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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

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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 30, 2003

 

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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 of Former Address, if Changed Since Last Report

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Item 9. Regulation FD Disclosure and Item 12. Results of Operations and Financial Condition

 

The following information is furnished pursuant to Item 9, “Regulation FD Disclosure” and Item 12, “Results of Operations and Financial Condition.”

 

On July 30, 2003, Murphy Oil Corporation issued a press release announcing its earnings for the second quarter that ended on June 30, 2003. A copy of this press release is attached hereto as Exhibit 99.1. This press release includes certain non-GAAP financial measures, which are reconciled within the release to the most directly related comparable GAAP measure.

 

Exhibit Index

 

99.1

Press release dated July 30, 2003, as issued by Murphy Oil Corporation.

 

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 thereunto duly authorized.

 

 

Date: July 30, 2003

 

Exhibit 99.1

 

MURPHY OIL ANNOUNCES QUARTERLY EARNINGS

 

EL DORADO, Arkansas, July 30, 2003 – Murphy Oil Corporation (NYSE: MUR) announced today that net income in the second quarter of 2003 was $79.7 million, $.86 per diluted share, compared to income of $14 million, $.15 per diluted share, in the second quarter of 2002. The current period includes a $34 million after-tax gain related to sale of certain oil properties in the U.K. North Sea, partially offset by after-tax costs of $12.3 million related to a fire at the Company’s Meraux, Louisiana refinery on June 10, 2003. The pretax refinery charges included $4.2 million related to deductibles and self insurance, $8.2 million for losses on crude oil that will be sold rather than processed, and $6.6 million for operating costs incurred at the refinery between June 10 and June 30. The Company’s income excluding the two special items was $58 million, $.63 per share.

 

Reviewing quarterly results by type of business, the Company’s income contribution from exploration and production operations was $87.7 million in the second quarter of 2003 compared to $28.6 million in the same quarter of 2002. Excluding the gain on sale of North Sea properties, current quarterly earnings were $53.7 million. The $25.1 million improvement in the just completed quarter was primarily due to lower exploration expense in Malaysia. Higher North American natural gas sales prices were mostly offset by lower natural gas production and lower oil sales volumes caused by the timing of shipments. The Company’s worldwide crude oil and condensate sales prices averaged $23.63 per barrel for the current quarter compared to $23.86 per barrel in the second quarter of 2002. Total crude oil and gas liquids production was 82,488 barrels per day in the second quarter of 2003 compared to 78,050 barrels per day in the 2002 quarter, with the net increase primarily attributable to new production at the 85%-owned West Patricia field in shallow-water Malaysia. The first sale from West Patricia occurred in early July. North American natural gas sales prices averaged $4.67 per thousand cubic feet (MCF) in the most recent quarter compared to $3.03 per MCF in the same quarter of 2002. Natural gas sales volumes declined from 336 million cubic feet per day in the second quarter of 2002 to 231 million cubic feet per day in the just completed quarter, primarily due to lower production from the Ladyfern field in western Canada and mature fields in the Gulf of Mexico. The Company’s 2003 hedging program reduced the average second quarter worldwide crude oil sales price and North American natural gas sales price by $1.81 per barrel and $.18 per MCF, respectively.

 

The Company’s refining and marketing results were a profit of $.3 million in the most recent quarter compared to a loss of $8 million in the 2002 quarter. Excluding the costs associated with the Meraux refinery, these worldwide operations earned $12.6 million in the second quarter 2003, with the improvement due to significantly better North American refining and marketing margins in the current quarter.

 

The after-tax costs of corporate functions were $8.3 million in the 2003 quarter compared to $7.6 million in the 2002 quarter. Lower income tax benefits and higher retirement plan costs were partially offset by a larger portion of interest costs being capitalized.

 

For the first six months of 2003, net income totaled $166.8 million, $1.80 per share, compared to $16.5 million, $.18 per share, for the 2002 period. Excluding special items, the Company earned $132 million, $1.43 per share. Both exploration and production and refining and marketing businesses showed a marked improvement in results in the first half of 2003. The Company’s exploration and production operations earned $140.6 million, excluding special items, in the first half of 2003 compared to $49.1 million in the same

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period of 2002. Higher oil and natural gas sales prices in 2003 and lower exploration expenses in Malaysia were the primary reason for better earnings in this area. Crude oil and gas liquids production for the first six months of 2003 averaged 78,740 barrels per day compared to 76,181 barrels per day in 2002. Natural gas sales were down from 323 million cubic feet per day in 2002 to 230 million cubic feet per day in 2003. Crude oil and condensate prices averaged $25.28 per barrel in the 2003 period compared to $21.87 per barrel in 2002. North American natural gas was sold for $5.12 per MCF in 2003, up from $2.68 in 2002. The Company’s refining and marketing operations generated a profit of $9.1 million in 2003, excluding special items, but incurred a loss of $21.7 million in 2002. The improved current year result was based on stronger margins in both the North American and U.K. businesses. Corporate after-tax costs, excluding special items, increased from $12.1 million in 2002 to $17.7 million in 2003, primarily due to lower income tax benefits in the latter period.

 

Claiborne P. Deming, President and Chief Executive Officer, commented, “Our West Patricia field in Block SK 309, Malaysia, commenced production in May and should average about 12,500 barrels of oil per day for the remainder of the year. Based on a delay in the start-up of the Medusa field and slower than expected ramp-up of our heavy oil program in Western Canada, our current estimate of third quarter 2003 production is flat with the second quarter on a barrel equivalent basis. We have three deepwater wells drilling offshore Sabah, Malaysia, including an appraisal well in Block K (80%) and wildcats in both Blocks K and H (80%). In addition, we are drilling the Stonemaker prospect (85%) in Mississippi Canyon Block 493 in the deepwater Gulf of Mexico. We currently expect earnings in the third quarter to be in the range of $.30 to $.80 per share, depending on the results of exploration drilling, which includes an unusually high amount of dry hole exposure of $38 million for deepwater wells in Malaysia.”

 

The public is invited to access the Company’s conference call to discuss second quarter 2003 results on Thursday, July 31, at 12:00 p.m. CDT either via the Internet through the Investor Relations section of Murphy Oil’s website at http:/www.murphyoilcorp.com/ir or via the telephone by dialing 1-800-240-7305. The telephone reservation number for the call is 544144. Replays of the call will be available through the same address on Murphy Oil’s website, and a recording of the call will be available through August 4 by calling 1-800-405-2236.

 

Summary financial data and operating statistics for the second quarter and first six months of 2003 with comparisons to 2002 are contained in the attached tables.

 

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.

 

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MURPHY OIL CORPORATION

FUNCTIONAL RESULTS OF OPERATIONS (Unaudited)

(Millions of dollars)

 

		Three Months Ended June 30, 2003							Three Months Ended June 30, 2002*
		Revenues				Income			Revenues			Income
Exploration and production
United States		$	49.9			2.8			39.1			(5.1	)
Canada			158.7			42.5			181.7			54.0
United Kingdom			91.4			47.4			39.0			9.2
Ecuador			4.8			.8			7.9			3.3
Malaysia			–			(5.3	)		–			(32.1	)
Other			1.6			(.5	)		.5			(.7	)
			306.4			87.7			268.2			28.6
Refining and marketing
North America			866.2			(1.5	)		683.4			(9.8	)
United Kingdom			116.1			1.8			100.0			1.8
			982.3			.3			783.4			(8.0	)
			1,288.7			88.0			1,051.6			20.6
Intersegment transfers elimination			(12.3	)		–			(16.7	)		–
			1,276.4			88.0			1,034.9			20.6
Corporate			1.2			(8.3	)		1.0			(7.6	)
Revenues/income from continuing operations			1,277.6			79.7			1,035.9			13.0
Discontinued operations, net of taxes			–			–			–			1.0
Total revenues/net income		$	1,277.6			79.7			1,035.9			14.0
		Six Months Ended June 30, 2003							Six Months Ended June 30, 2002*
		Revenues				Income			Revenues			Income
Exploration and production
United States		$	100.6			15.6			69.2			(7.9	)
Canada			340.3			98.4			302.3			71.8
United Kingdom			149.6			66.5			84.5			22.4
Ecuador			16.1			6.3			13.5			4.1
Malaysia			–			(10.8	)		–			(40.1	)
Other			2.3			(1.4	)		1.1			(1.2	)
			608.9			174.6			470.6			49.1
Refining and marketing
North America			1,775.7			(7.9	)		1,173.3			(21.3	)
United Kingdom			238.4			4.7			180.7			(.4	)
			2,014.1			(3.2	)		1,354.0			(21.7	)
			2,623.0			171.4			1,824.6			27.4
Intersegment transfers elimination			(25.3	)		–			(35.5	)		–
			2,597.7			171.4			1,789.1			27.4
Corporate			2.2			2.4			2.0			(12.1	)
Revenues/income from continuing operations			2,599.9			173.8			1,791.1			15.3
Discontinued operations, net of taxes			–			–			–			1.2
Revenues/income from cumulative effect of accounting change			2,599.9			173.8			1,791.1			16.5
Cumulative effect of accounting change, net of taxes			–			(7.0	)		–			–
Total revenues/net income		$	2,599.9			166.8			1,791.1			16.5

 

* Restated to conform to current presentation.

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MURPHY OIL CORPORATION

RECONCILIATION OF NET INCOME TO

INCOME BEFORE SPECIAL ITEMS (Unaudited)

(Millions of dollars)

 

		Second Quarter 2003										Six Months Ended June 30, 2003
		Income as Reported				Special Items			Income Before Special Items			Income as Reported				Special Items			Income Before Special Items
Exploration and production
United States		$	2.8						2.8			$	15.6						15.6
Canada			42.5						42.5				98.4						98.4
United Kingdom			47.4			34.0	(a)		13.4				66.5			34.0	(a)		32.5
Ecuador			.8						.8				6.3						6.3
Malaysia			(5.3	)					(5.3	)			(10.8	)					(10.8	)
Other			(.5	)					(.5	)			(1.4	)					(1.4	)
			87.7						53.7				174.6						140.6
Refining and marketing
North America			(1.5	)		(12.3	)(b)		10.8				(7.9	)		(12.3	)(b)		4.4
United Kingdom			1.8						1.8				4.7						4.7
			.3						12.6				(3.2	)					9.1
			88.0						66.3				171.4						149.7
Corporate			(8.3	)					(8.3	)			2.4			20.1	(c)		(17.7	)
Income before cumulative effect of accounting change			79.7						58.0				173.8						132.0
Cumulative effect of accounting change			–						–				(7.0	)		(7.0	)(d)		–
Total		$	79.7			21.7			58.0			$	166.8			34.8			132.0
Diluted earnings per share		$	.86						.63				1.80						1.43

 

(a)

Represents a gain on sale of Ninian and Columba fields in the U.K. North Sea.

 

(b)

Represents a charge related to a fire at the Meraux refinery, and includes pretax costs of $4.2 million for deductibles and self-insurance, $8.2 million for a loss on crude oil that will be sold rather than processed at the refinery, and $6.6 million of operating costs incurred at the refinery between June 10 and June 30.

 

(c)

Represents a benefit related to resolution of prior years' U.S. income tax matters.

 

(d)

Represents a one-time, noncash charge to adopt SFAS No. 143, Accounting for Asset Retirement Obligations, effective January 1, 2003. This one-time charge is required to recognize the effects of this accounting rule as if the Company had used this method since inception.

 

Note:

The Company's results of operations often include transactions which can affect underlying trends of operating results and comparability between years. Therefore, management uses a measure called "income before special items", which excludes those transactions. Although income before special items is a non-GAAP measure and is not considered to be an alternative to net income as reported under generally accepted accounting principles, this is the method used by management and certain analyst to evaluate the Company's operating results and, therefore, management believes that such information is useful to investors and analysts that want to compare the Company's earnings performance between periods and with other companies in our industry. The Company has had gains on sale of assets, charges related to refinery fires, and settlements of income tax matters in the past and they may occur in the future.

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MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (Unaudited)

 

(Millions of dollars)		United States				Canada		United Kingdom		Ecuador		Malaysia			Other			Synthetic Oil – Canada		Total
Three Months Ended June 30, 2003
Oil and gas sales and other revenues		$	49.9			133.3		91.4		4.8		–			1.6			25.4		306.4
Production expenses			8.9			20.0		9.3		2.8		–			–			14.9		55.9
Depreciation, depletion and amortization			9.2			42.4		8.4		1.1		.3			–			2.3		63.7
Accretion on discounted liabilities			.8			1.3		.8		–		.1			.1			.1		3.2
Exploration expenses
Dry holes			16.5			.9		–		–		–			(.1	)		–		17.3
Geological and geophysical			2.2			.4		–		–		3.1			–			–		5.7
Other			1.8			.7		.3		–		.5			–			–		3.3
			20.5			2.0		.3		–		3.6			(.1	)		–		26.3
Undeveloped lease amortization			2.8			4.1		–		–		–			–			–		6.9
Total exploration expenses			23.3			6.1		.3		–		3.6			(.1	)		–		33.2
Selling and general expenses			3.3			4.4		.5		.1		1.3			1.6			.2		11.4
Income tax provisions (benefits)			1.6			21.9		24.7		–		–			.5			2.6		51.3
Results of operations (excluding corporate overhead and interest)		$	2.8			37.2		47.4		.8		(5.3	)		(.5	)		5.3		87.7
Three Months Ended June 30, 2002*
Oil and gas sales and other revenues		$	39.1			160.8		39.0		7.9		–			.5			20.9		268.2
Production expenses			12.7			25.4		8.4		3.1		–			–			11.1		60.7
Depreciation, depletion and amortization			8.8			50.0		8.1		1.3		.2			–			2.1		70.5
Exploration expenses
Dry holes			17.5			1.0		–		–		31.2			–			–		49.7
Geological and geophysical			1.3			1.3		–		–		.2			–			–		2.8
Other			1.8			.4		.3		–		.5			–			–		3.0
			20.6			2.7		.3		–		31.9			–			–		55.5
Undeveloped lease amortization			2.7			3.6		–		–		–			–			–		6.3
Total exploration expenses			23.3			6.3		.3		–		31.9			–			–		61.8
Selling and general expenses			2.2			3.6		.8		.2		–			1.4			–		8.2
Income tax provisions (benefits)			(2.8	)		26.7		12.2		–		–			(.2	)		2.5		38.4
Results of operations (excluding corporate overhead and interest)		$	(5.1	)		48.8		9.2		3.3		(32.1	)		(.7	)		5.2		28.6
Six Months Ended June 30, 2003
Oil and gas sales and other revenues		$	100.6			293.4		149.6		16.1		–			2.3			46.9		608.9
Production expenses			16.7			39.3		20.8		7.0		–			–			29.3		113.1
Depreciation, depletion and amortization			17.5			82.7		18.0		2.6		.5			.1			4.3		125.7
Accretion on discounted liabilities			1.6			2.5		1.7		–		.1			.2			.2		6.3
Exploration expenses
Dry holes			19.4			5.1		–		–		–			(.1	)		–		24.4
Geological and geophysical			5.8			1.9		–		–		7.5			–			–		15.2
Other			2.3			1.2		.4		–		.5			.1			–		4.5
			27.5			8.2		.4		–		8.0			–			–		44.1
Undeveloped lease amortization			5.4			7.8		–		–		–			–			–		13.2
Total exploration expenses			32.9			16.0		.4		–		8.0			–			–		57.3
Selling and general expenses			7.9			8.5		1.6		.2		2.2			3.2			.3		23.9
Income tax provisions (benefits)			8.4			54.6		40.6		–		–			.2			4.2		108.0
Results of operations (excluding corporate overhead and interest)		$	15.6			89.8		66.5		6.3		(10.8	)		(1.4	)		8.6		174.6
Six Months Ended June 30, 2002*
Oil and gas sales and other revenues		$	69.2			259.7		84.5		13.5		–			1.1			42.6		470.6
Production expenses			25.1			45.5		19.8		6.4		–			–			24.0		120.8
Depreciation, depletion and amortization			17.6			84.8		17.9		2.6		.5			.1			4.2		127.7
Exploration expenses
Dry holes			22.5			13.4		–		–		36.9			–			–		72.8
Geological and geophysical			3.3			9.1		–		–		.6			–			–		13.0
Other			2.2			1.0		.5		–		2.1			(.1	)		–		5.7
			28.0			23.5		.5		–		39.6			(.1	)		–		91.5
Undeveloped lease amortization			5.2			7.1		–		–		–			–			–		12.3
Total exploration expenses			33.2			30.6		.5		–		39.6			(.1	)		–		103.8
Selling and general expenses			6.1			6.9		1.6		.4		–			2.6			.1		17.7
Income tax provisions (benefits)			(4.9	)		29.7		22.3		–		–			(.3	)		4.7		51.5
Results of operations (excluding corporate overhead and interest)		$	(7.9	)		62.2		22.4		4.1		(40.1	)		(1.2	)		9.6		49.1

 

*Restated to conform to current presentation.

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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,
		2003				2002*			2003			2002*
Revenues		$	1,277,576			1,035,842			2,599,889			1,791,051
Costs and expenses
Crude oil and product purchases			839,739			682,514			1,744,432			1,166,835
Operating expenses			162,585			135,787			316,598			264,149
Exploration expenses			33,118			61,767			57,268			103,788
Selling and general expenses			28,931			23,129			59,753			45,491
Depreciation, depletion and amortization			77,926			83,457			153,731			153,163
Accretion on discounted liabilities			3,170			–			6,285			–
Interest expense			14,272			13,287			28,233			22,829
Interest capitalized			(10,112	)		(4,607	)		(19,648	)		(9,424	)
			1,149,629			995,334			2,346,652			1,746,831
Income from continuing operations before income taxes			127,947			40,508			253,237			44,220
Income tax expense			48,261			27,591			79,446			28,972
Income from continuing operations			79,686			12,917			173,791			15,248
Discontinued operations, net of tax			–			1,012			–			1,215
Income before cumulative effect of change in accounting principle			79,686			13,929			173,791			16,463
Cumulative effect of change in accounting principle			–			–			(6,993	)		–
Net income		$	79,686			13,929			166,798			16,463
Per Common share—Basic
Continuing operations		$	.87			.14			1.90			.17
Discontinued operations			–			.01			–			.01
Cumulative effect of change in accounting principle			–			–			(.08	)		–
Net income		$	.87			.15			1.82			.18
Per Common share—Diluted
Continuing operations		$	.86			.14			1.88			.17
Discontinued operations			–			.01			–			.01
Cumulative effect of change in accounting principle			–			–			(.08	)		–
Net income		$	.86			.15			1.80			.18
Cash dividends per Common share		$	.20			.1875			.40			.375
Average Common shares outstanding (thousands)
Basic			91,817			91,568			91,776			91,271
Diluted			92,503			92,267			92,465			92,059
MURPHY OIL CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Thousands of dollars)
		Three Months Ended June 30,							Six Months Ended June 30,
		2003				2002			2003			2002
Net income		$	79,686			13,929			166,798			16,463
Cash flow hedges			4,221			5,620			2,983			5,244
Foreign currency translation gain (loss)			90,456			57,412			143,103			52,416
Minimum pension liability adjustment			–			–			(707	)		–
Comprehensive income		$	174,363			76,961			312,177			74,123

 

*Restated 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 June 30,							Six Months Ended June 30,
		2003				2002*			2003			2002*
Operating Activities
Income from continuing operations		$	79,686			12,917			173,791			15,248
Adjustments to reconcile income from continuing operations to net cash provided by operating activities
Depreciation, depletion and amortization			77,926			83,457			153,731			153,163
Provisions for major repairs			9,420			4,753			15,830			9,332
Expenditures for major repairs and dismantlement costs			(22,555	)		(7,701	)		(26,335	)		(9,805	)
Dry holes			17,317			49,732			24,431			72,844
Amortization of undeveloped leases			6,847			6,205			13,179			12,267
Accretion expense			3,170			–			6,285			–
Deferred and noncurrent income tax benefits			19,228			11,479			4,330			11,215
Pretax (gains) losses from dispositions of assets			(49,274	)		36			(49,298	)		(5,700	)
Net (increase) decrease in operating working capital other than cash and cash equivalents			(15,412	)		(30,175	)		28,860			(96,364	)
Other			233			5,317			(5,672	)		5,349
Net cash provided by continuing operations			126,586			136,020			339,132			167,549
Net cash provided by discontinued operations			–			2,237			–			3,423
Net cash provided by operating activities			126,586			138,257			339,132			170,972
Investing Activities
Property additions and dry holes			(269,954	)		(211,360	)		(453,235	)		(415,973	)
Proceeds from sale of assets			61,029			771			69,035			28,648
Other—net			50			147			80			2
Investing activities of discontinued operations			–			(19	)		–			(266	)
Net cash required by investing activities			(208,875	)		(210,461	)		(384,120	)		(387,589	)
Financing Activities
Increase in notes payable			107,464			141,120			149,488			298,112
Decrease in nonrecourse debt of a subsidiary			(15,396	)		(9,578	)		(24,452	)		(13,629	)
Proceeds received from exercise of stock options and employee stock purchase plan			1,405			4,966			2,348			23,024
Cash dividends paid			(18,365	)		(17,176	)		(36,718	)		(34,233	)
Other			–			(2,526	)		(72	)		(2,526	)
Net cash provided by financing activities			75,108			116,806			90,594			270,748
Effect of exchange rate changes on cash and cash equivalents			10,560			5,255			9,705			4,203
Net increase in cash and cash equivalents			3,379			49,857			55,311			58,334
Cash and cash equivalents at beginning of period			216,889			91,129			164,957			82,652
Cash equivalents at end of period		$	220,268			140,986			220,268			140,986

 

*Restated to conform to current presentation.

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MURPHY OIL CORPORATION

OTHER FINANCIAL DATA

(Unaudited, except for December 31, 2002)

(Millions of dollars)

 

		June 30, 2003			Dec. 31, 2002
Working capital		$	158.3		136.3
Total assets			4,495.7		3,885.8
Long-term debt
Notes payable			937.4		788.6
Nonrecourse debt			49.7		74.2
Stockholders' equity			1,872.3		1,593.6

 

		Three Months Ended					Six Months Ended
		June 30, 2003			June 30, 2002		June 30, 2003		June 30, 2002
Capital expenditures
Continuing operations
Exploration and production
United States		$	106.2		47.9		156.8		122.6
Canada			55.5		51.0		112.6		128.1
Other			57.8		49.3		93.5		74.4
			219.5		148.2		362.9		325.1
Refining and marketing
North America			57.7		68.0		105.1		108.3
United Kingdom			1.3		.8		4.3		.8
			59.0		68.8		109.4		109.1
Corporate			.4		.2		.6		.5
			278.9		217.2		472.9		434.7
Discontinued operations			–		–		–		.2
Total capital expenditures			278.9		217.2		472.9		434.9
Charged to exploration expenses*
United States			20.5		20.6		27.5		28.0
Canada			2.0		2.7		8.2		23.5
Other international			3.8		32.2		8.4		40.0
Total charged to exploration expenses			26.3		55.5		44.1		91.5
Total capitalized		$	252.6		161.7		428.8		343.4
*Excludes amortization of undeveloped leases of		$	6.9		6.3		13.2		12.3

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MURPHY OIL CORPORATION

STATISTICAL SUMMARY

 

		Three Months Ended June 30,				Six Months Ended June 30,
		2003		2002		2003		2002
Net crude oil, condensate and gas liquids produced – barrels per day		82,488		78,050		78,740		76,181
Continuing operations		82,488		76,769		78,740		74,959
Crude oil and condensate
United States		3,812		4,157		3,510		4,399
Canada – light		1,706		1,722		1,833		2,313
– heavy		9,462		9,469		9,375		9,595
– offshore		30,743		26,317		29,276		23,057
– synthetic		10,431		8,828		9,890		10,078
United Kingdom		16,712		19,678		17,476		19,287
Ecuador		3,094		4,765		3,231		4,476
Malaysia		4,875		–		2,451		–
Natural gas liquids
United States		207		330		144		354
Canada		1,286		1,385		1,379		1,272
United Kingdom		160		118		175		128
Discontinued operations		–		1,281		–		1,222
Net crude oil, condensate and gas liquids sold – barrels per day		74,316		83,313		76,262		81,769
Continuing operations		74,316		82,032		76,262		80,547
Crude oil and condensate
United States		3,842		4,157		3,510		4,399
Canada – light		1,706		1,722		1,833		2,313
– heavy		9,462		9,469		9,375		9,595
– offshore		27,926		34,512		28,861		28,010
– synthetic		10,431		8,828		9,890		10,078
United Kingdom		16,605		17,274		17,524		20,155
Ecuador		2,685		4,281		3,583		4,244
Malaysia		–		–		–		–
Natural gas liquids
United States		207		330		144		354
Canada		1,286		1,385		1,379		1,272
United Kingdom		166		74		163		127
Discontinued operations		–		1,281		–		1,222
Net natural gas sold – thousands of cubic feet per day		231,057		335,954		229,619		322,696
Continuing operations		231,057		331,542		229,619		318,711
United States		83,553		94,900		80,771		96,312
Canada		139,863		231,154		139,220		215,408
United Kingdom		7,641		5,488		9,628		6,991
Discontinued operations		–		4,412		–		3,985
Total net hydrocarbons produced – equivalent barrels per day*		120,998		134,042		117,010		129,964
Total net hydrocarbons sold – equivalent barrels per day*		112,826		139,305		114,532		135,552

 

*Natural gas converted on an energy equivalent basis of 6:1.

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MURPHY OIL CORPORATION

STATISTICAL SUMMARY (Continued)

 

		Three Months Ended June 30,						Six Months Ended June 30,
		2003				2002		2003			2002
Weighted average sales prices
Crude oil and condensate – dollars a barrel (1)
United States		$	24.69	(3)		24.58		24.73	(3)		22.18
Canada (2)  – light			25.48			24.67		27.71			20.41
– heavy			12.22	(3)		17.49		12.43	(3)		15.42
– offshore			24.80	(3)		25.47		26.50	(3)		24.13
– synthetic			26.67	(3)		26.06		26.18	(3)		23.36
United Kingdom			26.46			23.56		29.60			22.03
Ecuador			19.68			20.54		24.79			17.74
Natural gas liquids – dollars a barrel (1)
United States		$	23.15			17.67		23.88			15.95
Canada (2)			22.79			16.89		24.97			14.33
United Kingdom			18.61			16.33		23.09			15.46
Natural gas – dollars a thousand cubic feet
United States (1)		$	5.26	(3)		3.46		5.76	(3)		3.03
Canada (2)			4.31	(3)		2.85		4.75	(3)		2.52
United Kingdom (2)			3.18			2.84		3.38			2.91
Refinery inputs – barrels a day			137,749			161,363		149,280			157,952
North America			103,017			123,568		113,838			120,660
United Kingdom			34,732			37,795		35,442			37,292
Petroleum products sold – barrels a day			274,034			214,708		251,276			203,079
North America			237,809			179,376		216,866			168,501
Gasoline			166,603			112,651		148,646			104,821
Kerosine			5,540			4,582		6,747			6,505
Diesel and home heating oils			44,759			39,071		41,242			37,407
Residuals			12,784			14,323		13,598			13,687
Asphalt, LPG and other			8,123			8,749		6,633			6,081
United Kingdom			36,225			35,332		34,410			34,578
Gasoline			11,478			12,865		10,744			12,856
Kerosine			2,890			2,438		2,718			2,546
Diesel and home heating oils			14,483			15,276		13,834			14,570
Residuals			3,109			3,412		3,806			3,116
LPG and other			4,265			1,341		3,308			1,490

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(1)

Includes intracompany transfers at market prices.

(2)

U.S. dollar equivalent.

(3)

Includes the effect of the Company's 2003 hedging program.