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): July 26, 2005
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 July 26, 2005, Murphy Oil Corporation issued a press release announcing its earnings for the second quarter that ended on June 30, 2005. The full text of this press release is attached hereto as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits
| (c) | Exhibits |
| 99.1 | A news release dated July 26, 2005 announcing earnings for the second quarter that ended on June 30, 2005 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 | ||
| Controller | ||
Date: July 27, 2005
Exhibit Index
| 99.1 | Press release dated July 26, 2005, as issued by Murphy Oil Corporation. |
Exhibit 99.1
MURPHY OIL ANNOUNCES QUARTERLY EARNINGS
EL DORADO, Arkansas, July 26, 2005 – Murphy Oil Corporation (NYSE: MUR) announced today that net income in the second quarter of 2005 was $347.7 million, $1.85 per diluted share, compared to income of $349.9 million, $1.87 per diluted share, in the second quarter of 2004. The 2005 second quarter results included an after-tax gain of $106.8 million, $.57 per share, on sale of mature oil and gas properties on the continental shelf of the Gulf of Mexico. Excluding the gain on property sale, normalized earnings in the second quarter 2005 were at record levels. Net income in the 2004 period included income from discontinued operations of $181.8 million, $.97 per share, $166.7 million of which was an after-tax gain on sale of most conventional oil and gas assets in Western Canada.
For the first six months of 2005, net income totaled $460.9 million, $2.46 per share, compared to $448.1 million, $2.40 per share, for the 2004 period.
Earnings per share amounts for all periods presented reflect the two-for-one common stock split effective June 3, 2005.
Second Quarter 2005 vs. Second Quarter 2004
Reviewing quarterly results by type of business, the Company’s income contribution from exploration and production operations was $289.9 million in the second quarter of 2005 compared to $139.8 million in the same quarter of 2004. The earnings improvement in 2005 was primarily caused by a $106.8 million after-tax gain on sale of oil and gas properties in the Gulf of Mexico, higher oil and natural gas sales prices and higher oil sales volumes. These were somewhat offset by higher exploration expense and lower natural gas sales volumes in the 2005 quarter. The Company’s worldwide crude oil and condensate sales prices averaged $43.10 per barrel for the current quarter compared to $34.14 per barrel in the second quarter of 2004. Total crude oil and gas liquids production from continuing operations was a record 111,030 barrels per day in the second quarter of 2005 compared to 97,375 barrels per day in the 2004 quarter, with the increase primarily attributable to production at the Front Runner field in the deepwater Gulf of Mexico, which commenced production in the fourth quarter of 2004, and higher heavy oil production at the Seal area in Western Canada. Crude oil sales volumes from continuing operations averaged 114,526 barrels per day in the second quarter of 2005 compared to 99,819 barrels per day in the 2004 period. North American natural gas sales prices averaged $7.25 per thousand cubic feet (MCF) in the most recent quarter compared to $6.22 per MCF in the same quarter of 2004. Natural gas sales volumes from continuing operations decreased from 123 million cubic feet per day in the second quarter of 2004 to 107 million cubic feet per day in the just completed quarter, primarily due to production lost in 2005 for downtime subsequent to Hurricane Ivan at Viosca Knoll Block 783 (Tahoe field) and lower production from fields in the Gulf of Mexico that were sold in June 2005. All Tahoe wells were back on production at the end of
June. Exploration expenses were $40 million in the second quarter of 2005 compared to $23.2 million in the same period of 2004, with the increase mostly due to higher 3-D seismic programs and dry hole costs in Malaysia and exploration expenses in 2005 in the Republic of Congo.
The Company’s refining and marketing operations generated a record quarterly profit of $67.4 million in the 2005 second quarter compared to a profit of $39.5 million in the same quarter of 2004. The improvement was due to significantly better refining margins in the United States in the 2005 quarter.
The after-tax costs of the corporate function were $9.6 million in the 2005 quarter compared to $11.2 million in the 2004 quarter as lower net interest expense and higher foreign exchange gains more than offset higher administrative expenses in 2005.
First Six Months 2005 vs. First Six Months 2004
Income from continuing operations was $460.9 million in the first half of 2005 compared to $248.8 million in the same 2004 period. Income from both the exploration and production and refining and marketing businesses improved in 2005. The Company’s exploration and production continuing operations earned $414.8 million in the first half of 2005 and $241 million in the same period of 2004. The earnings improvement in 2005 was caused by a $106.8 million after-tax gain on sale of oil and gas properties in the Gulf of Mexico, higher oil and natural gas sales prices and higher oil sales volumes, partially offset by lower natural gas sales volumes and higher exploration expenses. Crude oil and gas liquids production from continuing operations for the first six months of 2005 averaged 109,892 barrels per day compared to 96,255 barrels per day in 2004. The production increase in 2005 was mostly attributable to higher production in the deepwater Gulf of Mexico at the Front Runner and Medusa fields and in Malaysia at the West Patricia field. Natural gas sales from continuing operations were down from 124 million cubic feet per day in 2004 to 110 million cubic feet per day in 2005, with the decline due to lower sales volumes from Gulf of Mexico fields sold in June 2005 and production lost during downtime at the Tahoe field following Hurricane Ivan. Crude oil and condensate sales prices averaged $41.55 per barrel in the 2005 period compared to $32.58 per barrel in 2004. North American natural gas was sold for $6.98 per MCF in 2005, up from $6.05 per MCF in 2004. Exploration expenses were $110.3 million in 2005 compared to $72.3 million in 2004, with the increase in the 2005 period mostly due to higher dry hole and 3-D seismic costs in Malaysia and exploration expense incurred in the Republic of Congo in 2005.
The Company’s refining and marketing operations generated a profit of $61.9 million in the first six months of 2005, compared to a $33.1 million profit in the same 2004 period. The improved current year result was based on stronger U.S. refining margins in 2005.
Corporate after-tax costs were $15.8 million in the first six months of 2005 compared to costs of $25.3 million in the 2004 period. Lower net interest expense in 2005 was partially offset by higher administrative costs in the current period.
Claiborne P. Deming, President and Chief Executive Officer, commented, “A combination of stronger commodity prices, record oil production and better downstream margins in the second quarter of 2005 led to record quarterly earnings for exploration and production and downstream, when gains from property sales are excluded. In the second half of 2005 we will continue our active exploratory drilling programs in the Republic of Congo and Malaysia. Our U.S. retail marketing business continues to expand, and we opened our 800th gasoline station at Wal-Mart stores in May. We currently expect earnings in the third quarter to be in the range of $1.00 to $1.10 per share. Total average production in the third quarter is projected to be 113,000 barrels of oil equivalent per day compared to 128,848 barrel equivalents per day in the second quarter 2005. Production volumes are expected to be lower in the third quarter compared to the just completed quarter because of planned maintenance downtime, Gulf of Mexico storm shut-ins, and sale of the properties in the Gulf of Mexico in June. Results will 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 2005 results on Wednesday, July 27, 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 1-800-257-1927. The telephone reservation number for the call is 11035334. 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 2005 with comparisons to 2004 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, 2005 |
Three Months Ended June 30, 2004 |
||||||||||||
| Revenues |
Income |
Revenues |
Income |
||||||||||
| Exploration and production |
|||||||||||||
| United States |
$ | 366.8 | 187.9 | 131.7 | 47.7 | ||||||||
| Canada |
193.7 | 78.6 | 148.5 | 64.5 | |||||||||
| United Kingdom |
48.5 | 20.7 | 41.7 | 15.8 | |||||||||
| Ecuador |
22.7 | 7.3 | 13.7 | 3.8 | |||||||||
| Malaysia |
60.9 | 2.2 | 43.9 | 10.6 | |||||||||
| Other |
.9 | (6.8 | ) | .6 | (2.6 | ) | |||||||
| 693.5 | 289.9 | 380.1 | 139.8 | ||||||||||
| Refining and marketing |
|||||||||||||
| North America |
2,129.0 | 59.7 | 1,564.1 | 27.4 | |||||||||
| United Kingdom |
135.5 | 7.7 | 172.0 | 12.1 | |||||||||
| 2,264.5 | 67.4 | 1,736.1 | 39.5 | ||||||||||
| 2,958.0 | 357.3 | 2,116.2 | 179.3 | ||||||||||
| Intersegment transfers elimination |
(14.7 | ) | — | (17.6 | ) | — | |||||||
| 2,943.3 | 357.3 | 2,098.6 | 179.3 | ||||||||||
| Corporate |
6.6 | (9.6 | ) | 7.1 | (11.2 | ) | |||||||
| Revenues/income from continuing operations |
2,949.9 | 347.7 | 2,105.7 | 168.1 | |||||||||
| Income from discontinued operations, net of taxes |
— | — | — | 181.8 | |||||||||
| Total revenues/net income |
$ | 2,949.9 | 347.7 | 2,105.7 | 349.9 | ||||||||
| Six Months Ended June 30, 2005 |
Six Months Ended June 30, 2004 |
||||||||||||
| Revenues |
Income |
Revenues |
Income |
||||||||||
| Exploration and production |
|||||||||||||
| United States |
$ | 549.5 | 249.8 | 263.0 | 84.2 | ||||||||
| Canada |
349.3 | 134.0 | 291.0 | 118.1 | |||||||||
| United Kingdom |
88.8 | 37.7 | 80.1 | 29.6 | |||||||||
| Ecuador |
43.0 | 12.5 | 30.1 | 6.7 | |||||||||
| Malaysia |
123.0 | 11.9 | 69.5 | 6.6 | |||||||||
| Other |
1.8 | (31.1 | ) | 1.6 | (4.2 | ) | |||||||
| 1,155.4 | 414.8 | 735.3 | 241.0 | ||||||||||
| Refining and marketing |
|||||||||||||
| North America |
3,887.4 | 51.4 | 2,751.9 | 16.9 | |||||||||
| United Kingdom |
330.5 | 10.5 | 304.8 | 16.2 | |||||||||
| 4,217.9 | 61.9 | 3,056.7 | 33.1 | ||||||||||
| 5,373.3 | 476.7 | 3,792.0 | 274.1 | ||||||||||
| Intersegment transfers elimination |
(25.7 | ) | — | (36.0 | ) | — | |||||||
| 5,347.6 | 476.7 | 3,756.0 | 274.1 | ||||||||||
| Corporate |
17.2 | (15.8 | ) | 9.4 | (25.3 | ) | |||||||
| Revenues/income from continuing operations |
5,364.8 | 460.9 | 3,765.4 | 248.8 | |||||||||
| Income from discontinued operations, net of taxes |
— | — | — | 199.3 | |||||||||
| Total revenues/net income |
$ | 5,364.8 | 460.9 | 3,765.4 | 448.1 | ||||||||
MURPHY OIL CORPORATION
CONTINUING OIL AND GAS OPERATING RESULTS (Unaudited)
| (Millions of dollars) |
United States |
Canada |
United dom |
Ecuador |
Malaysia |
Other |
Synthetic Oil – Canada |
Total | ||||||||||||
| Three Months Ended June 30, 2005 |
||||||||||||||||||||
| Oil and gas sales and other revenues |
$ | 366.8 | 136.9 | 48.5 | 22.7 | 60.9 | .9 | 56.8 | 693.5 | |||||||||||
| Production expenses |
26.8 | 14.2 | 4.3 | 5.2 | 10.4 | — | 22.0 | 82.9 | ||||||||||||
| Depreciation, depletion and amortization |
26.5 | 31.5 | 7.6 | 4.9 | 13.9 | .1 | 3.1 | 87.6 | ||||||||||||
| Accretion of asset retirement obligations |
.9 | .9 | .4 | — | — | .1 | .2 | 2.5 | ||||||||||||
| Exploration expenses |
||||||||||||||||||||
| Dry holes |
1.0 | (.7 | ) | (.1 | ) | — | 6.7 | 1.9 | — | 8.8 | ||||||||||
| Geological and geophysical |
4.6 | 1.3 | — | — | 14.7 | 1.6 | — | 22.2 | ||||||||||||
| Other |
2.8 | .2 | .2 | — | — | .7 | — | 3.9 | ||||||||||||
| 8.4 | .8 | .1 | — | 21.4 | 4.2 | — | 34.9 | |||||||||||||
| Undeveloped lease amortization |
4.0 | .7 | — | — | — | .4 | — | 5.1 | ||||||||||||
| Total exploration expenses |
12.4 | 1.5 | .1 | — | 21.4 | 4.6 | — | 40.0 | ||||||||||||
| Selling and general expenses |
5.2 | 2.1 | .8 | .4 | 1.9 | 2.7 | .1 | 13.2 | ||||||||||||
| Income tax provisions |
107.1 | 29.2 | 14.6 | 4.9 | 11.1 | .2 | 10.3 | 177.4 | ||||||||||||
| Results of operations (excluding corporate overhead and interest) |
$ | 187.9 | 57.5 | 20.7 | 7.3 | 2.2 | (6.8 | ) | 21.1 | 289.9 | ||||||||||
| 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 | ||||||||||
| Six Months Ended June 30, 2005 |
||||||||||||||||||||
| Oil and gas sales and other revenues |
$ | 549.5 | 255.7 | 88.8 | 43.0 | 123.0 | 1.8 | 93.6 | 1,155.4 | |||||||||||
| Production expenses |
50.8 | 28.1 | 8.0 | 10.9 | 17.2 | — | 42.6 | 157.6 | ||||||||||||
| Depreciation, depletion and amortization |
52.8 | 63.3 | 13.5 | 9.4 | 26.2 | .1 | 6.0 | 171.3 | ||||||||||||
| Accretion of asset retirement obligations |
2.0 | 1.7 | .8 | — | .1 | .2 | .3 | 5.1 | ||||||||||||
| Exploration expenses |
||||||||||||||||||||
| Dry holes |
16.6 | (.7 | ) | (.1 | ) | — | 21.7 | 22.6 | — | 60.1 | ||||||||||
| Geological and geophysical |
12.7 | 1.6 | — | — | 16.3 | 1.6 | — | 32.2 | ||||||||||||
| Other |
3.5 | .3 | .3 | — | — | 1.8 | — | 5.9 | ||||||||||||
| 32.8 | 1.2 | .2 | — | 38.0 | 26.0 | — | 98.2 | |||||||||||||
| Undeveloped lease amortization |
9.8 | 1.5 | — | — | — | .8 | — | 12.1 | ||||||||||||
| Total exploration expenses |
42.6 | 2.7 | .2 | — | 38.0 | 26.8 | — | 110.3 | ||||||||||||
| Selling and general expenses |
9.4 | 4.4 | 1.7 | .5 | 4.0 | 5.3 | .3 | 25.6 | ||||||||||||
| Income tax provisions |
142.1 | 51.4 | 26.9 | 9.7 | 25.6 | .5 | 14.5 | 270.7 | ||||||||||||
| Results of operations (excluding corporate overhead and interest) |
$ | 249.8 | 104.1 | 37.7 | 12.5 | 11.9 | (31.1 | ) | 29.9 | 414.8 | ||||||||||
| 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 | ||||||||||
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, |
||||||||||||
| 2005 |
2004* |
2005 |
2004* |
||||||||||
| Revenues |
$ | 2,949,942 | 2,105,725 | 5,364,814 | 3,765,419 | ||||||||
| Costs and expenses |
|||||||||||||
| Crude oil and product purchases |
1,966,451 | 1,517,135 | 3,755,995 | 2,696,022 | |||||||||
| Operating expenses |
226,787 | 180,026 | 430,430 | 348,436 | |||||||||
| Exploration expenses |
40,010 | 23,209 | 110,305 | 72,358 | |||||||||
| Selling and general expenses |
40,459 | 33,194 | 76,764 | 63,875 | |||||||||
| Depreciation, depletion and amortization |
109,039 | 82,714 | 213,793 | 162,910 | |||||||||
| Accretion of asset retirement obligations |
2,493 | 2,467 | 5,132 | 4,974 | |||||||||
| Interest expense |
11,501 | 14,179 | 23,537 | 28,467 | |||||||||
| Interest capitalized |
(8,755 | ) | (4,814 | ) | (16,322 | ) | (9,066 | ) | |||||
| 2,387,985 | 1,848,110 | 4,599,634 | 3,367,976 | ||||||||||
| Income from continuing operations before income taxes |
561,957 | 257,615 | 765,180 | 397,443 | |||||||||
| Income tax expense |
214,164 | 89,480 | 304,234 | 148,612 | |||||||||
| Income from continuing operations |
347,793 | 168,135 | 460,946 | 248,831 | |||||||||
| Income from discontinued operations, net of tax |
— | 181,738 | — | 199,281 | |||||||||
| Net income |
$ | 347,793 | 349,873 | 460,946 | 448,112 | ||||||||
| Per Common share - Basic |
|||||||||||||
| Continuing operations |
$ | 1.89 | .91 | 2.51 | 1.35 | ||||||||
| Discontinued operations |
— | .99 | — | 1.09 | |||||||||
| Net income |
$ | 1.89 | 1.90 | 2.51 | 2.44 | ||||||||
| Per Common share - Diluted |
|||||||||||||
| Continuing operations |
$ | 1.85 | .90 | 2.46 | 1.33 | ||||||||
| Discontinued operations |
— | .97 | — | 1.07 | |||||||||
| Net income |
$ | 1.85 | 1.87 | 2.46 | 2.40 | ||||||||
| Cash dividends per Common share |
$ | .1125 | .10 | .225 | .20 | ||||||||
| Average Common shares outstanding (thousands) |
|||||||||||||
| Basic |
183,904 | 183,989 | 183,902 | 183,916 | |||||||||
| Diluted |
187,683 | 186,682 | 187,586 | 186,506 | |||||||||
| * | 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, |
||||||||||||
| 2005 |
2004 |
2005 |
2004 |
||||||||||
| Operating Activities |
|||||||||||||
| Income from continuing operations |
$ | 347,793 | 168,135 | 460,946 | 248,831 | ||||||||
| Adjustments to reconcile income from continuing operations to net cash provided by operating activities |
|||||||||||||
| Depreciation, depletion and amortization |
109,039 | 82,714 | 213,793 | 162,910 | |||||||||
| Provisions for major repairs |
12,475 | 7,565 | 19,639 | 15,177 | |||||||||
| Expenditures for major repairs and asset retirement obligations |
(17,703 | ) | (2,631 | ) | (27,798 | ) | (8,989 | ) | |||||
| Dry holes |
8,789 | 8,492 | 60,071 | 50,596 | |||||||||
| Amortization of undeveloped leases |
5,125 | 3,701 | 12,107 | 7,608 | |||||||||
| Accretion of asset retirement obligations |
2,493 | 2,467 | 5,132 | 4,974 | |||||||||
| Deferred and noncurrent income tax charges |
3,655 | 38,903 | 3,774 | 47,690 | |||||||||
| Pretax gains from disposition of assets |
(171,613 | ) | (1,593 | ) | (171,924 | ) | (30,800 | ) | |||||
| Net increase in operating working capital other than cash and cash equivalents |
(45,198 | ) | (77,091 | ) | (102,494 | ) | (1,848 | ) | |||||
| Other |
(9,110 | ) | (1,470 | ) | (20,879 | ) | (1,265 | ) | |||||
| Net cash provided by continuing operations |
245,745 | 229,192 | 452,367 | 494,884 | |||||||||
| Net cash provided by discontinued operations |
— | 20,089 | — | 60,272 | |||||||||
| Net cash provided by operating activities |
245,745 | 249,281 | 452,367 | 555,156 | |||||||||
| Investing Activities |
|||||||||||||
| Property additions and dry holes |
(317,074 | ) | (202,632 | ) | (576,402 | ) | (398,148 | ) | |||||
| Proceeds from sale of assets |
159,838 | 3,531 | 160,421 | 40,671 | |||||||||
| Proceeds from maturities of marketable securities |
— | — | 17,892 | — | |||||||||
| Other - net |
(5,983 | ) | (409 | ) | (6,259 | ) | (1,302 | ) | |||||
| Investing activities of discontinued operations: |
|||||||||||||
| Sales proceeds |
— | 582,675 | — | 582,675 | |||||||||
| Other |
— | 2,308 | — | (13,529 | ) | ||||||||
| Net cash provided by (required by) investing activities |
(163,219 | ) | 385,473 | (404,348 | ) | 210,367 | |||||||
| Financing Activities |
|||||||||||||
| Increase (decrease) in notes payable |
(9,593 | ) | 32,985 | (19,233 | ) | (27,549 | ) | ||||||
| Decrease in nonrecourse debt of a subsidiary |
(4,193 | ) | (13,020 | ) | (4,193 | ) | (20,899 | ) | |||||
| Proceeds from exercise of stock options and employee stock purchase plans |
— | 961 | 337 | 1,886 | |||||||||
| Cash dividends paid |
(20,749 | ) | (18,401 | ) | (41,497 | ) | (36,794 | ) | |||||
| Other |
(1,052 | ) | — | (1,052 | ) | — | |||||||
| Net cash provided by (used in) financing activities |
(35,587 | ) | 2,525 | (65,638 | ) | (83,356 | ) | ||||||
| Effect of exchange rate changes on cash and cash equivalents |
(3,070 | ) | 12,344 | (10,173 | ) | 12,417 | |||||||
| Net increase (decrease) in cash and cash equivalents |
43,869 | 649,623 | (27,792 | ) | 694,584 | ||||||||
| Cash and cash equivalents at beginning of period |
463,864 | 297,386 | 535,525 | 252,425 | |||||||||
| Cash and cash equivalents at end of period |
$ | 507,733 | 947,009 | 507,733 | 947,009 | ||||||||
MURPHY OIL CORPORATION
OTHER FINANCIAL DATA
(Unaudited, except for December 31, 2004)
(Millions of dollars)
| June 30, 2005 |
Dec. 31, 2004 | |||
| Total current assets |
1,779.9 | 1,629.4 | ||
| Total current liabilities |
1,279.4 | 1,205.0 | ||
| Total assets |
5,854.0 | 5,458.2 | ||
| Long-term debt |
||||
| Notes payable |
597.8 | 597.7 | ||
| Nonrecourse debt |
11.1 | 15.6 | ||
| Stockholders’ equity |
3,038.4 | 2,649.2 |
| Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||
| 2005 |
2004 |
2005 |
2004 | ||||||
| Capital expenditures |
|||||||||
| Exploration and production |
|||||||||
| United States |
$ | 53.4 | 51.1 | 113.5 | 110.5 | ||||
| Canada |
46.7 | 43.5 | 101.1 | 98.0 | |||||
| Malaysia |
129.2 | 72.6 | 211.0 | 117.9 | |||||
| Other |
16.4 | 9.1 | 56.1 | 14.2 | |||||
| 245.7 | 176.3 | 481.7 | 340.6 | ||||||
| Refining and marketing |
|||||||||
| North America |
30.2 | 35.5 | 62.8 | 67.8 | |||||
| United Kingdom |
56.7 | 1.4 | 58.1 | 3.2 | |||||
| 86.9 | 36.9 | 120.9 | 71.0 | ||||||
| Corporate |
10.6 | .3 | 11.9 | .6 | |||||
| Total capital expenditures |
343.2 | 213.5 | 614.5 | 412.2 | |||||
| Charged to exploration expenses* |
|||||||||
| United States |
8.4 | 9.9 | 32.8 | 40.2 | |||||
| Canada |
.8 | 1.8 | 1.2 | 2.7 | |||||
| Malaysia |
21.4 | 7.0 | 38.0 | 20.5 | |||||
| Other international |
4.3 | .8 | 26.2 | 1.3 | |||||
| Total charged to exploration expenses |
34.9 | 19.5 | 98.2 | 64.7 | |||||
| Total capitalized |
$ | 308.3 | 194.0 | 516.3 | 347.5 | ||||
* Excludes amortization of undeveloped leases of |
5.1 | 3.7 | 12.1 | 7.6 | |||||
MURPHY OIL CORPORATION
STATISTICAL SUMMARY
| Three Months Ended June 30, |
Six Months Ended June 30, | |||||||
| 2005 |
2004 |
2005 |
2004 | |||||
| Net crude oil, condensate and gas liquids produced – barrels per day |
111,030 | 102,384 | 109,892 | 102,408 | ||||
| Continuing operations |
111,030 | 97,375 | 109,892 | 96,255 | ||||
| Crude oil and condensate |
||||||||
| United States |
32,447 | 23,012 | 32,521 | 20,810 | ||||
| Canada – light |
148 | 198 | 165 | 213 | ||||
| – heavy |
11,340 | 4,654 | 11,148 | 4,518 | ||||
| – offshore |
25,036 | 27,911 | 25,020 | 28,396 | ||||
| – synthetic |
11,562 | 11,353 | 9,689 | 11,940 | ||||
| United Kingdom |
9,641 | 11,614 | 9,154 | 11,593 | ||||
| Ecuador |
7,545 | 7,731 | 7,594 | 7,768 | ||||
| Malaysia |
12,740 | 9,591 | 13,954 | 10,006 | ||||
| Natural gas liquids |
||||||||
| United States |
184 | 218 | 202 | 158 | ||||
| Canada |
375 | 482 | 418 | 493 | ||||
| United Kingdom |
12 | 611 | 27 | 360 | ||||
| Discontinued operations |
— | 5,009 | — | 6,153 | ||||
| Net crude oil, condensate and gas liquids sold – barrels per day |
114,526 | 104,828 | 111,727 | 103,153 | ||||
| Continuing operations |
114,526 | 99,819 | 111,727 | 97,000 | ||||
| Crude oil and condensate |
||||||||
| United States |
32,447 | 23,012 | 32,521 | 20,810 | ||||
| Canada – light |
148 | 198 | 165 | 213 | ||||
| – heavy |
11,340 | 4,654 | 11,148 | 4,518 | ||||
| – offshore |
24,769 | 28,687 | 24,459 | 29,587 | ||||
| – synthetic |
11,562 | 11,353 | 9,689 | 11,940 | ||||
| United Kingdom |
10,126 | 12,534 | 9,181 | 12,053 | ||||
| Ecuador |
7,401 | 5,782 | 7,918 | 6,703 | ||||
| Malaysia |
15,948 | 12,569 | 15,912 | 10,307 | ||||
| Natural gas liquids |
||||||||
| United States |
184 | 218 | 202 | 158 | ||||
| Canada |
375 | 482 | 418 | 493 | ||||
| United Kingdom |
226 | 330 | 114 | 218 | ||||
| Discontinued operations |
— | 5,009 | — | 6,153 | ||||
| Net natural gas sold – thousands of cubic feet per day |
106,908 | 160,747 | 109,689 | 186,651 | ||||
| Continuing operations |
106,908 | 123,025 | 109,689 | 123,593 | ||||
| United States |
89,223 | 103,673 | 90,006 | 101,094 | ||||
| Canada |
10,599 | 14,637 | 11,222 | 14,601 | ||||
| United Kingdom |
7,086 | 4,715 | 8,461 | 7,898 | ||||
| Discontinued operations |
— | 37,722 | — | 63,058 | ||||
| Total net hydrocarbons produced – equivalent barrels per day1,2 |
128,848 | 117,879 | 128,174 | 116,854 | ||||
| Total net hydrocarbons sold – equivalent barrels per day1,2 |
132,344 | 120,323 | 130,009 | 117,599 | ||||
| 1 | Natural gas converted on an energy equivalent basis of 6:1. |
| 2 | Continuing operations only. |
MURPHY OIL CORPORATION
STATISTICAL SUMMARY (Continued)
| Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||
| 2005 |
2004 |
2005 |
2004 | ||||||||
| Weighted average sales prices |
|||||||||||
| Crude oil and condensate – dollars per barrel (1) |
|||||||||||
| United States |
$ | 44.57 | 33.60 | 43.46 | 32.78 | ||||||
| Canada (2) – light |
50.22 | 36.08 | 48.41 | 34.77 | |||||||
| – heavy |
17.42 | (3) | 20.08 | 16.08 | (3) | 18.41 | |||||
| – offshore |
49.32 | 35.13 | 46.52 | 33.28 | |||||||
| – synthetic |
53.95 | 37.65 | 53.36 | 36.03 | |||||||
| United Kingdom |
48.14 | 34.53 | 47.95 | 33.13 | |||||||
| Ecuador |
33.71 | 25.97 | 30.03 | 24.67 | |||||||
| Malaysia |
41.93 | (4) | 38.21 | 42.61 | (4) | 36.88 | |||||
| Natural gas liquids – dollars per barrel (1) |
|||||||||||
| United States |
$ | 36.30 | 26.59 | 33.93 | 26.83 | ||||||
| Canada (2) |
38.97 | 27.54 | 37.64 | 27.99 | |||||||
| United Kingdom |
34.77 | 26.72 | 34.77 | 26.51 | |||||||
| Natural gas – dollars per thousand cubic feet |
|||||||||||
| United States (1) |
$ | 7.37 | 6.33 | 7.08 | 6.15 | ||||||
| Canada (2) |
6.26 | 5.43 | 6.17 | 5.36 | |||||||
| United Kingdom (2) |
4.38 | 3.09 | 5.02 | 4.24 | |||||||
| Refinery inputs – barrels per day |
176,218 | 181,700 | 179,244 | 176,375 | |||||||
| North America |
157,204 | 142,773 | 150,510 | 138,985 | |||||||
| United Kingdom |
19,014 | 38,927 | 28,734 | 37,390 | |||||||
| Petroleum products sold – barrels per day |
354,342 | 347,972 | 355,681 | 324,841 | |||||||
| North America |
330,051 | 308,412 | 324,257 | 287,517 | |||||||
| Gasoline |
225,158 | 218,724 | 218,032 | 201,098 | |||||||
| Kerosine |
5,699 | 578 | 8,272 | 4,443 | |||||||
| Diesel and home heating oils |
70,730 | 65,903 | 69,686 | 62,213 | |||||||
| Residuals |
20,178 | 12,501 | 21,678 | 12,789 | |||||||
| Asphalt, LPG and other |
8,286 | 10,706 | 6,589 | 6,974 | |||||||
| United Kingdom |
24,291 | 39,560 | 31,424 | 37,324 | |||||||
| Gasoline |
10,176 | 13,027 | 10,305 | 12,750 | |||||||
| Kerosine |
1,348 | 1,787 | 2,086 | 2,541 | |||||||
| Diesel and home heating oils |
10,984 | 16,058 | 14,229 | 14,501 | |||||||
| Residuals |
1,165 | 4,718 | 2,742 | 4,430 | |||||||
| LPG and other |
618 | 3,970 | 2,062 | 3,102 | |||||||
| (1) | Includes intracompany transfers at market prices. |
| (2) | U.S. dollar equivalent. |
| (3) | Includes the effect of the Company’s 2005 hedging program. |
| (4) | Price is net of a contractual payment under the terms of the production sharing contract for Block SK 309. |