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Form 8-K MURPHY OIL CORP /DE For: Oct 29

October 30, 2014 8:57 AM EDT

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): October�29, 2014

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 October�29, 2014, Murphy Oil Corporation issued a news release announcing its preliminary earnings for the third quarter that ended on September�30, 2014. 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 October�29, 2014 announcing preliminary earnings for the third quarter that ended on September�30, 2014 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: October�30, 2014


Exhibit Index

99.1 �� News release dated October�29, 2014, as issued by Murphy Oil Corporation.

Exhibit 99.1

PRESS RELEASE

CONTACT: Barry Jeffery

Vice President, Investor Relations

870.864.6501

For Release: Immediately, October�29, 2014

MURPHY OIL ANNOUNCES PRELIMINARY THIRD QUARTER 2014 EARNINGS

EL DORADO, Arkansas, October�29, 2014 � Murphy Oil Corporation (NYSE: MUR) announced today that net income was $245.7 million ($1.37 per diluted share) in the 2014 third quarter, down from $284.8 million ($1.51 per diluted share) in the third quarter 2013. Income from continuing operations in the 2014 third quarter was $271.0 million ($1.51 per diluted share) compared to $265.0 million ($1.41 per diluted share) earned in the third quarter a year ago.

Adjusted earnings, which exclude both the results of discontinued operations and certain other items that affect comparability of results between periods, in the third quarter of 2014 was $205.6�million ($1.15 per diluted share). This was a decrease of $24.8�million ($0.07 per diluted share) compared to the prior year�s quarter.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for continuing operations totaled $925.3�million in the third quarter 2014, up from $878.9�million in the third quarter of 2013. EBITDA per barrel of oil equivalent sold was $44.15 in the 2014 quarter compared to $47.05 in the 2013 quarter.

Earnings were negatively impacted in the 2014 quarter compared to the prior year due to lower average realized oil sales prices of near $9.00 per barrel.

Third quarter 2014 highlights were as follows:

Signed a Sales and Purchase Agreement to sell 30% of Murphy�s Malaysia business for $2.0 billion

Authorized a new $500�million share repurchase program on August�6, 2014 and announced a 12% dividend increase to $1.40 per share on an annualized basis


Set a new quarterly production record of 229,759 barrels of oil equivalent per day (boepd)

Grew Eagle Ford Shale production 15% compared to the second quarter and set a new quarterly record of 60,563 boepd

Closed on the sale of the U.K. retail gasoline business on September�30, 2014 and remain on-track to close on the Milford Haven refinery sale October�31, 2014

Roger W. Jenkins, President and Chief Executive Officer, commented, �I am pleased with the progress we are making in portfolio optimization, production operations, and return to shareholders. The signing of the Malaysia sales agreement marks the value of those long term assets at near $7�billion, and we continue to progress our exit of the downstream business in the United Kingdom. In production we continue to set quarterly production records, with the Eagle�Ford Shale and offshore Malaysia projects leading in oil growth. Our recently announced share repurchase authorization and dividend increase continue to reward our shareholders. We have now returned nearly $4�billion to our shareholders since 2012 through the spin-off of Murphy USA, cash dividends and share repurchases. We look forward to a strong closing quarter of the year, and I anticipate setting another quarterly production record as we maintain our current annual guidance.�

Operations Summary

Production

Third quarter production averaged 229,759 boepd. This production level was approximately 2% over our guidance of 225,000 boepd for the quarter and was primarily attributed to higher production across the Gulf of Mexico and in Sarawak, Malaysia.

North America Onshore

In the Eagle Ford Shale, third quarter production, which was comprised of 90% liquids, averaged 60,563 boepd net, up from 52,814 boepd in the prior quarter as we brought 64 new wells on line. We have reduced to seven drilling rigs and three completion spreads across the play and expect to bring on close to 40 new wells in the fourth quarter for a total of just over 200 wells (including non-operated locations) this year. We continue with downspacing development and piloting to test staggered spacing with the Upper Eagle Ford Shale zone with continued positive results. We are currently adding to our acreage position in the Eagle Ford Shale with a bolt-on acquisition of approximately 5,800 net acres adjacent to our current operations in North Tilden in Atascosa�County. This new acreage provides close to 35 well locations at 160 acre spacing, with upside potential associated with downspacing which is under review.

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At the Tupper gas fields in Western Canada, third quarter production was 146 mmcfd as we move forward with our plan to �drill to fill� our existing gas plant capacity. We currently have three rigs and one completion spread in operation to deliver 19 wells this year. We continue to see positive results using our new completion and choke management strategies.

Syncrude was hampered by unplanned maintenance during the third quarter with production averaging 11,200 bopd. Operations have recovered and are on track for improved production levels in the fourth quarter.

Global Offshore

In Malaysia, we announced the signing of a Sale and Purchase Agreement to sell-down 30% of our oil and gas assets for $2 billion subject to customary approvals, closing costs and adjustments. The effective date of the transaction is January�1, 2014 with closing expected to take place in two phases. The first phase, comprising two-thirds of the transaction, is expected to close late in the fourth quarter of this year with the second phase expected to close in the first quarter of 2015. Production offshore Sabah was 35,090 boepd for the third quarter with 94% liquids. At Siakap North-Petai, where we currently hold a 32% working interest, we have completed eight producers and five water injectors and are currently drilling an additional producer for the field. The Kakap-Gumusut main project, where we have a 14% working interest, declared first oil on October�8, 2014. The project is expected to ramp up in stages over the fourth quarter and into early next year. The floating LNG project in Block H continues to progress on schedule. In shallow water offshore Sarawak (SK), gas production for the third quarter was 175�million cubic feet per day, with the quarter having strong nominations into the LNG facility. SK liquids production was 22,646 bopd for the quarter. The new field developments continue to perform above plan. Drilling continues at the South Acis field where we delivered four oil wells during the third quarter and expect to complete another four in the fourth quarter.

In the Gulf of Mexico, the Dalmatian wells, where we hold a 70% working interest, continue to perform well. Production for the quarter was 10,157 boepd with 53% liquids. The levels are above original plans but were limited by maintenance work at the Petronius host platform. At Medusa in Mississippi Canyon, where we have a 60% working interest, we started drilling the first of two expansion wells. This development consists of drilling two subsea wells this year with a subsea tieback to the Medusa facility and first production from the new wells in mid-2015.

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Exploration

In the GOM, the rig is now on location at the Urca prospect in Mississippi Canyon Block 697. We currently hold a 50% working interest as operator and are in final negotiations to reduce our equity interest to 35%. This lower Miocene sub-salt structure has a pre-drill gross mean resource size of 130�million barrels.

We plan to start an 8,000 square kilometer 3D seismic program across Block EPP 43 in the Ceduna Basin offshore Australia in November.

U.K. Downstream

In the U.K. downstream business, we closed on the sale of the U.K. retail business on September�30, 2014. We are scheduled to close on the sale of the Milford Haven refinery on October�31, 2014. The results of our U.K. Downstream business continue to be reflected as discontinued operations for financial reporting purposes.

Earnings Conference Call

The public is invited to access the Company�s conference call to discuss third quarter 2014 results on Thursday, October�30 at 12:00 p.m. CDT either via the Internet through the Investor Relations section of Murphy Oil�s Web site at http://ir.murphyoilcorp.com or via the telephone by dialing 1-877-723-9518. The telephone reservation number for the call is 6263299. 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�4 by calling 1-888-203-1112 and referencing reservation number 6263299. A replay of the conference call will also be available on the Murphy Web site for 30�days after the event and via Thomson StreetEvents for their service subscribers.

Financial Data

Summary financial data and operating statistics for the third quarter of 2014 with comparisons to 2013 are contained in the following tables. Additionally, a schedule indicating the impacts of items affecting comparability of earnings between periods and a schedule comparing EBITDA between periods are included with these tables as well as guidance for the fourth quarter.

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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, including Murphy�s plans to divest its U.K. downstream operations, are subject to inherent risks and uncertainties. Factors that could cause one or more of these forecasted events not to occur include, but are not limited to, a failure to obtain necessary regulatory approvals, a deterioration in the business or prospects of Murphy or its U.K. refining business, adverse developments in Murphy or its U.K. refining and marketing business� markets, adverse developments in the U.S. or global capital markets, credit markets or economies in general, or a failure to execute a sale of the U.K. downstream operations on acceptable terms or in the timeframe contemplated. 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, adverse foreign exchange movements, political and regulatory instability, and uncontrollable natural hazards. For further discussion of risk factors, see both Murphy�s 2013 Annual Report on Form 10-K and Form 10-Q for the quarterly period ended June�30, 2014, on file with the U.S. Securities and Exchange Commission. Murphy undertakes no duty to publicly update or revise any forward-looking statements.

This news release also contains certain historical non-GAAP measures of financial performance that management believes are good tools for internal use and the investment community in evaluating Murphy Oil Corporation�s overall financial performance. These non-GAAP measures are broadly used to value and compare companies in the crude oil and natural gas industry. Please see the attached schedules for reconciliations of the differences between non-GAAP measures used in this news release and the most directly comparable GAAP financial measures.

The Securities and Exchange Commission requires oil and gas companies, in their filings with the SEC, to disclose proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. The SEC permits the optional disclosure of probable and possible reserves; however, we have not disclosed the Company�s probable and possible reserves in our filings with the SEC. We use the term �gross mean resources� in this news release. These

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estimates are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of being actually realized. The SEC guidelines strictly prohibit us from including these estimates in filings with the SEC. Investors are urged to consider closely the disclosures and risk factors in our most recent annual report on Form 10-K and in other reports on file with the SEC, available from Murphy Oil Corporation�s offices or Web site at http://ir.murphyoilcorp.com.

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MURPHY OIL CORPORATION

SUMMARIZED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(Thousands of dollars, except per share amounts)

�� Three Months Ended Nine Months Ended
�� September�30, September�30,
�� 2014 2013* 2014 2013*

Revenues

�� $ 1,433,037 �� 1,419,496 �� 4,068,458 �� 4,042,420 ��
��

Costs and expenses

��

Lease operating expenses

�� 265,518 �� 258,524 �� 813,638 �� 847,522 ��

Severance and ad valorem taxes

�� 28,574 �� 22,393 �� 83,793 �� 57,790 ��

Exploration expenses

�� 117,433 �� 147,845 �� 390,711 �� 345,110 ��

Selling and general expenses

�� 82,960 �� 99,333 �� 269,986 �� 267,704 ��

Depreciation, depletion and amortization

�� 499,151 �� 394,667 �� 1,354,393 �� 1,139,193 ��

Accretion of asset retirement obligations

�� 12,600 �� 12,539 �� 36,992 �� 36,396 ��

Impairment of assets

�� ��� �� ��� �� ��� �� 21,587 ��

Interest expense

�� 34,970 �� 33,535 �� 101,625 �� 90,156 ��

Interest capitalized

�� (5,323 )� (13,011 )� (19,244 )� (40,877 )�

Other expense

�� 661 �� ��� �� 1,297 �� ��� ��
��

�� 1,036,544 �� 955,825 �� 3,033,191 �� 2,764,581 ��
��

Income from continuing operations before�income taxes

�� 396,493 �� 463,671 �� 1,035,267 �� 1,277,839 ��

Income tax expense

�� 125,435 �� 198,593 �� 452,255 �� 570,189 ��
��

Income from continuing operations

�� 271,058 �� 265,078 �� 583,012 �� 707,650 ��

Income (loss) from discontinued operations, net of income taxes

�� (25,350 )� 19,731 �� (52,639 )� 340,402 ��
��

Net income

�� $ 245,708 �� 284,809 �� 530,373 �� 1,048,052 ��
��

Income (loss) per Common share�Basic

��

Continuing operations

�� $ 1.52 �� 1.42 �� 3.25 �� 3.75 ��

Discontinued operations

�� (0.14 )� 0.10 �� (0.29 )� 1.80 ��
��

Net income

�� $ 1.38 �� 1.52 �� 2.96 �� 5.55 ��
��

Income (loss) per Common share�Diluted

��

Continuing operations

�� $ 1.51 �� 1.41 �� 3.23 �� 3.72 ��

Discontinued operations

�� (0.14 )� 0.10 �� (0.29 )� 1.79 ��
��

Net income

�� $ 1.37 �� 1.51 �� 2.94 �� 5.51 ��
��

Cash dividends per Common share

�� $ 0.35 �� 0.3125 �� 0.975 �� 0.9375 ��

Average Common shares outstanding (thousands)

��

Basic

�� 177,536 �� 186,938 �� 179,260 �� 188,914 ��

Diluted

�� 178,856 �� 188,338 �� 180,578 �� 190,245 ��

* Reclassified to conform to current presentation.

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MURPHY OIL CORPORATION

SUMMARIZED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(Thousands of dollars)

�� Three Months Ended Nine Months Ended
�� September�30, September�30,
�� 2014 20131 2014 20131

Operating Activities

��

Net income

�� $ 245,708 �� 284,809 �� 530,373 �� 1,048,052 ��

Adjustments to reconcile net income to net cash provided by operating activities

��

Loss (income) from discontinued operations

�� 25,350 �� (19,731 )� 52,639 �� (340,402 )�

Depreciation, depletion and amortization

�� 499,151 �� 394,667 �� 1,354,393 �� 1,139,193 ��

Impairment of assets

�� ��� �� ��� �� ��� �� 21,587 ��

Amortization of deferred major repair costs

�� 2,077 �� 1,972 �� 6,390 �� 6,387 ��

Dry hole costs

�� 75,780 �� 79,235 �� 203,607 �� 160,540 ��

Amortization of undeveloped leases

�� 17,981 �� 21,235 �� 55,745 �� 53,287 ��

Accretion of asset retirement obligations

�� 12,600 �� 12,539 �� 36,992 �� 36,396 ��

Deferred and noncurrent income tax charges

�� 46,435 �� 68,657 �� 64,557 �� 141,402 ��

Pretax loss from disposition of assets

�� 133 �� 38 �� 5,130 �� 262 ��

Net (increase) decrease in operating working capital other�than cash and cash equivalents

�� (41,509 )� 107,267 �� 6,940 �� (24,545 )�

Other�net

�� (4,575 )� (1,719 )� 17,531 �� (24,206 )�
��

Net cash provided by continuing operations

�� 879,131 �� 948,969 �� 2,334,297 �� 2,217,953 ��

Net cash provided by discontinued operations

�� 15,203 �� 60,537 �� 19,720 �� 460,563 ��
��

Net cash provided by operating activities

�� 894,334 �� 1,009,506 �� 2,354,017 �� 2,678,516 ��
��

Investing Activities

��

Property additions and dry holes

�� (966,161 )� (841,605 )� (2,806,705 )� (2,695,507 )�

Proceeds from sale of assets

�� 49 �� 1,241 �� 3,138 �� 1,371 ��

Purchases of investment securities2

�� (299,828 )� (297,419 )� (672,689 )� (670,615 )�

Proceeds from maturity of investment securities2

�� 267,010 �� 137,510 �� 587,341 �� 496,425 ��

Investing activities of discontinued operations

��

Sales proceeds for U.K. operations

�� ��� �� ��� �� ��� �� 282,202 ��

Property additions and other

�� (3,009 )� (35,556 )� (12,101 )� (158,363 )�

Other�net

�� (6,226 )� (3,101 )� (19,233 )� (1,383 )�
��

Net cash required by investing activities

�� (1,008,165 )� (1,038,930 )� (2,920,249 )� (2,745,870 )�
��

Financing Activities

��

Borrowings (repayments) of notes payable

�� 200,000 �� (461,978 )� 1,050,000 �� ��� ��

Purchase of treasury stock

�� ��� �� ��� �� (375,000 )� (250,000 )�

Proceeds from exercise of stock options

�� ��� �� 150 �� ��� �� 2,778 ��

Withholding tax on stock-based incentive awards

�� (2 )� (3,747 )� (6,786 )� (12,713 )�

Cash dividends paid

�� (62,122 )� (58,429 )� (174,248 )� (177,805 )�

Separation of retail business:

��

Cash distributed to Company by Murphy USA

�� ��� �� 650,000 �� ��� �� 650,000 ��

Cash held and retained by Murphy USA upon separation

�� ��� �� (55,506 )� ��� �� (55,506 )�

Other�net

�� (160 )� (310 )� (1,384 )� (3,034 )�
��

Net cash provided by financing activities

�� 137,716 �� 70,180 �� 492,582 �� 153,720 ��
��

Effect of exchange rate changes on cash and cash equivalents

�� (10,950 )� 18,755 �� (2,484 )� 255 ��
��

Net increase (decrease) in cash and cash equivalents

�� 12,935 �� 59,511 �� (76,134 )� 86,621 ��

Cash and cash equivalents at beginning of period

�� 661,086 �� 974,426 �� 750,155 �� 947,316 ��
��

Cash and cash equivalents at end of period

�� $ 674,021 �� 1,033,937 �� 674,021 �� 1,033,937 ��
��

1 Reclassified to conform to current presentation.
2 Represents cash invested in Canadian government securities with maturities greater than 90 days at the date of acquisition.

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MURPHY OIL CORPORATION

SCHEDULE OF ADJUSTED EARNINGS

(Unaudited)

(Millions of dollars, except per share amounts)

�� Three�Months�Ended Nine�Months�Ended
�� September 30, September 30,
�� 2014 2013 2014 2013

Net income

�� $ 245.7 �� 284.8 �� 530.4 �� 1,048.0 ��

Discontinued operations (income) loss

�� 25.3 �� (19.8 )� 52.6 �� (340.4 )�
��

Income from continuing operations

�� 271.0 �� 265.0 �� 583.0 �� 707.6 ��

Mark-to-market gain on crude oil derivative contracts

�� (28.0 )� ��� �� (4.3 )� ��� ��

Foreign exchange (gains) losses

�� (3.1 )� (45.6 )� 1.0 �� (58.0 )�

Tax benefits on investments in foreign areas

�� (34.3 )� ��� �� (34.3 )� ��� ��

Oil Insurance Limited dividend

�� ��� �� ��� �� (3.3 )� ��� ��

Impairments of properties

�� ��� �� ��� �� ��� �� 15.9 ��

Expenses associated with spin-off of MUSA

�� ��� �� 11.0 �� ��� �� 13.8 ��
��

Adjusted earnings

�� $ 205.6 �� 230.4 �� 542.1 �� 679.3 ��
��

Adjusted earnings per diluted share

�� $ 1.15 �� 1.22 �� 3.00 �� 3.57 ��
��

Non-GAAP Financial Measures

Presented above is a reconciliation of Net income to Adjusted earnings. Adjusted earnings excludes certain items that management believes affect the comparability of earnings between periods. Management believes this is important information to provide because it is used by management to evaluate the Company�s operational performance and trends between periods and relative to its industry competitors. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company�s financial results. Adjusted earnings is a non-GAAP financial measure and should not be considered a substitute for Net income as determined in accordance with accounting principles generally accepted in the United States of America.

Note: Amounts shown above as reconciling items between Net income and Adjusted earnings are presented net of applicable income taxes.

9


MURPHY OIL CORPORATION

SCHEDULE OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION

AND AMORTIZATION (EBITDA)

(Unaudited)

(Millions of dollars, except per barrel of oil equivalents sold)

�� Three Months Ended Nine Months Ended
�� September�30, September�30,
�� 2014 2013 2014 2013

Income from continuing operations

�� $ 271.0 �� 265.0 �� 583.0 �� 707.6 ��

Income tax expense

�� 125.4 �� 198.6 �� 452.2 �� 570.2 ��

Interest expense

�� 35.0 �� 33.6 �� 101.6 �� 90.2 ��

Interest capitalized

�� (5.3 )� (13.0 )� (19.2 )� (40.9 )�

Depreciation, depletion and amortization expense

�� 499.2 �� 394.7 �� 1,354.4 �� 1,139.2 ��
��

Earnings before interest, taxes, depreciation and amortization (EBITDA)

�� $ 925.3 �� 878.9 �� 2,472.0 �� 2,466.3 ��
��

Total barrels of oil equivalents sold from continuing operations (thousands of barrels)

�� 20,959.6 �� 18,680.4 �� 58,715.2 �� 56,004.2 ��
��

EBITDA per barrel of oil equivalents sold

�� $ 44.15 �� 47.05 �� 42.10 �� 44.04 ��
��

Non-GAAP Financial Measures

Presented above is a reconciliation of Income from continuing operation to Earnings before interest, taxes, depreciation and amortization (EBITDA). Management believes EBITDA is important information to provide because it is used by management to evaluate the Company�s operational performance and trends between periods and relative to its industry competitors. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company�s financial results. EBITDA is a non-GAAP financial measure and should not be considered a substitute for Net income or Cash provided by operating activities as determined in accordance with accounting principles generally accepted in the United States of America.

10


MURPHY OIL CORPORATION

FUNCTIONAL RESULTS OF OPERATIONS (Unaudited)

(Millions of dollars)

�� Three Months Ended Three Months Ended
�� September�30, 2014 September�30, 2013
�� Revenues Income Revenues �� Income

Exploration and production

�� ��

United States

�� $ 667.6 �� 130.5 �� 512.0 �� �� 151.3 ��

Canada

�� 246.9 �� 40.4 �� 316.4 �� �� 77.3 ��

Malaysia

�� 516.4 �� 148.0 �� 538.0 �� �� 183.8 ��

Other

�� ��� �� (7.5 )� ��� �� �� (148.2 )�
��

��

Total exploration and production

�� 1,430.9 �� 311.4 �� 1,366.4 �� �� 264.2 ��

Corporate and other

�� 2.1 �� (40.4 )� 53.1 �� �� 0.8 ��
��

��

Revenue/income from continuing operations

�� 1,433.0 �� 271.0 �� 1,419.5 �� �� 265.0 ��

Discontinued operations, net of tax

�� ��� �� (25.3 )� ��� �� �� 19.8 ��
��

��

Total revenues/net income

�� $ 1,433.0 �� 245.7 �� 1,419.5 �� �� 284.8 ��
��

��

�� Nine Months Ended
September 30, 2014
Nine Months Ended
September 30, 2013
�� Revenues Income Revenues �� Income

Exploration and production

�� ��

United States

�� $ 1,660.4 �� 335.3 �� 1,365.1 �� �� 368.0 ��

Canada

�� 807.4 �� 160.9 �� 894.0 �� �� 142.3 ��

Malaysia

�� 1,592.2 �� 482.6 �� 1,652.7 �� �� 602.5 ��

Other

�� (0.2 )� (256.0 )� 68.9 �� �� (326.5 )�
��

��

Total exploration and production

�� 4,059.8 �� 722.8 �� 3,980.7 �� �� 786.3 ��

Corporate and other

�� 8.6 �� (139.8 )� 61.7 �� �� (78.7 )�
��

��

Revenue/income from continuing operations

�� 4,068.4 �� 583.0 �� 4,042.4 �� �� 707.6 ��

Discontinued operations, net of tax

�� ��� �� (52.6 )� ��� �� �� 340.4 ��
��

��

Total revenues/net income

�� $ 4,068.4 �� 530.4 �� 4,042.4 �� �� 1,048.0 ��
��

��

Note: Corporate and other above includes unallocated administrative expenses, interest income and net interest expense, the impacts of foreign exchange, and income taxes associated with these income and expense items.

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MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (Unaudited)

THREE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013

�� Canada �� ��

(Millions of dollars)

�� United
States
Conven-
tional
�� Syn-
thetic
�� Malaysia �� Other Total

Three Months Ended September�30, 2014

�� �� �� ��

Oil and gas sales and other revenues

�� $ 667.6 �� 150.1 �� �� 96.8 �� �� 516.4 �� �� ��� �� 1,430.9 ��

Lease operating expenses

�� 84.0 �� 42.6 �� �� 55.6 �� �� 83.3 �� �� ��� �� 265.5 ��

Severance and ad valorem taxes

�� 25.3 �� 1.9 �� �� 1.4 �� �� ��� �� �� ��� �� 28.6 ��

Depreciation, depletion and amortization

�� 234.5 �� 61.9 �� �� 13.4 �� �� 185.7 �� �� 1.3 �� 496.8 ��

Accretion of asset retirement obligations

�� 4.5 �� 1.5 �� �� 2.4 �� �� 4.2 �� �� ��� �� 12.6 ��

Exploration expenses

�� �� �� ��

Dry holes

�� 66.0 �� ��� �� �� ��� �� �� ��� �� �� 9.8 �� 75.8 ��

Geological and geophysical

�� 3.9 �� 0.1 �� �� ��� �� �� 0.5 �� �� 1.4 �� 5.9 ��

Other

�� 8.9 �� 0.3 �� �� ��� �� �� ��� �� �� 8.6 �� 17.8 ��
��

��

��

��

�� 78.8 �� 0.4 �� �� ��� �� �� 0.5 �� �� 19.8 �� 99.5 ��

Undeveloped lease amortization

�� 11.8 �� 4.9 �� �� ��� �� �� ��� �� �� 1.2 �� 17.9 ��
��

��

��

��

Total exploration expenses

�� 90.6 �� 5.3 �� �� ��� �� �� 0.5 �� �� 21.0 �� 117.4 ��
��

��

��

��

Selling and general expenses

�� 24.2 �� 6.3 �� �� 0.3 �� �� 3.4 �� �� 19.5 �� 53.7 ��

Other expenses

�� 0.7 �� ��� �� �� ��� �� �� ��� �� �� ��� �� 0.7 ��
��

��

��

��

Results of operations before taxes

�� 203.8 �� 30.6 �� �� 23.7 �� �� 239.3 �� �� (41.8 )� 455.6 ��

Income tax provisions (benefits)

�� 73.3 �� 7.8 �� �� 6.1 �� �� 91.3 �� �� (34.3 )� 144.2 ��
��

��

��

��

Results of operations (excluding corporate overhead and interest)

�� $ 130.5 �� 22.8 �� �� 17.6 �� �� 148.0 �� �� (7.5 )� 311.4 ��
��

��

��

��

Three Months Ended September�30, 2013

�� �� �� ��

Oil and gas sales and other revenues

�� $ 512.0 �� 205.6 �� �� 110.8 �� �� 538.0 �� �� ��� �� 1,366.4 ��

Lease operating expenses

�� 62.4 �� 41.3 �� �� 56.5 �� �� 93.4 �� �� 4.9 �� 258.5 ��

Severance and ad valorem taxes

�� 19.2 �� 2.0 �� �� 1.2 �� �� ��� �� �� ��� �� 22.4 ��

Depreciation, depletion and amortization

�� 156.2 �� 81.1 �� �� 12.8 �� �� 141.1 �� �� 1.0 �� 392.2 ��

Accretion of asset retirement obligations

�� 3.4 �� 1.4 �� �� 2.6 �� �� 3.9 �� �� 1.2 �� 12.5 ��

Exploration expenses

�� �� �� ��

Dry holes

�� (0.1 )� 1.6 �� �� ��� �� �� ��� �� �� 77.7 �� 79.2 ��

Geological and geophysical

�� 3.3 �� 0.1 �� �� ��� �� �� 0.4 �� �� 25.0 �� 28.8 ��

Other

�� 1.5 �� 0.2 �� �� ��� �� �� ��� �� �� 16.9 �� 18.6 ��
��

��

��

��

�� 4.7 �� 1.9 �� �� ��� �� �� 0.4 �� �� 119.6 �� 126.6 ��

Undeveloped lease amortization

�� 9.9 �� 5.2 �� �� ��� �� �� ��� �� �� 6.1 �� 21.2 ��
��

��

��

��

Total exploration expenses

�� 14.6 �� 7.1 �� �� ��� �� �� 0.4 �� �� 125.7 �� 147.8 ��
��

��

��

��

Selling and general expenses

�� 21.5 �� 5.7 �� �� 0.3 �� �� 1.4 �� �� 15.4 �� 44.3 ��
��

��

��

��

Results of operations before taxes

�� 234.7 �� 67.0 �� �� 37.4 �� �� 297.8 �� �� (148.2 )� 488.7 ��

Income tax provisions

�� 83.4 �� 17.4 �� �� 9.7 �� �� 114.0 �� �� ��� �� 224.5 ��
��

��

��

��

Results of operations (excluding corporate overhead and interest)

�� $ 151.3 �� 49.6 �� �� 27.7 �� �� 183.8 �� �� (148.2 )� 264.2 ��
��

��

��

��

12


MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (Unaudited)

NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013

�� �� Canada �� ��
�� United �� Conven- Syn- �� ��

(Millions of dollars)

�� States �� tional thetic �� Malaysia �� Other Total

Nine Months Ended September�30, 2014

�� �� �� ��

Oil and gas sales and other revenues

�� $ 1,660.4 �� �� 504.0 �� 303.4 �� �� 1,592.2 �� �� (0.2 )� 4,059.8 ��

Lease operating expenses

�� 242.1 �� �� 123.1 �� 180.1 �� �� 268.3 �� �� ��� �� 813.6 ��

Severance and ad valorem taxes

�� 75.7 �� �� 4.4 �� 3.7 �� �� ��� �� �� ��� �� 83.8 ��

Depreciation, depletion and amortization

�� 591.2 �� �� 192.1 �� 39.8 �� �� 521.1 �� �� 3.6 �� 1,347.8 ��

Accretion of asset retirement obligations

�� 12.9 �� �� 4.6 �� 7.0 �� �� 12.5 �� �� ��� �� 37.0 ��

Exploration expenses

�� �� �� ��

Dry holes

�� 73.5 �� �� ��� �� ��� �� �� ��� �� �� 130.1 �� 203.6 ��

Geological and geophysical

�� 19.7 �� �� 0.3 �� ��� �� �� 0.5 �� �� 54.8 �� 75.3 ��

Other

�� 13.0 �� �� 0.8 �� ��� �� �� ��� �� �� 42.3 �� 56.1 ��
��

��

��

��

�� 106.2 �� �� 1.1 �� ��� �� �� 0.5 �� �� 227.2 �� 335.0 ��

Undeveloped lease amortization

�� 37.2 �� �� 14.8 �� ��� �� �� ��� �� �� 3.7 �� 55.7 ��
��

��

��

��

Total exploration expenses

�� 143.4 �� �� 15.9 �� ��� �� �� 0.5 �� �� 230.9 �� 390.7 ��
��

��

��

��

Selling and general expenses

�� 71.8 �� �� 21.4 �� 0.8 �� �� 11.8 �� �� 55.6 �� 161.4 ��

Other expenses

�� 1.2 �� �� 0.1 �� ��� �� �� ��� �� �� ��� �� 1.3 ��
��

��

��

��

Results of operations before taxes

�� 522.1 �� �� 142.4 �� 72.0 �� �� 778.0 �� �� (290.3 )� 1,224.2 ��

Income tax provisions (benefits)

�� 186.8 �� �� 34.8 �� 18.7 �� �� 295.4 �� �� (34.3 )� 501.4 ��
��

��

��

��

Results of operations (excluding corporate overhead and interest)

�� $ 335.3 �� �� 107.6 �� 53.3 �� �� 482.6 �� �� (256.0 )� 722.8 ��
��

��

��

��

Nine Months Ended September�30, 2013

�� �� �� ��

Oil and gas sales and other revenues

�� $ 1,365.1 �� �� 561.1 �� 332.9 �� �� 1,652.7 �� �� 68.9 �� 3,980.7 ��

Lease operating expenses

�� 204.8 �� �� 135.3 �� 169.0 �� �� 248.9 �� �� 89.5 �� 847.5 ��

Severance and ad valorem taxes

�� 50.3 �� �� 3.8 �� 3.7 �� �� ��� �� �� ��� �� 57.8 ��

Depreciation, depletion and amortization

�� 424.3 �� �� 248.5 �� 40.5 �� �� 414.7 �� �� 3.6 �� 1,131.6 ��

Accretion of asset retirement obligations

�� 10.0 �� �� 4.4 �� 7.8 �� �� 10.6 �� �� 3.6 �� 36.4 ��

Impairment of properties

�� ��� �� �� 21.6 �� ��� �� �� ��� �� �� ��� �� 21.6 ��

Exploration expenses

�� �� �� ��

Dry holes

�� 0.6 �� �� 32.0 �� ��� �� �� 1.2 �� �� 126.7 �� 160.5 ��

Geological and geophysical

�� 16.4 �� �� (0.5 )� ��� �� �� 1.5 �� �� 71.1 �� 88.5 ��

Other

�� 6.1 �� �� 0.8 �� ��� �� �� ��� �� �� 35.9 �� 42.8 ��
��

��

��

��

�� 23.1 �� �� 32.3 �� ��� �� �� 2.7 �� �� 233.7 �� 291.8 ��

Undeveloped lease amortization

�� 23.2 �� �� 15.8 �� ��� �� �� ��� �� �� 14.3 �� 53.3 ��
��

��

��

��

Total exploration expenses

�� 46.3 �� �� 48.1 �� ��� �� �� 2.7 �� �� 248.0 �� 345.1 ��
��

��

��

��

Selling and general expenses

�� 57.1 �� �� 17.0 �� 0.7 �� �� 2.0 �� �� 44.1 �� 120.9 ��
��

��

��

��

Results of operations before taxes

�� 572.3 �� �� 82.4 �� 111.2 �� �� 973.8 �� �� (319.9 )� 1,419.8 ��

Income tax provisions

�� 204.3 �� �� 22.2 �� 29.1 �� �� 371.3 �� �� 6.6 �� 633.5 ��
��

��

��

��

Results of operations (excluding corporate overhead and interest)

�� $ 368.0 �� �� 60.2 �� 82.1 �� �� 602.5 �� �� (326.5 )� 786.3 ��
��

��

��

��

13


MURPHY OIL CORPORATION

PRODUCTION-RELATED EXPENSES

(Dollars per barrel of oil equivalents sold)

�� Three�Months�Ended �� Nine�Months�Ended
�� September�30, �� September�30,
�� 2014 �� 2013 �� 2014 �� 2013

United States � Eagle Ford Shale

�� �� �� ��

Lease operating expense

�� $ 9.79 �� �� 8.53 �� �� 10.13 �� �� 11.36 ��

Severance and ad valorem taxes

�� 4.56 �� �� 4.54 �� �� 5.09 �� �� 4.79 ��

Depreciation, depletion and amortization (DD&A) expense

�� 27.75 �� �� 29.73 �� �� 28.18 �� �� 30.70 ��

United States � Gulf of Mexico and other

�� �� �� ��

Lease operating expense

�� $ 10.28 �� �� 17.20 �� �� 13.97 �� �� 17.35 ��

Severance and ad valorem taxes

�� ��� �� �� 0.08 �� �� 0.02 �� �� 0.08 ��

DD&A expense

�� 27.91 �� �� 20.30 �� �� 26.35 �� �� 21.01 ��

Canada � Conventional operations

�� �� �� ��

Lease operating expense

�� $ 11.79 �� �� 9.30 �� �� 11.20 �� �� 10.16 ��

Severance and ad valorem taxes

�� 0.50 �� �� 0.46 �� �� 0.40 �� �� 0.29 ��

DD&A expense

�� 17.19 �� �� 18.24 �� �� 17.49 �� �� 18.65 ��

Canada � Synthetic oil operations

�� �� �� ��

Lease operating expense

�� $ 54.01 �� �� 55.49 �� �� 57.47 �� �� 50.92 ��

Severance and ad valorem taxes

�� 1.39 �� �� 1.16 �� �� 1.19 �� �� 1.12 ��

DD&A expense

�� 12.98 �� �� 12.58 �� �� 12.69 �� �� 12.20 ��

Malaysia

�� �� �� ��

Lease operating expense � Sarawak*

�� $ 7.32 �� �� 10.94 �� �� 8.89 �� �� 9.07 ��

� Block K

�� 16.20 �� �� 13.75 �� �� 15.39 �� �� 11.71 ��

DD&A expense � Sarawak

�� 20.82 �� �� 13.33 �� �� 19.92 �� �� 11.77 ��

� Block K

�� 28.30 �� �� 23.38 �� �� 26.10 �� �� 21.75 ��

Total oil and gas operations

�� �� �� ��

Lease operating expense

�� $ 12.67 �� �� 13.84 �� �� 13.86 �� �� 15.13 ��

Severance and ad valorem taxes

�� 1.36 �� �� 1.20 �� �� 1.43 �� �� 1.03 ��

DD&A expense

�� 23.71 �� �� 20.99 �� �� 22.96 �� �� 20.21 ��

* Nine month 2013 affected by favorable adjustment associated with finalization of gas liquids processing fees retroactive to the beginning of this production.

14


MURPHY OIL CORPORATION

OTHER FINANCIAL DATA

(Unaudited, except for December�31, 2013)

(Millions of dollars)

�� Sept. 30,
2014
�� Dec. 31,
2013

Total current assets

�� $ 3,287.1 �� �� 3,508.6 ��

Total current liabilities

�� 2,620.2 �� �� 3,224.0 ��

Total assets

�� 17,845.8 �� �� 17,509.5 ��

Long-term debt

�� 3,986.3 �� �� 2,936.6 ��

Stockholders� equity

�� 8,402.5 �� �� 8,595.7 ��

�� Three�Months�Ended �� Nine Months Ended
�� September 30, �� September 30,
�� 2014 �� 2013 �� 2014 �� 2013

Capital expenditures�continuing operations

�� �� �� ��

Exploration and production

�� �� �� ��

United States

�� $ 569.8 �� �� 380.9 �� �� 1,666.1 �� �� 1,380.8 ��

Canada

�� 140.2 �� �� 76.0 �� �� 317.0 �� �� 315.6 ��

Malaysia

�� 244.1 �� �� 381.3 �� �� 610.5 �� �� 951.3 ��

Other

�� 20.8 �� �� 134.5 �� �� 234.4 �� �� 285.5 ��
��

��

��

��

�� 974.9 �� �� 972.7 �� �� 2,828.0 �� �� 2,933.2 ��
��

��

��

��

Corporate

�� 2.4 �� �� 13.0 �� �� 5.6 �� �� 19.6 ��
��

��

��

��

Total capital expenditures�continuing operations

�� 977.3 �� �� 985.7 �� �� 2,833.6 �� �� 2,952.8 ��
��

��

��

��

Charged to exploration expenses*

�� �� �� ��

United States

�� 78.8 �� �� 4.7 �� �� 106.2 �� �� 23.1 ��

Canada

�� 0.4 �� �� 1.9 �� �� 1.1 �� �� 32.3 ��

Malaysia

�� 0.5 �� �� 0.4 �� �� 0.5 �� �� 2.7 ��

Other

�� 19.8 �� �� 119.6 �� �� 227.2 �� �� 233.7 ��
��

��

��

��

Total charged to exploration expenses

�� 99.5 �� �� 126.6 �� �� 335.0 �� �� 291.8 ��
��

��

��

��

Total capitalized�continuing operations

�� $ 877.8 �� �� 859.1 �� �� 2,498.6 �� �� 2,661.0 ��
��

��

��

��

*�������Excludes amortization of undeveloped leases of

�� $ 17.9 �� �� 21.2 �� �� 55.7 �� �� 53.3 ��
��

��

��

��

15


MURPHY OIL CORPORATION

STATISTICAL SUMMARY

�� Three Months Ended �� Nine Months Ended
�� September�30, �� September�30,
�� 2014 �� 2013 �� 2014 �� 2013

Net crude oil and condensate produced � barrels per day

�� 144,934 �� �� 133,355 �� �� 135,801 �� �� 130,408 ��

Continuing operations

�� 144,934 �� �� 133,355 �� �� 135,801 �� �� 129,542 ��

United States � Eagle Ford Shale

�� 47,745 �� �� 38,936 �� �� 43,653 �� �� 32,819 ��

� Gulf of Mexico and other

�� 16,534 �� �� 10,937 �� �� 13,266 �� �� 12,078 ��

Canada � light

�� 38 �� �� 41 �� �� 38 �� �� 143 ��

� heavy

�� 6,784 �� �� 8,061 �� �� 7,433 �� �� 9,165 ��

� offshore

�� 7,823 �� �� 10,517 �� �� 8,216 �� �� 9,805 ��

� synthetic

�� 11,200 �� �� 11,075 �� �� 11,481 �� �� 12,159 ��

Malaysia � Sarawak

�� 21,679 �� �� 10,935 �� �� 19,590 �� �� 7,652 ��

� Block K

�� 33,131 �� �� 41,680 �� �� 32,124 �� �� 44,448 ��

Republic of the Congo

�� ��� �� �� 1,173 �� �� ��� �� �� 1,273 ��

Discontinued operations � United Kingdom

�� ��� �� �� ��� �� �� ��� �� �� 866 ��
Net crude oil and condensate sold � barrels per day �� 142,440 �� �� 129,725 �� �� 135,942 �� �� 131,590 ��

Continuing operations

�� 142,440 �� �� 129,725 �� �� 135,942 �� �� 130,759 ��

United States � Eagle Ford Shale

�� 47,745 �� �� 38,936 �� �� 43,653 �� �� 32,819 ��

� Gulf of Mexico and other

�� 16,534 �� �� 10,937 �� �� 13,266 �� �� 12,078 ��

Canada � light

�� 38 �� �� 41 �� �� 38 �� �� 143 ��

� heavy

�� 6,784 �� �� 8,061 �� �� 7,433 �� �� 9,165 ��

� offshore

�� 7,092 �� �� 10,391 �� �� 8,605 �� �� 9,502 ��

� synthetic

�� 11,200 �� �� 11,075 �� �� 11,481 �� �� 12,159 ��

Malaysia � Sarawak

�� 23,660 �� �� 7,260 �� �� 21,287 �� �� 6,852 ��

� Block K

�� 29,387 �� �� 43,024 �� �� 30,179 �� �� 45,786 ��

Republic of the Congo

�� ��� �� �� ��� �� �� ��� �� �� 2,255 ��

Discontinued operations � United Kingdom

�� ��� �� �� ��� �� �� ��� �� �� 831 ��
Net natural gas liquids produced � barrels per day1 �� 10,923 �� �� 4,720 �� �� 8,580 �� �� 3,126 ��

United States � Eagle Ford Shale

�� 6,521 �� �� 3,188 �� �� 5,409 �� �� 1,852 ��

� Gulf of Mexico and other

�� 3,412 �� �� 880 �� �� 2,308 �� �� 644 ��

Canada

�� 23 �� �� ��� �� �� 23 �� �� ��� ��

Malaysia � Sarawak

�� 967 �� �� 652 �� �� 840 �� �� 630 ��

Net natural gas liquids sold � barrels per day1

�� 11,480 �� �� 4,117 �� �� 8,625 �� �� 2,561 ��

United States � Eagle Ford Shale

�� 6,521 �� �� 3,188 �� �� 5,409 �� �� 1,852 ��

� Gulf of Mexico and other

�� 3,412 �� �� 880 �� �� 2,308 �� �� 644 ��

Canada

�� 23 �� �� ��� �� �� 23 �� �� ��� ��

Malaysia � Sarawak

�� 1,524 �� �� 49 �� �� 885 �� �� 65 ��

Net natural gas sold � thousands of cubic feet per day

�� 443,413 �� �� 415,235 �� �� 423,041 �� �� 432,027 ��

Continuing operations

�� 443,413 �� �� 415,235 �� �� 423,041 �� �� 430,938 ��

United States � Eagle Ford Shale

�� 37,782 �� �� 20,965 �� �� 31,890 �� �� 20,680 ��

� Gulf of Mexico and other

�� 67,137 �� �� 30,047 �� �� 50,831 �� �� 33,380 ��

Canada

�� 151,784 �� �� 178,666 �� �� 144,873 �� �� 179,829 ��

Malaysia � Sarawak

�� 174,958 �� �� 174,518 �� �� 166,036 �� �� 163,776 ��

� Block K

�� 11,752 �� �� 11,039 �� �� 29,411 �� �� 33,273 ��

Discontinued operations � United Kingdom

�� ��� �� �� ��� �� �� ��� �� �� 1,089 ��

Total net hydrocarbons produced � equivalent barrels per day2

�� 229,759 �� �� 207,281 �� �� 214,888 �� �� 205,539 ��

Total net hydrocarbons sold � equivalent barrels per day2

�� 227,822 �� �� 203,048 �� �� 215,074 �� �� 206,156 ��

1 U.S. and Canada NGLs were included in the wet natural gas stream during early 2013.
2 Natural gas converted on an energy equivalent basis of 6:1.

16


MURPHY OIL CORPORATION

STATISTICAL SUMMARY (Continued)

�� Three�Months�Ended �� Nine�Months�Ended
�� September�30, �� September�30,
�� 2014 �� 2013 �� 2014 �� 2013

Weighted average sales prices

�� �� �� ��

Crude oil and condensate � dollars per barrel

�� �� �� ��

United States � Eagle Ford Shale

�� $ 93.56 �� �� 103.98 �� �� 95.50 �� �� 103.44 ��

� Gulf of Mexico and other

�� 97.03 �� �� 106.39 �� �� 99.36 �� �� 106.50 ��

Canada1 � light

�� 85.92 �� �� 95.87 �� �� 93.17 �� �� 85.51 ��

� heavy

�� 57.86 �� �� 66.25 �� �� 56.69 �� �� 47.97 ��

� offshore

�� 97.63 �� �� 112.04 �� �� 105.41 �� �� 108.47 ��

� synthetic

�� 93.55 �� �� 108.61 �� �� 96.83 �� �� 100.24 ��

Malaysia � Sarawak2

�� 80.55 �� �� 99.86 �� �� 89.57 �� �� 98.96 ��

� Block K2

�� 89.00 �� �� 91.61 �� �� 95.18 �� �� 91.46 ��

Republic of the Congo2

�� ��� �� �� ��� �� �� ��� �� �� 112.89 ��

Discontinued operations � United Kingdom

�� ��� �� �� ��� �� �� ��� �� �� 108.67 ��

Natural gas liquids � dollars per barrel

�� �� �� ��

United States � Eagle Ford Shale

�� $ 26.55 �� �� 26.82 �� �� 28.77 �� �� 26.92 ��

� Gulf of Mexico and other

�� 30.45 �� �� 32.92 �� �� 32.60 �� �� 32.32 ��

Canada1

�� 64.95 �� �� �� �� 75.96 �� �� ��

Malaysia � Sarawak2

�� 68.48 �� �� 94.01 �� �� 75.68 �� �� 104.46 ��

Natural gas � dollars per thousand cubic feet

�� �� �� ��

United States � Eagle Ford Shale

�� $ 3.76 �� �� 3.70 �� �� 4.17 �� �� 3.84 ��

� Gulf of Mexico and other

�� 3.60 �� �� 3.78 �� �� 4.20 �� �� 3.86 ��

Canada1

�� 3.61 �� �� 2.78 �� �� 3.76 �� �� 3.05 ��

Malaysia � Sarawak2

�� 5.11 �� �� 6.69 �� �� 5.67 �� �� 6.90 ��

� Block K

�� 0.24 �� �� 0.23 �� �� 0.24 �� �� 0.24 ��

Discontinued operations � United Kingdom

�� ��� �� �� ��� �� �� ��� �� �� 12.32 ��

1 U.S. dollar equivalent.
2 Prices are net of payments under the terms of the respective production sharing contracts.

17


MURPHY OIL CORPORATION

FOURTH QUARTER 2014 GUIDANCE

�� Liquids
BOPD
�� �� Gas
MCFD

Production � net

�� �� ��

U.S. � Eagle Ford Shale

�� 58,000 �� �� �� 39,000 ��

� Gulf of Mexico

�� 20,000 �� �� �� 67,000 ��

Canada � Seal heavy

�� 6,800 �� �� �� 5,000 ��

� Montney

�� ��� �� �� �� 170,000 ��

� Offshore

�� 9,200 �� �� �� ��� ��

� Synthetic

�� 14,000 �� �� �� ��� ��

Malaysia* � Block K

�� 39,500 �� �� �� 35,000 ��

� Sarawak

�� 22,500 �� �� �� 164,000 ��

Total net production* (BOEPD)

�� �� 250,000 �� ��

Total net sales* (BOEPD)

�� �� 235,000 �� ��

Realized oil prices:

�� �� ��

Malaysia � Block K

�� �� $ 77.40 �� ��

� Sarawak

�� �� $ 75.00 �� ��

Realized natural gas price:

�� �� ��

Malaysia � Sarawak

�� �� $ 5.70 �� ��

Exploration expense ($ millions)

��

�� $ 80 �� ��

FULL YEAR 2014 GUIDANCE

Total production (BOEPD)

�� 220,000�to�225,000 ��

* Fourth quarter projected production volumes are based on an assumed sale of a portion of the Company�s interest in Malaysia as of year-end 2014. This sale could be completed prior to year-end.

18



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