SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): July 27, 2004
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 (Zip Code) | |
| (Address of principal executive offices) |
Registrant’s telephone number, including area code 870-862-6411
Not applicable
(Former Name of Former Address, if Changed Since Last Report
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 27, 2004, Murphy Oil Corporation issued a press release announcing its earnings for the second quarter that ended on June 30, 2004. The full text of this press release 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 thereunto duly authorized.
| MURPHY OIL CORPORATION | ||
| By: | /s/ John W. Eckart | |
| John W. Eckart Controller | ||
Date: July 27, 2004
Exhibit Index
| 99.1 | Press release dated July 27, 2004, as issued by Murphy Oil Corporation. |
Exhibit 99.1
MURPHY OIL ANNOUNCES RECORD QUARTERLY EARNINGS
EL DORADO, Arkansas, July 27, 2004 – Murphy Oil Corporation (NYSE: MUR) announced today that net income in the second quarter of 2004 was a record $349.9 million, $3.75 per diluted share, compared to income of $79.7 million, $.86 per diluted share, in the second quarter of 2003. Net income in the current period included income from discontinued operations of $181.8 million, $1.95 per share, $166.7 million of which was a net gain on sale of most conventional oil and gas assets in Western Canada. Discontinued operations income in the second quarter of 2003 was $7.4 million, $.08 per share. Income from continuing operations in the second quarter of 2004 was also a record $168.1 million, $1.80 per share, compared to $72.3 million, $.78 per share, in the same period of 2003.
For the first six months of 2004, net income totaled $448.1 million, $4.81 per share, compared to $166.8 million, $1.80 per share, for the 2003 period. Income from discontinued operations was $199.3 million, $2.14 per share, in the first half of 2004, while the same period in 2003 totaled $18.6 million, $.20 per share. Continuing operations earned $248.8 million, $2.67 per share, in 2004 and $155.2 million, $1.68 per share, in 2003.
Second Quarter 2004 vs. Second Quarter 2003
Reviewing quarterly results by type of business, the Company’s income contribution from continuing exploration and production operations was $139.8 million in the second quarter of 2004 compared to $80.3 million in the same quarter of 2003. The earnings improvement in 2004 was primarily caused by higher oil and natural gas sales prices and sales volumes. The 2003 period included a $34 million after-tax gain on sale of North Sea properties. The Company’s worldwide crude oil and condensate sales prices averaged $34.14 per barrel for the current quarter compared to $24.60 per barrel in the second quarter of 2003. Total crude oil and gas liquids production from continuing operations was 97,375 barrels per day in the second quarter of 2004 compared to 75,624 barrels per day in the 2003 quarter, with the net increase primarily attributable to production at the Medusa and Habanero fields in deepwater Gulf of Mexico, both of which commenced production in the fourth quarter of 2003, and higher volumes at the West Patricia field in Malaysia due to a full quarter of production in 2004. Production at the West Patricia field commenced in May 2003. Crude oil sales volumes from continuing operations averaged 99,819 barrels per day in the second quarter of 2004 compared to 67,452 barrels per day in the 2003 period. North American natural gas sales prices averaged $6.22 per thousand cubic feet (MCF) in the most recent quarter compared to $5.22 per MCF in the same quarter of 2003. Natural gas sales volumes from continuing operations increased from 112 million cubic feet per day in the second quarter of 2003 to 123 million cubic feet per day in the just completed quarter, primarily due to production from the Medusa and Habanero fields in the Gulf of Mexico. Exploration expenses were $23.2 million in the second quarter of 2004 compared to $28.1 million in the same period of 2003.
The Company’s refining and marketing results generated a profit of $39.5 million in the most recent quarter compared to a profit of $.3 million in the 2003 quarter. The improvement was due to significantly better margins in North America and the United Kingdom in the current quarter. A fire that destroyed the ROSE unit at the Meraux, Louisiana refinery in June 2003 lowered earnings in the second quarter of 2003 by $12.3 million.
The after-tax costs of the corporate functions were $11.2 million in the 2004 quarter compared to $8.3 million in the 2003 quarter. Higher administrative expenses were the primary reasons for increased net costs in 2004.
The Company sold most of its conventional oil and gas assets in Western Canada in the second quarter of 2004 for cash proceeds of $582.7 million, which generated an after-tax gain in discontinued operations of $166.7 million. The operating results of these sold assets have also been reported as discontinued operations for all periods presented.
First Six Months 2004 vs. First Six Months 2003
Income from both the exploration and production and refining and marketing businesses improved significantly in the first half of 2004 compared to the same period in 2003. The Company’s exploration and production continuing operations earned $241 million in the first half of 2004 and $156 million in the same period of 2003. Higher oil and natural gas sales prices and sales volumes in 2004 were the primary reasons for better earnings in this business. Exploration expenses were $72.3 million in 2004 compared to $43.5 million in 2003, with the increase mostly due to higher costs for dry holes in the U.S. deepwater Gulf of Mexico and Malaysia. Crude oil and gas liquids production from continuing operations for the first six months of 2004 averaged 96,255 barrels per day compared to 71,722 barrels per day in 2003. The higher production in 2004 was attributable to start-up of Medusa and Habanero in late 2003 and a full six months of production at West Patricia in Malaysia. Natural gas sales from continuing operations were up from 114 million cubic feet per day in 2003 to 124 million cubic feet per day in 2004. Crude oil and condensate sales prices averaged $32.58 per barrel in the 2004 period compared to $26.28 per barrel in 2003. North American natural gas was sold for $6.05 per MCF in 2004, up from $5.58 in 2003.
The Company’s refining and marketing operations generated a profit of $33.1 million in 2004, but incurred a loss of $3.2 million in 2003. The improved current year result was based on strong margins in both the North American and U.K. businesses in the second quarter of 2004 coupled with $12.3 million of after-tax costs in the 2003 period from a fire at the Meraux refinery.
Corporate after-tax costs were $25.3 million in the first six months of 2004 as compared to a profit of $2.4 million in the 2003 period. The prior year included a benefit on U.S. tax settlements of $20.1 million. Higher net interest and administrative expenses were also components of the higher costs in the 2004 period.
Claiborne P. Deming, President and Chief Executive Officer, commented, “The Company made two significant discoveries in the second quarter of 2004. One of these was the Kakap #1 well (80%) in Block K, Malaysia, where a large oil deposit was encountered approximately six miles from our Kikeh discovery. The other was the Thunderhawk discovery (37.5%) in Mississippi Canyon Block 734 in the Gulf of Mexico. Other successful drilling occurred at the Kenarong well (75%) offshore peninsular Malaysia Block 311. Our downstream operations provided strong income and cash flow contributions in the second quarter, most notably in June when crude oil prices fell back. We opened our 700th gasoline station at Wal-Mart stores on July 21. We currently expect earnings in the third quarter to be in the range of $1.00 to $1.50 per share. Results could vary based on commodity prices, drilling results and timing of oil sales.”
The public is invited to access the Company’s conference call to discuss second quarter 2004 results on Wednesday, July 28, at 11:00 a.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 1-800-366-3908. The telephone reservation number for the call is 11003189. 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 1 by calling 1-800-405-2236.
Summary financial data and operating statistics for the second quarter and first six months of 2004 with comparisons to 2003 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.
####
MURPHY OIL CORPORATION
FUNCTIONAL RESULTS OF OPERATIONS (Unaudited)
(Millions of dollars)
| Three Months Ended June 30, 2004 |
Three Months Ended June 30, 2003* |
||||||||||||
| Revenues |
Income |
Revenues |
Income |
||||||||||
| Exploration and production |
|||||||||||||
| United States |
$ | 131.7 | 47.7 | 49.9 | 2.8 | ||||||||
| Canada |
148.5 | 64.5 | 104.5 | 35.1 | |||||||||
| United Kingdom |
41.7 | 15.8 | 91.4 | 47.4 | |||||||||
| Ecuador |
13.7 | 3.8 | 4.8 | .8 | |||||||||
| Malaysia |
43.9 | 10.6 | – | (5.3 | ) | ||||||||
| Other |
.6 | (2.6 | ) | 1.6 | (.5 | ) | |||||||
| 380.1 | 139.8 | 252.2 | 80.3 | ||||||||||
| Refining and marketing |
|||||||||||||
| North America |
1,564.1 | 27.4 | 866.2 | (1.5 | ) | ||||||||
| United Kingdom |
172.0 | 12.1 | 116.1 | 1.8 | |||||||||
| 1,736.1 | 39.5 | 982.3 | .3 | ||||||||||
| 2,116.2 | 179.3 | 1,234.5 | 80.6 | ||||||||||
| Intersegment transfers elimination |
(27.6 | ) | – | (12.3 | ) | – | |||||||
| 2,088.6 | 179.3 | 1,222.2 | 80.6 | ||||||||||
| Corporate |
7.1 | (11.2 | ) | 1.2 | (8.3 | ) | |||||||
| Revenues/income from continuing operations |
2,095.7 | 168.1 | 1,223.4 | 72.3 | |||||||||
| Discontinued operations, net of taxes |
– | 181.8 | – | 7.4 | |||||||||
| Total revenues/net income |
$ | 2,095.7 | 349.9 | 1,223.4 | 79.7 | ||||||||
| Six Months Ended June 30, 2004 |
Six Months Ended June 30, 2003* |
||||||||||||
| Revenues |
Income |
Revenues |
Income |
||||||||||
| Exploration and production |
|||||||||||||
| United States |
$ | 263.0 | 84.2 | 100.6 | 15.6 | ||||||||
| Canada |
291.0 | 118.1 | 222.0 | 79.8 | |||||||||
| United Kingdom |
80.1 | 29.6 | 149.6 | 66.5 | |||||||||
| Ecuador |
30.1 | 6.7 | 16.1 | 6.3 | |||||||||
| Malaysia |
69.5 | 6.6 | – | (10.8 | ) | ||||||||
| Other |
1.6 | (4.2 | ) | 2.3 | (1.4 | ) | |||||||
| 735.3 | 241.0 | 490.6 | 156.0 | ||||||||||
| Refining and marketing |
|||||||||||||
| North America |
2,751.9 | 16.9 | 1,775.7 | (7.9 | ) | ||||||||
| United Kingdom |
304.8 | 16.2 | 238.4 | 4.7 | |||||||||
| 3,056.7 | 33.1 | 2,014.1 | (3.2 | ) | |||||||||
| 3,792.0 | 274.1 | 2,504.7 | 152.8 | ||||||||||
| Intersegment transfers elimination |
(57.6 | ) | – | (25.3 | ) | – | |||||||
| 3,734.4 | 274.1 | 2,479.4 | 152.8 | ||||||||||
| Corporate |
9.4 | (25.3 | ) | 2.2 | 2.4 | ||||||||
| Revenues/income from continuing operations |
3,743.8 | 248.8 | 2,481.6 | 155.2 | |||||||||
| Discontinued operations, net of taxes |
– | 199.3 | – | 18.6 | |||||||||
| Revenues/income before cumulative effect of accounting change |
3,743.8 | 448.1 | 2,481.6 | 173.8 | |||||||||
| Cumulative effect of accounting change, net of taxes |
– | – | – | (7.0 | ) | ||||||||
| Total revenues/net income |
$ | 3,743.8 | 448.1 | 2,481.6 | 166.8 | ||||||||
*Reclassified to conform to current presentation.
MURPHY OIL CORPORATION
CONTINUING 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, 2004 |
||||||||||||||||||||
| Oil and gas sales and other revenues |
$ | 131.7 | 109.6 | 41.7 | 13.7 | 43.9 | .6 | 38.9 | 380.1 | |||||||||||
| Production expenses |
21.0 | 9.0 | 5.3 | 5.6 | 8.4 | – | 17.8 | 67.1 | ||||||||||||
| Depreciation, depletion and amortization |
19.1 | 23.4 | 8.2 | 2.2 | 8.1 | – | 2.6 | 63.6 | ||||||||||||
| Accretion of asset retirement obligations |
.9 | .6 | .7 | – | – | .1 | .1 | 2.4 | ||||||||||||
| Exploration expenses |
||||||||||||||||||||
| Dry holes |
4.5 | (.1 | ) | – | – | 4.1 | – | – | 8.5 | |||||||||||
| Geological and geophysical |
2.6 | .5 | – | – | 2.9 | .5 | – | 6.5 | ||||||||||||
| Other |
2.8 | 1.4 | .2 | – | – | .1 | – | 4.5 | ||||||||||||
| 9.9 | 1.8 | .2 | – | 7.0 | .6 | – | 19.5 | |||||||||||||
| Undeveloped lease amortization |
3.1 | .6 | – | – | – | – | – | 3.7 | ||||||||||||
| Total exploration expenses |
13.0 | 2.4 | .2 | – | 7.0 | .6 | – | 23.2 | ||||||||||||
| Selling and general expenses |
4.3 | 3.3 | .7 | .2 | 1.1 | 2.1 | .1 | 11.8 | ||||||||||||
| Income tax provisions |
25.7 | 21.0 | 10.8 | 1.9 | 8.7 | .4 | 3.7 | 72.2 | ||||||||||||
| Results of operations (excluding corporate overhead and interest) |
$ | 47.7 | 49.9 | 15.8 | 3.8 | 10.6 | (2.6 | ) | 14.6 | 139.8 | ||||||||||
| Three Months Ended June 30, 2003* |
||||||||||||||||||||
| Oil and gas sales and other revenues |
$ | 49.9 | 79.1 | 91.4 | 4.8 | – | 1.6 | 25.4 | 252.2 | |||||||||||
| Production expenses |
8.9 | 9.0 | 9.3 | 2.8 | – | – | 14.9 | 44.9 | ||||||||||||
| Depreciation, depletion and amortization |
9.2 | 23.6 | 8.4 | 1.1 | .3 | – | 2.3 | 44.9 | ||||||||||||
| Accretion of asset retirement obligations |
.8 | .7 | .8 | – | .1 | .1 | .1 | 2.6 | ||||||||||||
| Exploration expenses |
||||||||||||||||||||
| Dry holes |
16.5 | – | – | – | – | (.1 | ) | – | 16.4 | |||||||||||
| Geological and geophysical |
2.2 | (.1 | ) | – | – | 3.1 | – | – | 5.2 | |||||||||||
| Other |
1.8 | .3 | .3 | – | .5 | – | – | 2.9 | ||||||||||||
| 20.5 | .2 | .3 | – | 3.6 | (.1 | ) | – | 24.5 | ||||||||||||
| Undeveloped lease amortization |
2.8 | .8 | – | – | – | – | – | 3.6 | ||||||||||||
| Total exploration expenses |
23.3 | 1.0 | .3 | – | 3.6 | (.1 | ) | – | 28.1 | |||||||||||
| Selling and general expenses |
3.3 | 2.7 | .5 | .1 | 1.3 | 1.6 | .2 | 9.7 | ||||||||||||
| Income tax provisions |
1.6 | 12.3 | 24.7 | – | – | .5 | 2.6 | 41.7 | ||||||||||||
| Results of operations (excluding corporate overhead and interest) |
$ | 2.8 | 29.8 | 47.4 | .8 | (5.3 | ) | (.5 | ) | 5.3 | 80.3 | |||||||||
| Six Months Ended June 30, 2004 |
||||||||||||||||||||
| Oil and gas sales and other revenues |
$ | 263.0 | 212.7 | 80.1 | 30.1 | 69.5 | 1.6 | 78.3 | 735.3 | |||||||||||
| Production expenses |
38.9 | 18.2 | 11.7 | 13.5 | 11.1 | – | 37.5 | 130.9 | ||||||||||||
| Depreciation, depletion and amortization |
36.0 | 49.3 | 15.5 | 5.1 | 13.4 | – | 5.3 | 124.6 | ||||||||||||
| Accretion of asset retirement obligations |
1.8 | 1.3 | 1.4 | – | .1 | .2 | .2 | 5.0 | ||||||||||||
| Exploration expenses |
||||||||||||||||||||
| Dry holes |
33.1 | (.1 | ) | – | – | 17.5 | .1 | – | 50.6 | |||||||||||
| Geological and geophysical |
3.9 | 1.2 | – | – | 3.0 | .7 | – | 8.8 | ||||||||||||
| Other |
3.2 | 1.6 | .3 | – | – | .2 | – | 5.3 | ||||||||||||
| 40.2 | 2.7 | .3 | – | 20.5 | 1.0 | – | 64.7 | |||||||||||||
| Undeveloped lease amortization |
6.4 | 1.2 | – | – | – | – | – | 7.6 | ||||||||||||
| Total exploration expenses |
46.6 | 3.9 | .3 | – | 20.5 | 1.0 | – | 72.3 | ||||||||||||
| Selling and general expenses |
10.1 | 5.7 | 1.5 | .3 | 2.4 | 4.3 | .3 | 24.6 | ||||||||||||
| Income tax provisions |
45.4 | 41.9 | 20.1 | 4.5 | 15.4 | .3 | 9.3 | 136.9 | ||||||||||||
| Results of operations (excluding corporate overhead and interest) |
$ | 84.2 | 92.4 | 29.6 | 6.7 | 6.6 | (4.2 | ) | 25.7 | 241.0 | ||||||||||
| Six Months Ended June 30, 2003* |
||||||||||||||||||||
| Oil and gas sales and other revenues |
$ | 100.6 | 175.1 | 149.6 | 16.1 | – | 2.3 | 46.9 | 490.6 | |||||||||||
| Production expenses |
16.7 | 17.2 | 20.8 | 7.0 | – | – | 29.3 | 91.0 | ||||||||||||
| Depreciation, depletion and amortization |
17.5 | 45.3 | 18.0 | 2.6 | .5 | .1 | 4.3 | 88.3 | ||||||||||||
| Accretion of asset retirement obligations |
1.6 | 1.2 | 1.7 | – | .1 | .2 | .2 | 5.0 | ||||||||||||
| Exploration expenses |
||||||||||||||||||||
| Dry holes |
19.4 | – | – | – | – | (.1 | ) | – | 19.3 | |||||||||||
| Geological and geophysical |
5.8 | .2 | – | – | 7.5 | – | – | 13.5 | ||||||||||||
| Other |
2.3 | .4 | .4 | – | .5 | .1 | – | 3.7 | ||||||||||||
| 27.5 | .6 | .4 | – | 8.0 | – | – | 36.5 | |||||||||||||
| Undeveloped lease amortization |
5.4 | 1.6 | – | – | – | – | – | 7.0 | ||||||||||||
| Total exploration expenses |
32.9 | 2.2 | .4 | – | 8.0 | – | – | 43.5 | ||||||||||||
| Selling and general expenses |
7.9 | 4.9 | 1.6 | .2 | 2.2 | 3.2 | .3 | 20.3 | ||||||||||||
| Income tax provisions |
8.4 | 33.1 | 40.6 | – | – | .2 | 4.2 | 86.5 | ||||||||||||
| Results of operations (excluding corporate overhead and interest) |
$ | 15.6 | 71.2 | 66.5 | 6.3 | (10.8 | ) | (1.4 | ) | 8.6 | 156.0 | |||||||||
*Reclassified to conform to current presentation.
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, |
||||||||||||
| 2004 |
2003* |
2004 |
2003* |
||||||||||
| Revenues |
$ | 2,095,767 | 1,223,389 | 3,743,839 | 2,481,558 | ||||||||
| Costs and expenses |
|||||||||||||
| Crude oil and product purchases |
1,507,177 | 839,739 | 2,674,442 | 1,744,432 | |||||||||
| Operating expenses |
180,026 | 151,599 | 348,436 | 294,495 | |||||||||
| Exploration expenses |
23,209 | 28,048 | 72,358 | 43,447 | |||||||||
| Selling and general expenses |
33,194 | 27,189 | 63,875 | 56,122 | |||||||||
| Depreciation, depletion and amortization |
82,714 | 59,125 | 162,910 | 116,301 | |||||||||
| Accretion of asset retirement obligations |
2,467 | 2,490 | 4,974 | 4,961 | |||||||||
| Interest expense |
14,179 | 14,272 | 28,467 | 28,233 | |||||||||
| Interest capitalized |
(4,814 | ) | (10,112 | ) | (9,066 | ) | (19,648 | ) | |||||
| 1,838,152 | 1,112,350 | 3,346,396 | 2,268,343 | ||||||||||
| Income from continuing operations before income taxes |
257,615 | 111,039 | 397,443 | 213,215 | |||||||||
| Income tax expense |
89,480 | 38,684 | 148,612 | 58,003 | |||||||||
| Income from continuing operations |
168,135 | 72,355 | 248,831 | 155,212 | |||||||||
| Discontinued operations, net of tax |
181,738 | 7,331 | 199,281 | 18,579 | |||||||||
| Income before cumulative effect of change in accounting principle |
349,873 | 79,686 | 448,112 | 173,791 | |||||||||
| Cumulative effect of change in accounting principle |
– | – | – | (6,993 | ) | ||||||||
| Net income |
$ | 349,873 | 79,686 | 448,112 | 166,798 | ||||||||
| Per Common share – Basic |
|||||||||||||
| Continuing operations |
$ | 1.82 | .79 | 2.70 | 1.69 | ||||||||
| Discontinued operations |
1.98 | .08 | 2.17 | .21 | |||||||||
| Cumulative effect of change in accounting principle |
– | – | – | (.08 | ) | ||||||||
| Net income |
$ | 3.80 | .87 | 4.87 | 1.82 | ||||||||
| Per Common share – Diluted |
|||||||||||||
| Continuing operations |
$ | 1.80 | .78 | 2.67 | 1.68 | ||||||||
| Discontinued operations |
1.95 | .08 | 2.14 | .20 | |||||||||
| Cumulative effect of change in accounting principle |
– | – | – | (.08 | ) | ||||||||
| Net income |
$ | 3.75 | .86 | 4.81 | 1.80 | ||||||||
| Cash dividends per Common share |
$ | .20 | .20 | .40 | .40 | ||||||||
| Average Common shares outstanding (thousands) |
|||||||||||||
| Basic |
91,995 | 91,817 | 91,958 | 91,776 | |||||||||
| Diluted |
93,341 | 92,503 | 93,253 | 92,465 | |||||||||
*Reclassified to conform to current presentation.
MURPHY OIL CORPORATION
SUMMARIZED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(Thousands of dollars)
| Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||
| 2004 |
2003* |
2004 |
2003* |
||||||||||
| Operating Activities |
|||||||||||||
| Income from continuing operations |
$ | 168,135 | 72,355 | 248,831 | 155,212 | ||||||||
| Adjustments to reconcile income from continuing operations to net cash provided by operating activities |
|||||||||||||
| Depreciation, depletion and amortization |
82,714 | 59,125 | 162,910 | 116,301 | |||||||||
| Provisions for major repairs |
7,565 | 9,420 | 15,177 | 15,830 | |||||||||
| Expenditures for major repairs and asset retirement obligations |
(1,955 | ) | (22,499 | ) | (8,313 | ) | (26,193 | ) | |||||
| Dry holes |
8,492 | 16,429 | 50,596 | 19,365 | |||||||||
| Amortization of undeveloped leases |
3,701 | 3,628 | 7,608 | 6,970 | |||||||||
| Accretion of asset retirement obligations |
2,467 | 2,490 | 4,974 | 4,961 | |||||||||
| Deferred and noncurrent income tax charges |
38,903 | 22,641 | 47,690 | 5,640 | |||||||||
| Pretax gains from disposition of assets |
(1,595 | ) | (49,274 | ) | (30,800 | ) | (49,298 | ) | |||||
| Net (increase) decrease in operating working capital other than cash and cash equivalents |
(77,091 | ) | (28,402 | ) | (1,848 | ) | 6,107 | ||||||
| Other |
(2,144 | ) | 233 | (1,941 | ) | (5,672 | ) | ||||||
| Net cash provided by continuing operations |
229,192 | 86,146 | 494,884 | 249,223 | |||||||||
| Net cash provided by discontinued operations |
20,089 | 40,440 | 60,272 | 89,909 | |||||||||
| Net cash provided by operating activities |
249,281 | 126,586 | 555,156 | 339,132 | |||||||||
| Investing Activities |
|||||||||||||
| Property additions and dry holes |
(202,632 | ) | (259,250 | ) | (398,148 | ) | (417,350 | ) | |||||
| Proceeds from sale of assets |
3,531 | 61,029 | 40,671 | 69,035 | |||||||||
| Other – net |
(409 | ) | 50 | (1,302 | ) | 80 | |||||||
| Investing activities of discontinued operations: |
|||||||||||||
| Sales proceeds |
582,675 | – | 582,675 | – | |||||||||
| Other |
2,308 | (10,704 | ) | (13,529 | ) | (35,885 | ) | ||||||
| Net cash provided by (required by) investing activities |
385,473 | (208,875 | ) | 210,367 | (384,120 | ) | |||||||
| Financing Activities |
|||||||||||||
| Increase (decrease) in notes payable |
32,985 | 107,464 | (27,549 | ) | 149,488 | ||||||||
| Decrease in nonrecourse debt of a subsidiary |
(13,020 | ) | (15,396 | ) | (20,899 | ) | (24,452 | ) | |||||
| Proceeds from exercise of stock options and employee stock purchase plans |
961 | 1,405 | 1,887 | 2,348 | |||||||||
| Cash dividends paid |
(18,401 | ) | (18,365 | ) | (36,795 | ) | (36,718 | ) | |||||
| Other |
– | – | – | (72 | ) | ||||||||
| Net cash provided by (used in) financing activities |
2,525 | 75,108 | (83,356 | ) | 90,594 | ||||||||
| Effect of exchange rate changes on cash and cash equivalents |
12,344 | 10,560 | 12,417 | 9,705 | |||||||||
| Net increase in cash and cash equivalents |
649,623 | 3,379 | 694,584 | 55,311 | |||||||||
| Cash and cash equivalents at January 1 |
297,386 | 216,889 | 252,425 | 164,957 | |||||||||
| Cash and cash equivalents at June 30 |
$ | 947,009 | 220,268 | 947,009 | 220,268 | ||||||||
*Reclassified to conform to current presentation.
MURPHY OIL CORPORATION
OTHER FINANCIAL DATA
(Unaudited, except for December 31, 2003)
(Millions of dollars)
| June 30, 2004 |
Dec. 31, 2003 | |||||||||
| Working capital |
$ | 876.2 | 228.5 | |||||||
| Total assets |
5,301.4 | 4,712.6 | ||||||||
| Long-term debt |
||||||||||
| Notes payable |
1,032.8 | 1,061.4 | ||||||||
| Nonrecourse debt |
14.0 | 28.9 | ||||||||
| Stockholders’ equity |
2,350.6 | 1,950.9 | ||||||||
| Three Months Ended June 30, |
Six Months Ended June 30, | |||||||||
| 2004 |
20031 |
2004 |
20031 | |||||||
| Capital expenditures – continuing operations |
||||||||||
| Exploration and production |
||||||||||
| United States |
$ | 51.1 | 106.2 | 110.5 | 156.8 | |||||
| Canada |
43.5 | 43.9 | 98.0 | 74.2 | ||||||
| Malaysia |
72.6 | 40.4 | 117.9 | 63.6 | ||||||
| Other |
9.2 | 17.4 | 14.3 | 29.9 | ||||||
| 176.4 | 207.9 | 340.7 | 324.5 | |||||||
| Refining and marketing |
||||||||||
| North America |
35.5 | 57.7 | 67.8 | 105.1 | ||||||
| International |
1.5 | 1.3 | 3.3 | 4.3 | ||||||
| 37.0 | 59.0 | 71.1 | 109.4 | |||||||
| Corporate |
.3 | .4 | .6 | .6 | ||||||
| Total capital expenditures |
213.7 | 267.3 | 412.4 | 434.5 | ||||||
| Charged to exploration expenses2 |
||||||||||
| United States |
9.9 | 20.5 | 40.2 | 27.5 | ||||||
| Canada |
1.8 | .2 | 2.7 | .6 | ||||||
| Malaysia |
7.0 | 3.6 | 20.5 | 8.0 | ||||||
| Other international |
.8 | .2 | 1.3 | .4 | ||||||
| Total charged to exploration expenses |
19.5 | 24.5 | 64.7 | 36.5 | ||||||
| Total capitalized |
$ | 194.2 | 242.8 | 347.7 | 398.0 | |||||
| 1Reclassified to conform to current presentation. |
||||||||||
| 2Excludes amortization of undeveloped leases of |
3.7 | 3.6 | 7.6 | 7.0 | ||||||
MURPHY OIL CORPORATION
STATISTICAL SUMMARY
| Three Months Ended June 30, |
Six Months Ended June 30, | |||||||
| 2004 |
20031 |
2004 |
20031 | |||||
| Net crude oil, condensate and gas liquids produced – barrels per day |
102,384 | 82,488 | 102,408 | 78,740 | ||||
| Continuing operations |
97,375 | 75,624 | 96,255 | 71,722 | ||||
| Crude oil and condensate |
||||||||
| United States |
23,012 | 3,812 | 20,810 | 3,510 | ||||
| Canada – light |
198 | 931 | 213 | 929 | ||||
| – heavy |
4,654 | 4,036 | 4,518 | 3,987 | ||||
| – offshore |
27,911 | 30,743 | 28,396 | 29,276 | ||||
| – synthetic |
11,353 | 10,431 | 11,940 | 9,890 | ||||
| United Kingdom |
11,614 | 16,712 | 11,593 | 17,476 | ||||
| Ecuador |
7,731 | 3,094 | 7,768 | 3,231 | ||||
| Malaysia |
9,591 | 4,875 | 10,006 | 2,451 | ||||
| Natural gas liquids |
||||||||
| United States |
218 | 207 | 158 | 144 | ||||
| Canada |
482 | 623 | 493 | 653 | ||||
| United Kingdom |
611 | 160 | 360 | 175 | ||||
| Discontinued operations |
5,009 | 6,864 | 6,153 | 7,018 | ||||
| Net crude oil, condensate and gas liquids sold – barrels per day |
104,828 | 74,316 | 103,153 | 76,262 | ||||
| Continuing operations |
99,819 | 67,452 | 97,000 | 69,244 | ||||
| Crude oil and condensate |
||||||||
| United States |
23,012 | 3,842 | 20,810 | 3,510 | ||||
| Canada – light |
198 | 931 | 213 | 929 | ||||
| – heavy |
4,654 | 4,036 | 4,518 | 3,987 | ||||
| – offshore |
28,687 | 27,926 | 29,587 | 28,861 | ||||
| – synthetic |
11,353 | 10,431 | 11,940 | 9,890 | ||||
| United Kingdom |
12,534 | 16,605 | 12,053 | 17,524 | ||||
| Ecuador |
5,782 | 2,685 | 6,703 | 3,583 | ||||
| Malaysia |
12,569 | – | 10,307 | – | ||||
| Natural gas liquids |
||||||||
| United States |
218 | 207 | 158 | 144 | ||||
| Canada |
482 | 623 | 493 | 653 | ||||
| United Kingdom |
330 | 166 | 218 | 163 | ||||
| Discontinued operations |
5,009 | 6,864 | 6,153 | 7,018 | ||||
| Net natural gas sold – thousands of cubic feet per day |
160,747 | 231,057 | 186,651 | 229,619 | ||||
| Continuing operations |
123,025 | 111,992 | 123,593 | 113,851 | ||||
| United States |
103,673 | 83,553 | 101,094 | 80,771 | ||||
| Canada |
14,637 | 20,798 | 14,601 | 23,452 | ||||
| United Kingdom |
4,715 | 7,641 | 7,898 | 9,628 | ||||
| Discontinued operations |
37,722 | 119,065 | 63,058 | 115,768 | ||||
| Total net hydrocarbons produced – equivalent barrels per day2 |
129,175 | 120,998 | 133,517 | 117,010 | ||||
| Total net hydrocarbons sold – equivalent barrels per day2 |
131,619 | 112,826 | 134,262 | 114,532 | ||||
1Reclassified to conform to current presentation.
2Natural gas converted on an energy equivalent basis of 6:1.
MURPHY OIL CORPORATION
STATISTICAL SUMMARY (Continued)
| Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||
| 2004 |
2003 |
2004 |
2003 |
||||||||
| Weighted average sales prices |
|||||||||||
| Crude oil and condensate – dollars per barrel (1) |
|||||||||||
| United States |
$ | 33.60 | 24.69 | (3) | 32.78 | 24.73 | (3) | ||||
| Canada (2) – light |
36.08 | 27.66 | 34.77 | 28.60 | |||||||
| – heavy |
20.08 | 12.64 | (3) | 18.41 | 12.52 | (3) | |||||
| – offshore |
35.13 | 24.80 | (3) | 33.28 | 26.50 | (3) | |||||
| – synthetic |
37.65 | 26.67 | (3) | 36.03 | 26.18 | (3) | |||||
| United Kingdom |
34.53 | 26.46 | 33.13 | 29.60 | |||||||
| Ecuador |
25.97 | 19.68 | 24.67 | 24.79 | |||||||
| Malaysia |
38.21 | – | 36.88 | – | |||||||
| Natural gas liquids – dollars per barrel (1) |
|||||||||||
| United States |
$ | 26.59 | 23.15 | 26.83 | 23.88 | ||||||
| Canada (2) |
27.54 | 22.05 | 27.99 | 24.54 | |||||||
| United Kingdom |
26.72 | 18.61 | 26.51 | 23.09 | |||||||
| Natural gas – dollars a thousand cubic feet |
|||||||||||
| United States (1) |
$ | 6.33 | 5.26 | (3) | 6.15 | 5.76 | (3) | ||||
| Canada (2) |
5.43 | 5.08 | (3) | 5.36 | 4.98 | (3) | |||||
| United Kingdom (2) |
3.09 | 3.18 | 4.24 | 3.38 | |||||||
| Refinery inputs – barrels per day |
181,700 | 137,749 | 176,375 | 149,280 | |||||||
| North America |
142,773 | 103,017 | 138,985 | 113,838 | |||||||
| United Kingdom |
38,927 | 34,732 | 37,390 | 35,442 | |||||||
| Petroleum products sold – barrels per day |
347,972 | 274,034 | 324,841 | 251,276 | |||||||
| North America |
308,412 | 237,809 | 287,517 | 216,866 | |||||||
| Gasoline |
218,724 | 166,603 | 201,098 | 148,646 | |||||||
| Kerosine |
578 | 5,540 | 4,443 | 6,747 | |||||||
| Diesel and home heating oils |
65,903 | 44,759 | 62,213 | 41,242 | |||||||
| Residuals |
12,501 | 12,784 | 12,789 | 13,598 | |||||||
| Asphalt, LPG and other |
10,706 | 8,123 | 6,974 | 6,633 | |||||||
| United Kingdom |
39,560 | 36,225 | 37,324 | 34,410 | |||||||
| Gasoline |
13,027 | 11,478 | 12,750 | 10,744 | |||||||
| Kerosine |
1,787 | 2,890 | 2,541 | 2,718 | |||||||
| Diesel and home heating oils |
16,058 | 14,483 | 14,501 | 13,834 | |||||||
| Residuals |
4,718 | 3,109 | 4,430 | 3,806 | |||||||
| LPG and other |
3,970 | 4,265 | 3,102 | 3,308 | |||||||
| (1) | Includes intracompany transfers at market prices. |
| (2) | U.S. dollar equivalent. |
| (3) | Includes the effect of the Company's 2003 hedging program. |