UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
(Amendment 1)
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): January 27, 2022 (January 27, 2022)
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
| (Address of principal executive offices, including zip code) | ||||||||||||||
| Registrant’s telephone number, including area code | |||||||||||
| 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)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
EXPLANATORY NOTE
On January 27, 2022, Murphy Oil Corporation (the “Company”) furnished to the Securities and Exchange Commission (the “SEC”) a Current Report on Form 8-K (the “Original Form 8-K”) to which was attached, as Exhibit 99.1, a news release dated January 27, 2022 (the “Earnings Release”) announcing the Company’s financial and operating results for the quarter and year ended December 31, 2021. Because of a technical error, certain information, including the 2022 Capital Expenditure and Production Guidance, in Exhibit 99.1 did not match the Earnings Release that appeared publicly on our Company’s website and disseminated by Business Wire.
This Amendment No. 1 to Form 8-K (this “Form 8-K/A”) amends the Original Form 8-K to include (i) the facing page thereof, (ii) the text of Items 2.02 and 9.01 thereof, (iii) the signature page thereto, and (iv) Exhibit 99.1, which matches the Earnings Release on the Company’s website and that was disseminated by Business Wire.
Except as noted above, this Form 8-K/A does not modify or update the Original Form 8-K or Exhibit 99.2 thereto.
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 January 27, 2022 Murphy Oil Corporation issued a news release announcing its financial and operating results for the quarter and year ended December 31, 2021. The full text of this news release is attached hereto as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits
| (d) | Exhibits | ||||
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 | ||||||||
| Date: January 27, 2022 | ||||||||
| By: | /s/ Christopher D. Hulse | |||||||
| Christopher D. Hulse | ||||||||
| Vice President and Controller | ||||||||
Exhibit Index
| Exhibit No. | |||||
| 101. INS | XBRL Instance Document | ||||
| 101. SCH | XBRL Taxonomy Extension Schema Document | ||||
| 101. CAL | XBRL Taxonomy Extension Calculation Linkbase Document | ||||
| 101. DEF | XBRL Taxonomy Extension Definition Linkbase Document | ||||
| 101. LAB | XBRL Taxonomy Extension Labels Linkbase Document | ||||
| 101. PRE | XBRL Taxonomy Extension Presentation Linkbase | ||||
EXHIBIT 99.1
MURPHY OIL CORPORATION ANNOUNCES FOURTH QUARTER
AND FULL YEAR 2021 RESULTS, PRELIMINARY YEAR-END 2021 RESERVES,
2022 CAPITAL EXPENDITURE AND PRODUCTION GUIDANCE,
INCREASES DIVIDEND 20 PERCENT
HOUSTON, Texas, January 27, 2022 – Murphy Oil Corporation (NYSE: MUR) today announced its financial and operating results for the fourth quarter ended December 31, 2021, including net income attributable to Murphy of $168 million, or $1.08 net income per diluted share. Adjusted net income, which excludes discontinued operations and other one-off items, was $62 million, or $0.40 net income per diluted share.
Unless otherwise noted, the financial and operating highlights and metrics discussed in this commentary exclude noncontrolling interest. 1
Highlights for the fourth quarter include:
•Produced 150 thousand barrels of oil equivalent per day with 53 percent oil volumes
•Generated $338 million of adjusted earnings before interest, tax, depreciation, amortization and exploration or $24 per barrel of oil equivalent sold
•Completed 2021 long-term debt reduction plan with the redemption of an additional $150 million of 6.875 percent senior notes due 2024
Highlights for full year 2021 include:
•Produced 158 thousand barrels of oil equivalent per day with 87 thousand barrels of oil per day, which was 6 percent higher than the original oil volume guidance
•Maintained capital discipline with full year accrued capital expenditures of $671 million, excluding reimbursed King’s Quay expenditures
•Generated $496 million of free cash flow2, with the majority used to repay long-term debt, fund long-standing dividend and increase the cash balance
•Recognized record-low lease operating expenses of $8.65 per barrel of oil equivalent, a 5 percent reduction from 2020
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EXHIBIT 99.1
•Achieved record-low selling and general expenses of $122 million, a 13 percent reduction from 2020
•Closed the transaction for Murphy’s 50 percent interest in the King’s Quay floating production system in March 2021 for proceeds of $268 million, a portion of which was used to fully repay the senior unsecured revolver
•Repaid $530 million of total debt, achieving 17 percent debt reduction since year-end 2020
•Maintained schedule on operated Gulf of Mexico major projects with first oil expected to occur in the second quarter of 2022
•Achieved total reserve replacement of 102 percent with proved reserves of 699 million barrels of oil equivalent
•Accomplished significant environmental milestones with lowest carbon emissions intensity in company history and no recordable spills
•Named one of America’s Most Responsible Companies for 2022 by Newsweek
Subsequent to the fourth quarter:
•Increased quarterly dividend by 20 percent to $0.15 per share
“I am proud of the accomplishments our organization achieved in 2021. We produced more oil than originally planned, with less capital, while also lowering our total debt by 17 percent. We had our best year on record for protecting the environment. Also, we have been able to maintain the schedule on our major Gulf of Mexico projects despite the continued headwinds of a pandemic and significant hurricane,” said Roger W. Jenkins, President and Chief Executive Officer. “With a great year of execution in 2021 and significant incremental cash flow coming this year, we can now increase our long-standing dividend while simultaneously continuing our debt reduction strategy.”
FOURTH QUARTER 2021 RESULTS
The company recorded net income, attributable to Murphy, of $168 million, or $1.08 net income per diluted share, for the fourth quarter 2021. This includes a realized after-tax loss of $113 million and an unrealized after-tax gain on crude oil derivative contracts of $92 million. Adjusted net income, which excludes both the results of discontinued operations and certain other items that affect comparability of results between periods, was $62 million, or $0.40 net income per diluted share for the same period. The adjusted net income from continuing operations adjusts for the following after-tax items: $92 million non-cash mark-to-market gain on derivatives, $33
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EXHIBIT 99.1
million non-cash mark-to-market gain on contingent consideration and $24 million impairment of non-core assets. Details for fourth quarter results can be found in the attached schedules.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations attributable to Murphy was $319 million, or $22.88 per barrel of oil equivalent (BOE) sold. Adjusted earnings before interest, tax, depreciation, amortization and exploration expenses (EBITDAX) from continuing operations attributable to Murphy was $338 million, or $24.26 per BOE sold. Details for fourth quarter EBITDA and EBITDAX reconciliations can be found in the attached schedules.
Fourth quarter production was within the guidance range and averaged 150 thousand barrels of oil equivalent per day (MBOEPD) with 53 percent oil and 60 percent liquids. Details for fourth quarter results can be found in the attached schedules.
FULL YEAR 2021 RESULTS
The company recorded a net loss, attributable to Murphy, of $74 million, or a $0.48 net loss per diluted share, for the full year 2021. This includes a realized after-tax loss of $327 million and an unrealized after-tax loss of $89 million on crude oil derivative contracts. The company reported adjusted income, which excludes both the results of discontinued operations and certain other items that affect comparability of results between periods, of $200 million, or $1.29 net income per diluted share. This includes after-tax adjustments of $152 million in impairments, $89 million non-cash mark-to-market loss on derivative instruments and $50 million non-cash mark-to-market loss on contingent consideration. Details for full year 2021 results can be found in the attached schedules.
Production for the full year averaged 158 MBOEPD and consisted of 55 percent oil and 62 percent liquids volumes. Details for 2021 production can be found in the attached tables.
FINANCIAL POSITION
Murphy had approximately $2.1 billion of liquidity as of December 31, 2021, comprised of the $1.6 billion undrawn senior unsecured credit facility and $521 million of cash and cash equivalents, inclusive of noncontrolling interest (NCI).
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EXHIBIT 99.1
On December 2, 2021, Murphy redeemed $150 million of its 6.875 percent senior notes due 2024 for a redemption price of 101.719 percent. Total debt of $2.46 billion as of the end of fourth quarter 2021 consists of long-term, fixed-rate notes with a weighted average maturity of 7.5 years and a weighted average coupon of 6.2 percent.
Overall, Murphy achieved its long-term debt reduction goal of $300 million for the second half of 2021, as well as reduced total debt by $530 million, or 17 percent, since year-end 2020.
“I am pleased with our strong operational execution and disciplined spending in 2021, which allowed us to achieve our goal of repaying $300 million in long-term debt while also building our cash position due to higher realized oil prices than originally budgeted. This multi-faceted success has positioned Murphy for ongoing debt reductions and a dividend increase in 2022,” said Jenkins.
YEAR-END 2021 PROVED RESERVES
Murphy’s preliminary year-end 2021 proved reserves were 699 million barrels of oil equivalent (MMBOE), consisting of 39 percent oil and 45 percent liquids. Total proved reserves were up from year-end 2020 with a total reserve replacement of 102 percent.
The company maintained a solid reserve life index of 12 years with 58 percent proved developed reserves.
2021 Proved Reserves – Preliminary * | |||||||||||||||||
Category | Net Oil (MMBBL) | Net NGLs (MMBBL) | Net Gas (BCF) | Net Equiv. (MMBOE) | |||||||||||||
Proved Developed (PD) | 177 | 28 | 1,191 | 403 | |||||||||||||
Proved Undeveloped (PUD) | 98 | 10 | 1,125 | 296 | |||||||||||||
Total Proved | 275 | 38 | 2,316 | 699 | |||||||||||||
* Proved reserves exclude noncontrolling interest and are based on preliminary year-end 2021 third-party audited volumes using SEC pricing. Numbers may not add exactly due to rounding. | |||||||||||||||||
OPERATIONS SUMMARY
Onshore
The onshore business produced approximately 86 MBOEPD, comprised of 39 percent liquids volumes in the fourth quarter.
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EXHIBIT 99.1
Eagle Ford Shale – Murphy produced an average 33 MBOEPD with 69 percent oil volumes in the fourth quarter. Four Catarina wells were brought online as planned, with the two Upper Eagle Ford Shale wells and one Austin Chalk well performing in-line with expectations, while the one Lower Eagle Ford Shale well significantly exceeded its type curve.
Tupper Montney – In the fourth quarter, natural gas production averaged 263 million cubic feet per day (MMCFD). No wells were brought online during the quarter.
Kaybob Duvernay – Production averaged 7 MBOEPD with 70 percent liquids volumes during the fourth quarter.
Offshore
Excluding noncontrolling interest, the offshore business produced 64 MBOEPD for the fourth quarter, comprised of 81 percent oil.
Gulf of Mexico – Production averaged 61 MBOEPD, consisting of 80 percent oil during the quarter. Murphy completed its repairs following Hurricane Ida, with 1.5 MBOEPD remaining offline through the majority of first quarter 2022 as a third-party completes downstream repairs.
Murphy’s major projects continue to advance on schedule, with the Khaleesi, Mormont, Samurai project expected to produce first oil in the second quarter of 2022 through the King’s Quay floating production system. Murphy began completions work on the 7-well program in the fourth quarter, while the King’s Quay floating production system was transported to its final location in the Gulf of Mexico to prepare for first oil.
Canada – Production averaged 3 MBOEPD in the fourth quarter, comprised of 100 percent oil. The non-operated Terra Nova floating, production, storage and offloading (FPSO) vessel was transported to Spain during the quarter to begin drydock work for the asset life extension project.
EXPLORATION
Gulf of Mexico – Participated in the Gulf of Mexico Federal Lease Sale 257 and was named apparent high bidder on three deepwater blocks.
Brazil – During the quarter, Murphy and its operated partner prepared to spud the Cutthroat-1 well in the Sergipe-Alagoas Basin.
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EXHIBIT 99.1
COMMODITY HEDGES
Murphy employs commodity derivative instruments to manage certain risks associated with commodity price volatility and underpin capital returns associated with certain assets.
During the fourth quarter, Murphy added hedges to protect cash flow with the execution of West Texas Intermediate (WTI) costless collars. As a result, Murphy has a total 25 thousand barrels of oil per day (MBOPD) hedged for full year 2022 with a weighted average put price of $63.24 per barrel and weighted average call price of $75.20 per barrel.
The company also maintains 20 MBOPD of full-year 2022 production hedged with an average fixed price swap price of $44.88 per barrel.
Murphy continues its natural gas price risk protection with fixed price forward sales contracts for physical delivery at the AECO hub in Canada for calendar years 2022 through 2024. Details for the current hedge positions can be found in the attached schedules.
2022 CAPITAL EXPENDITURE AND PRODUCTION GUIDANCE
Murphy is planning 2022 capital expenditures (CAPEX) to be in the range of $840 million to $890 million with full year 2022 production to be in the range of 164 to 172 MBOEPD, comprised of approximately 52 percent oil and 57 percent total liquids volumes. Production for first quarter 2022 is estimated to be in the range of 136 to 142 MBOEPD with 53 percent oil volumes. This range is impacted by planned downtime comprised of the following: 2.7 MBOEPD of operated offshore downtime, 2.6 MBOEPD of non-operated offshore downtime and 3 MBOEPD of onshore downtime. Both production and CAPEX guidance ranges exclude Gulf of Mexico noncontrolling interest (NCI).
2022 CAPEX by Quarter ($ MMs) | |||||||||||||||||
1Q 2022E | 2Q 2022E | 3Q 2022E | 4Q 2022E | FY 2022E | |||||||||||||
$270 | $255 | $190 | $150 | $865 | |||||||||||||
Accrual CAPEX, based on midpoint of guidance range and excluding NCI.
“Our 2022 budget is higher than 2021, with capital designated toward finalizing key development projects in the Gulf of Mexico while maintaining oil volumes across the portfolio. In addition, we forecast an additional $300 million in long-term debt reduction assuming a $65 oil price in 2022, which will be increased with stronger oil prices. This plan also allows Murphy the ability to generate ample free cash flow in order to increase our quarterly dividend by 20 percent to $0.15 per diluted share for the first quarter 2022, as recently approved by our Board of
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EXHIBIT 99.1
Directors,” said Jenkins. “As we continue our plan to delever, we forecast generating additional free cash flow, which will give us optionality in returning cash to shareholders and supporting future exploration success.”
The table below illustrates the capital allocation by area.
2022 Capital Expenditure Guidance | ||||||||
Area | Percent of Total CAPEX | Total CAPEX $ MMs | ||||||
Gulf of Mexico | 38 | $330 | ||||||
US Onshore | 25 | $220 | ||||||
Canada Onshore | 16 | $140 | ||||||
Exploration | 9 | $75 | ||||||
Canada Offshore | 8 | $70 | ||||||
Other | 4 | $30 | ||||||
Murphy plans to spend approximately $330 million, or 38 percent, of 2022 capital to the Gulf of Mexico for development drilling and field development projects. This includes bringing the major Khaleesi, Mormont, Samurai project online with first oil scheduled to flow in the second quarter, as well as advancing the non-operated St. Malo waterflood project prior to its completion in 2023. Other plans include drilling an operated development well at Dalmatian with production scheduled to come online in 2023 and executing subsea tiebacks at non-operated Lucius.
Murphy has allocated $220 million, or 25 percent, of 2022 spending to the Eagle Ford Shale, which is $50 million higher than in 2021 due to increased drilling as a result of minimal uncompleted operated wells from 2021 activity. This includes $150 million for drilling 29 and bringing online 27 operated wells in the company’s Karnes and Catarina acreage, as well as drilling 23 and bringing online 32 non-operated wells in Karnes and Tilden acreage. The remaining $70 million of 2022 spending in this area is to support field development.
The company plans to spend 16 percent, or $140 million, of its 2022 capital plan in Canada onshore across the Tupper Montney and Kaybob Duvernay operations. Approximately $120 million of which is allocated to the Tupper Montney to drill 23 and bring online 20 operated wells. The remaining $20 million is primarily allocated to Kaybob Duvernay to bring online 3 operated wells in the Two Creeks area and for field development.
2022 Onshore Wells Online | ||||||||||||||||||||
1Q 2022 | 2Q 2022 | 3Q 2022 | 4Q 2022 | 2022 Total | ||||||||||||||||
Eagle Ford Shale | - | 23 | 4 | - | 27 | |||||||||||||||
Kaybob Duvernay | 3 | - | - | - | 3 | |||||||||||||||
Tupper Montney | - | 10 | 10 | - | 20 | |||||||||||||||
Non-Op Eagle Ford Shale | 9 | - | 7 | 16 | 32 | |||||||||||||||
Non-Op Placid Montney | - | - | - | - | - | |||||||||||||||
Note: All well counts are shown gross. Eagle Ford Shale non-operated working interest averages 14 percent.
Approximately 8 percent of spending, or $70 million, has been allocated to Canada offshore for 2022, with $55 million earmarked to support the sanctioned asset life extension project for the non-operated Terra Nova FPSO. The remaining $15 million is allocated to non-operated Hibernia to support development drilling and field development.
Murphy has allocated $75 million to its 2022 exploration program, with the majority of spending designated for drilling exploration wells in Brazil, offshore Mexico and Brunei.
Other capital of approximately $30 million, or 4 percent of budget, primarily consists of capitalized interest costs.
Detailed guidance for the first quarter and full year 2022 is contained in the following schedule.
CONFERENCE CALL AND WEBCAST SCHEDULED FOR JANUARY 27, 2022
Murphy will host a conference call to discuss fourth quarter 2021 financial and operating results on Thursday, January 27, 2022, at 9:00 a.m. EST. The call can be accessed either via the Internet through the Investor Relations section of Murphy Oil’s website at http://ir.murphyoilcorp.com or via the telephone by dialing toll free 1-888-886-7786, reservation number 95308225.
FINANCIAL DATA
Summary financial data and operating statistics for fourth quarter 2021, with comparisons to the same period from the previous year, are contained in the following schedules. Additionally, a schedule indicating the impacts of items affecting comparability of results between periods, a reconciliation of EBITDA and EBITDAX between periods, as well as guidance for the first quarter and full year 2022, are also included.
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EXHIBIT 99.1
1In accordance with GAAP, Murphy reports the 100 percent interest, including a 20 percent noncontrolling interest (NCI), in its subsidiary, MP Gulf of Mexico, LLC (MP GOM). The GAAP financials include the NCI portion of revenue, costs, assets and liabilities and cash flows. Unless otherwise noted, the financial and operating highlights and metrics discussed in this news release, but not the accompanying schedules, exclude the NCI, thereby representing only the amounts attributable to Murphy.
2Free cash flow is calculated as cash flow from operations, excluding working capital adjustments, less capital expenditures and distributions to noncontrolling interest.
ABOUT MURPHY OIL CORPORATION
As an independent oil and natural gas exploration and production company, Murphy Oil Corporation believes in providing energy that empowers people by doing right always, staying with it and thinking beyond possible. Murphy challenges the norm, taps into its strong legacy and uses its foresight and financial discipline to deliver inspired energy solutions. Murphy sees a future where it is an industry leader who is positively impacting lives for the next 100 years and beyond. Additional information can be found on the company’s website at www.murphyoilcorp.com.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified through the inclusion of words such as “aim”, “anticipate”, “believe”, “drive”, “estimate”, “expect”, “expressed confidence”, “forecast”, “future”, “goal”, “guidance”, “intend”, “may”, “objective”, “outlook”, “plan”, “position”, “potential”, “project”, “seek”, “should”, “strategy”, “target”, “will” or variations of such words and other similar expressions. These statements, which express management’s current views concerning future events or results, are subject to inherent risks and uncertainties. Factors that could cause one or more of these future events or results not to occur as implied by any forward-looking statement include, but are not limited to: macro conditions in the oil and gas industry, including supply/demand levels, actions taken by major oil exporters and the resulting impacts on commodity prices; increased volatility or deterioration in the success rate of our exploration programs or in our ability to maintain production rates and replace reserves; reduced customer demand for our products due to environmental, regulatory, technological or other reasons; adverse foreign exchange
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EXHIBIT 99.1
movements; political and regulatory instability in the markets where we do business; the impact on our operations or market of health pandemics such as COVID-19 and related government responses; other natural hazards impacting our operations or markets; any other deterioration in our business, markets or prospects; any failure to obtain necessary regulatory approvals; any inability to service or refinance our outstanding debt or to access debt markets at acceptable prices; or adverse developments in the U.S. or global capital markets, credit markets or economies in general. For further discussion of factors that could cause one or more of these future events or results not to occur as implied by any forward-looking statement, see “Risk Factors” in our most recent Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K that we file, available from the SEC’s website and from Murphy Oil Corporation’s website at http://ir.murphyoilcorp.com. Murphy Oil Corporation undertakes no duty to publicly update or revise any forward-looking statements.
NON-GAAP FINANCIAL MEASURES
This news release contains certain non-GAAP financial measures that management believes are useful tools for internal use and the investment community in evaluating Murphy Oil Corporation’s overall financial performance. These non-GAAP financial measures are broadly used to value and compare companies in the crude oil and natural gas industry. Not all companies define these measures in the same way. In addition, these non-GAAP financial measures are not a substitute for financial measures prepared in accordance with GAAP and should therefore be considered only as supplemental to such GAAP financial measures. Please see the attached schedules for reconciliations of the differences between the non-GAAP financial measures used in this news release and the most directly comparable GAAP financial measures.
RESERVE REPORTING TO THE SECURITIES EXCHANGE COMMISSION
The SEC requires oil and natural gas companies, in their filings with the SEC, to disclose proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We may use certain terms in this news release, such as “resource”, “gross resource”, “recoverable resource”, “net risked PMEAN resource”, “recoverable oil”, “resource base”, “EUR” or “estimated ultimate recovery” and similar terms that the SEC’s rules prohibit us from including in filings with the SEC. The SEC permits the optional disclosure of probable and possible reserves; however, we have not disclosed the company’s probable and possible reserves in our
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EXHIBIT 99.1
filings with the SEC. Investors are urged to consider closely the disclosures and risk factors in our most recent Annual Report on Form 10-K filed with the SEC and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K that we file, available from the SEC’s website and from Murphy Oil Corporation’s website at http://ir.murphyoilcorp.com.
Investor Contacts:
Kelly Whitley, kelly_whitley@murphyoilcorp.com, 281-675-9107
Megan Larson, megan_larson@murphyoilcorp.com, 281-675-9470
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EXHIBIT 99.1
MURPHY OIL CORPORATION
SUMMARIZED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
(Thousands of dollars, except per share amounts) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
| Revenues and other income | |||||||||||||||||||||||
| Revenue from sales to customers | $ | 762,310 | 440,082 | $ | 2,801,215 | 1,751,709 | |||||||||||||||||
| (Loss) gain on derivative instruments | (26,056) | (116,841) | (525,850) | 202,661 | |||||||||||||||||||
| Gain on sale of assets and other income | 2,699 | 6,965 | 23,916 | 12,971 | |||||||||||||||||||
| Total revenues and other income | 738,953 | 330,206 | 2,299,281 | 1,967,341 | |||||||||||||||||||
| Costs and expenses | |||||||||||||||||||||||
| Lease operating expenses | 135,838 | 121,793 | 539,546 | 600,076 | |||||||||||||||||||
| Severance and ad valorem taxes | 8,997 | 5,881 | 41,212 | 28,526 | |||||||||||||||||||
| Transportation, gathering and processing | 49,832 | 45,620 | 187,028 | 172,399 | |||||||||||||||||||
| Exploration expenses, including undeveloped lease amortization | 19,204 | 24,793 | 69,044 | 86,479 | |||||||||||||||||||
| Selling and general expenses | 36,124 | 35,862 | 121,950 | 140,243 | |||||||||||||||||||
| Restructuring expenses | — | 3,615 | — | 49,994 | |||||||||||||||||||
| Depreciation, depletion and amortization | 179,733 | 218,088 | 795,105 | 987,239 | |||||||||||||||||||
| Accretion of asset retirement obligations | 11,759 | 10,923 | 46,613 | 42,136 | |||||||||||||||||||
| Impairment of assets | 25,000 | — | 196,296 | 1,206,284 | |||||||||||||||||||
| Other (benefit) expense | (37,564) | 19,231 | 21,052 | 16,274 | |||||||||||||||||||
| Total costs and expenses | 428,923 | 485,806 | 2,017,846 | 3,329,650 | |||||||||||||||||||
| Operating income (loss) from continuing operations | 310,030 | (155,600) | 281,435 | (1,362,309) | |||||||||||||||||||
| Other income (loss) | |||||||||||||||||||||||
| Interest income and other (loss) | (5,312) | (7,196) | (16,771) | (17,303) | |||||||||||||||||||
| Interest expense, net | (43,374) | (44,546) | (221,773) | (169,423) | |||||||||||||||||||
| Total other loss | (48,686) | (51,742) | (238,544) | (186,726) | |||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 261,344 | (207,342) | 42,891 | (1,549,035) | |||||||||||||||||||
| Income tax expense (benefit) | 56,636 | (44,851) | (5,862) | (293,741) | |||||||||||||||||||
| Income (loss) from continuing operations | 204,708 | (162,491) | 48,753 | (1,255,294) | |||||||||||||||||||
| (Loss) from discontinued operations, net of income taxes | (625) | (244) | (1,225) | (7,151) | |||||||||||||||||||
| Net income (loss) including noncontrolling interest | 204,083 | (162,735) | 47,528 | (1,262,445) | |||||||||||||||||||
| Less: Net income (loss) attributable to noncontrolling interest | 35,683 | 9,201 | 121,192 | (113,668) | |||||||||||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO MURPHY | $ | 168,400 | (171,936) | $ | (73,664) | (1,148,777) | |||||||||||||||||
| INCOME (LOSS) PER COMMON SHARE – BASIC | |||||||||||||||||||||||
| Continuing operations | $ | 1.09 | (1.11) | $ | (0.47) | (7.43) | |||||||||||||||||
| Discontinued operations | — | — | (0.01) | (0.05) | |||||||||||||||||||
| Net income (loss) | $ | 1.09 | (1.11) | $ | (0.48) | (7.48) | |||||||||||||||||
| INCOME (LOSS) PER COMMON SHARE – DILUTED | |||||||||||||||||||||||
| Continuing operations | $ | 1.08 | (1.11) | $ | (0.47) | (7.43) | |||||||||||||||||
| Discontinued operations | — | — | (0.01) | (0.05) | |||||||||||||||||||
| Net income (loss) | $ | 1.08 | (1.11) | $ | (0.48) | (7.48) | |||||||||||||||||
| Cash dividends per Common share | $ | 0.125 | 0.125 | 0.50 | 0.625 | ||||||||||||||||||
| Average Common shares outstanding (thousands) | |||||||||||||||||||||||
| Basic | 154,457 | 153,599 | 154,291 | 153,507 | |||||||||||||||||||
| Diluted | 156,586 | 153,599 | 154,291 | 153,507 | |||||||||||||||||||
12
MURPHY OIL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
(Thousands of dollars) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Operating Activities | |||||||||||||||||||||||
| Net income (loss) including noncontrolling interest | $ | 204,083 | (162,735) | $ | 47,528 | (1,262,445) | |||||||||||||||||
| Adjustments to reconcile net income (loss) to net cash provided by continuing operations activities | |||||||||||||||||||||||
| Loss from discontinued operations | 625 | 244 | 1,225 | 7,151 | |||||||||||||||||||
| Depreciation, depletion and amortization | 179,733 | 218,088 | 795,105 | 987,239 | |||||||||||||||||||
| Dry hole and previously suspended exploration costs | (560) | 12,844 | 17,339 | 21,099 | |||||||||||||||||||
| Amortization of undeveloped leases | 5,053 | 4,792 | 18,925 | 26,743 | |||||||||||||||||||
| Accretion of asset retirement obligations | 11,759 | 10,923 | 46,613 | 42,136 | |||||||||||||||||||
| Impairment of assets | 25,000 | — | 196,296 | 1,206,284 | |||||||||||||||||||
| Deferred income tax expense (benefit) | 61,003 | (46,294) | (4,146) | (278,042) | |||||||||||||||||||
| Mark to market (gain) loss on contingent consideration | (41,964) | 15,693 | 63,147 | (13,783) | |||||||||||||||||||
| Mark to market (gain) loss on derivative instruments | (116,384) | 173,773 | 112,113 | 69,310 | |||||||||||||||||||
| Noncash restructuring expense | — | — | — | 17,565 | |||||||||||||||||||
| Long-term non-cash compensation | 21,302 | 11,358 | 63,382 | 46,558 | |||||||||||||||||||
| Net decrease (increase) in noncash working capital | 1,127 | (5,766) | 118,457 | (32,027) | |||||||||||||||||||
| Other operating activities, net | (19,897) | (8,243) | (53,821) | (35,080) | |||||||||||||||||||
| Net cash provided by continuing operations activities | 330,880 | 224,677 | 1,422,163 | 802,708 | |||||||||||||||||||
| Investing Activities | |||||||||||||||||||||||
| Property additions and dry hole costs | (106,249) | (111,084) | (670,479) | (759,809) | |||||||||||||||||||
| Proceeds from sales of property, plant and equipment | 465 | 13,750 | 270,503 | 13,750 | |||||||||||||||||||
| Property additions for King's Quay FPS | — | (38,025) | (17,734) | (112,961) | |||||||||||||||||||
| Net cash required by investing activities | (105,784) | (135,359) | (417,710) | (859,020) | |||||||||||||||||||
| Financing Activities | |||||||||||||||||||||||
| Borrowings on revolving credit facility | — | — | 165,000 | 450,000 | |||||||||||||||||||
| Repayment of revolving credit facility | — | — | (365,000) | (250,000) | |||||||||||||||||||
| Retirement of debt | (150,000) | — | (876,358) | (12,225) | |||||||||||||||||||
| Debt issuance, net of cost | — | — | 541,913 | (613) | |||||||||||||||||||
| Early redemption of debt cost | (2,579) | — | (39,335) | — | |||||||||||||||||||
| Distributions to noncontrolling interest | (36,637) | — | (137,517) | (43,673) | |||||||||||||||||||
| Cash dividends paid | (19,308) | (19,199) | (77,204) | (95,989) | |||||||||||||||||||
| Withholding tax on stock-based incentive awards | (236) | — | (5,209) | (7,094) | |||||||||||||||||||
| Capital lease obligation payments | (160) | (181) | (803) | (695) | |||||||||||||||||||
| Net cash (required) provided by financing activities | (208,920) | (19,380) | (794,513) | 39,711 | |||||||||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | (59) | 2,594 | 638 | 2,009 | |||||||||||||||||||
| Net increase in cash and cash equivalents | 16,117 | 90,970 | 210,578 | 3,846 | |||||||||||||||||||
| Cash and cash equivalents at beginning of period | 505,067 | 219,636 | 310,606 | 306,760 | |||||||||||||||||||
| Cash and cash equivalents at end of period | $ | 521,184 | 310,606 | $ | 521,184 | 310,606 | |||||||||||||||||
13
MURPHY OIL CORPORATION
SCHEDULE OF ADJUSTED INCOME (LOSS) (unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
(Millions of dollars, except per share amounts) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
| Net income (loss) attributable to Murphy (GAAP) | $ | 168.4 | (171.9) | $ | (73.7) | (1,148.8) | |||||||||||||||||
| Discontinued operations loss | 0.6 | 0.2 | 1.2 | 7.2 | |||||||||||||||||||
| Income (loss) from continuing operations | 169.0 | (171.7) | (72.5) | (1,141.6) | |||||||||||||||||||
| Adjustments (after tax): | |||||||||||||||||||||||
| Impairment of assets | 23.5 | — | 151.5 | 854.2 | |||||||||||||||||||
| Mark-to-market (gain) loss on derivative instruments | (91.9) | 137.3 | 88.6 | 54.8 | |||||||||||||||||||
| Asset retirement obligation (gains) | — | (2.2) | (53.6) | (2.2) | |||||||||||||||||||
| Mark-to-market (gain) loss on contingent consideration | (33.1) | 12.4 | 49.9 | (10.9) | |||||||||||||||||||
| Early redemption of debt cost | 2.7 | — | 34.6 | — | |||||||||||||||||||
| Tax benefits on investments in foreign areas | (8.9) | — | (8.9) | — | |||||||||||||||||||
| Unutilized rig charges | 0.2 | 2.3 | 6.9 | 12.7 | |||||||||||||||||||
| Charges related to Kings Quay transaction | — | — | 3.9 | — | |||||||||||||||||||
| Foreign exchange loss (gain) | 0.4 | 2.8 | (0.7) | 1.1 | |||||||||||||||||||
| Restructuring expenses | — | 2.8 | — | 38.3 | |||||||||||||||||||
| Inventory loss | — | 2.8 | — | 6.6 | |||||||||||||||||||
| (Gain) loss on extinguishment of debt | — | — | — | (4.2) | |||||||||||||||||||
| Seal insurance proceeds | — | — | — | (1.3) | |||||||||||||||||||
| Total adjustments after taxes | (107.1) | 158.2 | 272.2 | 949.1 | |||||||||||||||||||
| Adjusted income (loss) from continuing operations attributable to Murphy | $ | 61.9 | (13.5) | $ | 199.7 | (192.5) | |||||||||||||||||
| Adjusted income (loss) from continuing operations per average diluted share | $ | 0.40 | (0.09) | $ | 1.29 | (1.25) | |||||||||||||||||
Non-GAAP Financial Measures
Presented above is a reconciliation of Net income (loss) to Adjusted income (loss) from continuing operations attributable to Murphy. Adjusted income (loss) excludes certain items that management believes affect the comparability of results between periods. Management believes this is important information to provide because it is used by management to evaluate the Company’s operational performance and trends between periods and relative to its industry competitors. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company’s financial results. Adjusted income (loss) is a non-GAAP financial measure and should not be considered a substitute for Net income (loss) as determined in accordance with accounting principles generally accepted in the United States of America.
Amounts shown above as reconciling items between Net income (loss) and Adjusted income (loss) are presented net of applicable income taxes based on the estimated statutory rate in the applicable tax jurisdiction. The pretax and income tax impacts for adjustments shown above are as follows by area of operations and exclude the share attributable to non-controlling interests.
| Three Months Ended December 31, 2021 | Year Ended December 31, 2021 | ||||||||||||||||||||||||||||||||||
| (Millions of dollars) | Pretax | Tax | Net | Pretax | Tax | Net | |||||||||||||||||||||||||||||
Exploration & Production: | |||||||||||||||||||||||||||||||||||
United States | $ | (41.7) | 8.8 | (32.9) | $ | 76.8 | (16.1) | 60.7 | |||||||||||||||||||||||||||
| Canada | — | — | — | 99.4 | (25.1) | 74.3 | |||||||||||||||||||||||||||||
Other International | 18.0 | (8.9) | 9.1 | 18.0 | (8.9) | 9.1 | |||||||||||||||||||||||||||||
Total E&P | (23.7) | (0.1) | (23.8) | 194.2 | (50.1) | 144.1 | |||||||||||||||||||||||||||||
Corporate: | (105.4) | 22.1 | (83.3) | 162.0 | (33.9) | 128.1 | |||||||||||||||||||||||||||||
Total adjustments | $ | (129.1) | 22.0 | (107.1) | $ | 356.2 | (84.0) | 272.2 | |||||||||||||||||||||||||||
14
MURPHY OIL CORPORATION
SCHEDULE OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION
AND AMORTIZATION (EBITDA)
(unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
(Millions of dollars, except per barrel of oil equivalents sold) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
| Net income (loss) attributable to Murphy (GAAP) | $ | 168.4 | (171.9) | $ | (73.7) | (1,148.8) | |||||||||||||||||
| Income tax expense (benefit) | 56.6 | (44.9) | (5.9) | (293.7) | |||||||||||||||||||
| Interest expense, net | 43.4 | 44.5 | 221.8 | 169.4 | |||||||||||||||||||
| Depreciation, depletion and amortization expense ¹ | 172.2 | 207.6 | 760.6 | 932.6 | |||||||||||||||||||
| EBITDA attributable to Murphy (Non-GAAP) | $ | 440.6 | 35.3 | $ | 902.8 | (340.5) | |||||||||||||||||
| Impairment of assets ¹ | 25.0 | — | 196.3 | 1,072.5 | |||||||||||||||||||
| Mark-to-market (gain) loss on derivative instruments | (116.4) | 173.8 | 112.1 | 69.3 | |||||||||||||||||||
| Asset retirement obligation (gains) | — | (2.8) | (71.8) | (2.8) | |||||||||||||||||||
| Mark-to-market (gain) loss on contingent consideration | (41.9) | 15.7 | 63.2 | (13.8) | |||||||||||||||||||
| Accretion of asset retirement obligations ¹ | 10.3 | 10.9 | 41.1 | 42.1 | |||||||||||||||||||
| Unutilized rig charges | 0.2 | 2.8 | 8.7 | 16.0 | |||||||||||||||||||
| Discontinued operations loss | 0.6 | 0.2 | 1.2 | 7.2 | |||||||||||||||||||
| Foreign exchange loss (gain) | 0.5 | 3.2 | (1.0) | 0.7 | |||||||||||||||||||
| Restructuring expenses | — | 3.6 | — | 50.0 | |||||||||||||||||||
| Inventory loss | — | 3.5 | — | 8.3 | |||||||||||||||||||
| Seal insurance proceeds | — | — | — | (1.7) | |||||||||||||||||||
| Adjusted EBITDA attributable to Murphy (Non-GAAP) | $ | 318.9 | 246.2 | $ | 1,252.6 | 907.3 | |||||||||||||||||
| Total barrels of oil equivalents sold from continuing operations attributable to Murphy (thousands of barrels) | 13,939 | 13,711 | 57,476 | 60,189 | |||||||||||||||||||
| Adjusted EBITDA per barrel of oil equivalents sold | $ | 22.88 | 17.96 | $ | 21.79 | 15.07 | |||||||||||||||||
1 Depreciation, depletion, and amortization expense, impairment of assets and accretion of asset retirement obligations used in the computation of Adjusted EBITDA exclude the portion attributable to the non-controlling interest (NCI).
Non-GAAP Financial Measures
Presented above is a reconciliation of Net income (loss) to Earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA. Management believes EBITDA and adjusted EBITDA are important information to provide because they are used by management to evaluate the Company’s operational performance and trends between periods and relative to its industry competitors. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company’s financial results. EBITDA and adjusted EBITDA are non-GAAP financial measures and should not be considered a substitute for Net income (loss) or Cash provided by operating activities as determined in accordance with accounting principles generally accepted in the United States of America.
Presented above is adjusted EBITDA per barrel of oil equivalent sold. Management believes adjusted EBITDA per barrel of oil equivalent sold is important information because it is used by management to evaluate the Company’s profitability of one barrel of oil equivalent sold in that period. Adjusted EBITDA per barrel of oil equivalent sold is a non-GAAP financial metric.
15
MURPHY OIL CORPORATION
SCHEDULE OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION
AND AMORTIZATION AND EXPLORATION (EBITDAX)
(unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
(Millions of dollars, except per barrel of oil equivalents sold) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
| Net income (loss) attributable to Murphy (GAAP) | $ | 168.4 | (171.9) | $ | (73.7) | (1,148.8) | |||||||||||||||||
| Income tax expense (benefit) | 56.6 | (44.9) | (5.9) | (293.7) | |||||||||||||||||||
| Interest expense, net | 43.4 | 44.5 | 221.8 | 169.4 | |||||||||||||||||||
| Depreciation, depletion and amortization expense ¹ | 172.2 | 207.6 | 760.6 | 932.6 | |||||||||||||||||||
| EBITDA attributable to Murphy (Non-GAAP) | 440.6 | 35.3 | 902.8 | (340.5) | |||||||||||||||||||
| Exploration expenses | 19.2 | 24.8 | 69.0 | 86.5 | |||||||||||||||||||
| EBITDAX attributable to Murphy (Non-GAAP) | 459.8 | 60.1 | 971.8 | (254.0) | |||||||||||||||||||
| Impairment of assets ¹ | 25.0 | — | 196.3 | 1,072.5 | |||||||||||||||||||
| Mark-to-market (gain) loss on derivative instruments | (116.4) | 173.8 | 112.1 | 69.3 | |||||||||||||||||||
| Asset retirement obligation (gains) | — | (2.8) | (71.8) | (2.8) | |||||||||||||||||||
| Mark-to-market (gain) loss on contingent consideration | (41.9) | 15.7 | 63.2 | (13.8) | |||||||||||||||||||
| Accretion of asset retirement obligations ¹ | 10.3 | 10.9 | 41.1 | 42.1 | |||||||||||||||||||
| Unutilized rig charges | 0.2 | 2.8 | 8.7 | 16.0 | |||||||||||||||||||
| Discontinued operations loss | 0.6 | 0.2 | 1.2 | 7.2 | |||||||||||||||||||
| Foreign exchange loss (gain) | 0.5 | 3.2 | (1.0) | 0.7 | |||||||||||||||||||
| Restructuring expenses | — | 3.6 | — | 50.0 | |||||||||||||||||||
| Inventory loss | — | 3.5 | — | 8.3 | |||||||||||||||||||
| Seal insurance proceeds | — | — | — | (1.7) | |||||||||||||||||||
| Adjusted EBITDAX attributable to Murphy (Non-GAAP) | $ | 338.1 | 271.0 | $ | 1,321.6 | 993.8 | |||||||||||||||||
| Total barrels of oil equivalents sold from continuing operations attributable to Murphy (thousands of barrels) | 13,939 | 13,711 | 57,476 | 60,189 | |||||||||||||||||||
| Adjusted EBITDAX per barrel of oil equivalents sold | $ | 24.26 | 19.77 | $ | 22.99 | 16.51 | |||||||||||||||||
1 Depreciation, depletion, and amortization expense, impairment of assets and accretion of asset retirement obligations used in the computation of adjusted EBITDAX exclude the portion attributable to the non-controlling interest (NCI).
Non-GAAP Financial Measures
Presented above is a reconciliation of Net income (loss) to Earnings before interest, taxes, depreciation and amortization, and exploration expenses (EBITDAX) and adjusted EBITDAX. Management believes EBITDAX and adjusted EBITDAX are important information to provide because they are used by management to evaluate the Company’s operational performance and trends between periods and relative to its industry competitors. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company’s financial results. EBITDAX and adjusted EBITDAX are non-GAAP financial measures and should not be considered a substitute for Net income (loss) or Cash provided by operating activities as determined in accordance with accounting principles generally accepted in the United States of America.
Presented above is adjusted EBITDAX per barrel of oil equivalent sold. Management believes adjusted EBITDAX per barrel of oil equivalent sold is important information because it is used by management to evaluate the Company’s profitability of one barrel of oil equivalent sold in that period. Adjusted EBITDAX per barrel of oil equivalent sold is a non-GAAP financial metric.
16
MURPHY OIL CORPORATION
FUNCTIONAL RESULTS OF OPERATIONS (unaudited)
| Three Months Ended December 31, 2021 | Three Months Ended December 31, 2020 | |||||||||||||
(Millions of dollars) | Revenues | Income (Loss) | Revenues | Income (Loss) | ||||||||||
| Exploration and production | ||||||||||||||
United States 1,2 | $ | 633.1 | 284.5 | $ | 341.2 | (2.6) | ||||||||
| Canada | 127.1 | 21.6 | 100.6 | — | ||||||||||
| Other ² | 4.9 | (11.0) | — | (12.6) | ||||||||||
| Total exploration and production | 765.1 | 295.1 | 441.8 | (15.2) | ||||||||||
| Corporate ² | (26.1) | (90.4) | (111.6) | (147.3) | ||||||||||
| Continuing operations | 739.0 | 204.7 | 330.2 | (162.5) | ||||||||||
| Discontinued operations, net of tax | — | (0.6) | — | (0.2) | ||||||||||
| Total including noncontrolling interest | $ | 739.0 | 204.1 | $ | 330.2 | (162.7) | ||||||||
| Net income (loss) attributable to Murphy | 168.4 | (171.9) | ||||||||||||
| Year Ended December 31, 2021 | Year Ended December 31, 2020 | |||||||||||||
(Millions of dollars) | Revenues | Income (Loss) | Revenues | Income (Loss) | ||||||||||
| Exploration and production | ||||||||||||||
United States 1,2 | $ | 2,337.5 | 766.3 | $ | 1,411.8 | (1,014.3) | ||||||||
Canada 2 | 476.3 | (16.1) | 345.8 | (35.0) | ||||||||||
Other 2 | 4.9 | (33.5) | 1.8 | (85.6) | ||||||||||
| Total exploration and production | 2,818.7 | 716.7 | 1,759.4 | (1,134.9) | ||||||||||
| Corporate ² | (519.4) | (668.0) | 207.9 | (120.3) | ||||||||||
| Continuing operations | 2,299.3 | 48.7 | 1,967.3 | (1,255.2) | ||||||||||
| Discontinued operations, net of tax | — | (1.2) | — | (7.2) | ||||||||||
| Total including noncontrolling interest | $ | 2,299.3 | 47.5 | $ | 1,967.3 | (1,262.4) | ||||||||
| Net loss attributable to Murphy | (73.7) | (1,148.8) | ||||||||||||
1 Includes results attributable to a noncontrolling interest in MP Gulf of Mexico, LLC (MP GOM).
2 For the three months and year ended December 31, 2021, income (loss) includes impairment charges of $18.0 million in Other and $7.0 million in Corporate related to assets classified as held for sale. For the year ended December 31, 2021, income (loss) includes impairment charge of $171.3 million in Canada for Terra Nova due to the status of agreements with the partners as of March 31, 2021 (2020: U.S. impairment charge of $1,152.5 million, Other impairment charge $39.7 million).
17
MURPHY OIL CORPORATION
OIL AND GAS OPERATING RESULTS (unaudited)
THREE MONTHS ENDED DECEMBER 31, 2021, AND 2020
| (Millions of dollars) | United States 1 | Canada | Other | Total | ||||||||||
| Three Months Ended December 31, 2021 | ||||||||||||||
| Oil and gas sales and other operating revenues | $ | 633.1 | 127.1 | 4.9 | 765.1 | |||||||||
| Lease operating expenses | 103.1 | 36.3 | (3.6) | 135.8 | ||||||||||
| Severance and ad valorem taxes | 9.0 | — | — | 9.0 | ||||||||||
| Transportation, gathering and processing | 36.0 | 13.8 | — | 49.8 | ||||||||||
| Depreciation, depletion and amortization | 139.9 | 35.8 | 0.7 | 176.4 | ||||||||||
| Accretion of asset retirement obligations | 9.4 | 2.3 | — | 11.7 | ||||||||||
| Impairments of assets | — | — | 18.0 | 18.0 | ||||||||||
| Exploration expenses | ||||||||||||||
| Dry holes and previously suspended exploration costs | (0.6) | — | — | (0.6) | ||||||||||
| Geological and geophysical | 5.1 | — | 2.7 | 7.8 | ||||||||||
| Other exploration | 1.1 | 0.2 | 5.7 | 7.0 | ||||||||||
| 5.6 | 0.2 | 8.4 | 14.2 | |||||||||||
| Undeveloped lease amortization | 3.2 | — | 1.8 | 5.0 | ||||||||||
| Total exploration expenses | 8.8 | 0.2 | 10.2 | 19.2 | ||||||||||
| Selling and general expenses | 5.5 | 4.5 | 1.9 | 11.9 | ||||||||||
| Other | (34.1) | 1.5 | (1.0) | (33.6) | ||||||||||
| Results of operations before taxes | 355.5 | 32.7 | (21.3) | 366.9 | ||||||||||
| Income tax provisions (benefits) | 71.0 | 11.1 | (10.3) | 71.8 | ||||||||||
| Results of operations (excluding Corporate segment) | $ | 284.5 | 21.6 | (11.0) | 295.1 | |||||||||
| Three Months Ended December 31, 2020 | ||||||||||||||
| Oil and gas sales and other operating revenues | $ | 341.2 | 100.6 | — | 441.8 | |||||||||
| Lease operating expenses | 90.4 | 31.0 | 0.4 | 121.8 | ||||||||||
| Severance and ad valorem taxes | 5.6 | 0.3 | — | 5.9 | ||||||||||
| Transportation, gathering and processing | 32.3 | 13.3 | — | 45.6 | ||||||||||
| Restructuring expenses | 1.2 | — | — | 1.2 | ||||||||||
| Depreciation, depletion and amortization | 159.9 | 51.9 | 0.8 | 212.6 | ||||||||||
| Accretion of asset retirement obligations | 9.5 | 1.5 | — | 11.0 | ||||||||||
| Exploration expenses | ||||||||||||||
| Dry holes and previously suspended exploration costs | 12.8 | — | — | 12.8 | ||||||||||
| Geological and geophysical | — | — | 1.9 | 1.9 | ||||||||||
| Other exploration | 0.7 | 0.1 | 4.5 | 5.3 | ||||||||||
| 13.5 | 0.1 | 6.4 | 20.0 | |||||||||||
| Undeveloped lease amortization | 2.4 | 0.1 | 2.3 | 4.8 | ||||||||||
| Total exploration expenses | 15.9 | 0.2 | 8.7 | 24.8 | ||||||||||
| Selling and general expenses | 8.0 | 3.9 | 1.6 | 13.5 | ||||||||||
| Other | 20.5 | 0.2 | 0.4 | 21.1 | ||||||||||
| Results of operations before taxes | (2.1) | (1.7) | (11.9) | (15.7) | ||||||||||
| Income tax (benefits) provisions | 0.5 | (1.7) | 0.7 | (0.5) | ||||||||||
| Results of operations (excluding Corporate segment) | $ | (2.6) | — | (12.6) | (15.2) | |||||||||
1 Includes results attributable to a noncontrolling interest in MP GOM.
18
MURPHY OIL CORPORATION
OIL AND GAS OPERATING RESULTS (unaudited)
YEAR ENDED DECEMBER 31, 2021, AND 2020
(Millions of dollars) | United States 1 | Canada | Other | Total | ||||||||||
| Year Ended December 31, 2021 | ||||||||||||||
| Oil and gas sales and other operating revenues | $ | 2,337.5 | 476.3 | 4.9 | 2,818.7 | |||||||||
| Lease operating expenses | 406.4 | 136.3 | (3.2) | 539.5 | ||||||||||
| Severance and ad valorem taxes | 39.6 | 1.6 | — | 41.2 | ||||||||||
| Transportation, gathering and processing | 126.5 | 60.5 | — | 187.0 | ||||||||||
| Depreciation, depletion and amortization | 616.5 | 163.8 | 1.8 | 782.1 | ||||||||||
| Accretion of asset retirement obligations | 36.9 | 9.7 | — | 46.6 | ||||||||||
| Impairment of assets | — | 171.3 | 18.0 | 189.3 | ||||||||||
| Exploration expenses | ||||||||||||||
| Dry holes and previously suspended exploration costs | 17.3 | — | — | 17.3 | ||||||||||
| Geological and geophysical | 7.8 | — | 4.0 | 11.8 | ||||||||||
| Other exploration | 5.3 | 0.4 | 15.3 | 21.0 | ||||||||||
| 30.4 | 0.4 | 19.3 | 50.1 | |||||||||||
| Undeveloped lease amortization | 11.1 | 0.2 | 7.6 | 18.9 | ||||||||||
| Total exploration expenses | 41.5 | 0.6 | 26.9 | 69.0 | ||||||||||
| Selling and general expenses | 20.5 | 16.5 | 6.6 | 43.6 | ||||||||||
| Other | 99.4 | (66.2) | (2.2) | 31.0 | ||||||||||
| Results of operations before taxes | 950.2 | (17.8) | (43.0) | 889.4 | ||||||||||
| Income tax provisions (benefits) | 183.9 | (1.7) | (9.5) | 172.7 | ||||||||||
| Results of operations (excluding Corporate segment) | $ | 766.3 | (16.1) | (33.5) | 716.7 | |||||||||
| Year Ended December 31, 2020 | ||||||||||||||
| Oil and gas sales and other operating revenues | $ | 1,411.8 | 345.8 | 1.8 | 1,759.4 | |||||||||
| Lease operating expenses | 476.9 | 121.6 | 1.6 | 600.1 | ||||||||||
| Severance and ad valorem taxes | 27.2 | 1.3 | — | 28.5 | ||||||||||
| Transportation, gathering and processing | 127.7 | 44.7 | — | 172.4 | ||||||||||
| Restructuring expenses | 1.2 | — | — | 1.2 | ||||||||||
| Depreciation, depletion and amortization | 749.4 | 213.2 | 2.3 | 964.9 | ||||||||||
| Accretion of asset retirement obligations | 36.6 | 5.6 | — | 42.2 | ||||||||||
| Impairment of assets | 1,152.5 | — | 39.7 | 1,192.2 | ||||||||||
| Exploration expenses | ||||||||||||||
| Dry holes and previously suspended exploration costs | 21.1 | — | — | 21.1 | ||||||||||
| Geological and geophysical | 9.4 | 0.1 | 6.0 | 15.5 | ||||||||||
| Other exploration | 5.0 | 0.5 | 17.6 | 23.1 | ||||||||||
| 35.5 | 0.6 | 23.6 | 59.7 | |||||||||||
| Undeveloped lease amortization | 17.2 | 0.4 | 9.2 | 26.8 | ||||||||||
| Total exploration expenses | 52.7 | 1.0 | 32.8 | 86.5 | ||||||||||
| Selling and general expenses | 24.6 | 17.1 | 7.1 | 48.8 | ||||||||||
| Other | 21.5 | (2.3) | 1.8 | 21.0 | ||||||||||
| Results of operations before taxes | (1,258.5) | (56.4) | (83.5) | (1,398.4) | ||||||||||
| Income tax (benefits) provisions | (244.2) | (21.4) | 2.1 | (263.5) | ||||||||||
| Results of operations (excluding Corporate segment) | $ | (1,014.3) | (35.0) | (85.6) | (1,134.9) | |||||||||
1 Includes results attributable to a noncontrolling interest in MP GOM.
2 For the year ended December 31, 2021, Canada includes $71.8 million of income related to the deferral of an asset retirement obligation at Terra Nova.
19
MURPHY OIL CORPORATION
PRODUCTION-RELATED EXPENSES
(unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
(Dollars per barrel of oil equivalents sold) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Continuing operations | |||||||||||||||||||||||
United States – Eagle Ford Shale | |||||||||||||||||||||||
Lease operating expense | $ | 10.45 | 9.49 | $ | 8.96 | 9.08 | |||||||||||||||||
Severance and ad valorem taxes | 2.79 | 1.97 | 2.91 | 2.06 | |||||||||||||||||||
Depreciation, depletion and amortization (DD&A) expense | 26.21 | 28.07 | 27.59 | 26.22 | |||||||||||||||||||
United States – Gulf of Mexico | |||||||||||||||||||||||
| Lease operating expense | $ | 10.90 | 9.65 | $ | 10.63 | 11.95 | |||||||||||||||||
| Severance and ad valorem taxes | 0.06 | — | 0.07 | — | |||||||||||||||||||
DD&A expense | 9.13 | 12.27 | 9.51 | 13.48 | |||||||||||||||||||
Canada – Onshore | |||||||||||||||||||||||
Lease operating expense | $ | 6.75 | 4.83 | $ | 6.20 | 4.63 | |||||||||||||||||
Severance and ad valorem taxes | — | 0.07 | 0.09 | 0.07 | |||||||||||||||||||
DD&A expense | 6.77 | 9.91 | 7.64 | 9.93 | |||||||||||||||||||
Canada – Offshore | |||||||||||||||||||||||
| Lease operating expense | $ | 14.22 | 22.44 | $ | 13.04 | 17.86 | |||||||||||||||||
DD&A expense | 11.77 | 14.12 | 12.80 | 12.01 | |||||||||||||||||||
Total oil and gas continuing operations | |||||||||||||||||||||||
| Lease operating expense | $ | 9.21 | 8.39 | $ | 8.86 | 9.34 | |||||||||||||||||
Severance and ad valorem taxes | 0.61 | 0.41 | 0.68 | 0.44 | |||||||||||||||||||
DD&A expense | 12.19 | 15.03 | 13.05 | 15.36 | |||||||||||||||||||
Total oil and gas continuing operations – excluding noncontrolling interest | |||||||||||||||||||||||
Lease operating expense 1 | $ | 9.02 | 8.21 | $ | 8.65 | 9.10 | |||||||||||||||||
Severance and ad valorem taxes | 0.64 | 0.43 | 0.71 | 0.47 | |||||||||||||||||||
DD&A expense | 12.36 | 15.14 | 13.23 | 15.49 | |||||||||||||||||||
1 For the year ended December 31, 2021, total LOE per BOE excluding NCI and costs associated with Gulf of Mexico well workovers was $8.13 (2020: $8.12), respectively.
20
MURPHY OIL CORPORATION
OTHER FINANCIAL DATA
(unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
(Millions of dollars) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
| Capital expenditures for continuing operations | |||||||||||||||||||||||
| Exploration and production | |||||||||||||||||||||||
| United States | $ | 99.7 | 129.1 | $ | 573.5 | 650.8 | |||||||||||||||||
| Canada | 15.5 | 5.3 | 82.6 | 121.9 | |||||||||||||||||||
| Other | 18.9 | 7.9 | 34.0 | 40.6 | |||||||||||||||||||
| Total | 134.1 | 142.3 | 690.1 | 813.3 | |||||||||||||||||||
| Corporate | 8.4 | 4.0 | 21.1 | 13.3 | |||||||||||||||||||
Total capital expenditures - continuing operations 1 | 142.5 | 146.3 | 711.2 | 826.6 | |||||||||||||||||||
Charged to exploration expenses 2 | |||||||||||||||||||||||
| United States | 5.6 | 13.5 | 30.4 | 35.5 | |||||||||||||||||||
| Canada | 0.2 | 0.1 | 0.4 | 0.6 | |||||||||||||||||||
| Other | 8.4 | 6.4 | 19.3 | 23.6 | |||||||||||||||||||
| Total charged to exploration expenses - continuing operations | 14.2 | 20.0 | 50.1 | 59.7 | |||||||||||||||||||
| Total capitalized | $ | 128.3 | 126.3 | $ | 661.1 | 766.9 | |||||||||||||||||
1 For the three months ended December 31, 2021, total capital expenditures excluding noncontrolling interest (NCI) of $2.4 million (2020: $3.9 million) is $140.1 million (2020: $142.4 million).
For the year ended December 31, 2021, total capital expenditures excluding NCI of $23.0 million (2020: $21.7 million) and King’s Quay expenditures of $17.3 million (2020: $92.8 million) is $670.9 million (2020: $712.1 million).
King’s Quay was sold to ArcLight Capital Partners, LLC (ArcLight) on March 17, 2021 for proceeds of $267.7 million which reimburses the Company for previously incurred capital expenditures.
2 For the three months and year ended December 31, 2021, charges to exploration expense exclude amortization of undeveloped leases of $5.0 million (2020: $4.8 million) and $18.9 million (2020: $26.8 million), respectively.
21
MURPHY OIL CORPORATION
CONDENSED BALANCE SHEETS (unaudited)
| (Millions of dollars) | December 31, 2021 | December 31, 2020 | |||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 521.2 | 310.6 | ||||||||
| Assets held for sale | 15.5 | 327.7 | |||||||||
| Other current assets | 344.2 | 362.0 | |||||||||
| Property, plant and equipment – net | 8,127.9 | 8,269.0 | |||||||||
| Other long-term assets | 1,296.1 | 1,351.5 | |||||||||
| Total assets | $ | 10,304.9 | 10,620.8 | ||||||||
| Liabilities and Equity | |||||||||||
| Liabilities associated with assets held for sale | $ | — | 14.4 | ||||||||
| Other current liabilities | 1,164.3 | 701.9 | |||||||||
| Long-term debt | 2,465.4 | 2,988.1 | |||||||||
| Other long-term liabilities | 2,354.4 | 2,522.3 | |||||||||
Total equity 1,2 | 4,320.8 | 4,394.1 | |||||||||
| Total liabilities and equity | $ | 10,304.9 | 10,620.8 | ||||||||
1 Includes noncontrolling interest of $163.5 million and $179.8 million as of December 31, 2021 and December 31, 2020, respectively.
2 Number of shares of Common Stock, $1.00 par value, outstanding at December 31, 2021 was 154,463,050.
22
MURPHY OIL CORPORATION
PRODUCTION SUMMARY
(unaudited)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||
| Barrels per day unless otherwise noted | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
| Continuing operations | ||||||||||||||||||||||||||
| Net crude oil and condensate | ||||||||||||||||||||||||||
| United States | Onshore | 22,993 | 21,875 | 25,655 | 26,420 | |||||||||||||||||||||
Gulf of Mexico 1 | 57,191 | 56,648 | 60,717 | 64,680 | ||||||||||||||||||||||
| Canada | Onshore | 4,462 | 7,241 | 5,312 | 7,888 | |||||||||||||||||||||
| Offshore | 3,020 | 4,170 | 3,765 | 4,893 | ||||||||||||||||||||||
| Other | 294 | — | 256 | 85 | ||||||||||||||||||||||
| Total net crude oil and condensate - continuing operations | 87,960 | 89,934 | 95,705 | 103,966 | ||||||||||||||||||||||
| Net natural gas liquids | ||||||||||||||||||||||||||
| United States | Onshore | 5,238 | 4,620 | 5,092 | 5,248 | |||||||||||||||||||||
Gulf of Mexico 1 | 3,819 | 4,522 | 4,176 | 4,978 | ||||||||||||||||||||||
| Canada | Onshore | 990 | 1,325 | 1,117 | 1,315 | |||||||||||||||||||||
| Total net natural gas liquids - continuing operations | 10,047 | 10,467 | 10,385 | 11,541 | ||||||||||||||||||||||
| Net natural gas – thousands of cubic feet per day | ||||||||||||||||||||||||||
| United States | Onshore | 30,982 | 24,799 | 28,565 | 27,985 | |||||||||||||||||||||
Gulf of Mexico 1 | 54,364 | 60,909 | 61,240 | 66,105 | ||||||||||||||||||||||
| Canada | Onshore | 279,906 | 255,933 | 277,790 | 260,683 | |||||||||||||||||||||
| Total net natural gas - continuing operations | 365,252 | 341,641 | 367,595 | 354,773 | ||||||||||||||||||||||
Total net hydrocarbons - continuing operations including NCI 2,3 | 158,882 | 157,341 | 167,356 | 174,636 | ||||||||||||||||||||||
| Noncontrolling interest | ||||||||||||||||||||||||||
| Net crude oil and condensate – barrels per day | (7,999) | (7,841) | (8,623) | (9,962) | ||||||||||||||||||||||
| Net natural gas liquids – barrels per day | (248) | (335) | (303) | (416) | ||||||||||||||||||||||
Net natural gas – thousands of cubic feet per day 2 | (2,457) | (2,968) | (3,236) | (3,843) | ||||||||||||||||||||||
| Total noncontrolling interest | (8,657) | (8,671) | (9,465) | (11,019) | ||||||||||||||||||||||
Total net hydrocarbons - continuing operations excluding NCI 2,3 | 150,226 | 148,671 | 157,891 | 163,617 | ||||||||||||||||||||||
1 Includes net volumes attributable to a noncontrolling interest in MP GOM.
2 Natural gas converted on an energy equivalent basis of 6:1.
3 NCI – noncontrolling interest in MP GOM.
23
MURPHY OIL CORPORATION
PRICE SUMMARY
(unaudited)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
| Weighted average Exploration and Production sales prices | ||||||||||||||||||||||||||
| Continuing operations | ||||||||||||||||||||||||||
| Crude oil and condensate – dollars per barrel | ||||||||||||||||||||||||||
| United States | Onshore | $ | 76.28 | 40.26 | $ | 66.90 | $ | 36.54 | ||||||||||||||||||
Gulf of Mexico 1 | 74.73 | 42.94 | 66.93 | 39.15 | ||||||||||||||||||||||
Canada 2 | Onshore | 73.30 | 39.52 | 61.79 | 32.42 | |||||||||||||||||||||
| Offshore | 80.40 | 45.54 | 71.39 | 39.40 | ||||||||||||||||||||||
| Natural gas liquids – dollars per barrel | ||||||||||||||||||||||||||
| United States | Onshore | 34.63 | 14.81 | 26.97 | 11.67 | |||||||||||||||||||||
Gulf of Mexico 1 | 35.71 | 15.61 | 29.14 | 10.84 | ||||||||||||||||||||||
Canada 2 | Onshore | 51.02 | 23.23 | 40.18 | 18.54 | |||||||||||||||||||||
| Natural gas – dollars per thousand cubic feet | ||||||||||||||||||||||||||
| United States | Onshore | 5.40 | 2.63 | 3.83 | 1.95 | |||||||||||||||||||||
Gulf of Mexico 1 | 5.02 | 2.46 | 3.67 | 2.04 | ||||||||||||||||||||||
Canada 2 | Onshore | 2.70 | 2.32 | 2.43 | 1.79 | |||||||||||||||||||||
1 Prices include the effect of noncontrolling interest in MP GOM.
2 U.S. dollar equivalent.
24
MURPHY OIL CORPORATION
COMMODITY HEDGE POSITIONS (unaudited)
AS OF JANUARY 25, 2022
| Volumes (MMcf/d) | Price/Mcf | Remaining Period | ||||||||||||||||||||||||||||||||||||
| Area | Commodity | Type | Start Date | End Date | ||||||||||||||||||||||||||||||||||
| Montney | Natural Gas | Fixed price forward sales | 186 | C$2.36 | 1/1/2022 | 1/31/2022 | ||||||||||||||||||||||||||||||||
| Montney | Natural Gas | Fixed price forward sales | 176 | C$2.34 | 2/1/2022 | 4/30/2022 | ||||||||||||||||||||||||||||||||
| Montney | Natural Gas | Fixed price forward sales | 205 | C$2.34 | 5/1/2022 | 5/31/2022 | ||||||||||||||||||||||||||||||||
| Montney | Natural Gas | Fixed price forward sales | 247 | C$2.34 | 6/1/2022 | 10/31/2022 | ||||||||||||||||||||||||||||||||
| Montney | Natural Gas | Fixed price forward sales | 266 | C$2.36 | 11/1/2022 | 12/31/2022 | ||||||||||||||||||||||||||||||||
| Montney | Natural Gas | Fixed price forward sales | 269 | C$2.36 | 1/1/2023 | 3/31/2023 | ||||||||||||||||||||||||||||||||
| Montney | Natural Gas | Fixed price forward sales | 250 | C$2.35 | 4/1/2023 | 12/31/2023 | ||||||||||||||||||||||||||||||||
| Montney | Natural Gas | Fixed price forward sales | 162 | C$2.39 | 1/1/2024 | 12/31/2024 | ||||||||||||||||||||||||||||||||
| Montney | Natural Gas | Fixed price forward sales | 45 | US$2.05 | 1/1/2022 | 12/31/2022 | ||||||||||||||||||||||||||||||||
| Montney | Natural Gas | Fixed price forward sales | 25 | US$1.98 | 1/1/2023 | 10/31/2024 | ||||||||||||||||||||||||||||||||
| Montney | Natural Gas | Fixed price forward sales | 15 | US$1.98 | 11/1/2024 | 12/31/2024 | ||||||||||||||||||||||||||||||||
| Commodity | Type | Volumes (Bbl/d) | Price (USD/Bbl) | Remaining Period | ||||||||||||||||||||||||||||||||||
| Area | Start Date | End Date | ||||||||||||||||||||||||||||||||||||
| United States | WTI ¹ | Fixed price derivative swap | 20,000 | $44.88 | 1/1/2022 | 12/31/2022 | ||||||||||||||||||||||||||||||||
| Volumes (Bbl/d) | Average Put (USD/Bbl) | Average Call (USD/Bbl) | Remaining Period | |||||||||||||||||||||||||||||||||||||||||
| Area | Commodity | Type | Start Date | End Date | ||||||||||||||||||||||||||||||||||||||||
| United States | WTI ¹ | Derivative collars | 25,000 | $63.24 | $75.20 | 1/1/2022 | 12/31/2022 | |||||||||||||||||||||||||||||||||||||
1 West Texas Intermediate
25
MURPHY OIL CORPORATION
FIRST QUARTER 2022 GUIDANCE
| Oil BOPD | NGLs BOPD | Gas MCFD | Total BOEPD | ||||||||||||||||||||
| Production – net | |||||||||||||||||||||||
| U.S. – Eagle Ford Shale | 20,600 | 4,100 | 23,300 | 28,600 | |||||||||||||||||||
| – Gulf of Mexico excluding NCI | 45,500 | 3,500 | 55,800 | 58,300 | |||||||||||||||||||
| Canada – Tupper Montney | — | — | 243,200 | 40,500 | |||||||||||||||||||
| – Kaybob Duvernay and Placid Montney | 4,600 | 900 | 16,100 | 8,200 | |||||||||||||||||||
| – Offshore | 3,100 | — | — | 3,100 | |||||||||||||||||||
| Other | 300 | — | — | 300 | |||||||||||||||||||
Total net production (BOEPD) - excluding NCI 1 | 136,000 to 142,000 | ||||||||||||||||||||||
| Exploration expense ($ millions) | $41 | ||||||||||||||||||||||
| FULL YEAR 2022 GUIDANCE | |||||||||||||||||||||||
Total net production (BOEPD) - excluding NCI 2 | 164,000 to 172,000 | ||||||||||||||||||||||
Capital expenditures – excluding NCI ($ millions) 3 | $840 to $890 | ||||||||||||||||||||||
| ¹ Excludes noncontrolling interest of MP GOM of 7,800 BOPD of oil, 300 BOPD of NGLs, and 2,700 MCFD gas. | |||||||||||||||||||||||
| ² Excludes noncontrolling interest of MP GOM of 7,900 BOPD of oil, 300 BOPD of NGLs, and 2,700 MCFD gas. | |||||||||||||||||||||||
| ³ Excludes noncontrolling interest of MP GOM of $33 MM. | |||||||||||||||||||||||
26