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 29, 2008

 

 

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 29, 2008, Murphy Oil Corporation issued a news release announcing its earnings for the third quarter and nine months that ended on September 30, 2008. The full text of this news release is attached hereto as Exhibit 99.1.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

 

99.1

A news release dated October 29, 2008 announcing earnings for the third quarter and nine months that ended on September 30, 2008 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 29, 2008

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Exhibit Index

 

99.1

News release dated October 29, 2008, as issued by Murphy Oil Corporation.

Exhibit 99.1

MURPHY OIL ANNOUNCES PRELIMINARY QUARTERLY EARNINGS

EL DORADO, Arkansas, October 29, 2008 – Murphy Oil Corporation (NYSE: MUR) announced today that net income in the third quarter of 2008 was $584.4 million, $3.04 per diluted share, compared to net income of $199.5 million, $1.04 per diluted share, in the third quarter of 2007. Income increased in 2008 compared to 2007 primarily due to significantly better earnings for exploration and production operations, and also due to improved earnings in the refining and marketing business.

For the first nine months of 2008, net income totaled $1.613 billion, $8.39 per diluted share, compared to $560.4 million, $2.94 per diluted share, for the same period in 2007.

At September 30, 2008, the Company had Cash and cash equivalents of $828.1 million, Canadian government securities with maturities of greater than 90 days at purchase of an additional $611.1 million, and Long-term debt of $1.066 billion.

Third Quarter 2008 vs. Third Quarter 2007

Exploration and Production (E&P)

Reviewing quarterly results by type of business, the Company’s income contribution from E&P operations was $529.9 million in the third quarter of 2008 compared to $150.8 million in the same quarter of 2007. The improved earnings in 2008 compared to 2007 were primarily based on higher oil sales prices and volumes. Total crude oil and gas liquids production was 118,797 barrels per day in the third quarter 2008 compared to 87,962 barrels per day in the 2007 quarter, with the increase primarily attributable to higher production at the Kikeh field, offshore Sabah, Malaysia, which began producing in August 2007. U.S. crude oil production declined in the 2008 period due to field shut-ins associated with Hurricanes Gustav and Ike. Canadian heavy

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oil production declined in 2008 mostly due to the sale of the Lloydminster property in the second quarter of the year. Lower 2008 oil production offshore eastern Canada was attributable to normal field decline and a higher royalty rate at Terra Nova, and synthetic oil production in Canada was lower in 2008 primarily due to a higher royalty rate and more downtime at Syncrude. Crude oil sales volumes averaged 117,891 barrels per day in the third quarter of 2008 compared to 78,702 barrels per day in the 2007 period. The Company’s worldwide crude oil, condensate and natural gas liquids sales prices averaged $107.98 per barrel for the 2008 third quarter compared to $63.96 per barrel in the same quarter of 2007. Natural gas sales volumes were 46 million cubic feet per day in the third quarter 2008 compared to 56 million cubic feet per day in the third quarter of 2007, with the decline due to lower production in Canada and at fields in South Louisiana. Natural gas sales volumes in Canada were lower in the 2008 period primarily due to the sale of the Company’s interest in Berkana Energy in January 2008. Gulf of Mexico natural gas sales volumes were lower due to most fields being shut-in by two hurricanes during the quarter. North American natural gas volumes were sold at an average of $11.51 per thousand cubic feet (MCF) during the 2008 third quarter compared to $6.22 per MCF during the 2007 quarter. Exploration expenses were $83.4 million in the 2008 quarter compared to $42.5 million in the same period of 2007, with the increase mostly attributable to higher dry hole costs in the Gulf of Mexico and offshore Malaysia, and higher undeveloped leasehold amortization expense for the Tupper property in British Columbia. Lower selling and general expense in the U.S. in 2008 compared to 2007 was primarily related to a donation of real estate during the 2007 quarter.

Refining and Marketing

The Company’s refining and marketing operations generated a quarterly profit of $85.8 million in the third quarter 2008 compared to a quarterly profit of $73.2 million in the 2007 third quarter. North American earnings improved in the 2008 period compared to 2007

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primarily due to better margins for U.S. marketing operations. The U.K. results in the 2008 third quarter were below break-even due mostly to weak refining margins.

Corporate

The after-tax costs of the corporate functions were $31.3 million in the 2008 quarter compared to costs of $24.5 million in the 2007 quarter. The Company incurred more net interest expense in the 2008 period due to lower levels of interest capitalized to development projects. The Company also had higher foreign exchange losses in 2008 compared to 2007.

First Nine Months 2008 vs. First Nine Months 2007

Exploration and Production (E&P)

The Company’s exploration and production operations earned $1.535 billion in the first nine months of 2008 compared to $388.9 million in the same period of 2007. The primary reasons for the higher earnings in this business in 2008 were higher crude oil and natural gas sales prices and higher crude oil sales volumes. Lower natural gas sales volumes and higher exploration expenses in 2008 partially offset the higher sales prices and crude oil sales volumes. Crude oil and gas liquids production for the nine months of 2008 averaged 114,559 barrels per day compared to 84,169 barrels per day in 2007. The production increase in 2008 was primarily attributable to higher volumes produced at the Kikeh field, offshore Malaysia, as the field continued to ramp up during the year. Natural gas sales were 57 million cubic feet per day in 2008 compared to 58 million cubic feet per day in 2007, with the reduction primarily caused by shut-in of Gulf of Mexico fields due to two hurricanes in the third quarter. Crude oil, condensate and gas liquids sales prices averaged $100.53 per barrel in the 2008 period compared to $56.10 per barrel in 2007. North American natural gas was sold for $10.27 per MCF in 2008, up from $7.16 per MCF in 2007. Exploration expenses were $210.3 million in 2008 compared to $121.0

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million in 2007 as the current-year period primarily included higher expenses for dry holes offshore Malaysia and leasehold amortization at Tupper in Canada.

Refining and Marketing

The Company’s refining and marketing operations generated a profit of $173.3 million in the first nine months of 2008 compared to a profit of $233.1 million in 2007. The lower 2008 result in North America was due to weaker U.S. refining margins during most of 2008 compared to 2007. Earnings for U.K. operations improved in 2008 compared to 2007 mostly due to better refining margins in the first half of the current year, plus a larger U.K. refining operation due to the Company’s purchase of the remaining 70% of the Milford Haven, Wales refinery in December 2007.

Corporate

Corporate after-tax costs were $95.8 million in the first nine months of 2008 compared to $61.6 million in the 2007 period. The 2008 period included higher net interest expense due to larger average debt levels and lower interest amounts capitalized to development projects. The current year also had higher foreign exchange losses and higher administrative expenses.

Claiborne P. Deming, President and Chief Executive Officer, commented, “With the extraordinary turmoil in the financial markets in recent weeks, our history of maintaining a strong balance sheet with low levels of debt is currently serving us well. In fact, our Company is financially strong with very low leverage. Our debt to total capital ratio at September 30 was 14%; we had about $1.4 billion of cash and invested cash at September 30; and we have continued access to a nearly $2 billion revolving loan facility from a diverse group of 25 U.S.

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and foreign banks, with nearly $1.5 billion of this amount unused at September 30. Considering our cash position, our net company-wide leverage is virtually nil.

Although the lower oil prices seen in recent weeks have curtailed exploration and production earnings, the decline has allowed the refining and marketing business to make a strong contribution to the company’s results of operations in the third and early fourth quarters. Following Hurricanes Gustav and Ike, our Gulf of Mexico production has been hampered by delays in repairs to third-party pipelines. However, fourth quarter production benefits from start-up of the Tupper natural gas field in British Columbia and Kikeh natural gas offshore Sabah Malaysia. Our Gulf of Mexico drilling program included a discovery at Dalmatian in DeSoto Canyon Block 48. In the fourth quarter our drilling activities will be highlighted by wells in the Browse Basin offshore northwest Australia and offshore Sabah in Block P.

We anticipate total worldwide production to be approximately 141,000 barrels of oil equivalent per day during the fourth quarter 2008. Sales volumes are expected to be about 135,000 barrels of oil equivalent per day during the quarter. We currently expect earnings in the fourth quarter to be in the range of $1.00 to $1.40 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 2008 results on Thursday, October 30 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 1-800-366-7640. The telephone reservation number for the call is 11120763. 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 November 3 by calling 1-800-405-2236. Audio downloads will also be available on the Murphy website through December 1 and via Thomson StreetEvents for their service subscribers.

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Summary financial data and operating statistics for the third quarter and nine months of 2008 with comparisons to 2007 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							Three Months Ended
		September 30, 2008							September 30, 2007
		Revenues				Income			Revenues			Income
Exploration and production
United States		$	142.5			41.0			101.4			24.8
Canada			368.3			166.8			283.8			107.1
United Kingdom			62.9			20.5			38.3			11.0
Malaysia			649.2			308.3			33.4			4.3
Ecuador			18.6			(.6	)		36.3			10.3
Other			1.5			(6.1	)		1.0			(6.7	)
			1,243.0			529.9			494.2			150.8
Refining and marketing
North America			5,665.9			91.3			3,992.9			63.9
United Kingdom			1,376.2			(5.5	)		332.0			9.3
			7,042.1			85.8			4,324.9			73.2
			8,285.1			615.7			4,819.1			224.0
Intersegment transfers elimination			(81.5	)		—			(45.9	)		—
			8,203.6			615.7			4,773.2			224.0
Corporate			(17.6	)		(31.3	)		7.5			(24.5	)
Total revenues/net income		$	8,186.0			584.4			4,780.7			199.5
		Nine Months Ended							Nine Months Ended
		September 30, 2008							September 30, 2007
		Revenues				Income			Revenues			Income
Exploration and production
United States		$	468.1			159.5			300.0			59.3
Canada			1,194.8			554.5			726.4			263.6
United Kingdom			186.5			67.0			121.1			37.9
Malaysia			1,657.9			776.4			126.3			29.2
Ecuador			60.7			.9			98.8			24.3
Other			2.3			(23.2	)		2.9			(25.4	)
			3,570.3			1,535.1			1,375.5			388.9
Refining and marketing
North America			15,728.9			97.3			10,685.1			205.6
United Kingdom			3,928.4			76.0			846.6			27.5
			19,657.3			173.3			11,531.7			233.1
			23,227.6			1,708.4			12,907.2			622.0
Intersegment transfers elimination			(131.7	)		—			(91.0	)		—
			23,095.9			1,708.4			12,816.2			622.0
Corporate			(14.0	)		(95.8	)		13.0			(61.6	)
Total revenues/net income		$	23,081.9			1,612.6			12,829.2			560.4

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MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (Unaudited)

THREE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007

 

								United											Synthetic
		United						King-											Oil –
(Millions of dollars)		States			Canada			dom		Malaysia			Ecuador			Other			Canada		Total
Three Months Ended September 30, 2008
Oil and gas sales and other revenues		$	142.5		219.7			62.9		649.2			18.6			1.5			148.6		1,243.0
Production expenses			15.8		20.0			10.9		65.1			7.6			—			45.5		164.9
Depreciation, depletion and amortization			25.2		25.6			7.3		63.4			10.1			.3			7.1		139.0
Accretion of asset retirement obligations			1.7		1.1			.6		1.4			—			.2			.1		5.1
Exploration expenses
Dry holes			17.9		—			—		25.0			—			—			—		42.9
Geological and geophysical			5.1		2.2			—		1.2			—			.7			—		9.2
Other			.5		.1			.1		(.1	)		—			1.8			—		2.4
			23.5		2.3			.1		26.1			—			2.5			—		54.5
Undeveloped lease amortization			6.8		22.0			—		—			—			.1			—		28.9
Total exploration expenses			30.3		24.3			.1		26.1			—			2.6			—		83.4
Selling and general expenses			6.1		2.9			1.8		(.6	)		.3			4.0			.3		14.8
Results of operations before taxes			63.4		145.8			42.2		493.8			.6			(5.6	)		95.6		835.8
Income tax expenses			22.4		45.8			21.7		185.5			1.2			.5			28.8		305.9
Results of operations (excluding corporate overhead and interest)		$	41.0		100.0			20.5		308.3			(.6	)		(6.1	)		66.8		529.9
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

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MURPHY OIL CORPORATION

OIL AND GAS OPERATING RESULTS (Unaudited)

NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007

 

								United										Synthetic
		United						King-										Oil –
(Millions of dollars)		States			Canada			dom		Malaysia			Ecuador		Other			Canada		Total
Nine Months Ended September 30, 2008
Oil and gas sales and other revenues		$	468.1		807.6			186.5		1,657.9			60.7		2.3			387.2		3,570.3
Production expenses			48.5		66.5			24.1		174.1			24.9		—			146.5		484.6
Depreciation, depletion and amortization			80.8		85.5			21.3		166.9			32.2		.7			20.3		407.7
Accretion of asset retirement obligations			4.6		3.5			1.7		4.0			—		.6			.5		14.9
Exploration expenses
Dry holes			18.1		—			—		35.8			—		—			—		53.9
Geological and geophysical			27.2		14.8			—		13.4			—		1.4			—		56.8
Other			4.8		.3			.5		—			—		8.6			—		14.2
			50.1		15.1			.5		49.2			—		10.0			—		124.9
Undeveloped lease amortization			18.5		66.1			—		—			—		.8			—		85.4
Total exploration expenses			68.6		81.2			.5		49.2			—		10.8			—		210.3
Selling and general expenses			18.1		9.7			3.6		(.1	)		.6		12.8			.7		45.4
Minority interest			—		.3			—		—			—		—			—		.3
Results of operations before taxes			247.5		560.9			135.3		1,263.8			3.0		(22.6	)		219.2		2,407.1
Income tax expenses			88.0		159.1			68.3		487.4			2.1		.6			66.5		872.0
Results of operations (excluding corporate overhead and interest)		$	159.5		401.8			67.0		776.4			.9		(23.2	)		152.7		1,535.1
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

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MURPHY OIL CORPORATION

SUMMARIZED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(Thousands of dollars, except per share amounts)

 

		Three Months Ended							Nine Months Ended
		September 30,							September 30,
		2008				2007			2008			2007
Revenues		$	8,186,033			4,780,732			23,081,914			12,829,243
Costs and expenses
Crude oil and product purchases			6,495,942			3,909,009			18,312,432			10,288,096
Operating expenses			440,697			320,037			1,272,782			926,472
Exploration expenses			83,440			42,531			210,336			121,035
Selling and general expenses			56,552			65,591			171,009			173,309
Depreciation, depletion and amortization			174,635			114,289			512,729			337,016
Accretion of asset retirement obligations			5,346			4,197			15,630			11,461
Impairment of long-lived assets			—			—			—			40,708
Interest expense			16,622			19,837			59,326			52,447
Interest capitalized			(7,292	)		(12,419	)		(20,236	)		(43,664	)
Minority interest			—			(448	)		298			(424	)
			7,265,942			4,462,624			20,534,306			11,906,456
Income before income taxes			920,091			318,108			2,547,608			922,787
Income tax expense			335,669			118,573			934,990			362,376
Net income		$	584,422			199,535			1,612,618			560,411
Net income per Common share
Basic		$	3.08			1.06			8.51			2.99
Diluted			3.04			1.04			8.39			2.94
Cash dividends per Common share		$	.25			.1875			.625			.4875
Average Common shares outstanding (thousands)
Basic			189,788			188,239			189,500			187,716
Diluted			192,243			191,193			192,220			190,764

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MURPHY OIL CORPORATION

SUMMARIZED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(Thousands of dollars)

 

		Three Months Ended							Nine Months Ended
		September 30,							September 30,
		2008				2007			2008			2007
Operating Activities
Net income		$	584,422			199,535			1,612,618			560,411
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation, depletion and amortization			174,635			114,289			512,729			337,016
Impairment of long-lived assets			—			—			—			40,708
Amortization of deferred major repair costs			7,375			5,832			20,551			15,894
Expenditures for asset retirements			(4,285	)		(770	)		(7,213	)		(4,642	)
Dry holes			42,878			9,150			53,883			37,570
Amortization of undeveloped leases			28,913			7,965			85,428			20,811
Accretion of asset retirement obligations			5,346			4,197			15,630			11,461
Deferred and noncurrent income tax charges			54,794			12,628			217,347			31,599
Pretax (gain) loss from dispositions of assets			(336	)		(224	)		(134,582	)		(1,032	)
Net (increase) decrease in operating working capital other than cash and cash equivalents			183,862			(168,117	)		184,478			(199,639	)
Other			10,474			47,228			35,795			64,867
Net cash provided by operating activities			1,088,078			231,713			2,596,664			915,024
Investing Activities
Property additions and dry holes			(545,230	)		(466,044	)		(1,560,146	)		(1,279,470	)
Purchase of investment securities*			(266,038	)		(59,821	)		(611,110	)		(59,821	)
Proceeds from sale of assets			662			807			361,339			18,751
Expenditures for major repairs			(5,513	)		(1,090	)		(38,665	)		(9,304	)
Other – net			(2,075	)		(2,145	)		(13,690	)		(9,069	)
Net cash required by investing activities			(818,194	)		(528,293	)		(1,862,272	)		(1,338,913	)
Financing Activities
Increase (decrease) in notes payable			(474,195	)		388,373			(447,195	)		668,323
Decrease in nonrecourse debt of a subsidiary			—			(2	)		(5,235	)		(4,886	)
Proceeds from exercise of stock options and employee stock purchase plan			1,020			13,046			21,463			33,837
Excess tax benefits related to exercise of stock options			357			10,363			18,666			21,069
Cash dividends paid			(47,608	)		(35,382	)		(118,834	)		(91,801	)
Other			—			—			—			(760	)
Net cash provided by (used in) financing activities			(520,426	)		376,398			(531,135	)		625,782
Effect of exchange rate changes on cash and cash equivalents			(37,863	)		16,391			(48,864	)		44,382
Net increase (decrease) in cash and cash equivalents			(288,405	)		96,209			154,393			246,275
Cash and cash equivalents at beginning of period			1,116,505			693,456			673,707			543,390
Cash and cash equivalents at September 30		$	828,100			789,665			828,100			789,665

 

*	Represents cash invested in Canadian government securities with maturities longer than 90 days at time of purchase.

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MURPHY OIL CORPORATION

OTHER FINANCIAL DATA

(Unaudited, except for December 31, 2007)

(Millions of dollars)

 

		Sept. 30,			Dec. 31,
		2008			2007
Total current assets		$	3,637.9		2,886.8
Total current liabilities			2,309.1		2,109.3
Total assets			11,830.8		10,535.8
Long-term debt
Notes payable			1,066.2		1,513.0
Nonrecourse debt			—		3.2
Stockholders' equity			6,519.5		5,066.2

 

		Three Months Ended					Nine Months Ended
		September 30,					September 30,
		2008			2007		2008		2007
Capital expenditures
Exploration and production
United States		$	75.4		91.9		353.2		236.6
Canada			152.8		54.2		358.7		282.5
Malaysia			204.3		240.5		493.7		552.9
Other			51.2		57.6		145.8		159.4
			483.7		444.2		1,351.4		1,231.4
Refining and marketing
North America			68.2		105.0		273.1		197.5
United Kingdom			31.1		2.9		46.4		8.7
			99.3		107.9		319.5		206.2
Corporate			0.5		0.9		2.3		3.0
Total capital expenditures			583.5		553.0		1,673.2		1,440.6
Charged to exploration expenses*
United States			23.5		14.5		50.1		57.2
Canada			2.3		11.2		15.1		16.6
Malaysia			26.1		6.8		49.2		12.0
Other international			2.6		2.1		10.5		14.4
Total charged to exploration expenses			54.5		34.6		124.9		100.2
Total capitalized		$	529.0		518.4		1,548.3		1,340.4
*Excludes amortization of undeveloped leases of		$	28.9		7.9		85.4		20.8

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MURPHY OIL CORPORATION

STATISTICAL SUMMARY

 

				Three Months Ended				Nine Months Ended
				September 30,				September 30,
				2008		2007		2008		2007
Net crude oil, condensate and gas liquids produced – barrels per day				118,797		87,962		114,559		84,169
United States				9,151		11,680		11,373		13,069
Canada		– light		—		640		62		587
		– heavy		7,254		11,144		8,801		11,197
		– offshore		16,379		20,248		17,214		19,862
		– synthetic		13,110		14,423		11,953		12,865
United Kingdom				2,713		3,575		4,917		5,108
Malaysia				63,144		17,358		52,673		12,473
Ecuador				7,046		8,894		7,566		9,008
Net crude oil, condensate and gas liquids sold – barrels per day				117,891		78,702		118,395		82,245
United States				9,151		11,680		11,373		13,069
Canada		– light		—		640		62		587
		– heavy		7,254		11,144		8,801		11,197
		– offshore		15,014		20,153		16,132		20,151
		– synthetic		13,110		14,423		11,953		12,865
United Kingdom				5,460		5,123		5,616		6,152
Malaysia				61,349		6,359		56,951		8,706
Ecuador				6,553		9,180		7,507		9,518
Net natural gas sold – thousands of cubic feet per day				45,948		55,712		56,518		57,784
United States				38,846		41,667		46,816		42,283
Canada				1,122		10,582		2,538		9,569
United Kingdom				5,980		3,463		7,164		5,932
Total net hydrocarbons produced – equivalent barrels per day*				126,455		97,247		123,979		93,800
Total net hydrocarbons sold – equivalent barrels per day*				125,549		87,987		127,815		91,876

 

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

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MURPHY OIL CORPORATION

STATISTICAL SUMMARY (Continued)

 

				Three Months Ended					Nine Months Ended
				September 30,					September 30,
				2008			2007		2008		2007
Weighted average sales prices
Crude oil, condensate and natural gas liquids – dollars per barrel (1)
United States				$	118.87		70.50		108.99		59.55
Canada (2)		– light			—		56.77		70.37		50.73
		– heavy			80.87		34.91		70.97		32.43
		– offshore			119.06		73.97		111.76		65.66
		– synthetic			122.41		77.78		111.70		69.15
United Kingdom					111.89		75.88		106.48		65.68
Malaysia (3)					111.71		61.01		105.48		53.33
Ecuador (4)					30.40		43.07		29.20		38.00
Natural gas – dollars per thousand cubic feet
United States (1)				$	11.64		6.59		10.44		7.37
Canada (2)					7.05		4.74		7.19		6.21
United Kingdom (2)					11.81		7.17		11.21		6.84
Refinery inputs – barrels per day					232,020		176,785		240,837		179,276
North America					120,793		140,886		127,709		145,413
United Kingdom					111,227		35,899		113,128		33,863
Petroleum products sold – barrels per day					535,284		472,876		536,291		444,845
North America					422,132		433,536		424,294		408,064
Gasoline					313,097		312,553		310,444		295,283
Kerosine					3,366		152		2,466		1,250
Diesel and home heating oils					78,563		88,894		89,364		85,565
Residuals					15,815		16,357		14,881		15,873
Asphalt, LPG and other					11,291		15,580		7,139		10,093
United Kingdom					113,152		39,340		111,997		36,781
Gasoline					30,200		15,023		34,065		12,798
Kerosine					18,912		3,670		14,473		3,499
Diesel and home heating oils					29,780		14,811		34,263		13,036
Residuals					15,562		3,895		14,053		3,549
LPG and other					18,698		1,941		15,143		3,899

 

(1)	Includes intracompany transfers at market prices.

(2)	U.S. dollar equivalent.

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

(4)	All prices are net of legislated revenue sharing with the Ecuadorian government.