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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q  
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to
Commission file number 1-8590
https://cdn.kscope.io/3c1aa6f41d426a82c18d53f53e91f066-mur-20220630_g1.jpg
MURPHY OIL CORPORATION
(Exact name of registrant as specified in its charter)
Delaware71-0361522
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification Number)
9805 Katy Fwy, Suite G-20077024
Houston,Texas(Zip Code)
(Address of principal executive offices)
(281)
675-9000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
 Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $1.00 Par ValueMURNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes     No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
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. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes  No
Number of shares of Common Stock, $1.00 par value, outstanding at July 31, 2022 was 155,452,838.



MURPHY OIL CORPORATION
TABLE OF CONTENTS
Page
1

Table of Contents
PART I – FINANCIAL INFORMATION
ITEM 1.  FINANCIAL STATEMENTS
Murphy Oil Corporation and Consolidated Subsidiaries
CONSOLIDATED BALANCE SHEETS (unaudited)

(Thousands of dollars)
June 30,
2022
December 31,
2021
ASSETS
Current assets
Cash and cash equivalents$432,019 521,184 
Accounts receivable, net
522,023 258,150 
Inventories63,886 54,198 
Prepaid expenses33,392 31,925 
Assets held for sale15,561 15,453 
Total current assets1,066,881 880,910 
Property, plant and equipment, at cost less accumulated depreciation, depletion and amortization of $12,751,486 in 2022 and $12,457,851 in 2021
8,295,655 8,127,852 
Operating lease assets855,975 881,389 
Deferred income taxes326,706 385,516 
Deferred charges and other assets26,994 29,273 
Total assets$10,572,211 10,304,940 
LIABILITIES AND EQUITY
Current liabilities
Current maturities of long-term debt, finance lease$670 654 
Accounts payable910,009 623,129 
Income taxes payable25,452 19,951 
Other taxes payable30,698 20,306 
Operating lease liabilities167,953 139,427 
Other accrued liabilities483,430 360,859 
Total current liabilities1,618,212 1,164,326 
Long-term debt, including finance lease obligation2,267,934 2,465,414 
Asset retirement obligations863,892 839,776 
Deferred credits and other liabilities439,404 570,574 
Non-current operating lease liabilities706,016 761,162 
Deferred income taxes188,523 182,892 
Total liabilities6,083,981 5,984,144 
Equity
Cumulative Preferred Stock, par $100, authorized 400,000 shares, none issued
  
Common Stock, par $1.00, authorized 450,000,000 shares, issued 195,100,628 shares in 2022 and 195,100,628 shares in 2021
195,101 195,101 
Capital in excess of par value883,368 926,698 
Retained earnings5,405,400 5,218,670 
Accumulated other comprehensive loss(554,727)(527,711)
Treasury stock(1,616,340)(1,655,447)
Murphy Shareholders' Equity4,312,802 4,157,311 
Noncontrolling interest175,428 163,485 
Total equity4,488,230 4,320,796 
Total liabilities and equity$10,572,211 10,304,940 
See Notes to Consolidated Financial Statements, page 7.
2

Table of Contents
Murphy Oil Corporation and Consolidated Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(Thousands of dollars, except per share amounts)2022202120222021
Revenues and other income
Revenue from production$1,146,299 758,829$1,980,827 1,351,356 
Sales of purchased natural gas49,939  86,785  
Total revenue from sales to customers1,196,238 758,829 2,067,612 1,351,356 
Loss on crude contracts(103,068)(226,245)(423,845)(440,630)
Gain on sale of assets and other income7,887 17,059 10,251 18,902 
Total revenues and other income1,101,057 549,643 1,654,018 929,628 
Costs and expenses
Lease operating expenses147,352 126,413 284,177 273,577 
Severance and ad valorem taxes17,565 11,314 32,200 20,545 
Transportation, gathering and processing 49,948 49,696 96,871 92,608 
Costs of purchased natural gas47,971  81,636  
Exploration expenses, including undeveloped lease amortization15,151 13,543 62,717 25,323 
Selling and general expenses27,130 29,113 60,659 58,616 
Depreciation, depletion and amortization195,856 227,288 359,980 425,566 
Accretion of asset retirement obligations11,563 12,164 23,439 22,656 
Impairment of assets   171,296 
Other operating expense36,913 70,328 142,855 91,407 
Total costs and expenses549,449 539,859 1,144,534 1,181,594 
Operating income (loss) from continuing operations551,608 9,784 509,484 (251,966)
Other income (loss)
Other income (expense)5,308 (4,525)2,813 (9,866)
Interest expense, net(41,385)(43,374)(78,662)(131,474)
Total other (loss)(36,077)(47,899)(75,849)(141,340)
Income (loss) from continuing operations before income taxes515,531 (38,115)433,635 (393,306)
Income tax (benefit) expense105,084 (11,177)88,123 (99,336)
Income (loss) from continuing operations410,447 (26,938)345,512 (293,970)
(Loss) income from discontinued operations, net of income taxes(943)(102)(1,494)106 
Net income (loss) including noncontrolling interest409,504 (27,040)344,018 (293,864)
Less: Net income attributable to noncontrolling interest58,947 36,042 106,797 56,656 
NET INCOME (LOSS) ATTRIBUTABLE TO MURPHY$350,557 (63,082)$237,221 (350,520)
INCOME (LOSS) PER COMMON SHARE – BASIC
Continuing operations$2.27 (0.41)$1.54 (2.27)
Discontinued operations(0.01) (0.01) 
Net income (loss)$2.26 (0.41)$1.53 (2.27)
INCOME (LOSS) PER COMMON SHARE – DILUTED
Continuing operations$2.24 (0.41)$1.51 (2.27)
Discontinued operations(0.01) (0.01) 
Net income (loss)$2.23 (0.41)$1.50 (2.27)
Cash dividends per Common share$0.175 0.125 0.325 0.250 
Average Common shares outstanding (thousands)
Basic155,389 154,395 155,121 154,153 
Diluted157,455 154,395 157,852 154,153 
See Notes to Consolidated Financial Statements, page 7.
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Murphy Oil Corporation and Consolidated Subsidiaries
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited)


Three Months Ended
June 30,
Six Months Ended
June 30,
(Thousands of dollars)2022202120222021
Net income (loss) including noncontrolling interest$409,504 (27,040)$344,018 (293,864)
Other comprehensive (loss) income, net of tax
Net (loss) gain from foreign currency translation(51,545)17,945 (33,525)37,842 
Retirement and postretirement benefit plans3,173 4,146 6,509 8,282 
Deferred loss on interest rate hedges reclassified to interest expense   1,690 
Other comprehensive (loss) income (48,372)22,091 (27,016)47,814 
Comprehensive income (loss) including noncontrolling interest$361,132 (4,949)317,002 (246,050)
Less: Comprehensive income attributable to noncontrolling interest58,947 36,042 106,797 56,656 
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO MURPHY$302,185 (40,991)$210,205 (302,706)
See Notes to Consolidated Financial Statements, page 7.
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Murphy Oil Corporation and Consolidated Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
Six Months Ended
June 30,
(Thousands of dollars)20222021
Operating Activities
Net income (loss) including noncontrolling interest$344,018 (293,864)
Adjustments to reconcile net income (loss) to net cash provided by continuing operations activities
Loss (income) from discontinued operations1,494 (106)
Depreciation, depletion and amortization359,980 425,566 
Unsuccessful exploration well costs and previously suspended exploration costs 34,102 633 
Amortization of undeveloped leases7,980 8,882 
Accretion of asset retirement obligations23,439 22,656 
Deferred income tax (benefit) expense66,691 (101,195)
Mark to market loss on contingent consideration129,818 76,677 
Mark to market loss on crude contracts100,343 284,360 
Long-term non-cash compensation40,467 25,318 
Impairment of assets 171,296 
(Gain) from sale of assets(35) 
Net (increase) decrease in noncash working capital(121,598)26,565 
Other operating activities, net(27,458)39,494 
Net cash provided by continuing operations activities959,241 686,282 
Investing Activities
Property additions and dry hole costs 1
(552,825)(422,841)
Acquisition of oil and gas properties 1
(46,491)(22,473)
Property additions for King's Quay FPS (17,734)
Proceeds from sales of property, plant and equipment47 269,363 
Net cash (required) by investing activities(599,269)(193,685)
Financing Activities
Borrowings on revolving credit facility 100,000 165,000 
Repayment of revolving credit facility (100,000)(365,000)
Retirement of debt(200,000)(576,358)
Debt issuance, net of cost 541,974 
Early redemption of debt cost(3,438)(34,177)
Distributions to noncontrolling interest(94,854)(75,238)
Contingent consideration payment(81,742) 
Cash dividends paid(50,491)(38,590)
Withholding tax on stock-based incentive awards(16,697)(3,895)
Capital lease obligation payments(320)(371)
Net cash (required) by financing activities(447,542)(386,655)
Effect of exchange rate changes on cash and cash equivalents(1,595)1,552 
Net (decrease) increase in cash and cash equivalents(89,165)107,494 
Cash and cash equivalents at beginning of period521,184 310,606 
Cash and cash equivalents at end of period$432,019 418,100 
1 Certain prior-period amounts have been reclassified to conform to the current period presentation.
See Notes to Consolidated Financial Statements, page 7.
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Murphy Oil Corporation and Consolidated Subsidiaries
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (unaudited)

Three Months Ended
June 30,
Six Months Ended
June 30,
(Thousands of dollars)
2022202120222021
Cumulative Preferred Stock – par $100, authorized 400,000 shares, none issued
$  $  
Common Stock – par $1.00, authorized 450,000,000 shares, issued 195,100,628 shares at June 30, 2022 and 195,100,628 shares at June 30, 2021
Balance at beginning of period195,101 195,101 195,101 195,101 
Exercise of stock options —  — 
Balance at end of period195,101 195,101 195,101 195,101 
Capital in Excess of Par Value
Balance at beginning of period880,537 914,303 926,698 941,692 
Exercise of stock options, including income tax benefits(3,415)(587)(10,635)(626)
Restricted stock transactions and other (5,347)(45,169)(38,347)
Share-based compensation6,246 6,812 12,474 12,462 
Balance at end of period883,368 915,181 883,368 915,181 
Retained Earnings
Balance at beginning of period5,082,034 5,062,813 5,218,670 5,369,538 
Net income (loss) attributable to Murphy350,557 (63,082)237,221 (350,520)
Cash dividends paid(27,191)(19,303)(50,491)(38,590)
Balance at end of period5,405,400 4,980,428 5,405,400 4,980,428 
Accumulated Other Comprehensive Loss
Balance at beginning of period(506,355)(575,610)(527,711)(601,333)
Foreign currency translation (loss) gain, net of income taxes(51,545)17,945 (33,525)37,842 
Retirement and postretirement benefit plans, net of income taxes3,173 4,146 6,509 8,282 
Deferred loss on interest rate hedges reclassified to interest expense, net of income taxes —  1,690 
Balance at end of period(554,727)(553,519)(554,727)(553,519)
Treasury Stock
Balance at beginning of period(1,618,478)(1,661,416)(1,655,447)(1,690,661)
Awarded restricted stock, net of forfeitures 4,339 32,297 33,545 
Exercise of stock options2,138 486 6,810 525 
Balance at end of period – 39,677,584 shares of Common Stock in 2022 and 40,665,675 shares of Common Stock in 2021, at cost
(1,616,340)(1,656,591)(1,616,340)(1,656,591)
Murphy Shareholders’ Equity4,312,802 3,880,600 4,312,802 3,880,600 
Noncontrolling Interest
Balance at beginning of period171,451 164,418 163,485 179,810 
Net income attributable to noncontrolling interest58,947 36,042 106,797 56,656 
Distributions to noncontrolling interest owners(54,970)(39,232)(94,854)(75,238)
Balance at end of period175,428 161,228 175,428 161,228 
Total Equity$4,488,230 4,041,828 $4,488,230 4,041,828 
See Notes to Consolidated Financial Statements, page 7.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
These notes are an integral part of the financial statements of Murphy Oil Corporation and Consolidated Subsidiaries (the Company or Murphy) on pages 2 through 6 of this Form 10-Q report.
Note A – Nature of Business and Interim Financial Statements
NATURE OF BUSINESS – Murphy Oil Corporation is an international oil and natural gas exploration and production company that conducts its business through various operating subsidiaries.  The Company primarily produces oil and natural gas in the United States and Canada and conducts oil and natural gas exploration activities worldwide.
In connection with the LLOG Exploration Offshore L.L.C. and LLOG Bluewater Holdings, L.L.C., (LLOG) acquisition, we hold a 0.5% interest in two variable interest entities (VIEs), Delta House Oil and Gas Lateral LLC and Delta House Floating Production System (FPS) LLC (collectively Delta House). These VIEs have not been consolidated because we are not considered the primary beneficiary. These non-consolidated VIEs are not material to our financial position or results of operations. As of June 30, 2022, our maximum exposure to loss was $3.2 million (excluding operational impacts), which represents our net investment in Delta House. We have not provided any financial support to Delta House other than amounts previously required by our membership interest.
INTERIM FINANCIAL STATEMENTS – In the opinion of Murphy’s management, the unaudited financial statements presented herein include all accruals necessary to present fairly the Company’s financial position at June 30, 2022 and December 31, 2021, and the results of operations, cash flows and changes in stockholders’ equity for the interim periods ended June 30, 2022 and 2021, in conformity with accounting principles generally accepted in the United States of America (U.S.).  In preparing the financial statements of the Company in conformity with accounting principles generally accepted in the U.S., management has made a number of estimates and assumptions related to the reporting of assets, liabilities, revenues, and expenses and the disclosure of contingent assets and liabilities.  Actual results may differ from the estimates.
Consolidated financial statements and notes to consolidated financial statements included in this Form 10-Q report should be read in conjunction with the Company’s 2021 Form 10-K report, as certain notes and other pertinent information have been abbreviated or omitted in this report.  Financial results for the three-month and six-month periods ended June 30, 2022, are not necessarily indicative of future results.
Note B – New Accounting Principles and Recent Accounting Pronouncements
Accounting Principles Adopted
Income Taxes. In December 2019, the FASB issued ASU 2019-12, which removes certain exceptions for investments, intraperiod allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Implementation on a prospective or retrospective basis varies by specific topics within the ASU. The Company adopted this guidance in the first quarter of 2021 and it did not have a material impact on its consolidated financial statements.
Recent Accounting Pronouncements
None affecting the Company.




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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.)
Note C – Revenue from Contracts with Customers
Nature of Goods and Services
The Company explores for and produces crude oil, natural gas and natural gas liquids (collectively oil and natural gas) in select basins around the globe. The Company’s revenue from sales of oil and natural gas production activities are primarily subdivided into two key geographic segments: the U.S. and Canada.  Additionally, revenue from sales to customers is generated from three primary revenue streams: crude oil and condensate, natural gas liquids, and natural gas.
For operated oil and natural gas production where the non-operated working interest owner does not take-in-kind its proportionate interest in the produced commodity, the Company acts as an agent for the working interest owner and recognizes revenue only for its own share of the commingled production. The exception to this is the reporting of the noncontrolling interest in MP GOM as prescribed by ASC 810-10-45.
U.S. - In the United States, the Company primarily produces oil and natural gas from fields in the Eagle Ford Shale area of South Texas and in the Gulf of Mexico.  Revenue is generally recognized when oil and natural gas are transferred to the customer at the delivery point. Revenue recognized is largely index based with price adjustments for floating market differentials.
Canada - In Canada, contracts include long-term floating commodity index priced and natural gas physical forward sales fixed-price contracts. For the offshore business in Canada, contracts are based on index prices and revenue is recognized at the time of vessel load based on the volumes on the bill of lading and point of custody transfer. The Company also purchases natural gas in Canada to meet certain sales commitments.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.)
Note C – Revenue from Contracts with Customers (Contd.)
Disaggregation of Revenue
The Company reviews performance based on two key geographical segments and between onshore and offshore sources of revenue within these geographies.
For the three-month period ended June 30, 2022, and 2021, the Company recognized $1,196 million and $758.8 million, respectively, from total revenue from sales to customers, from sales of oil, natural gas liquids and natural gas.
For the six-month period ended June 30, 2022, and 2021, the Company recognized $2,067.6 million and $1,351.4 million, respectively, from total revenue from sales to customers, from sales of oil, natural gas liquids and natural gas.
Three Months Ended
June 30,
Six Months Ended
June 30,
(Thousands of dollars)2022202120222021
Net crude oil and condensate revenue
United States
Onshore$264,841 183,267 $436,537 297,757 
                     Offshore612,526 411,076 1,078,147 739,417 
Canada    
Onshore40,417 30,695 77,114 60,598 
Offshore38,354 31,772 67,186 49,834 
Other
13,636  13,636  
Total crude oil and condensate revenue969,774 656,810 1,672,620 1,147,606 
Net natural gas liquids revenue
United States
Onshore18,062 9,596 34,747 17,124 
 
Offshore18,093 10,766 32,072 20,820 
Canada
Onshore5,001 3,240 9,868 7,227 
Total natural gas liquids revenue41,156 23,602 76,687 45,171 
Net natural gas revenue
United States
Onshore19,034 6,872 30,403 13,315 
Offshore43,567 17,273 69,768 39,411 
Canada
Onshore72,768 54,272 131,349 105,853 
Total natural gas revenue135,369 78,417 231,520 158,579 
Revenue from production1,146,299 758,829 1,980,827 1,351,356 
Sales of purchased natural gas
United States
Offshore181  181  
Canada
Onshore49,758  86,604  
Total sales of purchased natural gas49,939  86,785  
Total revenue from sales to customers1,196,238 758,829 2,067,612 1,351,356 
Loss on crude contracts(103,068)(226,245)(423,845)(440,630)
Gain on sale of assets and other income7,887 17,059 10,251 18,902 
Total revenues and other income$1,101,057 549,643 $1,654,018 929,628 

In 2022, the Company included additional line items on the face of the Consolidated Statements of Operations to report Sales of purchased natural gas and Costs of purchased natural gas. Sales and purchases of natural gas are reported on a gross basis when Murphy takes control of the products and has risks and rewards of ownership.
Contract Balances and Asset Recognition
As of June 30, 2022, and December 31, 2021, receivables from contracts with customers, net of royalties and associated payables, on the balance sheet from continuing operations, were $292.4 million and $169.8 million, respectively. Payment terms for the Company’s sales vary across contracts and geographical regions, with the majority of the cash receipts required within 30 days of billing. Based on a forward-looking expected loss model in accordance with ASU 2016-13, the Company did
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.)
Note C – Revenue from Contracts with Customers (Contd.)
not recognize any impairment losses on receivables or contract assets arising from customer contracts during the reporting periods.
The Company has not entered into any revenue contracts that have financing components as of June 30, 2022.
The Company does not employ sales incentive strategies such as commissions or bonuses for obtaining sales contracts. For the periods presented, the Company did not identify any assets to be recognized associated with the costs to obtain a contract with a customer.
Performance Obligations
The Company recognizes oil and natural gas revenue when it satisfies a performance obligation by transferring control over a commodity to a customer.  Judgment is required to determine whether some customers simultaneously receive and consume the benefit of commodities. As a result of this assessment for the Company, each unit of measure of the specified commodity is considered to represent a distinct performance obligation that is satisfied at a point in time upon the transfer of control of the commodity.
For contracts with market or index-based pricing, which represent the majority of sales contracts, the Company has elected the allocation exception and allocates the variable consideration to each single performance obligation in the contract. As a result, there is no price allocation to unsatisfied remaining performance obligations for delivery of commodity product in subsequent periods.
The Company has entered into several long-term, fixed-price contracts in Canada. The underlying reason for entering a fixed price contract is generally unrelated to anticipated future prices or other observable data and serves a particular purpose in the Company’s long-term strategy.
As of June 30, 2022, the Company had the following sales contracts in place which are expected to generate revenue from sales to customers for a period of more than 12 months starting at the inception of the contract:
Current Long-Term Contracts Outstanding at June 30, 2022
LocationCommodityEnd DateDescriptionApproximate Volumes
U.S.Natural Gas and NGLQ2 2023Deliveries from dedicated acreage in Eagle FordAs produced
CanadaNatural GasQ4 2022Contracts to sell natural gas at USD index pricing8 MMCFD
CanadaNatural GasQ4 2022Contracts to sell natural gas at CAD fixed prices5 MMCFD
CanadaNatural GasQ4 2022Contracts to sell natural gas at USD fixed pricing20 MMCFD
CanadaNatural GasQ4 2023Contracts to sell natural gas at USD index pricing25 MMCFD
CanadaNatural GasQ4 2023Contracts to sell natural gas at CAD fixed prices38 MMCFD
CanadaNatural GasQ4 2024Contracts to sell natural gas at USD index pricing31 MMCFD
CanadaNatural GasQ4 2024Contracts to sell natural gas at CAD fixed prices100 MMCFD
CanadaNatural GasQ4 2024Contracts to sell natural gas at CAD fixed prices34 MMCFD
CanadaNatural GasQ4 2024Contracts to sell natural gas at USD fixed pricing15 MMCFD
CanadaNatural GasQ4 2026Contracts to sell natural gas at USD index pricing49 MMCFD
CanadaNGLQ3 2023Contracts to sell natural gas liquids at CAD pricing952 BOED
Fixed price contracts are accounted for as normal sales and purchases for accounting purposes.

Note D – Property, Plant and Equipment
Exploratory Wells
Under FASB guidance exploratory well costs should continue to be capitalized when the well has found a sufficient quantity of reserves to justify its completion as a producing well and the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.)
Note D – Property, Plant and Equipment (Contd.)

As of June 30, 2022, the Company had total capitalized exploratory well costs for continuing operations pending the determination of proved reserves of $178.4 million.  The following table reflects the net changes in capitalized exploratory well costs during the six-month periods ended June 30, 2022 and 2021.
(Thousands of dollars)20222021
Beginning balance at January 1$179,481 181,616 
Additions pending the determination of proved reserves9,412 15,921 
Capitalized exploratory well costs charged to expense(10,472) 
Balance at June 30$178,421 197,537 
The capitalized well costs charged to expense during 2022 represent expenditures related to the Cutthroat-1 exploration well in block SEAL-M-428 in the Sergipe-Alagoas Basin offshore Brazil. There were no hydrocarbons found in this well.
The following table provides an aging of capitalized exploratory well costs based on the date the drilling was completed for each individual well and the number of projects for which exploratory well costs have been capitalized.  The projects are aged based on the last well drilled in the project.
June 30,
20222021
(Thousands of dollars)AmountNo. of WellsNo. of ProjectsAmountNo. of WellsNo. of Projects
Aging of capitalized well costs:
Zero to one year$4,268 2 2 13,881 3 3 
One to two years2,813 2 2 23,811 3 3 
Two to three years26,848 3 2 30,562 2 2 
Three years or more144,492 8 2 129,283 6  
$178,421 15 8 197,537 14 8 
Of the $174.2 million of exploratory well costs capitalized more than one year at June 30, 2022, $94.7 million is in Vietnam, $48.5 million is in the U.S., $15.5 million is in Mexico, $10.6 million is in Brunei, and $4.8 million is in Canada.  In all geographical areas, either further appraisal or development drilling is planned and/or development studies/plans are in various stages of completion. 
Impairments
There were no impairments in the first six months of 2022. In the first quarter of 2021, the Company recorded an impairment charge of $171.3 million for Terra Nova due to the status, including agreements with partners, of operating and production plans at end of the first quarter 2021. Later in 2021, the Company sanctioned an asset life extension project and acquired an additional 7.525% working interest at Terra Nova following a commercial agreement to extend the life of the field.
Divestments
There were no divestments in the first six months of 2022. During the first quarter of 2021, the King’s Quay FPS was sold to ArcLight Capital Partners, LLC (ArcLight) for proceeds of $267.7 million, which reimbursed the Company for previously incurred capital expenditures.
Acquisitions
In June 2022, the Company acquired an additional working interest of 11.0% in the Kodiak field for a purchase price of $46.5 million, net of post-closing adjustments.
In the second quarter of 2021, the Company acquired an additional 3.5% working interest in the Lucius field for a purchase price of $22.5 million, net of post-closing adjustments.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Contd.)


Note E – Assets Held for Sale and Discontinued Operations
The Company has accounted for its former U.K. and U.S. refining and marketing and Malaysian exploration and production operations as discontinued operations for all periods presented.  The results of operations associated with discontinued operations for the three-month and six-month periods ended June 30, 2022 and 2021 were as follows:
Three Months Ended
June 30,
Six Months Ended
June 30,
(Thousands of dollars)2022202120222021
Revenues $