EL DORADO, Ark.--(BUSINESS WIRE)--May 3, 2007--Murphy Oil
Corporation (NYSE:MUR) announced today that its wholly owned
subsidiary, Murphy Oil USA, Inc. (Company), has entered into an
Agreement with Wal-Mart Stores, Inc. and subsidiaries to purchase
parcels of property which the Company currently leases from Wal-Mart
for its Murphy USA(R) retail gasoline stations.
Murphy USA's retail presence currently covers twenty-one states
primarily in the Southeast and upper Midwest. As a result of this
transaction, capital expenditures for the Company are expected to
increase by up to approximately $315 million during the 2007/2008
period.
Under the terms of the Agreement, the conveyance of the parcels
will occur in multiple phases over the next year. Expansion of the
Murphy USA program will continue with additional opportunities to
purchase new site locations in the future. In conjunction with this
agreement, the Company plans to close up to 47 locations and incur
after-tax impairment and restoration costs of approximately $18
million in the second quarter of 2007 which was not included in
previously issued earnings guidance.
Claiborne P. Deming, Murphy Oil Corporation's President and Chief
Executive Officer, commented, "The purchase of these parcels reflects
our commitment to sustaining the longevity of these very productive
assets. We look forward to continuing our association with Wal-Mart as
we expand our station base in the future while adhering to our
strategy of offering high quality, competitively priced gasoline to
our customers."
The forward-looking statements reflected in this release are made
in reliance upon the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. No assurance can be given that the
results discussed herein will be attained, and certain important
factors that may cause actual results to differ materially are
contained in Murphy's January 15, 1997 Form 8-K report on file with
the U.S. Securities and Exchange Commission.
CONTACT: Murphy Oil Corporation
Investor/Media Relations:
Mindy West, 870-864-6315
SOURCE: Murphy Oil Corporation