		1,556.7		7.2			1,641.8			(15.8	)
		6,068.8		80.5			6,405.6			60.1
		7,179.6		310.6			7,462.1			303.4
Intersegment transfers elimination		—		—			(54.5	)		—
		7,179.6		310.6			7,407.6			303.4
Corporate		10.8		(15.2	)		8.3			(23.4	)
Revenue/income from continuing operations		7,190.4		295.4			7,415.9			280.0
Discontinued operations, net of tax		—		—			—			31.6
Total revenues/net income	$	7,190.4		295.4			7,415.9			311.6
	Six Months Ended June 30, 2012					Six Months Ended June 30, 2011
	Revenues		Income			Revenues			Income
Exploration and production
United States	$	422.8		49.6			366.5			68.6
Canada		571.9		117.0			615.0			182.2
Malaysia		1,175.3		447.2			957.3			361.8
United Kingdom		70.3		12.8			63.7			18.3
Republic of the Congo		57.6		(3.7	)		67.7			0.3
Other		0.1		(71.2	)		24.4			(127.5	)
		2,298.0		551.7			2,094.6			503.7
Refining and marketing
United States		8,776.3		66.1			8,726.9			84.9
United Kingdom		3,096.7		10.2			2,946.9			(24.5	)
		11,873.0		76.3			11,673.8			60.4
		14,171.0		628.0			13,768.4			564.1
Intersegment transfers elimination		—		—			(94.7	)		—
		14,171.0		628.0			13,673.7			564.1
Corporate		13.9		(42.5	)		13.9			(45.6	)
Revenue/income from continuing operations		14,184.9		585.5			13,687.6			518.5
Discontinued operations, net of tax		—		—			—			62.0
Total revenues/net income	$	14,184.9		585.5			13,687.6			580.5

MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (Unaudited)

THREE MONTHS ENDED JUNE 30, 2012 AND 2011

				Canada							United			Republic
(Millions of dollars)	United States			Conven- tional		Syn- thetic		Malaysia			King- dom			of the Congo			Other			Total
Three Months Ended June 30, 2012
Oil and gas sales and other revenues	$	201.7			172.1		92.8		611.4			32.7			—			.1			1,110.8
Production expenses		55.0			40.5		58.7		124.1			6.3			3.8			—			288.4
Depreciation, depletion and amortization		65.3			76.9		12.4		122.4			12.9			—			.5			290.4
Accretion of asset retirement obligations		2.9			1.3		2.2		2.8			.2			.2			—			9.6
Exploration expenses
Dry holes		32.2			—		—		—			—			—			1.4			33.6
Geological and geophysical		3.3			.1		—		.3			—			.1			4.5			8.3
Other		1.8			.3		—		—			(.2	)		—			6.3			8.2
		37.3			.4		—		.3			(.2	)		.1			12.2			50.1
Undeveloped lease amortization		28.4			7.3		—		—			—			—			10.8			46.5
Total exploration expenses		65.7			7.7		—		.3			(.2	)		.1			23.0			96.6
Selling and general expenses		13.1			4.4		.2		(1.4	)		1.8			1.2			11.0			30.3
Results of operations before taxes		(.3	)		41.3		19.3		363.2			11.7			(5.3	)		(34.4	)		395.5
Income tax provisions		.9			12.0		4.9		140.0			7.6			—			—			165.4
Results of operations (excluding corporate overhead and interest)	$	(1.2	)		29.3		14.4		223.2			4.1			(5.3	)		(34.4	)		230.1
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

MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (Unaudited)

SIX MONTHS ENDED JUNE 30, 2012 AND 2011

			Canada								United			Republic
(Millions of dollars)	United States		Conven- tional			Syn- thetic		Malaysia			King- dom			of the Congo			Other			Total
Six Months Ended June 30, 2012
Oil and gas sales and other revenues	$	422.8		361.5			210.4		1,175.3			70.3			57.6			.1			2,298.0
Production expenses		103.5		84.9			111.3		213.3			11.7			20.8			—			545.5
Depreciation, depletion and amortization		128.3		154.1			25.7		235.1			20.7			33.8			1.1			598.8
Accretion of asset retirement obligations		5.7		2.6			4.2		5.7			.5			.4			—			19.1
Exploration expenses
Dry holes		32.2		.8			—		—			—			—			1.2			34.2
Geological and geophysical		3.5		4.3			—		.2			—			.2			11.4			19.6
Other		5.7		.5			—		—			(.1	)		.2			14.4			20.7
		41.4		5.6			—		.2			(.1	)		.4			27.0			74.5
Undeveloped lease amortization		39.5		14.4			—		—			—			—			21.2			75.1
Total exploration expenses		80.9		20.0			—		.2			(.1	)		.4			48.2			149.6
Selling and general expenses		25.2		8.5			.4		(1.1	)		2.8			2.1			22.0			59.9
Results of operations before taxes		79.2		91.4			68.8		722.1			34.7			.1			(71.2	)		925.1
Income tax provisions		29.6		25.8			17.4		274.9			21.9			3.8			—			373.4
Results of operations (excluding corporate overhead and interest)	$	49.6		65.6			51.4		447.2			12.8			(3.7	)		(71.2	)		551.7
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

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,
	2012			2011			2012			2011
Revenues	$	7,190,339			7,415,925			14,184,858			13,687,598
Costs and expenses
Crude oil and product purchases		5,631,187			5,948,971			11,145,566			10,905,347
Operating expenses		538,771			485,276			1,032,632			950,036
Exploration expenses		96,548			122,538			149,563			218,812
Selling and general expenses		89,447			77,532			178,634			147,193
Depreciation, depletion and amortization		322,724			256,785			663,098			520,532
Accretion of asset retirement obligations		9,777			9,657			19,555			19,144
Redetermination of Terra Nova working interest		—			—			—			(5,351	)
Interest expense		11,598			12,600			23,337			24,319
Interest capitalized		(9,476	)		(2,639	)		(15,899	)		(9,072	)
		6,690,576			6,910,720			13,196,486			12,770,960
Income from continuing operations before income taxes		499,763			505,205			988,372			916,638
Income tax expense		204,326			225,189			402,864			398,180
Income from continuing operations		295,437			280,016			585,508			518,458
Income from discontinued operations, net of income taxes		—			31,597			—			62,058
Net income	$	295,437			311,613			585,508			580,516
Per Common share—Basic
Continuing operations	$	1.52			1.45			3.02			2.68
Discontinued operations		—			0.16			—			0.32
Net income	$	1.52			1.61			3.02			3.00
Per Common share—Diluted
Continuing operations	$	1.52			1.44			3.01			2.66
Discontinued operations		—			0.16			—			0.32
Net income	$	1.52			1.60			3.01			2.98
Cash dividends per Common share	$	0.275			0.275			0.55			0.55
Average Common shares outstanding (thousands)
Basic		194,209			193,482			194,051			193,267
Diluted		194,846			194,916			194,820			194,642

MURPHY OIL CORPORATION

SUMMARIZED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(Thousands of dollars)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
Operating Activities
Net income	$	295,437			311,613			585,508			580,516
Adjustments to reconcile net income to net cash provided by operating activities
Income from discontinued operations		—			(31,597	)		—			(62,058	)
Depreciation, depletion and amortization		322,724			256,785			663,098			520,532
Amortization of deferred major repair costs		5,038			5,957			10,949			11,640
Expenditures for asset retirements		(5,820	)		(9,962	)		(12,777	)		(16,441	)
Dry hole costs		33,597			69,503			34,217			105,307
Amortization of undeveloped leases		46,440			31,143			75,072			60,530
Accretion of asset retirement obligations		9,777			9,657			19,555			19,144
Deferred and noncurrent income tax charges		35,281			8,751			42,791			9,564
Pretax gain from disposition of assets		(35	)		(23,079	)		(125	)		(23,132	)
Net increase in operating working capital other than cash and cash equivalents		(401,590	)		(315,233	)		(103,256	)		(455,655	)
Other—net		15,263			31,222			32,086			69,776
Net cash provided by continuing operations		356,112			344,760			1,347,118			819,723
Net cash provided by discontinued operations		—			50,282			—			98,219
Net cash provided by operating activities		356,112			395,042			1,347,118			917,942
Investing Activities
Property additions and dry holes		(769,755	)		(718,486	)		(1,337,019	)		(1,227,366	)
Proceeds from sale of assets		40			27,462			163			27,538
Purchases of investment securities*		(366,908	)		(247,353	)		(836,472	)		(675,606	)
Proceeds from maturity of investment securities*		390,488			166,287			897,793			754,082
Expenditures for major repairs		(7,440	)		—			(7,440	)		—
Investing activities of discontinued operations		—			(14,147	)		—			(29,618	)
Other—net		1,983			2,128			5,872			4,326
Net cash required by investing activities		(751,592	)		(784,109	)		(1,277,103	)		(1,146,644	)
Financing Activities
Borrowings of notes payable		541,907			559,990			541,896			594,980
Maturities of notes payable		(350,000	)		—			(350,000	)		—
Proceeds from exercise of stock options and employee stock purchase plans		2,153			1,084			8,752			7,900
Excess tax benefits related to exercise of stock options		291			(185	)		1,328			4,068
Withholding tax on stock-based incentive awards		1,798			—			(3,703	)		(8,014	)
Issue cost of notes payable and debt facility		(3,943	)		(7,672	)		(3,943	)		(7,672	)
Cash dividends paid		(53,414	)		(53,208	)		(106,797	)		(106,312	)
Net cash provided by financing activities		138,792			500,009			87,533			484,950
Effect of exchange rate changes on cash and cash equivalents		(8,319	)		885			221			9,173
Net increase (decrease) in cash and cash equivalents		(265,007	)		111,827			157,769			265,421
Cash and cash equivalents at beginning of period		936,649			689,419			513,873			535,825
Cash and cash equivalents at end of period	$	671,642			801,246			671,642			801,246

* 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, 2011)

(Millions of dollars)

	June 30,		Dec. 31,
	2012		2011
Total current assets	$	3,444.0		3,447.7
Total current liabilities		2,550.8		2,824.9
Total assets		15,000.8		14,138.1
Long-term debt		791.5		249.6
Stockholders' equity		9,304.6		8,778.4

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2012		2011		2012		2011
Capital expenditures
Exploration and production
United States	$	336.7		285.0		551.3		372.4
Canada		136.6		217.8		290.9		425.5
Malaysia		357.4		158.9		658.4		242.2
Other		44.7		78.1		89.9		216.8
		875.4		739.8		1,590.5		1,256.9
Refining and marketing
United States1		27.0		34.8		45.3		80.7
United Kingdom		5.6		5.6		10.1		7.6
		32.6		40.4		55.4		88.3
Corporate		1.6		1.9		3.4		3.5
Total capital expenditures		909.6		782.1		1,649.3		1,348.7
Charged to exploration expenses2
United States		37.3		6.1		41.4		28.5
Canada		0.4		1.3		5.6		3.1
Malaysia		0.3		5.7		0.2		5.8
Other		12.1		78.3		27.3		120.9
Total charged to exploration expenses		50.1		91.4		74.5		158.3
Total capitalized	$	859.5		690.7		1,574.8		1,190.4
1    Includes capital expenditures of U.S. refineries presented as discontinued operations	$	—		13.6		—		31.4
2     Excludes amortization of undeveloped leases of	$	46.5		31.1		75.1		60.5

MURPHY OIL CORPORATION

STATISTICAL SUMMARY

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2012		2011		2012		2011
Exploration and Production
Net crude oil, condensate and gas liquids produced – barrels per day		104,012		94,242		105,751		103,725
United States		19,746		17,050		20,013		16,934
Canada – light		299		79		252		57
– heavy		6,874		5,726		7,640		6,762
– offshore		8,587		9,279		8,982		9,043
– synthetic		11,449		12,720		12,380		13,805
Malaysia		51,523		41,995		50,741		48,569
United Kingdom		3,477		2,369		3,274		2,725
Republic of the Congo		2,057		5,024		2,469		5,830
Net crude oil, condensate and gas liquids sold – barrels per day		104,768		90,004		106,665		101,341
United States		19,746		17,050		20,013		16,934
Canada – light		299		79		252		57
– heavy		6,874		5,726		7,640		6,762
– offshore		10,353		8,778		9,486		8,933
– synthetic		11,449		12,720		12,380		13,805
Malaysia		52,938		39,279		50,820		48,447
United Kingdom		3,109		2,906		3,122		2,741
Republic of the Congo		—		3,466		2,952		3,662
Net natural gas sold – thousands of cubic feet per day		507,379		457,288		516,507		435,283
United States		51,867		50,487		51,549		52,363
Canada		242,039		194,850		242,162		156,286
Malaysia – Sarawak		181,347		176,265		182,991		173,425
– Kikeh		29,127		31,631		36,435		48,140
United Kingdom		2,999		4,055		3,370		5,069
Total net hydrocarbons produced – equivalent barrels per day1		188,575		170,457		191,836		176,272
Total net hydrocarbons sold – equivalent barrels per day1		189,331		166,219		192,750		173,888
Weighted average sales prices
Crude oil, condensate and gas liquids – dollars per barrel2
United States	$	102.47	$	109.21	$	106.32	$	102.47
Canada3 – light		78.91		99.94		84.18		97.56
– heavy		45.41		64.55		48.44		58.03
– offshore		108.30		115.50		112.86		108.70
– synthetic		88.97		114.98		93.38		104.03
Malaysia4		95.48		90.05		97.47		86.88
United Kingdom		105.79		112.37		112.93		111.46
Republic of the Congo4		–		105.16		107.26		102.19
Natural gas – dollars per thousand cubic feet
United States2	$	2.05	$	4.43	$	2.34	$	4.31
Canada3		2.17		4.22		2.36		4.29
Malaysia – Sarawak		7.88		6.40		7.80		6.15
– Kikeh		0.24		0.24		0.24		0.24
United Kingdom3		9.88		10.10		9.71		9.98

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 terms of the respective production sharing contracts.

MURPHY OIL CORPORATION

STATISTICAL SUMMARY (Continued)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
Refining and Marketing
United States retail marketing:
Fuel margin per gallon1	$	0.197		$	0.199		$	0.137		$	0.146
Gallons sold per store month		275,741			283,111			265,302			277,658
Merchandise sales revenue per store month	$	158,626			161,722			155,783			155,072
Merchandise margin as a percentage of merchandise sales		13.4	%		12.9	%		13.2	%		13.3	%
Store count at end of period (Company operated)		1,139			1,118			1,139			1,118
United Kingdom refining and marketing—unit margins per barrel	$	1.26			(1.76	)		1.03			(1.22	)
Petroleum products sold—barrels per day		483,561			601,498			467,049			583,019
United States		344,415			459,209	2		332,195			448,551	2
Gasoline		294,282			330,976			284,336			325,485
Kerosine		16			13,768			116			14,886
Diesel and home heating oils		50,117			86,714			47,743			83,904
Residuals		—			16,926			—			16,080
Asphalt, LPG and other		—			10,825			—			8,196
United Kingdom		139,146			142,289			134,854			134,468
Gasoline		46,981			39,943			45,830			33,349
Kerosine		19,584			16,664			17,728			16,115
Diesel and home heating oils		49,249			49,859			46,466			47,305
Residuals		16,676			17,526			16,187			14,543
LPG and other		6,656			18,297			8,643			23,156
U.K. refinery inputs—barrels per day		133,158			139,886			131,954			132,468
Milford Haven, Wales - crude oil		130,059			136,428			128,530			128,919
- other feedstocks		3,099			3,458			3,424			3,549
U.K. refinery yields—barrels per day		133,158			139,886			131,954			132,468
Gasoline		44,961			36,843			44,767			31,742
Kerosine		17,985			17,937			17,037			17,043
Diesel and home heating oils		48,762			49,499			44,551			46,180
Residuals		15,874			14,951			15,730			13,259
LPG and other		2,033			17,359			6,313			21,251
Fuel and loss		3,543			3,297			3,556			2,993

¹ Represents net sales prices for fuel less purchased cost of fuel.

²  Includes 166,249 bbls. per day in the three-month period in 2011 and 160,032 bbls. per day in the six-month period in 2011 related to discontinued operations in the United States. Subsequent to the sale of the U.S. refineries in late 2011, a portion of the reduction in refined products produced and sold by these discontinued operations were offset by higher finished products purchased and sold by the Company’s ongoing marketing operations.