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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2019	Apr. 30, 2019
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Trading Symbol	mur
Entity Registrant Name	MURPHY OIL CORP /DE
Entity Central Index Key	0000717423
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		173,626,998

CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands

Mar. 31, 2019

Dec. 31, 2018

Current assets

Cash and cash equivalents

$ 286,281

$ 359,923

^[1]

Accounts receivable, less allowance for doubtful accounts of $1,605 in 2019 and 2018

349,768

231,686

^[1]

Inventories

77,278

80,024

^[1]

Prepaid expenses

45,349

34,316

^[1]

Assets held for sale

1,879,568

173,865

^[1]

Total current assets

2,638,244

879,814

^[1]

Property, plant and equipment, at cost less accumulated depreciation, depletion and amortization of $8,359,120 in 2019 and $8,070,487 in 2018

8,559,143

8,432,133

^[1]

Operating lease assets

618,123

Deferred income taxes

124,679

146,197

^[1]

Deferred charges and other assets

42,928

49,435

^[1]

Non-current assets held for sale

^[1]

1,545,008

Total assets

11,983,117

11,052,587

^[1]

Current liabilities

Current maturities of long-term debt

679

668

^[1]

Accounts payable

475,559

348,026

^[1]

Income taxes payable

15,450

15,309

^[1]

Other taxes payable

14,283

17,649

^[1]

Operating lease liabilities

155,534

Other accrued liabilities

157,031

177,948

^[1]

Liabilities associated with assets held for sale

819,694

286,458

^[1]

Total current liabilities

1,638,230

846,058

^[1]

Long-term debt, including capital lease obligation

3,110,098

3,109,318

^[1]

Asset retirement obligations

783,495

752,519

^[1]

Deferred credits and other liabilities

471,099

624,436

^[1]

Non-current operating lease liabilities

468,427

Deferred income taxes

185,091

129,894

^[1]

Non-current liabilities associated with assets held for sale

^[1]

392,720

Equity

Cumulative Preferred Stock, par $100, authorized 400,000 shares, none issued

^[1]

Common Stock, par $1.00, authorized 450,000,000 shares, issued 195,083,364 shares in 2019 and 195,076,924 in 2018

195,083

195,077

^[1]

Capital in excess of par value

924,904

979,642

^[1]

Retained earnings

5,627,081

5,513,529

^[1]

Accumulated other comprehensive loss

(580,999)

(609,787)

^[1]

Treasury stock

(1,217,293)

(1,249,162)

^[1]

Murphy Shareholders' Equity

4,948,776

4,829,299

^[1]

Noncontrolling interest

377,901

368,343

^[1]

Total equity

5,326,677

5,197,642

^[1]

Total liabilities and stockholders' equity

$ 11,983,117

$ 11,052,587

^[1]

[1]	Reclassified to conform to current presentation (see Note A).

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
CONSOLIDATED BALANCE SHEETS [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 1,605	$ 1,605
Property, plant and equipment, accumulated depreciation, depletion and amortization	$ 8,359,120	$ 8,070,487
Cumulative Preferred Stock, par value (per share)	$ 100	$ 100
Cumulative Preferred Stock, authorized shares	400,000	400,000
Cumulative Preferred Stock, shares issued	0	0
Common Stock, par value (per share)	$ 1.00	$ 1.00
Common Stock, authorized shares	450,000,000
Common Stock, shares issued	195,083,364	195,076,924

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Revenues

Revenue from sales to customers

$ 590,550

$ 396,329

^[1]

Loss on crude contracts

^[1]

(29,502)

Gain on sale of assets and other income

454

7,963

^[1]

Total revenues

591,004

374,790

^[1]

Costs and expenses

Lease operating expense

131,696

88,833

^[1]

Severance and ad valorem taxes

10,097

12,157

^[1]

Exploration expenses, including undeveloped lease amortization

32,538

28,738

^[1]

Selling and general expenses

63,360

48,096

^[1]

Depreciation, depletion and amortization

229,406

182,743

^[1]

Accretion of asset retirement obligations

9,340

6,372

^[1]

Other expense (benefit)

30,005

(11,045)

^[1]

Total costs and expenses

506,442

355,894

^[1]

Operating income from continuing operations

84,562

18,896

^[1]

Other income (loss)

Interest and other income (loss)

(4,748)

4,587

^[1]

Interest expense, net

(46,069)

(44,541)

^[1]

Total other loss

(50,817)

(39,954)

^[1]

Income (loss) from continuing operations before income taxes

33,745

(21,058)

^[1]

Income tax expense (benefit)

10,822

(111,639)

^[1]

Income from continuing operations

22,923

90,581

^[1]

Income from discontinued operations, net of income taxes

49,846

77,672

^[1]

Net income including noncontrolling interest

72,769

168,253

^[1]

Less: Net income attributable to noncontrolling interest

32,587

NET INCOME ATTRIBUTABLE TO MURPHY

$ 40,182

$ 168,253

^[1]

INCOME (LOSS) PER COMMON SHARE - BASIC

Continuing operations

$ (0.06)

$ 0.52

^[1]

Discontinued operations

0.29

0.45

^[1]

Net Income

0.23

0.97

^[1]

INCOME (LOSS) PER COMMON SHARE - DILUTED

Continuing operations

(0.06)

0.52

^[1]

Discontinued operations

0.29

0.44

^[1]

Net Income

0.23

0.96

^[1]

Cash dividends per Common share

$ 0.25

^[1]

Average Common shares outstanding

Basic

173,341,304

172,805,065

Diluted

174,491,343

174,619,524

[1]	Reclassified to conform to current presentation (see Note A).

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]

Net income

$ 40,182

$ 168,253

^[1]

Other comprehensive income (loss), net of tax

Net (loss) gain from foreign currency translation

25,449

(52,275)

Retirement and postretirement benefit plans

2,754

3,170

Deferred loss on interest rate hedges reclassified to interest expense

585

Reclassification of certain tax effects to retained earnings

(30,237)

Other

(3,737)

Other comprehensive income (loss)

28,788

(82,494)

COMPREHENSIVE INCOME

$ 68,970

$ 85,759

[1]	Reclassified to conform to current presentation (see Note A).

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2019

Mar. 31, 2018

Operating Activities

Net income including noncontrolling interest

$ 72,769

$ 168,253

^[1]

Adjustments to reconcile net income to net cash provided by continuing operations activities:

(Income) loss from discontinued operations

(49,846)

(77,672)

^[1]

Depreciation, depletion and amortization

229,406

182,743

^[1]

Previously suspended exploration costs (credits)

13,251

(5)

^[1]

Amortization of undeveloped leases

8,045

13,168

^[1]

Accretion of asset retirement obligations

9,340

6,372

^[1]

Deferred income tax charge (benefit)

15,589

(147,716)

^[1]

Pretax (gain) loss from sale of assets

(12)

339

^[1]

Mark to market and revaluation of contingent consideration

13,530

Mark to market of crude contracts

^[1]

14,350

Long-term non-cash compensation

22,388

14,057

^[1]

Net (increase) decrease in noncash operating working capital

(98,505)

(3,553)

^[1]

Other operating activities, net

(18,758)

(59,449)

^[1]

Net cash provided by continuing operations activities

217,197

110,887

^[1]

Investing Activities

Property additions and dry hole costs

(270,338)

(247,054)

^[1]

Proceeds from sales of property, plant and equipment

^[1]

260

Net cash required by investing activities

(270,338)

(246,794)

^[1]

Financing Activities

Capital lease obligation payments

(160)

Withholding tax on stock-based incentive awards

(6,991)

(6,642)

^[1]

Distribution to noncontrolling interest

(18,437)

Cash dividends paid

(43,398)

(43,258)

^[1]

Net cash required by financing activities

(68,986)

(49,900)

^[1]

Cash Flows from Discontinued Operations

Operating activities

123,469

167,386

^[1]

Investing activities

(26,438)

(26,848)

^[1]

Financing activities

(2,547)

(2,405)

^[1]

Net cash provided by discontinued operations

94,484

138,133

^[1]

Cash transferred from discontinued operations to continuing operations

46,080

371,656

^[1]

Effect of exchange rate changes on cash and cash equivalents

2,405

21,051

^[1]

Net increase (decrease) in cash and cash equivalents

(73,642)

206,900

^[1]

Cash and cash equivalents at beginning of period

359,923

630,433

^[1]

Cash and cash equivalents at end of period

$ 286,281

$ 837,333

^[1]

[1]	Reclassified to conform to current presentation (see Note A).

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands

Cumulative Preferred Stock [Member]

Common Stock [Member]

Capital In Excess Of Par Value [Member]

Retained Earnings [Member]

Accumulated Other Comprehensive Loss [Member]

Treasury Stock [Member]

Murphy Shareholders' Equity [Member]

Noncontrolling Interest [Member]

Total

Balance at beginning of period at Dec. 31, 2017

$ 195,056

$ 917,665

$ 5,245,242

$ (462,243)

$ (1,275,529)

Exercise of stock options, including income tax benefits

(175)

Foreign currency translation (loss) gain, net of income taxes

(52,275)

$ (52,275)

Net income (loss) for the period

168,253

^[1]

Reclassification of certain tax effects from accumulated other comprehensive loss

30,237

(30,237)

Other

(3,737)

Restricted stock transactions and other

(32,486)

Cash dividends

(43,258)

Retirement and postretirement benefit plans, net of income taxes

3,170

Stock-based compensation

6,187

Deferred loss on interest rate hedges reclassified to interest expense, net of income taxes

585

Awarded restricted stock, net of forfeitures

25,843

Balance at end of period at Mar. 31, 2018

195,065

891,191

5,400,474

(544,737)

(1,249,686)

$ 4,692,307

4,692,307

Balance at beginning of period at Dec. 31, 2018

195,077

979,642

5,513,529

(609,787)

(1,249,162)

$ 368,343

5,197,642

^[1]

Exercise of stock options, including income tax benefits

(123)

Foreign currency translation (loss) gain, net of income taxes

25,449

Acquisition closing adjustments

(4,592)

Net income (loss) for the period

40,182

32,587

40,182

Distributions to noncontrolling Interest Owners

(18,437)

Sale and leaseback gain recognized upon adoption of ASC 842, net of tax impact

116,768

Restricted stock transactions and other

(38,732)

Cash dividends

(43,398)

Retirement and postretirement benefit plans, net of income taxes

2,754

Stock-based compensation

8,636

Adjustments to acquisition valuation

(24,519)

Deferred loss on interest rate hedges reclassified to interest expense, net of income taxes

585

Awarded restricted stock, net of forfeitures

31,869

Balance at end of period at Mar. 31, 2019

$ 195,083

$ 924,904

$ 5,627,081

$ (580,999)

$ (1,217,293)

$ 4,948,776

$ 377,901

$ 5,326,677

[1]	Reclassified to conform to current presentation (see Note A).

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	Mar. 31, 2019	Mar. 31, 2018
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY [Abstract]
Cumulative Preferred Stock, par value (per share)	$ 100	$ 100
Cumulative Preferred Stock, authorized shares	400,000	400,000
Cumulative Preferred Stock, shares issued	0	0
Common Stock, par value (per share)	$ 1.00	$ 1.00
Common Stock, authorized shares	450,000,000	450,000,000
Common Stock, shares issued	195,083,364	195,065,341
Treasury stock, shares	21,456,366	22,027,336

Nature of Business and Interim Financial Statements	3 Months Ended
Nature of Business and Interim Financial Statements	Mar. 31, 2019
Nature of Business and Interim Financial Statements [Abstract]
Nature of Business and Interim Financial Statements	Note A – Nature of Business and Interim Financial Statements NATURE OF BUSINESS – Murphy Oil Corporation is an international oil and gas 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. As of the end of the first quarter 2019 Malaysia was classified as held for sale; and effective January 1, 2019 Malaysia was reported as discontinued operations as the sale represents a strategic shift that has a major effect on the Company’s operations and financial results. Prior periods have been reclassified to conform with the current presentation. See Note E for more information regarding the pending sale of this asset. 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 March 31, 2019 and December 31, 2018, and the results of operations, cash flows and changes in stockholders’ equity for the interim periods ended March 31, 2019 and 2018, 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. Financial statements and notes to consolidated financial statements included in this Form 10-Q report should be read in conjunction with the Company's 2018 Form 10-K report, as certain notes and other pertinent information have been abbreviated or omitted in this report. Financial results for the three-months ended March 31, 2019 are not necessarily indicative of future results.

New Accounting Principles and Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2019
New Accounting Principles and Recent Accounting Pronouncements [Abstract]
New Accounting Principles and Recent Accounting Pronouncements	Note B – New Accounting Principles and Recent Accounting Pronouncements Accounting Principles Adopted Leases. In February 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) 2016-02 (Topic 842) to increase transparency and comparability among companies by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The main difference between previous Generally Accepted Accounting Principles (GAAP) and this ASU is the recognition of right-of-use assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. The company adopted the standard in the first quarter of 2019 utilizing the modified retrospective transition method through a cumulative-effect adjustment at the beginning of the first quarter of 2019. The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any existing leases as of the adoption date. The Company did not elect to apply the hindsight practical expedient when determining lease term and assessing impairment of right-of-use assets. The adoption of ASU 2016-02 resulted in the recognition of right-of-use assets of $618.1 million, current lease liabilities for operating leases of approximately $155.5 million, non-current lease liabilities of $468.4 million and a cumulative-effect adjustment to credit retained earnings of $116.8 million on its Consolidated Balance Sheets, with no material impact to its Consolidated Statements of Operations. See Note P for further information regarding the impact of the adoption of ASU 2016-02 on the Company's financial statements. Compensation – Stock Compensation. In June 2018, the FASB issued an ASU 2018-07 which supersedes existing guidance for equity-based payments to nonemployees and expands the scope of guidance for stock compensation to include all share-based payment arrangements related to the acquisition of goods and services from both nonemployees and employees. As a result, the same guidance that provides for employee share-based payments, including most of its requirements related to classification and measurement, applies to nonemployee share-based payment arrangements. The Company adopted this guidance during the first quarter of 2019 and it did not have material impact on its consolidated financial statements. Recent Accounting Pronouncements Fair Value Measurement. In August 2018, the FASB issued ASU 2018-13 which modifies disclosure requirements related to fair value measurement. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Implementation on a prospective or retrospective basis varies by specific disclosure requirement. Early adoption is permitted. The standard also allows for early adoption of any removed or modified disclosures upon issuance of this ASU while delaying adoption of the additional disclosures until their effective date. The Company is currently assessing the potential impact of this ASU to its consolidated financial statements. Note B – New Accounting Principles and Recent Accounting Pronouncements (Contd.) Recent Accounting Pronouncements (Contd.) Compensation-Retirement Benefits-Defined Benefit Plans-General. In August 2018, the FASB issued ASU 2018-14 which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. For public companies, the amendments in this ASU are effective for fiscal years beginning after December 15, 2020, with early adoption permitted, and is to be applied on a retrospective basis to all periods presented. The Company is currently assessing the potential impact of this ASU to its consolidated financial statements.

Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2019

Revenue from Contracts with Customers [Abstract]

Revenue from Contracts with Customers

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 gas) in select basins around the globe. The Company’s revenue from sales of oil and 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 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.

U.S.- In the United States, the Company primarily produces oil and 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 gas are transferred to the customer at the delivery point. Revenue recognized is largely index based with price adjustments for floating market differentials.

Canada- Primarily, long-term contracts in Canada, except for certain natural gas physical forward sales fixed-price contracts, are floating commodity index priced. For the Onshore business in Canada, the recorded revenue is net of transportation and any gain or loss on spot purchases made to meet committed volumes on sales contracts for the month. 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.

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 months ended March 31, 2019 and 2018, the Company recognized $590.6 million and $396.3 million, respectively, from contracts with customers for the sales of oil, natural gas liquids and natural gas.


		Three Months Ended
		March 31,
(Thousands of dollars)		2019	2018
Net crude oil and condensate revenue
United States – Onshore	$	133,590	182,650
– Offshore		316,023	71,528
Canada – Onshore		27,344	21,293
– Offshore		43,846	54,315
Other		2,852	–
Total crude oil and condensate revenue		523,655	329,786

Net natural gas liquids revenue
United States – Onshore		6,141	12,134
– Offshore		4,176	1,639
Canada – Onshore		3,458	3,469
Total natural gas liquids revenue		13,775	17,242

Net natural gas revenue
United States – Onshore		5,864	6,770
– Offshore		2,506	2,937
Canada – Onshore		44,750	39,594
Total natural gas revenue		53,120	49,301
Total revenue from contracts with customers		590,550	396,329

Gain (loss) on crude contracts		–	(29,502)
Other operating income		442	8,302
Gain on sale of assets		12	(339)
Total revenue	$	591,004	374,790

Contract Balances and Asset Recognition

As of March 31, 2019, and December 31, 2018, receivables from contracts with customers, net of royalties and associated payables, on the balance sheet from continuing operations, were $266.5 million and $147.6 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 historical collections and ability of customers to pay, the Company did 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 upstream oil and gas sale contracts that have financing components as at March 31, 2019.

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.

Note C – Revenue from Contracts with Customers (Contd.)

Performance Obligations

The Company recognizes oil and 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. The contractually stated price for each unit of commodity transferred under these contracts represents the stand-alone selling price of the commodity.

As of March 31, 2019, the Company had the following sales contracts in place which are expected to generate revenue from sales to customers for a period of 12 months or more starting at the inception of the contract:


Current Long-Term Contracts Outstanding at March 31, 2019
Location	Commodity	End Date	Description	Approximate Volumes
U.S.	Oil	Q3 2019	Fixed quantity delivery in Eagle Ford	4,000 BOED
U.S.	Oil	Q4 2021	Fixed quantity delivery in Eagle Ford	17,000 BOED
U.S.	Oil, Gas and NGL	Q2 2026	Deliveries from dedicated acreage in Eagle Ford	As produced
Canada	Gas	Q4 2020	Contracts to sell natural gas at Alberta AECO fixed prices	59 MMCFD
Canada	Gas	Q4 2020	Contracts to sell natural gas at USD Index pricing	60 MMCFD
Canada	Gas	Q4 2024	Contracts to sell natural gas at USD Index pricing	30 MMCFD
Canada	Gas	Q4 2026	Contracts to sell natural gas at USD Index pricing	38 MMCFD

Property, Plant and Equipment

3 Months Ended

Mar. 31, 2019

Property, Plant And Equipment [Abstract]

Property, Plant and Equipment

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.

At March 31, 2019, the Company had total capitalized exploratory well costs for continuing operations pending the determination of proved reserves of $227.1 million. The following table reflects the net changes in capitalized exploratory well costs during the three-month periods ended March 31, 2019 and 2018.



(Thousands of dollars)	2019		2018
Beginning balance at January 1	$	207,855	155,103
Additions pending the determination of proved reserves		32,416	549
Capitalized exploratory well costs charged to expense		(13,145)	–
Balance at March 31	$	227,126	155,652

The capitalized well costs charged to expense during the first three months of 2019 included the CM-1X and the CT-1X wells in Vietnam Block 11-2/11. The wells were originally drilled in 2017. There were no capitalized well costs charged to expense during the first three months of 2018.

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.



		March 31,
	2019				2018
(Thousands of dollars)	Amount		No. of Wells	No. of Projects	Amount		No. of Wells	No. of Projects
Aging of capitalized well costs:
Zero to one year	$	78,016	3	2	$	13,642	2	1
One to two years		–	–	–		27,757	1	1
Two to three years		27,270	1	1		49,642	2	2
Three years or more		121,840	5	1		64,611	6	–
	$	227,126	9	4	$	155,652	11	4

Of the $149.1 million of exploratory well costs capitalized more than one year at March 31, 2019, $57.0 million is in Brunei, $64.9 million is in Vietnam, and $27.3 million is in the U.S. In all geographical areas, either further appraisal or development drilling is planned and/or development studies/plans are in various stages of completion.

Divestments

In 2016, a Canadian subsidiary of the Company completed a divestiture of natural gas processing and sales pipeline assets that support Murphy’s Montney natural gas fields in the Tupper area of northeastern British Columbia. Total cash consideration received upon closing was $414.1 million. A gain on sale of approximately $187.0 million was deferred, up to December 31, 2018, and was being recognized straight line over the life of the contract in the Canadian operating segment. The remaining deferred gain of $116 million, net of tax, was included as a component of Deferred credits and other liabilities in the Company’s Consolidated Balance Sheet as of December 31, 2018. As required by ASC 842, the previously deferred gain related to the sale and leaseback transaction have been transferred to equity upon adoption, lowering liabilities but increasing retained earnings by approximately $116 million, net of tax. The Company amortized approximately $1.9 million of the deferred gain during the first three months of 2018.

Note D – Property, Plant and Equipment (Contd.)

Acquisitions

In 2016, a Canadian subsidiary of Murphy Oil acquired a 70% operated working interest (WI) in Athabasca Oil Corporation’s (Athabasca) production, acreage, infrastructure and facilities in the Kaybob Duvernay lands, and a 30% non-operated WI in Athabasca’s production, acreage, infrastructure and facilities in the liquids rich Placid Montney lands in Alberta, the majority of which was unproved. As part of the transaction, Murphy agreed to pay an additional $168.0 million in the form of a carried interest on the Kaybob Duvernay property. As of March 31, 2019, $124.0 million of the carried interest had been paid. The remaining carry is to be paid over a period through 2019.

Other

In 2006, the Kakap field in Block K was unitized with the Gumusut field in an adjacent block under a Unitization and Unit Operating Agreement (UUOA) between the operators. The Gumusut-Kakap Unit is operated by another company. In the fourth quarter 2016, the operators completed the first redetermination process for a revision to the blocks’ tract participation interest, and the operator of the unitized field sought the approval of Petronas to effect the change in 2017. In 2016, the Company recorded an estimated redetermination expense of $39.1 million ($24.1 million after tax) related to an expected revision in the Company’s working interest covering the period from inception through year-end 2016 at Kakap. In February 2017, the Company received Petronas’ approval to the redetermination change that reduced the Company’s working interest in oil operations to 6.67% effective April 1, 2017. Working interest redeterminations are required at different points within the life of the unitized field. Following a partial payment, the remaining redetermination liability of $17.3 million was included as a component of Liabilities associated with held for sale in the Company’s Consolidated Balance Sheet as of March 31, 2019.

Following a further Unitization Framework Agreement (UFA) between the governments of Brunei and Malaysia, the Company now has a 6.37% interest in the Kakap field in Block K Malaysia. The UFA unitized the Gumusut-Kakap (GK) and Geronggong/Jagus East fields effective November 23, 2017. In the fourth quarter 2017, the Company recorded an estimated redetermination liability of $15.0 million related to Company’s revised working interest, which was included as a component of Liabilities associated with held for sale in the Company’s Consolidated Balance Sheet as of March 31, 2019.

Discontinued Operations and Assets Held for Sale

3 Months Ended

Mar. 31, 2019

Discontinued Operations and Assets Held for Sale [Abstract]

Discontinued Operations and Assets Held for Sale

Note E – Discontinued Operations and Assets Held for Sale

On March 21, 2019, Murphy Oil Corporation announced that a subsidiary had signed a sale and purchase agreement to divest the fully issued share capital of its two primary Malaysian subsidiaries, Murphy Sabah Oil Co., Ltd. and Murphy Sarawak Oil Co., Ltd., to a subsidiary of PTT Exploration and Production Public Company Limited (PTTEP). PTTEP will pay Murphy $2.127 billion in an all-cash transaction, payable upon closing and subject to customary closing adjustments, plus up to a $100 million bonus payment contingent upon certain future exploratory drilling results prior to October 2020.

The transaction has an effective date of January 1, 2019, with the closing expected to occur by the end of the second quarter 2019. Closing of the transaction is subject to customary conditions precedent including, among other things, necessary regulatory approvals. Murphy will exit the country of Malaysia.

The Company has accounted for its Malaysian exploration and production operations, along with the former U.K., U.S. refining and marketing operations as discontinued operations for all periods presented. The results of operations associated with discontinued operations for the three-month period ended March 31, 2019 and 2018 were as follows:


	Three Months Ended
	March 31,
(Thousands of dollars)		2019	2018
Revenues	$	195,412	210,815
Costs and expenses
Lease operating expenses		62,716	47,610
Depreciation, depletion and amortization		31,353	47,991
Other costs and expenses (benefits)		13,080	(2,451)
Total costs and expenses		88,263	117,665
Income tax expense		38,417	39,993
Income from discontinued operations	$	49,846	77,672

Note E – Discontinued Operations and Assets Held for Sale (Contd.)

The following table presents the carrying value of the major categories of assets and liabilities of the Malaysian exploration and production and the U.K. refining and marketing operations reflected as held for sale on the Company’s Consolidated Balance Sheets at March 31, 2019 and December 31, 2018.



		March 31,	December 31,
(Thousands of dollars)		2019	2018
Current assets
Cash	$	93,072	44,669
Accounts receivable		98,268	103,158
Inventories		8,881	7,887
Prepaid expenses and other		28,248	18,151
Property, Plant, and Equipment, net		1,316,985
Deferred income taxes and other assets		214,103
Operating lease asset		120,011
Total current assets associated with assets held for sale		1,879,568	173,865
Non-current assets
Property, Plant, and Equipment, net		–	1,325,431
Deferred income taxes and other assets		–	219,577
Operating lease asset		–	–
Total non-current assets associated with assets held for sale	$	–	1,545,008
Current liabilities
Accounts payable	$	209,012	203,236
Other accrued liabilities		50,524	55,273
Current maturities of long-term debt		10,067	9,915
Taxes payable		35,032	18,034
Current operating lease liabilities		45,982	–
Long-term debt		115,264
Asset retirement obligation		279,784	–
Non-current operating lease liabilities		74,029	–
Total current liabilities associated with assets held for sale	$	819,694	286,458
Non-current liabilities
Long-term debt		–	117,816
Asset retirement obligation		–	274,904
Total non-current liabilities associated with assets held for sale	$	–	392,720

Financing Arrangements and Debt	3 Months Ended
Financing Arrangements and Debt	Mar. 31, 2019
Financing Arrangements and Debt [Abstract]
Financing Arrangements and Debt	Note F – Financing Arrangements and Debt As of March 31, 2019, the Company has a $1.6 billion revolving credit facility (2018 facility). The 2018 facility is a senior unsecured guaranteed facility which expires in November 2023. At March 31, 2019, the Company had outstanding borrowings of $325.0 million under the 2018 facility and $25.0 million of outstanding letters of credit, which reduce the borrowing capacity of the 2018 facility. At March 31, 2019, the interest rate in effect on borrowings under the facility was 4.105%. At March 31, 2019, the Company was in compliance with all covenants related to the 2018 facility.

Other Financial Information

3 Months Ended

Mar. 31, 2019

Other Financial Information [Abstract]

Other Financial Information

Note G – Other Financial Information

Additional disclosures regarding cash flow activities are provided below.


	Three Months Ended March 31,
(Thousands of dollars)	2019		2018
Net (increase) decrease in operating working capital other than cash and cash equivalents:
(Increase) decrease in accounts receivable	$	(112,673)	4,227
Decrease in inventories		3,930	15,637
(Increase) decrease in prepaid expenses		(10,763)	3,446
Increase (decrease) in accounts payable and accrued liabilities		21,131	(26,908)
Increase(decrease) in income taxes payable		(130)	45
Net (increase) decrease in noncash operating working capital	$	(98,505)	(3,553)
Supplementary disclosures:
Cash income taxes paid, net of refunds	$	–	(1,104)
Interest paid, net of amounts capitalized of $0 in 2019 and 2018		39,024	35,158

Non-cash investing activities:
Asset retirement costs capitalized	$	486	727
(Increase) decrease in capital expenditure accrual		(63,328)	(17,592)

Employee and Retiree Benefit Plans

3 Months Ended

Mar. 31, 2019

Employee and Retiree Benefit Plans [Abstract]

Employee and Retiree Benefit Plans

Note H – Employee and Retiree Benefit Plans

The Company has defined benefit pension plans that are principally noncontributory and cover most full-time employees. All pension plans are funded except for the U.S. and Canadian nonqualified supplemental plan and the U.S. director’s plan. All U.S. tax qualified plans meet the funding requirements of federal laws and regulations. Contributions to foreign plans are based on local laws and tax regulations. The Company also sponsors health care and life insurance benefit plans, which are not funded, that cover most retired U.S. employees. The health care benefits are contributory; the life insurance benefits are noncontributory.

The table that follows provides the components of net periodic benefit expense for the three-month periods ended March 31, 2019 and 2018.



	Three Months Ended March 31,
	Pension Benefits			Other Postretirement Benefits
(Thousands of dollars)		2019	2018	2019		2018
Service cost	$	2,062	2,255		420		494
Interest cost		7,151	6,737		945		874
Expected return on plan assets		(6,460)	(7,506)		–		–
Amortization of prior service cost (credit)		247	257		(98)		(10)
Recognized actuarial loss		3,514	5,215		–		–
Net periodic benefit expense	$	6,514	6,958		1,267		1,358

The components of net periodic benefit expense other than the service cost component are included in the line item “Interest and other income (loss)” in Consolidated Statements of Operations.

During the three-month period ended March 31, 2019, the Company made contributions of $6.9 million to its defined benefit pension and postretirement benefit plans. Remaining funding in 2019 for the Company’s defined benefit pension and postretirement plans is anticipated to be $25.6 million.

Incentive Plans

3 Months Ended

Mar. 31, 2019

Incentive Plans [Abstract]

Incentive Plans

Note I – Incentive Plans

The costs resulting from all share-based and cash-based incentive plans payment transactions are recognized as an expense in the Consolidated Statements of Operations using a fair value-based measurement method over the periods that the awards vest.

The 2017 Annual Incentive Plan (2017 Annual Plan) authorizes the Executive Compensation Committee (the Committee) to establish specific performance goals associated with annual cash awards that may be earned by officers, executives and certain other employees. Cash awards under the 2017 Annual Plan are determined based on the Company’s actual financial and operating results as measured against the performance goals established by the Committee.

The 2018 Long-Term Incentive Plan (2018 Long-Term Plan) authorizes the Committee to make grants of the Company’s Common Stock to employees. These grants may be in the form of stock options (nonqualified or incentive), stock appreciation rights (SAR), restricted stock, restricted stock units (RSU), performance units, performance shares, dividend equivalents and other stock-based incentives. The 2018 Long-Term Plan expires in 2028. A total of 6,750,000 shares are issuable during the life of the 2018 Long-Term Plan, with annual grants limited to 1% of Common shares outstanding; allowed shares not granted in an earlier year may be granted in future years.

The Company also has a Stock Plan for Non-Employee Directors that permits the issuance of restricted stock, restricted stock units and stock options or a combination thereof to the Company’s Non-Employee Directors.

In the first quarter of 2019, the Committee granted 957,600 performance-based RSUs and 327,900 time-based RSUs to certain employees. The fair value of the performance-based RSUs, using a Monte Carlo valuation model, was $28.09 per unit. The fair value of the time-based RSUs was estimated based on the fair market value of the Company’s stock on the date of grant. The fair value of the time-based RSUs granted was $28.16 per unit. Additionally, in February 2019, the Committee granted 1,025,900 cash-settled RSUs (CRSU) to certain employees. The CRSUs are to be settled in cash, net of applicable income taxes, and are accounted for as liability-type awards. The initial fair value of the CRSUs granted in February 2019 was $28.16. Also in February, the Committee granted 78,716 shares of time-based RSUs to the Company’s non-employee Directors under the 2018 Stock Plan for Non-Employee Directors. These units are scheduled to vest on the third anniversary of the date of grant. The estimated fair value of these awards was $27.95 per unit on date of grant.

All stock option exercises are non-cash transactions for the Company. The employee receives net shares, after applicable withholding taxes, upon each stock option exercise. The actual income tax benefit realized from the tax deductions related to stock option exercises of the share-based payment arrangements were immaterial for the three-month period ended March 31, 2019.

Amounts recognized in the financial statements with respect to share-based plans are shown in the following table:



	Three Months Ended
	March 31,
(Thousands of dollars)		2019	2018
Compensation charged against income before tax benefit	$	15,514	7,549
Related income tax benefit recognized in income		2,342	894

Certain incentive compensation granted to the Company’s named executive officers, to the extent their total compensation exceeds $1.0 million per executive per year, is not eligible for a U.S. income tax deduction under the Tax Cuts and Jobs Act (2017 Tax Act).

Earnings per Share

3 Months Ended

Mar. 31, 2019

Earnings per Share [Abstract]

Earnings per Share

Note J – Earnings per Share

Net income attributable to Murphy was used as the numerator in computing both basic and diluted income per Common share for the three-month periods ended March 31, 2019 and 2018. The following table reconciles the weighted-average shares outstanding used for these computations.



	Three Months Ended
	March 31,
(Weighted-average shares)	2019	2018
Basic method	173,341,304	172,805,065
Dilutive stock options and restricted stock units	1,150,039	1,814,459
Diluted method	174,491,343	174,619,524

The following table reflects certain options to purchase shares of common stock that were outstanding during the periods presented but were not included in the computation of diluted shares above because the incremental shares from the assumed conversion were antidilutive.



	Three Months Ended
		March 31,
		2019	2018
Antidilutive stock options excluded from diluted shares		3,140,065		3,798,792
Weighted average price of these options	$	46.18	$	50.77

Income Taxes

3 Months Ended

Mar. 31, 2019

Income Taxes [Abstract]

Income Taxes

Note K – Income Taxes

The Company’s effective income tax rate is calculated as the amount of income tax expense (benefit) divided by income from continuing operations before income taxes. For the three-month periods ended March 31, 2019 and 2018, the Company’s effective income tax rates were as follows:


	2019	2018
Three months ended March 31	32.1%	530.2%

The effective tax rates for most periods where earnings are generated, generally exceed the U.S. statutory tax rate due to several factors, including: the effects of income generated in foreign tax jurisdictions, certain of which have income tax rates that are higher than the U.S. Federal rate; U.S. state tax expense; and certain expenses, including exploration and other expenses in certain foreign jurisdictions, for which no income tax benefits are available or are not presently being recorded due to a lack of reasonable certainty of adequate future revenue against which to utilize these expenses as deductions. Conversely, the effective tax rates for most periods where losses are incurred generally are lower than U.S. statutory tax rate of 21% due to similar reasons.

The effective tax rate for the three-month period ended March 31, 2019 was above the U.S. statutory tax rate of 21% primarily due to exploration expenses in certain foreign jurisdictions in which no income tax benefit is available. These impacts were partially offset by no tax applied to the pre-tax income of the noncontrolling interest in MP GOM.

The effective tax rate for the three-month period ended March 31, 2018 was above the statutory tax rate primarily due to the impact of the IRS’s April 2, 2018 guidance allowing for the preservation of 2017 operating loss carryforwards under the 2017 Tax Act’s taxation of unrepatriated foreign earnings. The preservation of the tax loss carryforward reduced the deferred tax expense by $156 million and resulted in a $36 million charge to taxes payable for a net $120 million tax benefit.

The Company’s tax returns in multiple jurisdictions are subject to audit by taxing authorities. These audits often take multiple years to complete and settle. Although the Company believes that recorded liabilities for unsettled issues are adequate, additional gains or losses could occur in future years from resolution of outstanding unsettled matters. As of March 31, 2019, the earliest years remaining open for audit and/or settlement in our major taxing jurisdictions are as follows: United States – 2015; Canada – 2013; Malaysia – 2012; and United Kingdom – 2017.

Financial Instruments and Risk Management

3 Months Ended

Mar. 31, 2019

Financial Instruments and Risk Management [Abstract]

Financial Instruments and Risk Management

Note L – Financial Instruments and Risk Management

Murphy uses derivative instruments to manage certain risks related to commodity prices, foreign currency exchange rates and interest rates. The use of derivative instruments for risk management is covered by operating policies and is closely monitored by the Company’s senior management. The Company does not hold any derivatives for speculative purposes and it does not use derivatives with leveraged or complex features. Derivative instruments are traded with creditworthy major financial institutions or over national exchanges such as the New York Mercantile Exchange (NYMEX). The Company has a risk management control system to monitor commodity price risks and any derivatives obtained to manage a portion of such risks. For accounting purposes, the Company has not designated commodity and foreign currency derivative contracts as hedges, and therefore, it recognizes all gains and losses on these derivative contracts in its Consolidated Statements of Operations. Certain interest rate derivative contracts were accounted for as hedges and the gain or loss associated with recording the fair value of these contracts was deferred in Accumulated other comprehensive loss until the anticipated transactions occur.

Commodity Price Risks

At March 31, 2019, the Company had no WTI crude oil swap financial contracts outstanding.

At March 31, 2018, the Company had 21,000 barrels per day in WTI crude oil swap financial contracts maturing ratably during the remainder of 2018 at an average price of $54.88. Under this contract, which matured monthly, the Company paid the average monthly price in effect and received the fixed contract prices.

Foreign Currency Exchange Risks

The Company is subject to foreign currency exchange risk associated with operations in countries outside the U.S. The Company had no foreign currency exchange short-term derivatives outstanding at March 31, 2019 and 2018.

At March 31, 2019 and December 31, 2018, the fair value of derivative instruments not designated as hedging instruments are presented in the following table.



	March 31, 2019			December 31, 2018
(Thousands of dollars)	Asset (Liability) Derivatives			Asset (Liability) Derivatives
Type of Derivative Contract	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity	Accounts payable	$	–	Accounts receivable	$	3,837

For the three-month period ended March 31, 2019 and March 31, 2018 the gains and losses recognized in the Consolidated Statements of Operations for derivative instruments not designated as hedging instruments are presented in the following table.



			Gain (Loss)
		Three Months Ended
(Thousands of dollars)		March 31,
Type of Derivative Contract	Statement of Operations Location		2019	2018
Commodity	Gain (loss) on crude contracts	$	–	(29,502)

Interest Rate Risks

Under hedge accounting rules, the Company deferred the net cost associated with derivative contracts purchased to manage interest rate risk associated with 10-year notes sold in May 2012 to match the payment of interest on these notes through 2022. During each of the three-month periods ended March 31, 2019 and 2018, $0.7 million of the deferred loss on the interest rate swaps was charged to Interest expense in the Consolidated Statement of Operations. The remaining loss (net of tax) deferred on these matured contracts at March 31, 2019 was $7.3 million, which is recorded, net of income taxes of $1.9 million, in Accumulated other comprehensive loss in the Consolidated Balance Sheet. The Company expects to charge approximately $2.2 million of this deferred loss to Interest expense, net in the Consolidated Statement of Operations during the remaining nine months of 2019.

Fair Values – Recurring

The Company carries certain assets and liabilities at fair value in its Consolidated Balance Sheets. The fair value hierarchy is based on the quality of inputs used to measure fair value, with Level 1 being the highest quality and Level 3 being the lowest quality. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are observable inputs other than quoted prices included within Level 1. Level 3 inputs are unobservable inputs which reflect assumptions about pricing by market participants.

Note L – Financial Instruments and Risk Management (Contd.)

Fair Values – Recurring (Contd.)

The carrying value of assets and liabilities recorded at fair value on a recurring basis at March 31, 2019 and December 31, 2018 are presented in the following table.

March 31, 2019

December 31, 2018

(Thousands of dollars)

Level 1

Level 2

Level 3

Total

Level 1

Level 2

Level 3

Total

Assets:

Commodity derivative contracts

–

3,837

–

3,837

–

3,837

–

3,837

Liabilities:

Nonqualified employee
savings plans

15,436

–

15,436

13,845

–

13,845

Contingent consideration

–

61,260

–

47,730

15,436

–

61,260

76,696

13,845

–

47,730

61,575

The fair value of WTI crude oil derivative contracts in 2018 were based on active market quotes for WTI crude oil. The fair value of foreign exchange derivative contracts in each year was based on market quotes for similar contracts at the balance sheet dates. The income effect of changes in the fair value of crude oil derivative contracts is recorded in Gain (loss) on crude contracts in the Consolidated Statements of Operations, while the effects of changes in fair value of foreign exchange derivative contracts is recorded in Interest and other income. The nonqualified employee savings plan is an unfunded savings plan through which participants seek a return via phantom investments in equity securities and/or mutual funds. The fair value of this liability was based on quoted prices for these equity securities and mutual funds. The income effect of changes in the fair value of the nonqualified employee savings plan is recorded in Selling and general expenses in the Consolidated Statements of Operations.

The Company offsets certain assets and liabilities related to derivative contracts when the legal right of offset exists. There were no offsetting positions recorded at March 31, 2019 and December 31, 2018.

Subsequent to the balance sheet date, the Company has entered into derivative instruments to manage certain risks related to commodity prices.

Accumulated Other Comprehensive Loss

3 Months Ended

Mar. 31, 2019

Accumulated Other Comprehensive Loss [Abstract]

Accumulated Other Comprehensive Loss

Note M – Accumulated Other Comprehensive Loss

The components of Accumulated other comprehensive loss on the Consolidated Balance Sheets at December 31, 2018 and March 31, 2019 and the changes during the three-month period ended March 31, 2019 are presented net of taxes in the following table.



					Deferred
			Retirement		Loss on
		Foreign	and		Interest
		Currency	Postretirement		Rate
		Translation	Benefit Plan		Derivative
(Thousands of dollars)		Gains (Losses)	Adjustments		Hedges		Total
Balance at December 31, 2018	$	(419,852)	(182,036)		(7,899)		(609,787)
2019 components of other comprehensive income (loss):
Before reclassifications to income and retained earnings		25,449	–		–		25,449
Reclassifications to income		–	2,754	1	585	2	3,339
Net other comprehensive loss		25,449	2,754		585		28,788
Balance at March 31, 2019	$