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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): October 24, 2007

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))

 

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Item 2.02.

Results of Operations and Financial Condition

The following information is furnished pursuant to Item 2.02, “Results of Operations and Financial Condition.”

On October 24, 2007, Murphy Oil Corporation issued a press release announcing its earnings for the third quarter and nine months that ended on September 30, 2007. 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 October 24, 2007 announcing earnings for the third quarter and nine months that ended on September 30, 2007 is attached hereto as Exhibit 99.1.

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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.

 

Date: October 24, 2007

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Exhibit Index

 

99.1		Press release dated October 24, 2007, as issued by Murphy Oil Corporation.

Exhibit 99.1

MURPHY OIL ANNOUNCES PRELIMINARY QUARTERLY EARNINGS

EL DORADO, Arkansas, October 24, 2007 – Murphy Oil Corporation (NYSE: MUR) announced today that net income in the third quarter of 2007 was $199.5 million, $1.04 per diluted share, compared to net income of $224.1 million, $1.18 per diluted share, in the third quarter of 2006. Income declined in 2007 compared to 2006 primarily due to lower earnings in the Company’s refining and marketing operations, partially offset by higher earnings in the exploration and production business.

Net income in the 2006 third quarter included pretax costs of $27.2 million associated with hurricanes that occurred in the U.S. during 2005. These 2006 costs were net of anticipated insurance recoveries and were mostly associated with unrecoverable repair costs at the Meraux, Louisiana refinery and costs associated with settlement of oil spill class action litigation. The 2006 third quarter also included income tax charges of $17.8 million associated with a 10% tax rate increase on U.K. oil and natural gas profits that became effective in 2006.

For the first nine months of 2007, net income totaled $560.4 million, $2.94 per diluted share, compared to $556.3 million, $2.94 per diluted share, for the same period in 2006.

The 2006 third quarter and nine-months results have been adjusted to reflect the adoption, as of January 1, 2007, of FASB Staff Position No. AUG AIR-1, Accounting for Planned Major Maintenance Activities. Net income in the third quarter and nine months 2006 increased by $1.3 million and $5.6 million, respectively, for this change in accounting principle.

Third Quarter 2007 vs. Third Quarter 2006

Exploration and Production (E&P)

Reviewing quarterly results by type of business, the Company’s income contribution from E&P operations was $150.8 million in the third quarter of 2007 compared to $118.7 million in the same quarter of 2006. The higher earnings in 2007 compared to 2006 were primarily caused by higher oil sales prices, higher oil sales volumes, lower maintenance costs for Terra Nova field equipment, and an income tax charge of $17.8 million in 2006 in the U.K. related to a 10% tax rate increase. The Company’s worldwide crude oil and condensate sales prices averaged $63.96 per barrel for the 2007 third quarter compared to $55.50 per barrel in the same quarter of 2006. Total crude oil and gas liquids production was 87,962 barrels per day in the third quarter 2007 compared to 79,642 barrels per day in the 2006 quarter, with the net

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increase attributable to start-up of the Kikeh field, offshore Sabah Malaysia, on August 17, 2007. Kikeh produced 9,553 barrels per day for the quarter, but the first sale at Kikeh did not occur until October 2007. Oil sales volumes were higher at the Terra Nova field, offshore Newfoundland, in 2007 because the field was shut down for repairs for the entire 2006 third quarter. Oil production in the United States was lower in the 2007 period due to declines at fields in the Gulf of Mexico. Crude oil sales volumes averaged 79,702 barrels per day in the third quarter of 2007 compared to 73,112 barrels per day in the 2006 period. North American natural gas volumes were sold at an average of $6.22 per thousand cubic feet (MCF) during the 2007 third quarter compared to $6.90 per MCF during the 2006 quarter. Natural gas sales volumes were 56 million cubic feet per day in the third quarter 2007 compared to 74 million cubic feet per day in the third quarter of 2006, with the decline due to lower production at fields in the Gulf of Mexico and onshore South Louisiana. Exploration expenses were $42.5 million in the 2007 quarter compared to $36.0 million in the same period of 2006, with the increase in 2007 mostly due to unsuccessful Canadian drilling. Higher selling and general expense in the U.S. in 2007 compared to 2006 is mostly attributable to a donation of real estate during the just completed quarter.

Refining and Marketing

The Company’s refining and marketing operations generated a quarterly profit of $73.2 million in the third quarter 2007 compared to a quarterly profit of $128.0 million in the 2006 third quarter. Earnings declined in 2007 due to lower margins for both refining and retail marketing operations in North America and the U.K. compared to the 2006 third quarter. These margins were unfavorably impacted by rising crude oil prices during the 2007 period. During the 2006 quarter, Murphy’s downstream business incurred after-tax costs of $16.7 million related to hurricane repairs and oil spill class action litigation settlement.

Corporate

The after-tax costs of the corporate functions were $24.5 million in the 2007 quarter compared to costs of $22.6 million in the 2006 quarter. The Company incurred more net interest expense in the 2007 period due to higher average debt balances. The Company also had higher administrative expenses in 2007 compared to 2006.

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First Nine Months 2007 vs. First Nine Months 2006

Exploration and Production (E&P)

The Company’s exploration and production operations earned $388.9 million in the first nine months of 2007 and $525.7 million in the same period of 2006. The primary reasons for the lower earnings in this business in 2007 were lower crude oil and natural gas sales volumes and lower North American natural gas sales prices. Higher crude oil sales prices and lower exploration expenses in 2007 partially offset the lower sales volumes. Exploration expenses were $121.0 million in 2007 compared to $129.4 million in 2006 as the prior-year period included higher exploration costs in Malaysia. Crude oil and gas liquids production for the nine months of 2007 averaged 84,169 barrels per day compared to 89,401 barrels per day in 2006. The production decline in 2007 was primarily attributable to lower volumes produced at fields in the deepwater Gulf of Mexico, the heavy oil area of Western Canada and West Patricia, offshore Sarawak, Malaysia. Production at the Terra Nova and Hibernia fields offshore Newfoundland were higher in 2007 due to less down time in 2007 compared to 2006. In addition, the Kikeh field came on stream in mid-August 2007 and added 3,219 barrels per day over the first nine months of 2007. Natural gas sales were 58 million cubic feet per day in 2007 compared to 82 million cubic feet per day in 2006, with the reduction primarily caused by production declines at fields in the Gulf of Mexico and onshore South Louisiana. Crude oil and condensate sales prices averaged $56.10 per barrel in the 2007 period compared to $52.80 per barrel in 2006. North American natural gas was sold for $7.16 per MCF in 2007, down from $7.76 per MCF in 2006.

Refining and Marketing

The Company’s refining and marketing operations generated a profit of $233.1 million in the first nine months of 2007 compared to a profit of $81.3 million in 2006. The higher 2007 result was due to stronger refining margins during most of 2007 compared to 2006. The Meraux, Louisiana refinery was down for repairs for the first five months of 2006 and the prior-year’s North American results included hurricane-related expenses of $65.1 million after taxes.

Corporate

Corporate after-tax costs were $61.6 million in the first nine months of 2007 compared to $50.7 million in the 2006 period. The 2007 period included after-tax foreign exchange charges of $7.3 million, while 2006 included after-tax foreign exchange charges of $5.6 million. Higher administrative expenses in 2007 also contributed to the higher net corporate costs compared to 2006.

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Claiborne P. Deming, President and Chief Executive Officer, commented, “Our Malaysian team achieved a significant accomplishment during the third quarter by starting up the Kikeh field offshore Sabah. Kikeh was brought online only five years after discovery and at an extremely competitive cost given the run-up in capital costs over recent years. Gross production at Kikeh is currently 45,000 to 50,000 barrels per day and will continue to ramp up throughout 2008. Meanwhile, we continue development of the natural gas project offshore Sarawak. On the exploration front, the fourth quarter will mark the beginning of a more active exploration program with drilling already underway at Robusto (20%) in the Gulf of Mexico and two upcoming wells offshore Sabah, Malaysia in Block H (80%). In our downstream business, we recently signed a purchase agreement to acquire the remaining 70% interest of the Milford Haven, Wales refinery. This important acquisition gives the Company more breadth in its downstream operation and also permits us to have complete control of this significant Company asset. Looking into the fourth quarter, we anticipate total worldwide production to be approximately 118,000 barrels of oil equivalent per day. We currently expect earnings in the fourth quarter to be in the range of $0.75 to $1.00 per diluted share. Results could vary based on commodity prices, drilling results, timing of oil sales, and refining and marketing margins.”

The public is invited to access the Company’s conference call to discuss third quarter 2007 results on Thursday, October 25 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 1-800-218-8862. The telephone reservation number for the call is 11098897. 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 October 29 by calling 1-800-405-2236. Audio downloads will also be available on the Murphy website through November 30 and via Thomson StreetEvents for their service subscribers.

Summary financial data and operating statistics for the third quarter and nine months of 2007 with comparisons to 2006 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 September 30, 2007							Three Months Ended September 30, 2006*
		Revenues				Income			Revenues			Income
Exploration and production
United States		$	101.4			24.8			157.8			63.6
Canada			283.8			107.1			172.6			63.6
United Kingdom			38.3			11.0			18.6			(12.0	)
Malaysia			33.4			4.3			51.2			(.6	)
Ecuador			36.3			10.3			21.1			5.8
Other			1.0			(6.7	)		1.2			(1.7	)
			494.2			150.8			422.5			118.7
Refining and marketing
North America			3,992.9			63.9			3,490.1			115.6
United Kingdom			332.0			9.3			278.9			12.4
			4,324.9			73.2			3,769.0			128.0
			4,819.1			224.0			4,191.5			246.7
Intersegment transfers elimination			(45.9	)		—			(43.4	)		—
			4,773.2			224.0			4,148.1			246.7
Corporate			7.5			(24.5	)		5.3			(22.6	)
Total revenues/net income		$	4,780.7			199.5			4,153.4			224.1
		Nine Months Ended September 30, 2007							Nine Months Ended September 30, 2006*
		Revenues				Income			Revenues			Income
Exploration and production
United States		$	300.0			59.3			533.1			217.8
Canada			726.4			263.6			577.4			246.2
United Kingdom			121.1			37.9			140.5			44.7
Malaysia			126.3			29.2			172.3			4.4
Ecuador			98.8			24.3			90.2			26.9
Other			2.9			(25.4	)		3.3			(14.3	)
			1,375.5			388.9			1,516.8			525.7
Refining and marketing
North America			10,685.1			205.6			8,724.4			55.3
United Kingdom			846.6			27.5			781.7			26.0
			11,531.7			233.1			9,506.1			81.3
			12,907.2			622.0			11,022.9			607.0
Intersegment transfers elimination			(91.0	)		—			(90.7	)		—
			12,816.2			622.0			10,932.2			607.0
Corporate			13.0			(61.6	)		11.4			(50.7	)
Total revenues/net income		$	12,829.2			560.4			10,943.6			556.3

 

*	Results for 2006 have been adjusted to reflect the adoption of FSP AUG AIR-1, Accounting for Planned Major Maintenance Activities. Net income for the three-month and nine-month periods ended September 30, 2006 increased by $1.3 million and $5.6 million, respectively.

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MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (Unaudited)

THREE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006

 

(Millions of dollars)		United States			Canada			United King- dom			Malaysia			Ecuador		Other			Synthetic Oil – Canada		Total
Three Months Ended September 30, 2007
Oil and gas sales and other revenues		$	101.4		180.5			38.3			33.4			36.3		1.0			103.3		494.2
Production expenses			16.2		29.3			9.0			9.9			8.8		—			35.6		108.8
Depreciation, depletion and amortization			17.6		41.0			5.2			5.2			10.0		.2			7.3		86.5
Accretion of asset retirement obligations			1.1		1.3			.5			.9			—		.2			.2		4.2
Exploration expenses
Dry holes			4.5		6.9			—			(2.2	)		—		—			—		9.2
Geological and geophysical			9.5		4.2			—			9.0			—		.7			—		23.4
Other			.5		.1			.1			—			—		1.3			—		2.0
			14.5		11.2			.1			6.8			—		2.0			—		34.6
Undeveloped lease amortization			4.5		3.1			—			—			—		.3			—		7.9
Total exploration expenses			19.0		14.3			.1			6.8			—		2.3			—		42.5
Selling and general expenses			13.0		4.0			.9			1.6			.2		4.8			.2		24.7
Minority interest			—		(.4	)		—			—			—		—			—		(.4	)
Results of operations before taxes			34.5		91.0			22.6			9.0			17.3		(6.5	)		60.0		227.9
Income tax expenses			9.7		23.9			11.6			4.7			7.0		.2			20.0		77.1
Results of operations (excluding corporate overhead and interest)		$	24.8		67.1			11.0			4.3			10.3		(6.7	)		40.0		150.8
Three Months Ended September 30, 2006
Oil and gas sales and other revenues		$	157.8		93.7			18.6			51.2			21.1		1.2			78.9		422.5
Production expenses			22.2		33.3			3.8			6.7			5.0		—			26.8		97.8
Depreciation, depletion and amortization			22.4		17.1			2.1			10.3			5.4		.2			4.6		62.1
Accretion of asset retirement obligations			.8		1.0			.5			.1			—		.1			.1		2.6
Exploration expenses
Dry holes			3.3		—			—			—			.4		(3.0	)		—		.7
Geological and geophysical			2.7		1.0			—			22.7			—		1.2			—		27.6
Other			.6		.2			(.1	)		—			—		1.3			—		2.0
			6.6		1.2			(.1	)		22.7			.4		(.5	)		—		30.3
Undeveloped lease amortization			4.3		1.0			—			—			—		.4			—		5.7
Total exploration expenses			10.9		2.2			(.1	)		22.7			.4		(.1	)		—		36.0
Net costs associated with hurricanes			.4		—			—			—			—		—			—		.4
Selling and general expenses			5.5		2.2			.7			3.8			.2		2.4			.2		15.0
Results of operations before taxes			95.6		37.9			11.6			7.6			10.1		(1.4	)		47.2		208.6
Income tax expenses			32.0		4.9			23.6			8.2			4.3		.3			16.6		89.9
Results of operations (excluding corporate overhead and interest)		$	63.6		33.0			(12.0	)		(.6	)		5.8		(1.7	)		30.6		118.7

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MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (Unaudited)

NINE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006

 

(Millions of dollars)		United States			Canada			United King- dom		Malaysia			Ecuador		Other			Synthetic Oil – Canada		Total
Nine Months Ended September 30, 2007
Oil and gas sales and other revenues		$	300.0		483.5			121.1		126.3			98.8		2.9			242.9		1,375.5
Production expenses			59.6		76.1			22.2		27.1			27.6		—			96.1		308.7
Depreciation, depletion and amortization			51.0		116.4			17.6		21.0			28.7		.5			19.1		254.3
Accretion of asset retirement obligations			2.9		3.5			1.5		2.5			—		.5			.5		11.4
Exploration expenses
Dry holes			32.0		7.8			—		(2.1	)		.3		(.4	)		—		37.6
Geological and geophysical			20.9		8.5			—		14.1			—		9.8			—		53.3
Other			4.3		.3			.3		—			—		4.4			—		9.3
			57.2		16.6			.3		12.0			.3		13.8			—		100.2
Undeveloped lease amortization			13.4		6.3			—		—			—		1.1			—		20.8
Total exploration expenses			70.6		22.9			.3		12.0			.3		14.9			—		121.0
Impairment of long-lived assets			2.6		—			—		—			—		—			—		2.6
Selling and general expenses			25.3		12.5			2.8		8.4			.7		11.7			.6		62.0
Minority interest			—		(.4	)		—		—			—		—			—		(.4	)
Results of operations before taxes			88.0		252.5			76.7		55.3			41.5		(24.7	)		126.6		615.9
Income tax expenses			28.7		75.8			38.8		26.1			17.2		.7			39.7		227.0
Results of operations (excluding corporate overhead and interest)		$	59.3		176.7			37.9		29.2			24.3		(25.4	)		86.9		388.9
Nine Months Ended September 30, 2006
Oil and gas sales and other revenues		$	533.1		375.2			140.5		172.3			90.2		3.3			202.2		1,516.8
Production expenses			59.1		81.5			13.3		24.1			22.6		—			88.5		289.1
Depreciation, depletion and amortization			70.4		71.4			16.6		35.5			19.9		.4			11.9		226.1
Accretion of asset retirement obligations			2.2		3.0			1.4		.2			—		.4			.4		7.6
Exploration expenses
Dry holes			9.4		—			—		30.6			1.5		.4			—		41.9
Geological and geophysical			23.8		.9			—		34.8			—		1.9			—		61.4
Other			4.5		.5			.1		.2			—		4.1			—		9.4
			37.7		1.4			.1		65.6			1.5		6.4			—		112.7
Undeveloped lease amortization			12.8		2.8			—		—			—		1.1			—		16.7
Total exploration expenses			50.5		4.2			.1		65.6			1.5		7.5			—		129.4
Net costs associated with hurricanes			1.7		—			—		—			—		—			—		1.7
Selling and general expenses			15.8		7.5			2.7		7.4			.8		8.5			.6		43.3
Results of operations before taxes			333.4		207.6			106.4		39.5			45.4		(13.5	)		100.8		819.6
Income tax expenses			115.6		43.3			61.7		35.1			18.5		.8			18.9		293.9
Results of operations (excluding corporate overhead and interest)		$	217.8		164.3			44.7		4.4			26.9		(14.3	)		81.9		525.7

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MURPHY OIL CORPORATION

SUMMARIZED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(Thousands of dollars, except per share amounts)

 

		Three Months Ended September 30,							Nine Months Ended September 30,
		2007				2006*			2007			2006*
Revenues		$	4,780,732			4,153,422			12,829,243			10,943,603
Costs and expenses
Crude oil and product purchases			3,909,009			3,275,816			10,288,096			8,580,267
Operating expenses			320,037			282,251			926,472			790,660
Exploration expenses			42,531			35,970			121,035			129,406
Selling and general expenses			65,591			52,237			173,309			139,160
Depreciation, depletion and amortization			114,289			87,181			337,016			286,745
Accretion of asset retirement obligations			4,197			2,614			11,461			7,690
Impairment of long-lived assets			—			—			40,708			—
Net costs associated with hurricanes			—			27,160			—			105,933
Interest expense			19,837			17,021			52,447			39,262
Interest capitalized			(12,419	)		(11,284	)		(43,664	)		(29,912	)
Minority interest			(448	)		—			(424	)		—
			4,462,624			3,768,966			11,906,456			10,049,211
Income before income taxes			318,108			384,456			922,787			894,392
Income tax expense			118,573			160,314			362,376			338,093
Net income		$	199,535			224,142			560,411			556,299
Net income per Common share
Basic		$	1.06			1.20			2.99			2.99
Diluted			1.04			1.18			2.94			2.94
Cash dividends per Common share		$	.1875			.15			.4875			.375
Average Common shares outstanding (thousands)
Basic			188,239			186,212			187,716			185,949
Diluted			191,193			189,239			190,764			189,067

 

*	Results for 2006 have been adjusted to reflect the adoption of FSP AUG AIR-1, Accounting for Planned Major Maintenance Activities. Net income for the three-month and nine-month periods ended September 30, 2006 increased by $1,367,000 and $5,577,000, respectively.

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MURPHY OIL CORPORATION

SUMMARIZED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(Thousands of dollars)

 

		Three Months Ended September 30,							Nine Months Ended September 30,
		2007				2006*			2007			2006*
Operating Activities
Net income		$	199,535			224,142			560,411			556,299
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation, depletion and amortization			114,289			87,181			337,016			286,745
Impairment of long-lived assets			—			—			40,708			—
Amortization of deferred major repair costs			5,832			4,833			15,894			13,465
Expenditures for asset retirements			(770	)		(612	)		(4,642	)		(3,137	)
Dry holes			9,150			685			37,570			41,885
Amortization of undeveloped leases			7,965			5,687			20,811			16,717
Accretion of asset retirement obligations			4,197			2,614			11,461			7,690
Deferred and noncurrent income tax charges			12,628			36,847			31,599			17,226
Pretax (gain) loss from dispositions of assets			(224	)		(432	)		(1,032	)		941
Net (increase) decrease in operating working capital other than cash and cash equivalents			(168,117	)		87,338			(199,639	)		(306,331	)
Other			47,228			(16,016	)		64,867			(7,084	)
Net cash provided by operating activities			231,713			432,267			915,024			624,416
Investing Activities
Property additions and dry holes			(466,044	)		(273,665	)		(1,279,470	)		(884,144	)
Purchase of investment securities			(59,821	)		—			(59,821	)		—
Proceeds from sale of assets			807			7,601			18,751			19,796
Expenditures for major repairs			(1,090	)		(1,906	)		(9,304	)		(10,005	)
Other - net			(2,145	)		(2,280	)		(9,069	)		(8,417	)
Net cash required by investing activities			(528,293	)		(270,250	)		(1,338,913	)		(882,770	)
Financing Activities
Increase (decrease) in notes payable			388,373			(86,000	)		668,323			183,989
Decrease in nonrecourse debt of a subsidiary			(2	)		—			(4,886	)		(4,667	)
Proceeds from exercise of stock options and employee stock purchase plan			13,046			4,245			33,837			15,354
Excess tax benefits related to exercise of stock options			10,363			1,840			21,069			7,057
Cash dividends paid			(35,382	)		(28,060	)		(91,801	)		(70,056	)
Other			—			—			(760	)		—
Net cash provided by (used in) financing activities			376,398			(107,975	)		625,782			131,677
Effect of exchange rate changes on cash and cash equivalents			16,391			599			44,382			10,697
Net increase (decrease) in cash and cash equivalents			96,209			54,641			246,275			(115,980	)
Cash and cash equivalents at beginning of period			693,456			414,712			543,390			585,333
Cash and cash equivalents at September 30		$	789,665			469,353			789,665			469,353

 

*	Amounts for 2006 have been adjusted to reflect the adoption of FSP AUG AIR-1, Accounting for Planned Major Maintenance Activities.

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MURPHY OIL CORPORATION

OTHER FINANCIAL DATA

(Unaudited, except for December 31, 2006)

(Millions of dollars)

 

		Sept. 30, 2007 1			Dec. 31, 2006
Total current assets		$	2,752.1		2,107.1
Total current liabilities			1,537.7		1,311.1
Total assets			9,548.9		7,483.2	2
Long-term debt
Notes payable			1,493.3		833.1
Nonrecourse debt			3.2		7.2
Stockholders’ equity			4,880.6		4,121.3	2

 

1	Balance sheet classifications subject to change with filing of Form 10-Q.

 

2	Balances have been adjusted to reflect the adoption of FSP AUG AIR-1, Accounting for Planned Major Maintenance Activities.

 

		Three Months Ended September 30,						Nine Months Ended September 30,
		2007			2006			2007		2006
Capital expenditures
Exploration and production
United States		$	91.9		48.5			236.6		153.1
Canada			54.2		45.7			282.5		141.2
Malaysia			240.5		151.8			552.9		448.7
Other			57.6		17.6			159.4		76.4
			444.2		263.6			1,231.4		819.4
Refining and marketing
North America			105.0		37.0			197.5		126.1
United Kingdom			2.9		1.5			8.7		4.9
			107.9		38.5			206.2		131.0
Corporate			0.9		1.1			3.0		4.5
Total capital expenditures			553.0		303.2			1,440.6		954.9
Charged to exploration expenses3
United States			14.5		6.6			57.2		37.7
Canada			11.2		1.2			16.6		1.4
Malaysia			6.8		22.7			12.0		65.6
Other international			2.1		(0.2	)		14.4		8.0
Total charged to exploration expenses			34.6		30.3			100.2		112.7
Total capitalized		$	518.4		272.9			1,340.4		842.2
3        Excludes amortization of undeveloped leases of		$	7.9		5.7			20.8		16.7

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MURPHY OIL CORPORATION

STATISTICAL SUMMARY

 

		Three Months Ended September 30,				Nine Months Ended September 30,
		2007		2006		2007		2006
Net crude oil, condensate and gas liquids produced - barrels per day		87,962		79,642		84,169		89,401
United States		11,680		20,416		13,069		23,423
Canada  – light		640		446		587		428
– heavy		11,144		10,125		11,197		12,893
– offshore		20,248		10,344		19,862		14,048
– synthetic		14,423		12,525		12,865		11,195
United Kingdom		3,575		4,775		5,108		7,112
Malaysia		17,358		11,896		12,473		11,692
Ecuador		8,894		9,115		9,008		8,610
Net crude oil, condensate and gas liquids sold - barrels per day		78,702		73,112		82,245		92,324
United States		11,680		20,416		13,069		23,423
Canada  – light		640		446		587		428
– heavy		11,144		10,125		11,197		12,893
– offshore		20,153		9,884		20,151		14,997
– synthetic		14,423		12,525		12,865		11,195
United Kingdom		5,123		2,534		6,152		6,724
Malaysia		6,359		9,939		8,706		12,148
Ecuador (1)		9,180		7,243		9,518		10,516
Net natural gas sold - thousands of cubic feet per day		55,712		73,856		57,784		81,601
United States		41,667		61,072		42,283		63,119
Canada		10,582		8,748		9,569		9,423
United Kingdom		3,463		4,036		5,932		9,059
Total net hydrocarbons produced – equivalent barrels per day (2)		97,247		91,951		93,800		103,001
Total net hydrocarbons sold – equivalent barrels per day (2)		87,987		85,421		91,876		105,924

 

(1)	Includes settlement with nonoperator partners of 3,125 barrels per day in the nine months ended September 30, 2006 for Block 16 crude oil withheld from the Company in 2004.

 

(2)	Natural gas converted on an energy equivalent basis of 6:1.

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MURPHY OIL CORPORATION

STATISTICAL SUMMARY (Continued)

 

		Three Months Ended September 30,					Nine Months Ended September 30,
		2007			2006		2007		2006
Weighted average sales prices
Crude oil and condensate – dollars per barrel (1)
United States		$	70.50		61.83		59.55		58.69
Canada (2) – light			56.77		65.86		50.73		60.29
– heavy (3)			34.91		30.62		32.43		26.23
– offshore			73.97		68.60		65.66		64.34
– synthetic			77.78		68.41		69.15		66.15
United Kingdom			75.88		69.62		65.68		66.38
Malaysia (4)			61.01		52.48		53.33		54.10
Ecuador (5)			43.07		31.66		38.00		31.41
Natural gas – dollars per thousand cubic feet
United States (1)		$	6.59		7.12		7.37		7.93
Canada (2)			4.74		5.40		6.21		6.62
United Kingdom (2)			7.17		6.13		6.84		7.39
Refinery inputs – barrels per day			176,785		170,841		179,276		108,968
North America			140,886		136,075		145,413		75,182
United Kingdom			35,899		34,766		33,863		33,786
Petroleum products sold – barrels per day			472,876		427,465		444,845		375,982
North America			433,536		392,374		408,064		341,281
Gasoline			312,553		281,168		295,283		263,601
Kerosine			152		284		1,250		2,055
Diesel and home heating oils			88,894		76,239		85,565		56,956
Residuals			16,357		19,318		15,873		10,446
Asphalt, LPG and other			15,580		15,365		10,093		8,223
United Kingdom			39,340		35,091		36,781		34,701
Gasoline			15,023		13,103		12,798		12,341
Kerosine			3,670		4,788		3,499		3,634
Diesel and home heating oils			14,811		11,039		13,036		11,243
Residuals			3,895		4,267		3,549		4,172
LPG and other			1,941		1,894		3,899		3,311

 

(1)	Includes intracompany transfers at market prices.

 

(2)	U.S. dollar equivalent.

 

(3)	Includes the effect of the Company’s hedging program in 2006.

 

(4)	Prices are net of payments under the terms of the production sharing contracts for Blocks SK 309.

 

(5)	All prices are net of revenue sharing with the Ecuadorian government that was legislated effective in April 2006, and the year-to-date 2006 price was adversely affected by the settlement with nonoperator partners of crude oil production owed to the Company since 2004.