View Filing Data

Gain (loss) on crude contracts

$ 750,337

$ 475,458

$ 2,060,127

$ 1,330,399

63,247

^[2]

(2,223)

121,163

(69,349)

Gain on sale of assets and other income

3,493

17,276

10,283

26,713

Total revenues

817,077

490,511

2,191,573

1,287,763

Costs and expenses

Lease operating expenses

147,632

83,751

416,460

253,820

Severance and ad valorem taxes

13,803

15,066

36,972

40,099

Transportation, gathering and processing

54,305

16,945

128,748

49,827

Exploration expenses, including undeveloped lease amortization

12,358

21,723

75,570

69,350

Selling and general expenses

55,366

60,683

176,258

165,074

Depreciation, depletion and amortization

325,562

197,503

819,270

570,997

^[3]

Accretion of asset retirement obligations

10,587

6,466

29,824

19,234

^[3]

Other expense (benefit)

(29,000)

(34,386)

26,442

(44,773)

Total costs and expenses

590,613

367,751

1,709,544

1,123,628

Operating income from continuing operations

226,464

122,760

482,029

164,135

Other income (loss)

Interest and other income (loss)

(4,418)

(4,583)

(18,134)

(713)

Interest expense, net

(44,930)

(44,209)

(145,095)

(133,075)

Total other loss

(49,348)

(48,792)

(163,229)

(133,788)

Income (loss) from continuing operations before income taxes

177,116

73,968

318,800

30,347

Income tax expense (benefit)

18,782

17,837

38,719

(91,180)

Income (loss) from continuing operations

158,334

56,131

280,081

121,527

Income from discontinued operations, net of income taxes

953,368

37,812

1,027,632

186,188

^[3]

Net income including noncontrolling interest

1,111,702

93,943

1,307,713

307,715

^[3]

Less: Net income attributable to noncontrolling interest

22,700

86,257

NET INCOME ATTRIBUTABLE TO MURPHY

$ 1,089,002

$ 93,943

^[2]

$ 1,221,456

$ 307,715

^[2]

INCOME (LOSS) PER COMMON SHARE – BASIC

Continuing operations (in USD per share)

$ 0.85

$ 0.32

$ 1.16

$ 0.70

Discontinued operations (in USD per share)

5.94

0.22

6.14

1.08

Net Income (in USD per share)

6.79

0.54

7.30

1.78

INCOME (LOSS) PER COMMON SHARE – DILUTED

Continuing operations (in USD per share)

0.84

0.32

1.16

0.70

Discontinued operations (in USD per share)

5.92

0.22

6.11

1.07

Net Income (in USD per share)

6.76

0.54

7.27

1.77

Cash dividends per Common share (in USD per share)

$ 0.25

$ 0.75

Average Common shares outstanding (thousands)

Basic (in shares)

160,365,705

173,047,246

167,310,202

172,949,450

Diluted (in shares)

160,980,038

174,175,267

168,105,227

174,201,760

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

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

3 Months Ended

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

Statement of Comprehensive Income [Abstract]

Net income

$ 1,089,002

$ 93,943

^[1],[2]

$ 1,221,456

$ 307,715

^[1],[2]

Other comprehensive income (loss), net of tax

Net (loss) gain from foreign currency translation

(17,128)

33,380

36,927

(53,805)

Retirement and postretirement benefit plans

2,761

3,390

8,277

10,498

Deferred loss on interest rate hedges reclassified to interest expense

585

1,756

Reclassification of certain tax effects to retained earnings

(30,237)

(3,737)

Net income including noncontrolling interest

(13,782)

37,355

46,960

(75,525)

COMPREHENSIVE INCOME

$ 1,075,220

$ 131,298

$ 1,268,416

$ 232,190

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

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

3 Months Ended

9 Months Ended

12 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

Dec. 31, 2018

Operating Activities

$ 1,111,702

$ 93,943

^[1]

$ 1,307,713

$ 307,715

^[1],[2]

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

(Income) loss from discontinued operations

(953,368)

(37,812)

^[1]

(1,027,632)

(186,188)

^[1],[2]

Depreciation, depletion and amortization

325,562

197,503

^[1]

819,270

570,997

^[1],[2]

Previously suspended exploration costs (credits)

12,901

4,514

^[2]

Amortization of undeveloped leases

21,680

31,544

^[2]

Accretion of asset retirement obligations

10,587

6,466

^[1]

29,824

19,234

^[1],[2]

Deferred income tax charge (benefit)

50,597

(134,393)

^[2]

Pretax (gain) loss from sale of assets

(363)

(6)

^[2]

Mark to market and revaluation of contingent consideration

512

^[2]

Mark to market of crude contracts

(100,076)

1,065

^[2]

Long-term non-cash compensation

60,567

52,309

^[2]

Net (increase) decrease in noncash operating working capital

40,257

(9,501)

^[2]

Other operating activities, net

(62,023)

(55,924)

^[2]

Net cash provided by continuing operations activities

1,153,227

601,366

^[2]

Investing Activities

Acquisition of oil and gas properties

(1,212,949)

^[2]

Property additions and dry hole costs

(1,009,146)

(797,630)

^[2]

Proceeds from sales of property, plant and equipment

19,072

921

^[2]

Net cash required by investing activities

(2,203,023)

(796,709)

^[2]

Financing Activities

Borrowings on revolving credit facility and term loan

1,575,000

Repayment of revolving credit facility and term loan

(1,900,000)

Repurchase of common stock

(405,938)

^[2]

Capital lease obligation payments

(510)

(154)

^[2]

Withholding tax on stock-based incentive awards

(6,991)

(6,922)

^[2]

Distribution to noncontrolling interest

(97,510)

^[2]

Cash dividends paid

(125,437)

(129,780)

^[2]

Net cash provided (required) by financing activities

(961,386)

(136,856)

^[2]

Cash Flows from Discontinued Operations

Operating activities

^[3]

74,361

370,343

^[2]

Investing activities

^[3]

1,985,202

(60,715)

^[2]

Financing activities

^[3]

(4,914)

(7,013)

^[2]

Net cash provided by discontinued operations

^[3]

2,054,649

302,615

^[2]

Cash transferred from discontinued operations to continuing operations

2,083,565

536,492

^[2]

Effect of exchange rate changes on cash and cash equivalents

2,593

13,107

^[2]

Net increase (decrease) in cash and cash equivalents

74,976

217,400

^[2]

Cash and cash equivalents at beginning of period

359,923

630,433

^[2]

$ 630,433

^[2]

Cash and cash equivalents at end of period

$ 434,899

$ 847,833

^[2]

$ 434,899

$ 847,833

^[2]

$ 359,923

[1]	Reclassified to conform to current presentation (see Note A).
[2]	Reclassified to conform to current presentation (See Note A).
[3]	Net cash provided by discontinued operations are not part of the cash flow reconciliation.

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

Total

Murphy Shareholders' Equity

Cumulative Preferred Stock

Common Stock

Capital In Excess Of Par Value

Retained Earnings

Accumulated Other Comprehensive Loss

Treasury Stock

Noncontrolling Interest

Balance at beginning of period at Dec. 31, 2017

$ 195,056

$ 917,665

$ 5,245,242

$ (462,243)

$ (1,275,529)

$ 0

Exercise of stock options, including income tax benefits

(9)

(175)

(32,766)

20,655

Reclassification of certain tax effects from accumulated other comprehensive loss

$ 307,715

^[1],[2]

307,715

30,237

(30,237)

30,237

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

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

(129,780)

(53,805)

Retirement and postretirement benefit plans, net of income taxes

10,498

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

1,756

(3,737)

26,367

Balance at end of period at Sep. 30, 2018

4,766,928

$ 4,766,928

$ 0

195,065

905,379

5,453,414

(537,768)

(1,249,162)

Balance at beginning of period at Jun. 30, 2018

195,065

898,126

5,402,734

(575,123)

(1,249,162)

Exercise of stock options, including income tax benefits

7,253

Reclassification of certain tax effects from accumulated other comprehensive loss

93,943

^[1],[2]

93,943

^[2]

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

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

(43,263)

33,380

Retirement and postretirement benefit plans, net of income taxes

3,390

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

585

Balance at end of period at Sep. 30, 2018

4,766,928

195,065

905,379

5,453,414

(537,768)

(1,249,162)

Balance at beginning of period at Dec. 31, 2018

5,197,642

^[2]

195,077

979,642

5,513,529

(609,787)

(1,249,162)

368,343

Exercise of stock options, including income tax benefits

(6)

(123)

(38,732)

25,041

(24,519)

Reclassification of certain tax effects from accumulated other comprehensive loss

1,221,456

86,257

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

116,768

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

(125,437)

36,927

Retirement and postretirement benefit plans, net of income taxes

8,277

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

1,756

(405,938)

31,869

(7,920)

Balance at end of period at Sep. 30, 2019

(97,510)

6,025,820

5,676,650

195,083

941,309

6,726,316

(562,827)

(1,623,231)

349,170

Balance at beginning of period at Jun. 30, 2019

195,083

933,944

5,677,248

(549,045)

(1,517,217)

358,531

Exercise of stock options, including income tax benefits

7,365

Reclassification of certain tax effects from accumulated other comprehensive loss

1,089,002

22,700

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

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

(39,934)

(17,128)

Retirement and postretirement benefit plans, net of income taxes

2,761

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

585

(106,014)

(3,328)

Balance at end of period at Sep. 30, 2019

(28,733)

$ 6,025,820

$ 5,676,650

$ 0

$ 195,083

$ 941,309

$ 6,726,316

$ (562,827)

$ (1,623,231)

$ 349,170

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

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	Sep. 30, 2019	Sep. 30, 2018
Statement 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	$ 1
Common Stock, authorized shares	450,000,000	450,000,000
Common Stock, shares issued	195,083,364	195,065,341
Treasury stock, shares	32,832,771	22,018,095

Nature of Business and Interim Financial Statements	9 Months Ended
Nature of Business and Interim Financial Statements	Sep. 30, 2019
Organization, Consolidation and Presentation of 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. 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 D – Property, Plant, and Equipment and Note E – Discontinued Operations and Assets Held for Sale for more information regarding the sale of this asset. In connection with the LLOG acquisition, further discussed in Note Q – Acquisitions, we now hold a 0.5% interest in two variable interest entities (VIEs), Delta House Oil and Gas Lateral LLC and Delta House 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 September 30, 2019, our maximum exposure to loss was $3.7 million, 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 September 30, 2019 and December 31, 2018, and the results of operations, cash flows and changes in stockholders’ equity for the interim periods ended September 30, 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-month and nine-month periods ended September 30, 2019 are not necessarily indicative of future results.

New Accounting Principles and Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2019
Accounting Changes and Error Corrections [Abstract]
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 Financial Instruments – Credit Losses. In June 2016, the FASB issued ASU 2016-13 which replaces the impairment model for most financial assets, including trade receivables, from the incurred loss methodology to a forward-looking expected loss model that will result in earlier recognition of credit losses. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, with early adoption permitted, and is to be applied on a modified retrospective basis. The Company is currently assessing the potential impact of this ASU, but does not expect a material impact to its consolidated financial statements. 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. 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

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

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- In Canada, contracts are primarily long-term floating commodity index priced, except for certain 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.

In the third quarter of 2019, the Company made an immaterial reclassification to correct its financial statements to report transportation, gathering, and processing costs as a separate line item (previously reported net in revenue) in the Consolidated Statements of Operations and revised all historical periods to reflect this presentation. There was no resultant change in net income attributable to Murphy.

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 September 30, 2019 and 2018, the Company recognized $750.3 million and $475.5 million, respectively, from contracts with customers for the sales of oil, natural gas liquids and natural gas. For the nine-months ended September 30, 2019 and 2018 the Company recognized $2,060.1 million and $1,330.4 million, respectively, from contracts with customers for the sales of oil, natural gas liquids and natural gas.



		Three Months Ended September 30,				Nine Months Ended September 30,
(Thousands of dollars)		2019		2018		2019	2018
Net crude oil and condensate revenue
United States	Onshore	$	219,515	227,022		547,756	612,194
	Offshore	398,518		95,059		1,090,462	264,174
Canada	Onshore	31,758		34,504		88,730	87,018
	Offshore	28,408		35,929		115,686	141,313
Other		1,933		3,156		7,908	3,156
Total crude oil and condensate revenue		680,132		395,670		1,850,542	1,107,855

Net natural gas liquids revenue
United States	Onshore	5,557		19,196		22,497	48,615
	Offshore	8,414		3,600		18,184	9,013
Canada	Onshore	2,751		4,140		8,987	11,062
Total natural gas liquids revenue		16,722		26,936		49,668	68,690

Net natural gas revenue
United States	Onshore	5,848		8,833		20,762	25,670
	Offshore	15,879		3,965		29,575	11,161
Canada	Onshore	31,756		40,054		109,580	117,023
Total natural gas revenue		53,483		52,852		159,917	153,854
Total revenue from contracts with customers		750,337		475,458		2,060,127	1,330,399

Gain (loss) on crude contracts		63,247		(2,223	)	121,163	(69,349	)
Gain on sale of assets and other income¹		3,493		17,276		10,283	26,713
Total revenue		$	817,077	490,511		2,191,573	1,287,763

¹ Gain on sale of Malaysia operations of $960.0 million is reported in discontinued operations. See Note E.

Contract Balances and Asset Recognition

As of September 30, 2019, and December 31, 2018, receivables from contracts with customers, net of royalties and associated payables, on the balance sheet from continuing operations, were $146.4 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 September 30, 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.

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.

As of September 30, 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 September 30, 2019

Location	Commodity	End Date	Description	Approximate Volumes
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
U.S.	NGL	Q4 2020	Dedicated acreage delivery in GOM	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 2021	Contracts to sell natural gas at USD Index pricing	10 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
Canada	Gas	Q4 2026	Contracts to sell natural gas at USD Index pricing	11 MMCFD

Fixed price contracts are accounted for as normal sales and purchases for accounting purposes.

Property, Plant and Equipment

9 Months Ended

Sep. 30, 2019

Property, Plant and Equipment [Abstract]

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 September 30, 2019, the Company had total capitalized exploratory well costs for continuing operations pending the determination of proved reserves of $280.7 million. The following table reflects the net changes in capitalized exploratory well costs during the nine-month periods ended September 30, 2019 and 2018.



(Thousands of dollars)	2019			2018
Beginning balance at January 1	$	207,855		155,103
Additions pending the determination of proved reserves	86,025			41,560
Reclassifications to proved properties based on the determination of proved reserves	—			(2,214	)
Capitalized exploratory well costs charged to expense	(13,145		)	(4,521	)
Balance at September 30	$	280,735		189,928

The capitalized well costs charged to expense during 2019 included the CM-1X and the CT-1X wells in Vietnam Block 11-2/11. The wells were originally drilled in 2017. The capitalized well costs charged to expense in 2018 included the Julong East well in Block CA-1, offshore Brunei in which further development of the well was not sanctioned by the operator and the contract term for development sanctions expired. This well was originally drilled in 2012.

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.



	September 30,
	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	$	64,711	5	5	$	46,813	1	1
One to two years	63,615		1	1	41,051		3	2
Two to three years	27,500		1	—	5,208		1	1
Three years or more	124,909		5	—	96,856		4	1
	$	280,735	12	6	$	189,928	9	5

Of the $216.0 million of exploratory well costs capitalized more than one year at September 30, 2019, $57.4 million is in Brunei, $67.5 million is in Vietnam, $63.6 million is in the Gulf of Mexico and $27.5 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 July 2019, the Company completed a divestiture of its two subsidiaries conducting Malaysian operations, Murphy Sabah Oil Co., Ltd. and Murphy Sarawak Oil Co., Ltd., in a transaction with PTT Exploration and Production Public Company Limited (PTTEP) which was effective January 1, 2019. Total cash consideration received upon closing was $2.0 billion. A gain on sale of $960.0 million was recorded as part of discontinued operations on the Consolidated Statement of Operations during the third quarter 2019. The Company does not anticipate tax liabilities related to the sales proceeds. Murphy is entitled to receive a $100.0 million bonus payment contingent upon certain future exploratory drilling results prior to October 2020.

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 prior to 2019 was being recognized straight line over the life of the contract in the Canadian operating segment. The remaining deferred gain of $116.8 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, effective January 1, 2019, the previously deferred gain related to the sale and leaseback transaction has been transferred to equity upon adoption, lowering liabilities but increasing retained earnings by approximately $116.8 million, net of tax. The Company amortized approximately $5.7 million of the deferred gain during the first nine months of 2018.

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 September 30, 2019, $131.6 million of the carried interest had been paid. The remaining carry is to be paid over a period through 2020.

Discontinued Operations and Assets Held for Sale

9 Months Ended

Sep. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations and Assets Held for Sale

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 and nine-month period ended September 30, 2019 and 2018 were as follows:



	Three Months Ended September 30,			Nine Months Ended September 30,
(Thousands of dollars)	2019		2018	2019	2018
Revenues ¹	$	972,737	201,370	1,328,110	640,806
Costs and expenses
Lease operating expenses	6,262		49,390	127,138	152,406
Depreciation, depletion and amortization	—		44,326	33,697	139,566
Other costs and expenses (benefits)	11,078		36,642	81,560	55,665
Income before taxes	955,397		71,012	1,085,715	293,169
Income tax expense	2,029		33,200	58,083	106,981
Income from discontinued operations	$	953,368	37,812	1,027,632	186,188

¹ In 2019, includes $960.0 million gain on sale of Malaysia operations.

The following table presents the carrying value of the major categories of assets and liabilities of the Brunei exploration and production and the U.K. refining and marketing operations reflected as held for sale on the Company’s Consolidated Balance Sheet at September 30, 2019. As of December 31, 2018, the Malaysian exploration and production business was also held for sale. The closing of this sale occurred on July 10, 2019.



(Thousands of dollars)	September 30, 2019		December 31, 2018
Current assets
Cash	$	25,307	44,669
Accounts receivable	3,859		103,158
Inventories	406		7,887
Prepaid expenses and other	1,847		18,151
Property, Plant, and Equipment, net	87,556		—
Deferred income taxes and other assets	9,440		—
Total current assets associated with assets held for sale	128,415		173,865
Non-current assets
Property, Plant, and Equipment, net	—		1,325,431
Deferred income taxes and other assets	—		219,577
Total non-current assets associated with assets held for sale	$	—	1,545,008
Current liabilities
Accounts payable	$	8,563	203,236
Other accrued liabilities	448		55,273
Current maturities of long-term debt (finance lease)	696		9,915
Taxes payable	752		18,034
Long-term debt (finance lease)	7,420		—
Asset retirement obligation	235		—
Total current liabilities associated with assets held for sale	18,114		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	9 Months Ended
Financing Arrangements and Debt	Sep. 30, 2019
Debt Disclosure [Abstract]
Financing Arrangements and Debt	Financing Arrangements and Debt On May 30, 2019, the Company entered into a $500 million term loan credit facility (the New Term Credit Facility). The New Term Credit Facility was a senior unsecured guaranteed facility with an original maturity date of December 2, 2019. The covenants within the New Term Credit Facility were substantially consistent with those in the Company’s revolving credit facility (see 2018 facility below), and borrowings under the New Term Credit Facility bore interest at comparable rates to those incurred under the 2018 facility. The New Term Credit Facility was prepayable at any time by the Company and had to be repaid no later than 30 days after closing of the Company’s previously announced Malaysia divestiture. In July 2019, the Company closed the previously announced Malaysia divestiture, repaid and terminated the New Term Credit Facility. As of September 30, 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 September 30, 2019, the Company had no outstanding borrowings under the 2018 facility and $4.6 million of outstanding letters of credit, which reduce the borrowing capacity of the 2018 facility. At September 30, 2019, the interest rate in effect on borrowings under the facility would have been 3.51%. At September 30, 2019, the Company was in compliance with all covenants related to the 2018 facility.

Other Financial Information

9 Months Ended

Sep. 30, 2019

Other Financial Information [Abstract]

Other Financial Information

Additional disclosures regarding cash flow activities are provided below.໿



	Nine Months Ended September 30,
(Thousands of dollars)	2019			2018
Net (increase) decrease in operating working capital, excluding cash and cash equivalents:
(Increase) decrease in accounts receivable ²	$	(128,698	)	(32,372	)
(Increase) decrease in inventories	4,398			21,367
(Increase) decrease in prepaid expenses	(3,745		)	(3	)
Increase (decrease) in accounts payable and accrued liabilities ²	165,224			1,185
Increase (decrease) in income taxes payable	3,078			322
Net (increase) decrease in noncash operating working capital	$	40,257		(9,501	)
Supplementary disclosures:
Cash income taxes paid, net of refunds	$	(4,563	)	(4,508	)
Interest paid, net of amounts capitalized of $0.2 million in 2019 and $0 in 2018	137,116			113,820

Non-cash investing activities:
Asset retirement costs capitalized ¹	$	48,203		2,907
(Increase) decrease in capital expenditure accrual	(52,659		)	27,551

¹ Includes asset retirement obligations assumed as part of the LLOG acquisition of $37.3 million. See Note Q.

²Excludes receivable/payable balances relating to mark-to-market of crude contracts and contingent consideration relating to acquisitions.

Employee and Retiree Benefit Plans

9 Months Ended

Sep. 30, 2019

Retirement Benefits [Abstract]

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 and nine-month periods ended September 30, 2019 and 2018.



	Three Months Ended September 30,
	Pension Benefits					Other Postretirement Benefits
(Thousands of dollars)	2019			2018		2019		2018
Service cost	$	2,064		2,252		421		492
Interest cost	7,151			6,716		945		874
Expected return on plan assets	(6,455		)	(7,476	)	—		—
Amortization of prior service cost (credit)	248			254		(98	)	(10	)
Recognized actuarial loss	3,516			5,197		—		—
Net periodic benefit expense	$	6,524		6,943		1,268		1,356



	Nine Months Ended September 30,
	Pension Benefits					Other Postretirement Benefits
(Thousands of dollars)	2019			2018		2019		2018
Service cost	$	6,188		6,761		1,261		1,479
Interest cost	21,402			20,160		2,833		2,622
Expected return on plan assets	(19,285		)	(22,435	)	—		—
Amortization of prior service cost (credit)	741			767		(293	)	(29	)
Recognized actuarial loss	10,538			15,593		—		—
Net periodic benefit expense	$	19,584		20,846		3,801		4,072

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 nine-month period ended September 30, 2019, the Company made contributions of $24.1 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 $8.3 million.

Incentive Plans

9 Months Ended

Sep. 30, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Incentive Plans

The costs resulting from all share-based and cash-based incentive plans 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 one percent (1%) of Common shares outstanding. Shares issued pursuant to awards granted under this Plan may be shares that are authorized and unissued or shares that were reacquired by the Company, including shares purchased in the open market. Share awards that have been canceled, expired, forfeited or otherwise not issued under an award shall not count as shares issued under this Plan.

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 of $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 nine-month period ended September 30, 2019.

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

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

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

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 and nine-month periods ended September 30, 2019 and 2018. The following table reports the weighted-average shares outstanding used for these computations.



	Three Months Ended September 30,		Nine Months Ended September 30,
(Weighted-average shares)	2019	2018	2019	2018
Basic method	160,365,705	173,047,246	167,310,202	172,949,450
Dilutive stock options and restricted stock units	614,333	1,128,021	795,025	1,252,310
Diluted method	160,980,038	174,175,267	168,105,227	174,201,760

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 September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Antidilutive stock options excluded from diluted shares	2,903,768		2,870,549		3,016,361		3,544,087
Weighted average price of these options	$	44.65	$	54.06	$	45.38	$	50.49

Income Taxes

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

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 and nine-month periods ended September 30, 2019 and 2018, the Company’s effective income tax rates were as follows:



	2019	2018
Three months ended September 30,	10.6%	24.1%
Nine months ended September 30,	12.1%	(300.5)%

The effective tax rate for the three-month period ended September 30, 2019 was below the U.S. statutory tax rate of 21% due to an income tax deduction for prior years Vietnam exploration spend which resulted in an income tax benefit of $15.0 million.

The effective tax rate for the three-month period ended September 30, 2018 was above the statutory tax rate primarily due to net losses and exploration expenses in certain foreign jurisdictions for which no income tax benefits will be realized, and income generated in foreign jurisdictions which have income tax rates higher than the U.S. statutory tax rate.

The effective tax rate for the nine-month period ended September 30, 2019 was below the U.S. statutory tax rate of 21% due to to an income tax deduction for prior years Vietnam exploration spend which resulted in an income tax benefit of $15.0 million, a reduction of the Alberta provincial corporate income tax rate that reduced the future deferred tax liability by $13.0 million, and no tax applied to the pre-tax income of the noncontrolling interest in MP GOM.

For the nine-month period ended September 30, 2018 the effective tax rate is lower than the statutory tax rate of 21% because the Company reported a favorable tax adjustment related to the 2017 Tax Act. The IRS’s April 2, 2018 guidance allowed 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 September 30, 2019, the earliest years remaining open for audit and/or settlement in our major taxing jurisdictions are as follows: United States – 2016; Canada – 2015; Malaysia – 2012; and United Kingdom – 2017. Following the divestment of Malaysia, the Company has retained certain possible liabilities and rights to income tax receivables relating to Malaysia for the years prior to 2019. The Company believes current recorded liabilities are adequate.

Financial Instruments and Risk Management

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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 September 30, 2019, the Company had 35,000 barrels per day in WTI crude oil swap financial contracts maturing through the end of 2019 at an average price of $60.51 and 35,000 barrels per day in WTI crude oil swap financial contracts maturing ratably during 2020 at an average price of $57.59. Under these contracts, which mature monthly, the Company pays the average monthly price in effect and receives the fixed contract price.

At September 30, 2018, the Company had 21,000 barrels per day in WTI crude oil swap financial contracts maturing ratably during 2018 at an average price of $54.88.

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 September 30, 2019 and 2018.

At September 30, 2019 and December 31, 2018, the fair value of derivative instruments not designated as hedging instruments are presented in the following table.

September 30, 2019

December 31, 2018

(Thousands of dollars)

Asset (Liability) Derivatives

Type of Derivative Contract

Balance Sheet Location

Fair Value

Balance Sheet Location

Fair Value

Commodity

Accounts receivable

104,358

Accounts receivable

3,837

For the three-month and nine-month periods ended September 30, 2019 and September 30, 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)				Gain (Loss)
(Thousands of dollars)		Three Months Ended September 30,				Nine months ended September 30,
Type of Derivative Contract	Statement of Operations Location	2019		2018		2019	2018
Commodity	Gain (loss) on crude contracts	$	63,247	(2,223	)	121,163	(69,349	)

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 years notes sold in May 2012 to match the payment of interest on these notes through 2022. During each of the nine-month periods ended September 30, 2019 and 2018, $2.2 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 September 30, 2019 was $6.1 million, which is recorded, net of income taxes of $1.6 million, in Accumulated other comprehensive loss in the Consolidated Balance Sheet. The Company expects to charge approximately $0.7 million of this deferred loss to Interest expense, net in the Consolidated Statement of Operations during the remainder 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.

The carrying value of assets and liabilities recorded at fair value on a recurring basis at September 30, 2019 and December 31, 2018, are presented in the following table.



	September 30, 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	$	—	104,358	—	104,358	—	3,837	—	3,837
	$	—	104,358	—	104,358	—	3,837	—	3,837

Liabilities:
Nonqualified employee savings plans	$	15,499	—	—	15,499	13,845	—	—	13,845
Contingent consideration	—		—	137,688	137,688	—	—	47,730	47,730
	$	15,499	—	137,688	153,187	13,845	—	47,730	61,575

The fair value of WTI crude oil derivative contracts in 2018 and 2019 were based on active market quotes for WTI crude oil. 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.

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 contingent consideration, related to two acquisitions in 2018 and 2019, is valued using a Monte Carlo simulation model. The income effect of changes in the fair value of the contingent consideration is recorded in Other (income) expense 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 September 30, 2019 and December 31, 2018. Subsequent to the balance sheet date, the Company has entered into additional derivative instruments to manage certain risks related to commodity prices, bringing the total outstanding as of October 30, 2019 to 45,000 barrels per day in WTI crude oil swap financial contracts for 2020, at an average price of $56.42 per barrel.

Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 2019

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Loss

The components of Accumulated other comprehensive loss on the Consolidated Balance Sheets at December 31, 2018 and September 30, 2019 and the changes during the nine-month period ended September 30, 2019, are presented net of taxes in the following table.



(Thousands of dollars)	Foreign Currency Translation Gains (Losses)			Retirement and Postretirement Benefit Plan Adjustments			Deferred Loss on Interest Rate Derivative 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	36,927			—			—			36,927
Reclassifications to income	—			8,277		¹	1,756		²	10,033
Net other comprehensive income (loss)	36,927			8,277			1,756			46,960
Balance at September 30, 2019	$	(382,925	)	(173,759	)		(6,143	)		(562,827	)

¹Reclassifications before taxes of $10,598 are included in the computation of net periodic benefit expense for the nine-month period ended September 30, 2019. See Note H for additional information. Related income taxes of $2,321 are included in Income tax expense (benefit) for the nine-month period ended September 30, 2019.

²Reclassifications before taxes of $2,223 are included in Interest expense, net, for the nine-month period ended September 30, 2019. Related income taxes of $467 are included in Income tax expense (benefit) for the nine-month period ended September 30, 2019. See Note L for additional information.

Environmental and Other Contingencies	9 Months Ended
Environmental and Other Contingencies	Sep. 30, 2019
Environmental Remediation Obligations [Abstract]
Environmental and Other Contingencies	Environmental and Other Contingencies The Company’s operations and earnings have been, and may be, affected by various forms of governmental action both in the United States and throughout the world. Examples of such governmental action include, but are by no means limited to: tax legislation changes, including tax rate changes and retroactive tax claims; royalty and revenue sharing changes; price controls; currency controls; allocation of supplies of crude oil and petroleum products and other goods; expropriation of property; restrictions and preferences affecting the issuance of oil and gas or mineral leases; restrictions on drilling and/or production; laws and regulations intended for the promotion of safety and the protection and/or remediation of the environment; governmental support for other forms of energy; and laws and regulations affecting the Company’s relationships with employees, suppliers, customers, stockholders and others. Governmental actions are often motivated by political considerations and may be taken without full consideration of their consequences or may be taken in response to actions of other governments. It is not practical to attempt to predict the likelihood of such actions, the form the actions may take or the effect such actions may have on the Company. Murphy and other companies in the oil and gas industry are subject to numerous federal, state, local and foreign laws and regulations dealing with the environment. Violation of federal or state environmental laws, regulations and permits can result in the imposition of significant civil and criminal penalties, injunctions and construction bans or delays. A discharge of hazardous substances into the environment could, to the extent such event is not insured, subject the Company to substantial expense, including both the cost to comply with applicable regulations and claims by neighboring landowners and other third parties for any personal injury and property damage that might result. The Company currently owns or leases, and has in the past owned or leased, properties at which hazardous substances have been or are being handled. Although the Company has used operating and disposal practices that were standard in the industry at the time, hazardous substances may have been disposed of or released on or under the properties owned or leased by the Company or on or under other locations where these wastes have been taken for disposal. In addition, many of these properties have been operated by third parties whose treatment and disposal or release of hydrocarbons or other wastes were not under Murphy’s control. Under existing laws, the Company could be required to remove or remediate previously disposed wastes (including wastes disposed of or released by prior owners or operators), to clean up contaminated property (including contaminated groundwater) or to perform remedial plugging operations to prevent future contamination. Certain of these historical properties are in various stages of negotiation, investigation, and/or cleanup and the Company is investigating the extent of any such liability and the availability of applicable defenses. The Company has retained certain liabilities related to environmental and operational matters at formerly owned U.S. refineries that were sold in 2011. The Company also obtained insurance covering certain levels of environmental exposures related to past operations of these refineries. The Company has not retained any environmental exposure associated with Murphy’s former U.S. marketing operations. The Company believes costs related to these sites will not have a material adverse effect on Murphy’s net income, financial condition or liquidity in a future period. There is the possibility that environmental expenditures could be required at currently unidentified sites, and new or revised regulations could require additional expenditures at known sites. However, based on information currently available to the Company, the amount of future remediation costs incurred, at known or currently unidentified sites, is not expected to have a material adverse effect on the Company’s future net income, cash flows or liquidity. Murphy and its subsidiaries are engaged in a number of other legal proceedings, all of which Murphy considers routine and incidental to its business. Based on information currently available to the Company, the ultimate resolution of environmental and legal matters referred to in this note is not expected to have a material adverse effect on the Company’s net income, financial condition or liquidity in a future period.

Business Segments

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Business Segments

Information about business segments and geographic operations is reported in the following table. For geographic purposes, revenues are attributed to the country in which the sale occurs. Corporate, including interest income, other gains and losses (including foreign exchange gains/losses and realized and unrealized gains/losses on crude oil contracts), interest expense and unallocated overhead, is shown in the tables to reconcile the business segments to consolidated totals.໿



(Millions of dollars)	Total Assets at September 30, 2019		Three Months Ended September 30, 2019			Three Months Ended September 30, 2018
(Millions of dollars)	Total Assets at September 30, 2019		External Revenues	Income (Loss)		External Revenues		Income (Loss)
Exploration and production ¹
United States	$	8,149.5	656.8	170.8		357.8		91.6
Canada	2,212.5		95.0	(9.1	)	114.9		12.5
Other	253.3		1.9	(3.7	)	19.9		1.3
Total exploration and production	10,615.3		753.7	158.0		492.6		105.4
Corporate	1,151.2		63.4	0.3		(2.1	)	(49.3	)
Assets/revenue/income from continuing operations	11,766.5		817.1	158.3		490.5		56.1
Discontinued operations, net of tax	17.2		—	953.4		—		37.8
Total	$	11,783.7	817.1	1,111.7		490.5		93.9



(Millions of dollars)	Nine Months Ended September 30, 2019				Nine Months Ended September 30, 2018
(Millions of dollars)	External Revenues		Income (Loss)		External Revenues		Income (Loss)
Exploration and production ¹
United States	$	1,734.3	420.0		971.7		200.3
Canada	323.8		(7.5	)	357.6		46.7
Other	7.9		(35.4	)	19.9		(28.8	)
Total exploration and production	2,066.0		377.1		1,349.2		218.2
Corporate	125.6		(97.0	)	(61.4	)	(96.7	)
Assets/revenue/income from continuing operations	2,191.6		280.1		1,287.8		121.5
Discontinued operations, net of tax	—		1,027.6		—		186.2
Total	$	2,191.6	1,307.7		1,287.8		307.7

¹ Additional details about results of oil and gas operations are presented in the tables on pages 31 and 32.

Leases

9 Months Ended

Sep. 30, 2019

Lessee Disclosure [Abstract]

Leases

Significant Accounting Policy

At inception, contracts are assessed for the presence of a lease according to criteria laid out by ASC 842. If a lease is present, further criteria is assessed to determine if the lease should be classified as an operating or finance lease. Operating leases are presented on the Consolidated Balance Sheet as Operating lease assets with the corresponding lease liabilities presented in Operating lease liabilities and Non-current operating lease liabilities. Finance lease assets are presented on the Consolidated Balance Sheet within Assets held for sale with the corresponding liabilities presented in Current maturities of long-term debt and Long-term debt. See Note E – Discontinued Operations for amounts in Assets held for sale.

Generally, lease liabilities are recognized at commencement and based on the present value of the future minimum lease payments to be made over the lease term. Lease assets are then recognized based on the value of the lease liabilities. Where implicit lease rates are not determinable, the minimum lease payments are discounted using the Company’s collateralized incremental borrowing rates.

Operating leases are expensed according to their nature and recognized in Lease operating expenses, Selling and general expenses or capitalized in the Consolidated Financial Statements. Finance leases are depreciated with expenses recognized in Depreciation, depletion, and amortization and Interest expense, net on the Consolidated Statement of Operations.

Nature of Leases

The Company has entered into various operating leases such as a gas processing plant, floating production storage and off-take vessels, buildings, marine vessels, vehicles, drilling rigs, pipelines and other oil and gas field equipment. Remaining lease terms range from 1 year to 17 years, some of which may include options to extend leases for multi-year periods and others which include options to terminate the leases within 1 month. Options to extend lease terms are at the Company’s discretion. Early lease terminations are a combination of both at Company discretion and mutual agreement between the Company and lessor. Purchase options also exist for certain leases.

Related Expenses

Expenses related to finance and operating leases included in the Consolidated Financial Statements are as follows:



(Thousands of dollars)	Financial Statement Category	Three Months Ended September 30, 2019			Nine Months Ended September 30, 2019
Operating lease ^1,2	Lease operating expenses	$	62,260		178,164
Operating lease ²	Selling and general expense	2,700			9,044
Operating lease ²	Other operating expense	1,011			1,905
Operating lease ²	Property, plant and equipment	53,117			108,679
Operating lease ²	Asset retirement obligations	—			3,024
Finance lease
Amortization of asset	Depreciation, depletion and amortization	—			420
Interest on lease liabilities	Interest expense, net	—			202
Sublease income	Other income	(395		)	(1,034	)
Net lease expense		$	118,693		300,404

¹ For the three months and nine months ended September 30, 2019, includes variable lease expenses of $9.0 million and $22.8 million, respectively, primarily related to additional volumes processed at a gas processing plant.

² The three months ended September 30, 2019 includes $10.9 million for Lease operating expense, $1.0 million for Selling and general expense, $37.4 million for Property, plant and equipment, net relating to short-term leases due within 12 months. For the nine months ended includes $33.3 million for Lease operating expense, $3.1 million for Selling and general expense, $86.2 million for Property, plant and equipment, net and $3.0 million for Asset retirement obligations relating to short-term leases due within 12 months. Expenses primarily relate to drilling rigs and other oil and gas field equipment.

Maturity of Lease Liabilities໿



(Thousands of dollars)	Operating Leases ¹			Finance Leases		Total
2019	$	53,597		267		53,864
2020	136,283			1,069		137,352
2021	57,190			1,069		58,259
2022	54,955			1,069		56,024
2023	54,453			1,069		55,522
Remaining	471,202			5,610		476,812
Total future minimum lease payments	827,680			10,153		837,833
Less imputed interest	(253,403		)	(1,985	)	(255,388	)
Present value of lease liabilities²	$	574,277		8,168		582,445

¹ Excludes $272.6 million of minimum lease payments for leases entered but not yet commenced. These payments relate to an expansion of an existing gas processing plant and payments are anticipated to commence at the end of 2020 for 20 years.

² Includes both the current and long-term portion of the lease liabilities.

Lease Term and Discount Rate



	September 30, 2019
Weighted average remaining lease term:
Operating leases	11 years
Finance leases	10 years
Weighted average discount rate:
Operating leases	4.8	%
Finance leases	4.7	%

Other Information໿



(Thousands of dollars)	Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	140,424
Operating cash flows from finance leases	306
Financing cash flows from finance leases	510
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	31,281

Acquisition

9 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

Acquisition

Acquisitions

PAI Acquisition:

In December 2018, the Company announced the completion of a transaction with Petrobras Americas Inc. (PAI) which was effective October 1, 2018. Through this transaction, Murphy acquired all PAI’s producing Gulf of Mexico assets along with certain blocks that hold deep exploration rights. This transaction added approximately 97 MMBOE (including noncontrolling interest, NCI) of proven reserves at December 31, 2018.

Under the terms of the transaction, Murphy paid cash consideration of $775.4 million and transferred a 20% interest in MP Gulf of Mexico, LLC (MP GOM), a subsidiary of Murphy, to PAI. Murphy also has an obligation to pay additional contingent consideration up to $150 million if certain sales thresholds are exceeded beginning in 2019 through 2025. Both companies contributed all of their current producing Gulf of Mexico assets into MP GOM. MP GOM is owned 80% by Murphy and 20% by PAI, with Murphy overseeing the operations.

LLOG Acquisition:

In June 2019, the Company announced the completion of a transaction with LLOG Exploration Offshore L.L.C. and LLOG Bluewater Holdings, L.L.C., (LLOG) which was effective January 1, 2019. Through this transaction, Murphy acquired strategic deepwater Gulf of Mexico assets which added approximately 67 MMBOE of proven reserves at May 31, 2019.

Under the terms of the transaction, Murphy paid cash consideration of $1,226.3 million and has an obligation to pay additional contingent consideration of up to $200 million in the event that certain revenue thresholds are exceeded between 2019 and 2022; and $50 million following first oil from certain development projects.

The following table contains the preliminary purchase price allocations at fair value:



(Thousands of dollars)	PAI			LLOG
Cash consideration paid	$	775,413		1,226,261
Fair value of net assets contributed	154,469			—
Contingent consideration	52,540			89,444
NCI in acquired assets	245,605			—
Total purchase consideration	$	1,228,027		1,315,705
(Thousands of dollars)
Fair value of Property, plant and equipment	$	1,610,790		1,340,206
Other assets	5,628			12,771
Less: Asset retirement obligations	(388,391		)	(37,272	)
Total net assets	$	1,228,027		1,315,705

The fair value measurements of crude oil and natural gas properties and asset retirement obligations are based on inputs that are not observable in the market and therefore represent Level 3 inputs. The fair values of crude oil and natural gas properties and asset retirement obligations were measured using valuation techniques that convert expected future cash flows to a single discounted amount. Significant inputs to the valuation of crude oil and natural gas properties included estimates of: (i) proved and probable reserves; (ii) production rates and related development timing; (iii) future operating and development costs; (iv) future commodity prices; and (v) a market-based weighted average discount rate. These inputs require significant judgments and estimates by management at the time of the valuation, are sensitive, and may be subject to change.

Certain data necessary to complete the purchase price allocations are not yet available, and includes, but is not limited to, analysis of the underlying tax basis of the acquired assets and assumed liabilities as well as the final purchase price adjustments to be settled in 2019. We expect to complete the purchase price allocations during the 12-month periods following the acquisition dates of November 30, 2018 and May 31, 2019, during which time the value of the assets and liabilities may be revised as appropriate.

Results of Operations

Murphy’s Consolidated Statement of Operations for the three months ended September 30, 2019, included additional revenues of $263.7 million and pre-tax income of $99.6 million attributable to the acquired PAI assets. For the nine months ended September 30, 2019, additional revenues of $710.2 million and pre-tax income of $369.7 million attributable to the acquired PAI assets were included in the Consolidated Statement of Operations.

Murphy’s Consolidated Statement of Operations for the three month period ended September 30, 2019, included additional revenues of $126.4 million and pre-tax income of $29.2 million attributable to the acquired LLOG assets. For the nine months ended September 30, 2019, additional revenues of $159.8 million and pre-tax income of $34.3 million attributable to the acquired LLOG assets.

Pro Forma Financial Information

The following pro forma condensed combined financial information was derived from historical financial statements of Murphy, PAI and LLOG and gives effect to the transaction as if it had occurred on January 1, 2018. The information below reflects pro forma adjustments based on available information and certain assumptions that we believe are reasonable. The pro forma results of operations do not include any cost savings or other synergies that we expect to realize from the transaction or any estimated costs that have been, or will be, incurred by us to integrate the PAI assets. The pro forma condensed combined financial information has been included for comparative purposes and is not necessarily indicative of the results that might have occurred had the transaction taken place on January 1, 2018; furthermore, the financial information is not intended to be a projection of future results.



(Thousands of dollars, except per share amounts)	Three Months Ended September 30, 2018		Nine Months Ended September 30, 2018
Revenues	$	855,689	2,383,296
Net Income Attributable to Murphy	266,275		823,704

Net Income Attributable to Murphy per Common Share
Basic	$	1.54	4.76
Diluted	1.53		4.73

Subsequent Event	9 Months Ended
Subsequent Event	Sep. 30, 2019
Subsequent Events [Abstract]
Subsequent Event	<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:13px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Subsequent Event</font></div></div>

New Accounting Principles and Recent Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2019
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements, Policy [Policy Text Block]	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 Financial Instruments – Credit Losses. In June 2016, the FASB issued ASU 2016-13 which replaces the impairment model for most financial assets, including trade receivables, from the incurred loss methodology to a forward-looking expected loss model that will result in earlier recognition of credit losses. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, with early adoption permitted, and is to be applied on a modified retrospective basis. The Company is currently assessing the potential impact of this ASU, but does not expect a material impact to its consolidated financial statements. 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. 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.
Nature of Business	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. 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 D – Property, Plant, and Equipment and Note E – Discontinued Operations and Assets Held for Sale for more information regarding the sale of this asset.
Leases	Significant Accounting Policy At inception, contracts are assessed for the presence of a lease according to criteria laid out by ASC 842. If a lease is present, further criteria is assessed to determine if the lease should be classified as an operating or finance lease. Operating leases are presented on the Consolidated Balance Sheet as Operating lease assets with the corresponding lease liabilities presented in Operating lease liabilities and Non-current operating lease liabilities. Finance lease assets are presented on the Consolidated Balance Sheet within Assets held for sale with the corresponding liabilities presented in Current maturities of long-term debt and Long-term debt. See Note E – Discontinued Operations for amounts in Assets held for sale. Generally, lease liabilities are recognized at commencement and based on the present value of the future minimum lease payments to be made over the lease term. Lease assets are then recognized based on the value of the lease liabilities. Where implicit lease rates are not determinable, the minimum lease payments are discounted using the Company’s collateralized incremental borrowing rates. Operating leases are expensed according to their nature and recognized in Lease operating expenses, Selling and general expenses or capitalized in the Consolidated Financial Statements. Finance leases are depreciated with expenses recognized in Depreciation, depletion, and amortization and Interest expense, net on the Consolidated Statement of Operations.

Revenue from Contracts with Customers (Tables)

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue



		Three Months Ended September 30,				Nine Months Ended September 30,
(Thousands of dollars)		2019		2018		2019	2018
Net crude oil and condensate revenue
United States	Onshore	$	219,515	227,022		547,756	612,194
	Offshore	398,518		95,059		1,090,462	264,174
Canada	Onshore	31,758		34,504		88,730	87,018
	Offshore	28,408		35,929		115,686	141,313
Other		1,933		3,156		7,908	3,156
Total crude oil and condensate revenue		680,132		395,670		1,850,542	1,107,855

Net natural gas liquids revenue
United States	Onshore	5,557		19,196		22,497	48,615
	Offshore	8,414		3,600		18,184	9,013
Canada	Onshore	2,751		4,140		8,987	11,062
Total natural gas liquids revenue		16,722		26,936		49,668	68,690

Net natural gas revenue
United States	Onshore	5,848		8,833		20,762	25,670
	Offshore	15,879		3,965		29,575	11,161
Canada	Onshore	31,756		40,054		109,580	117,023
Total natural gas revenue		53,483		52,852		159,917	153,854
Total revenue from contracts with customers		750,337		475,458		2,060,127	1,330,399

Gain (loss) on crude contracts		63,247		(2,223	)	121,163	(69,349	)
Gain on sale of assets and other income¹		3,493		17,276		10,283	26,713
Total revenue		$	817,077	490,511		2,191,573	1,287,763

¹ Gain on sale of Malaysia operations of $960.0 million is reported in discontinued operations. See Note E.

Current Long-Term Contracts Outstanding

໿



Current Long-Term Contracts Outstanding at September 30, 2019

Location	Commodity	End Date	Description	Approximate Volumes
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
U.S.	NGL	Q4 2020	Dedicated acreage delivery in GOM	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 2021	Contracts to sell natural gas at USD Index pricing	10 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
Canada	Gas	Q4 2026	Contracts to sell natural gas at USD Index pricing	11 MMCFD

Property, Plant and Equipment (Tables)

9 Months Ended

Sep. 30, 2019

Property, Plant and Equipment [Abstract]

Net Changes in Capitalized Exploratory Well Costs

The following table reflects the net changes in capitalized exploratory well costs during the nine-month periods ended September 30, 2019 and 2018.



(Thousands of dollars)	2019			2018
Beginning balance at January 1	$	207,855		155,103
Additions pending the determination of proved reserves	86,025			41,560
Reclassifications to proved properties based on the determination of proved reserves	—			(2,214	)
Capitalized exploratory well costs charged to expense	(13,145		)	(4,521	)
Balance at September 30	$	280,735		189,928

Aging of Capitalized Exploratory Well Costs



	September 30,
	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	$	64,711	5	5	$	46,813	1	1
One to two years	63,615		1	1	41,051		3	2
Two to three years	27,500		1	—	5,208		1	1
Three years or more	124,909		5	—	96,856		4	1
	$	280,735	12	6	$	189,928	9	5

Discontinued Operations and Assets Held for Sale (Tables)

9 Months Ended

Sep. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

Results of Operations Associated with Discontinued Operations

The results of operations associated with discontinued operations for the three and nine-month period ended September 30, 2019 and 2018 were as follows:



	Three Months Ended September 30,			Nine Months Ended September 30,
(Thousands of dollars)	2019		2018	2019	2018
Revenues ¹	$	972,737	201,370	1,328,110	640,806
Costs and expenses
Lease operating expenses	6,262		49,390	127,138	152,406
Depreciation, depletion and amortization	—		44,326	33,697	139,566
Other costs and expenses (benefits)	11,078		36,642	81,560	55,665
Income before taxes	955,397		71,012	1,085,715	293,169
Income tax expense	2,029		33,200	58,083	106,981
Income from discontinued operations	$	953,368	37,812	1,027,632	186,188

¹ In 2019, includes $960.0 million gain on sale of Malaysia operations.

Major Categories of Assets and Liabilities Reflected as Held for Sale



(Thousands of dollars)	September 30, 2019		December 31, 2018
Current assets
Cash	$	25,307	44,669
Accounts receivable	3,859		103,158
Inventories	406		7,887
Prepaid expenses and other	1,847		18,151
Property, Plant, and Equipment, net	87,556		—
Deferred income taxes and other assets	9,440		—
Total current assets associated with assets held for sale	128,415		173,865
Non-current assets
Property, Plant, and Equipment, net	—		1,325,431
Deferred income taxes and other assets	—		219,577
Total non-current assets associated with assets held for sale	$	—	1,545,008
Current liabilities
Accounts payable	$	8,563	203,236
Other accrued liabilities	448		55,273
Current maturities of long-term debt (finance lease)	696		9,915
Taxes payable	752		18,034
Long-term debt (finance lease)	7,420		—
Asset retirement obligation	235		—
Total current liabilities associated with assets held for sale	18,114		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

Other Financial Information (Tables)

9 Months Ended

Sep. 30, 2019

Other Financial Information [Abstract]

Noncash Operating Working Capital (Increase) Decrease

Additional disclosures regarding cash flow activities are provided below.໿



	Nine Months Ended September 30,
(Thousands of dollars)	2019			2018
Net (increase) decrease in operating working capital, excluding cash and cash equivalents:
(Increase) decrease in accounts receivable ²	$	(128,698	)	(32,372	)
(Increase) decrease in inventories	4,398			21,367
(Increase) decrease in prepaid expenses	(3,745		)	(3	)
Increase (decrease) in accounts payable and accrued liabilities ²	165,224			1,185
Increase (decrease) in income taxes payable	3,078			322
Net (increase) decrease in noncash operating working capital	$	40,257		(9,501	)
Supplementary disclosures:
Cash income taxes paid, net of refunds	$	(4,563	)	(4,508	)
Interest paid, net of amounts capitalized of $0.2 million in 2019 and $0 in 2018	137,116			113,820

Non-cash investing activities:
Asset retirement costs capitalized ¹	$	48,203		2,907
(Increase) decrease in capital expenditure accrual	(52,659		)	27,551

¹ Includes asset retirement obligations assumed as part of the LLOG acquisition of $37.3 million. See Note Q.

²Excludes receivable/payable balances relating to mark-to-market of crude contracts and contingent consideration relating to acquisitions.

Employee and Retiree Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2019

Retirement Benefits [Abstract]

Components of Net Periodic Benefit Expense

The table that follows provides the components of net periodic benefit expense for the three and nine-month periods ended September 30, 2019 and 2018.



	Three Months Ended September 30,
	Pension Benefits					Other Postretirement Benefits
(Thousands of dollars)	2019			2018		2019		2018
Service cost	$	2,064		2,252		421		492
Interest cost	7,151			6,716		945		874
Expected return on plan assets	(6,455		)	(7,476	)	—		—
Amortization of prior service cost (credit)	248			254		(98	)	(10	)
Recognized actuarial loss	3,516			5,197		—		—
Net periodic benefit expense	$	6,524		6,943		1,268		1,356



	Nine Months Ended September 30,
	Pension Benefits					Other Postretirement Benefits
(Thousands of dollars)	2019			2018		2019		2018
Service cost	$	6,188		6,761		1,261		1,479
Interest cost	21,402			20,160		2,833		2,622
Expected return on plan assets	(19,285		)	(22,435	)	—		—
Amortization of prior service cost (credit)	741			767		(293	)	(29	)
Recognized actuarial loss	10,538			15,593		—		—
Net periodic benefit expense	$	19,584		20,846		3,801		4,072

Incentive Plans (Tables)

9 Months Ended

Sep. 30, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Plans, Amounts Recognized

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

Earnings per Share (Tables)

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Weighted-Average Shares Outstanding for Computation of Basic and Diluted Income per Common Share

The following table reports the weighted-average shares outstanding used for these computations.



	Three Months Ended September 30,		Nine Months Ended September 30,
(Weighted-average shares)	2019	2018	2019	2018
Basic method	160,365,705	173,047,246	167,310,202	172,949,450
Dilutive stock options and restricted stock units	614,333	1,128,021	795,025	1,252,310
Diluted method	160,980,038	174,175,267	168,105,227	174,201,760

Anti Dilutive Securities Not Included in Computation of Diluted EPS



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Antidilutive stock options excluded from diluted shares	2,903,768		2,870,549		3,016,361		3,544,087
Weighted average price of these options	$	44.65	$	54.06	$	45.38	$	50.49

Income Taxes (Tables)

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Effective Income Tax Rates

For the three and nine-month periods ended September 30, 2019 and 2018, the Company’s effective income tax rates were as follows:



	2019	2018
Three months ended September 30,	10.6%	24.1%
Nine months ended September 30,	12.1%	(300.5)%

Financial Instruments and Risk Management (Tables)

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivative Instruments Not Designated as Hedging Instruments

At September 30, 2019 and December 31, 2018, the fair value of derivative instruments not designated as hedging instruments are presented in the following table.

September 30, 2019

December 31, 2018

(Thousands of dollars)

Asset (Liability) Derivatives

Type of Derivative Contract

Balance Sheet Location

Fair Value

Balance Sheet Location

Fair Value

Commodity

Accounts receivable

104,358

Accounts receivable

3,837

Recognized Gains and Losses for Derivative Instruments Not Designated as Hedging Instruments



		Gain (Loss)				Gain (Loss)
(Thousands of dollars)		Three Months Ended September 30,				Nine months ended September 30,
Type of Derivative Contract	Statement of Operations Location	2019		2018		2019	2018
Commodity	Gain (loss) on crude contracts	$	63,247	(2,223	)	121,163	(69,349	)

Carrying Value of Assets and Liabilities Recorded at Fair Value on Recurring Basis

The carrying value of assets and liabilities recorded at fair value on a recurring basis at September 30, 2019 and December 31, 2018, are presented in the following table.



	September 30, 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	$	—	104,358	—	104,358	—	3,837	—	3,837
	$	—	104,358	—	104,358	—	3,837	—	3,837

Liabilities:
Nonqualified employee savings plans	$	15,499	—	—	15,499	13,845	—	—	13,845
Contingent consideration	—		—	137,688	137,688	—	—	47,730	47,730
	$	15,499	—	137,688	153,187	13,845	—	47,730	61,575

Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Sep. 30, 2019

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Components of Accumulated Other Comprehensive Loss



(Thousands of dollars)	Foreign Currency Translation Gains (Losses)			Retirement and Postretirement Benefit Plan Adjustments			Deferred Loss on Interest Rate Derivative 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	36,927			—			—			36,927
Reclassifications to income	—			8,277		¹	1,756		²	10,033
Net other comprehensive income (loss)	36,927			8,277			1,756			46,960
Balance at September 30, 2019	$	(382,925	)	(173,759	)		(6,143	)		(562,827	)

Business Segments (Tables)

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Segment Information



(Millions of dollars)	Total Assets at September 30, 2019		Three Months Ended September 30, 2019			Three Months Ended September 30, 2018
(Millions of dollars)	Total Assets at September 30, 2019		External Revenues	Income (Loss)		External Revenues		Income (Loss)
Exploration and production ¹
United States	$	8,149.5	656.8	170.8		357.8		91.6
Canada	2,212.5		95.0	(9.1	)	114.9		12.5
Other	253.3		1.9	(3.7	)	19.9		1.3
Total exploration and production	10,615.3		753.7	158.0		492.6		105.4
Corporate	1,151.2		63.4	0.3		(2.1	)	(49.3	)
Assets/revenue/income from continuing operations	11,766.5		817.1	158.3		490.5		56.1
Discontinued operations, net of tax	17.2		—	953.4		—		37.8
Total	$	11,783.7	817.1	1,111.7		490.5		93.9



(Millions of dollars)	Nine Months Ended September 30, 2019				Nine Months Ended September 30, 2018
(Millions of dollars)	External Revenues		Income (Loss)		External Revenues		Income (Loss)
Exploration and production ¹
United States	$	1,734.3	420.0		971.7		200.3
Canada	323.8		(7.5	)	357.6		46.7
Other	7.9		(35.4	)	19.9		(28.8	)
Total exploration and production	2,066.0		377.1		1,349.2		218.2
Corporate	125.6		(97.0	)	(61.4	)	(96.7	)
Assets/revenue/income from continuing operations	2,191.6		280.1		1,287.8		121.5
Discontinued operations, net of tax	—		1,027.6		—		186.2
Total	$	2,191.6	1,307.7		1,287.8		307.7

¹ Additional details about results of oil and gas operations are presented in the tables on pages 31 and 32.

Leases (Tables)

9 Months Ended

Sep. 30, 2019

Lessee Disclosure [Abstract]

Summary of Lease Related Expenses

Expenses related to finance and operating leases included in the Consolidated Financial Statements are as follows:



(Thousands of dollars)	Financial Statement Category	Three Months Ended September 30, 2019			Nine Months Ended September 30, 2019
Operating lease ^1,2	Lease operating expenses	$	62,260		178,164
Operating lease ²	Selling and general expense	2,700			9,044
Operating lease ²	Other operating expense	1,011			1,905
Operating lease ²	Property, plant and equipment	53,117			108,679
Operating lease ²	Asset retirement obligations	—			3,024
Finance lease
Amortization of asset	Depreciation, depletion and amortization	—			420
Interest on lease liabilities	Interest expense, net	—			202
Sublease income	Other income	(395		)	(1,034	)
Net lease expense		$	118,693		300,404

Schedule of Maturity of Lease Liabilities

Maturity of Lease Liabilities໿



(Thousands of dollars)	Operating Leases ¹			Finance Leases		Total
2019	$	53,597		267		53,864
2020	136,283			1,069		137,352
2021	57,190			1,069		58,259
2022	54,955			1,069		56,024
2023	54,453			1,069		55,522
Remaining	471,202			5,610		476,812
Total future minimum lease payments	827,680			10,153		837,833
Less imputed interest	(253,403		)	(1,985	)	(255,388	)
Present value of lease liabilities²	$	574,277		8,168		582,445

² Includes both the current and long-term portion of the lease liabilities.

Summary of Lease Term and Discount Rate

Lease Term and Discount Rate



	September 30, 2019
Weighted average remaining lease term:
Operating leases	11 years
Finance leases	10 years
Weighted average discount rate:
Operating leases	4.8	%
Finance leases	4.7	%

Summary of Other Lease Information

Other Information໿



(Thousands of dollars)	Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	140,424
Operating cash flows from finance leases	306
Financing cash flows from finance leases	510
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	31,281

Acquisition (Tables)

9 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

Preliminary Purchase Price Allocation

The following table contains the preliminary purchase price allocations at fair value:



(Thousands of dollars)	PAI			LLOG
Cash consideration paid	$	775,413		1,226,261
Fair value of net assets contributed	154,469			—
Contingent consideration	52,540			89,444
NCI in acquired assets	245,605			—
Total purchase consideration	$	1,228,027		1,315,705
(Thousands of dollars)
Fair value of Property, plant and equipment	$	1,610,790		1,340,206
Other assets	5,628			12,771
Less: Asset retirement obligations	(388,391		)	(37,272	)
Total net assets	$	1,228,027		1,315,705

Pro Forma Financial Information

The information below reflects pro forma adjustments based on available information and certain assumptions that we believe are reasonable. The pro forma results of operations do not include any cost savings or other synergies that we expect to realize from the transaction or any estimated costs that have been, or will be, incurred by us to integrate the PAI assets. The pro forma condensed combined financial information has been included for comparative purposes and is not necessarily indicative of the results that might have occurred had the transaction taken place on January 1, 2018; furthermore, the financial information is not intended to be a projection of future results.



(Thousands of dollars, except per share amounts)	Three Months Ended September 30, 2018		Nine Months Ended September 30, 2018
Revenues	$	855,689	2,383,296
Net Income Attributable to Murphy	266,275		823,704

Net Income Attributable to Murphy per Common Share
Basic	$	1.54	4.76
Diluted	1.53		4.73

Nature of Business and Interim Financial Statements Nature of Business and Interim Financial Statements (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($) entity
Accounting Policies [Abstract]
Ownership interest in variable interest entities	0.50%
Number of variable interest entities (in entities) \| entity	2
Net investment in Delta House \| $	$ 3.7

New Accounting Principles and Recent Accounting Pronouncements Narrative (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Jan. 01, 2019

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

Dec. 31, 2018

^[1]

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Operating lease assets

$ 618,100

$ 565,987

$ 0

Current operating lease liabilities

155,500

117,071

$ 0

Non-current lease liabilities

468,400

Retained Earnings

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Cumulative-effect adjustment to retained earnings

$ 116,800

$ 0

$ 116,768

$ 0

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

Revenue from Contracts with Customers (Narrative) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($) item segment	Dec. 31, 2018 USD ($)
Revenue from Contract with Customer [Abstract]
Number of geographic segments \| segment	2
Number of revenue streams \| item	3
Receivables from contracts with customers \| $	$ 146.4	$ 147.6

Revenue from Contracts with Customers (Disaggregation of Revenue) (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

Gain (loss) on crude contracts

$ 750,337

$ 475,458

^[1]

$ 2,060,127

$ 1,330,399

^[1]

63,247

^[2]

(2,223)

^[1]

121,163

(69,349)

^[1]

Gain on sale of assets and other income

3,493

17,276

^[1]

10,283

26,713

^[1]

Total revenues

817,077

490,511

^[1]

2,191,573

1,287,763

^[1]

Net crude oil and condensate revenue

Net natural gas liquids revenue

680,132

395,670

1,850,542

1,107,855

16,722

26,936

49,668

68,690

Net natural gas revenue

United States | Net crude oil and condensate revenue

53,483

52,852

159,917

153,854

United States | Net natural gas liquids revenue

219,515

227,022

547,756

612,194

United States | Net natural gas revenue

5,557

19,196

22,497

48,615

United States Offshore | Net crude oil and condensate revenue

5,848

8,833

20,762

25,670

United States Offshore | Net natural gas liquids revenue

398,518

95,059

1,090,462

264,174

United States Offshore | Net natural gas revenue

8,414

3,600

18,184

9,013

Canada | Net crude oil and condensate revenue

15,879

3,965

29,575

11,161

Canada | Net natural gas liquids revenue

31,758

34,504

88,730

87,018

Canada | Net natural gas revenue

2,751

4,140

8,987

11,062

Canada Offshore | Net crude oil and condensate revenue

31,756

40,054

109,580

117,023

Other | Net crude oil and condensate revenue

28,408

35,929

115,686

141,313

$ 1,933

$ 3,156

$ 7,908

$ 3,156

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

Revenue from Contracts with Customers (Current Long-Term Contracts Outstanding) (Details)	Sep. 30, 2019 MMcf / d Boe / d
Canada \| Dedicated acreage delivery in GOM
Disaggregation of Revenue [Line Items]
Approximate Volumes	38
Q4 2021 \| United States
Disaggregation of Revenue [Line Items]
Approximate Volumes \| Boe / d	17,000
Q4 2021 \| Canada \| Dedicated acreage delivery in GOM
Disaggregation of Revenue [Line Items]
Approximate Volumes	10
Q4 2020 \| Canada \| Deliveries from dedicated acreage in Eagle Ford
Disaggregation of Revenue [Line Items]
Approximate Volumes	59
Q4 2020 \| Canada \| Dedicated acreage delivery in GOM
Disaggregation of Revenue [Line Items]
Approximate Volumes	60
Q4 2024 \| Canada \| Dedicated acreage delivery in GOM
Disaggregation of Revenue [Line Items]
Approximate Volumes	30
Q4 2026 \| Canada \| Dedicated acreage delivery in GOM
Disaggregation of Revenue [Line Items]
Approximate Volumes	11

Property, Plant and Equipment Narrative - (Details)
$ in Thousands

9 Months Ended

12 Months Ended

Jul. 31, 2019

USD ($)

entity

Sep. 30, 2019

USD ($)

Sep. 30, 2018

USD ($)

Dec. 31, 2018

USD ($)

Dec. 31, 2016

USD ($)

Jan. 01, 2019

USD ($)

Dec. 31, 2017

USD ($)

Exploratory well costs capitalized more than one year

Well Costs

$ 280,735

$ 189,928

$ 207,855

$ 155,103

216,000

Proceeds from sales of property, plant and equipment

19,072

921

^[1]

Gain (loss) on sale of assets

363

^[1]

Athabasca Oil Corporation | Canadian Subsidiary

Cost of acquired assets, carried interest

$ 168,000

Carried interest paid

131,600

Malaysia Subsidiaries

Number of businesses divested | entity

Cash received from divestiture

$ 2,000,000

Gain (loss) on disposition of business

960,000

Contingent bonus payment

$ 100,000

Montney Natural Gas Fields

Proceeds from sales of property, plant and equipment

$ 414,100

Gain (loss) on sale of assets

$ 5,700

187,000

Deferred gain on sale of property

$ 116,800

Brunei

Exploratory well costs capitalized more than one year

57,400

Vietnam

Exploratory well costs capitalized more than one year

67,500

Gulf of Mexico

Exploratory well costs capitalized more than one year

63,600

United States

Exploratory well costs capitalized more than one year

$ 27,500

Kaybob Duvernay Lands, Alberta | Canadian Subsidiary

Interest in assets acquired

70.00%

Placid Montney Lands, Alberta | Canadian Subsidiary

Interest in assets acquired

30.00%

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

Property, Plant and Equipment Net Changes in Capitalized Exploratory Well Costs - (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Property, Plant and Equipment [Abstract]
Beginning balance at January 1	$ 207,855	$ 155,103
Additions pending the determination of proved reserves	86,025	41,560
Reclassifications to proved properties based on the determination of proved reserves	0	(2,214)
Capitalized exploratory well costs charged to expense	(13,145)	(4,521)
Balance at September 30	$ 280,735	$ 189,928

Property, Plant and Equipment Aging of Capitalized Exploratory Well Costs - (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019 USD ($) well project	Sep. 30, 2018 USD ($) well project	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items]
Amount \| $	$ 280,735	$ 189,928	$ 207,855	$ 155,103
No. of Wells (in wells) \| well	12	9
No. of Projects (in projects) \| project	6	5
Zero to one year
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items]
Amount \| $	$ 64,711	$ 46,813
No. of Wells (in wells) \| well	5	1
No. of Projects (in projects) \| project	5	1
One to two years
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items]
Amount \| $	$ 63,615	$ 41,051
No. of Wells (in wells) \| well	1	3
No. of Projects (in projects) \| project	1	2
Two to three years
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items]
Amount \| $	$ 27,500	$ 5,208
No. of Wells (in wells) \| well	1	1
No. of Projects (in projects) \| project	0	1
Three years or more
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items]
Amount \| $	$ 124,909	$ 96,856
No. of Wells (in wells) \| well	5	4
No. of Projects (in projects) \| project	0	1

Discontinued Operations and Assets Held for Sale (Narrative) (Details) - USD ($) $ in Millions		9 Months Ended
	Jul. 31, 2019	Sep. 30, 2019
Malaysia Subsidiaries
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sale of Malaysia operations	$ 960.0	$ 960.0

Discontinued Operations and Assets Held for Sale (Results of Operations Associated with Discontinued Operations) (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

Discontinued Operations and Disposal Groups [Abstract]

Revenues 1

$ 972,737

$ 201,370

$ 1,328,110

$ 640,806

Lease operating expenses

6,262

49,390

127,138

152,406

Depreciation, depletion and amortization

44,326

33,697

139,566

Other costs and expenses (benefits)

11,078

36,642

81,560

55,665

Income before taxes

955,397

71,012

1,085,715

293,169

Income tax expense

2,029

33,200

58,083

106,981

Income from discontinued operations

$ 953,368

$ 37,812

^[1]

$ 1,027,632

$ 186,188

^[1],[2]

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

- Definition

Amount of tax expense (benefit) related to a discontinued operation. Includes, but is not limited to, tax expense (benefit) related to income (loss) from operations during the phase-out period, tax expense (benefit) related to gain (loss) on disposal, tax expense (benefit) related to gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and tax expense (benefit) related to adjustments of a prior period gain (loss) on disposal.

+ References + Details

- Definition

Amount after tax of income (loss) from a discontinued operation including the portion attributable to the noncontrolling interest. Includes, but is not limited to, the income (loss) from operations during the phase-out period, gain (loss) on disposal, gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and adjustments to a prior period gain (loss) on disposal.

+ References + Details

Discontinued Operations and Assets Held for Sale (Major Categories of Assets and Liabilities Reflected as Held for Sale) (Details) - USD ($)
$ in Thousands

Sep. 30, 2019

Dec. 31, 2018

Current assets

Total current assets associated with assets held for sale

$ 128,415

$ 173,865

^[1]

Non-current assets

Total non-current assets associated with assets held for sale

1,545,008

^[1]

Current liabilities

Accounts payable

8,563

203,236

Other accrued liabilities

448

55,273

Current maturities of long-term debt (finance lease)

696

9,915

Taxes payable

752

18,034

Long-term debt (finance lease)

7,420

Asset retirement obligation

235

Total current liabilities associated with assets held for sale

18,114

286,458

^[1]

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

^[1]

Discontinued Operations, Held-for-sale or Disposed of by Sale

Current assets

Cash

25,307

44,669

Accounts receivable

3,859

103,158

Inventories

406

7,887

Prepaid expenses and other

1,847

18,151

Property, Plant, and Equipment, net

87,556

Deferred income taxes and other assets

9,440

Total current assets associated with assets held for sale

128,415

173,865

Non-current assets

Property, Plant, and Equipment, net

1,325,431

Non-current deferred income taxes and other assets

219,577

Total non-current assets associated with assets held for sale

$ 0

$ 1,545,008

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

Financing Arrangements and Debt (Narrative) (Details)	9 Months Ended
Financing Arrangements and Debt (Narrative) (Details)	Sep. 30, 2019 USD ($)
New Term Credit Facility
Line of Credit Facility [Line Items]
Credit facility maximum borrowing capacity	$ 500,000,000
2018 Revolving Credit Facility
Line of Credit Facility [Line Items]
Credit facility maximum borrowing capacity	1,600,000,000
Amount outstanding	$ 0
Interest rate	3.51%
2018 Revolving Credit Facility \| Letter of Credit
Line of Credit Facility [Line Items]
Amount outstanding	$ 4,600,000

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Other Financial Information (Noncash Operating Working Capital (Increase) Decrease) (Details) - USD ($)
$ in Thousands

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Other Financial Information [Abstract]

Asset retirement obligations

$ 37,300

Net (increase) decrease in operating working capital, excluding cash and cash equivalents:

(Increase) decrease in accounts receivable

(128,698)

$ (32,372)

(Increase) decrease in inventories

4,398

21,367

(Increase) decrease in prepaid expenses

(3,745)

(3)

Increase (decrease) in accounts payable and accrued liabilities

165,224

1,185

Increase (decrease) in income taxes payable

3,078

322

Net (increase) decrease in noncash operating working capital

40,257

(9,501)

^[1]

Supplementary disclosures:

Cash income taxes paid, net of refunds

(4,563)

(4,508)

Interest paid, net of amounts capitalized of $0.2 million in 2019 and $0 in 2018

137,116

113,820

Amounts capitalized

Non-cash investing activities:

Asset retirement costs capitalized

48,203

2,907

(Increase) decrease in capital expenditure accrual

$ (52,659)

$ 27,551

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

Employee and Retiree Benefit Plans (Narrative) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($)
Retirement Benefits [Abstract]
Contributions to benefit plans	$ 24.1
Expected benefit plan contributions to be made during the year	$ 8.3

Employee and Retiree Benefit Plans (Components of Net Periodic Benefit Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 2,064	$ 2,252	$ 6,188	$ 6,761
Interest cost	7,151	6,716	21,402	20,160
Expected return on plan assets	(6,455)	(7,476)	(19,285)	(22,435)
Amortization of prior service cost (credit)	248	254	741	767
Recognized actuarial loss	3,516	5,197	10,538	15,593
Net periodic benefit expense	6,524	6,943	19,584	20,846
Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	421	492	1,261	1,479
Interest cost	945	874	2,833	2,622
Expected return on plan assets	0	0	0	0
Amortization of prior service cost (credit)	(98)	(10)	(293)	(29)
Recognized actuarial loss	0	0	0	0
Net periodic benefit expense	$ 1,268	$ 1,356	$ 3,801	$ 4,072

Incentive Plans (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended	9 Months Ended
	Feb. 28, 2019	Mar. 31, 2019	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Threshold of Deductible Compensation for Executive Officers			$ 1.0
2012 Long-Term Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares available for issuance (in shares)			6,750,000
Annual rate for maximum number of shares available for issuance			1.00%
Performance-Based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in period (in shares)		957,600
Performance-Based RSUs \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value per share at grant date (in USD per share)		$ 28.09
Time-Based RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in period (in shares)		327,900
Fair value per share at grant date (in USD per share)	$ 28.16
Time-Based RSUs \| Director \| Non-Employee Director Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in period (in shares)	78,716
Fair value per share at grant date (in USD per share)	$ 27.95
Cash-Settled RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in period (in shares)	1,025,900

Incentive Plans (Share-Based Plans, Amounts Recognized) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Compensation charged against income before tax benefit	$ 39,884	$ 36,348
Related income tax benefit recognized in income	$ 6,204	$ 5,532

Earnings per Share (Weighted-Average Shares Outstanding for Computation of Basic and Diluted Income per Common Share) (Details) - shares

3 Months Ended

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

Earnings Per Share [Abstract]

Basic method (in shares)

160,365,705

173,047,246

^[1]

167,310,202

172,949,450

^[1]

Dilutive stock options and restricted stock units (in shares)

614,333

1,128,021

795,025

1,252,310

Diluted method (in shares)

160,980,038

174,175,267

^[1]

168,105,227

174,201,760

^[1]

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

Earnings per Share (Antidilutive Securities Not Included in Computation of Diluted EPS) (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share [Abstract]
Antidilutive stock options excluded from diluted shares (in shares)	2,903,768	2,870,549	3,016,361	3,544,087
Weighted average price of these options (in USD per share)	$ 44.65	$ 54.06	$ 45.38	$ 50.49

Income Taxes (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
Income Taxes (Narrative) (Details) - USD ($) $ in Millions	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2018
Income Tax Contingency [Line Items]
Statutory tax rate	21.00%	21.00%
2017 Tax Act decrease of deferred tax expense			$ (156.0)
2017 Tax Act, increase in taxes payable			36.0
2017 Tax Act, net tax benefit			$ 120.0
Canada Revenue Agency
Income Tax Contingency [Line Items]
Reduction of future deferred tax liability	$ 15.0	$ 13.0

Income Taxes (Effective Income Tax Rates) (Details)	3 Months Ended		9 Months Ended
Income Taxes (Effective Income Tax Rates) (Details)	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Effective income tax rate	10.60%	24.10%	12.10%	(300.50%)

Financial Instruments and Risk Management (Narrative) (Details) $ in Millions	1 Months Ended	6 Months Ended	9 Months Ended
	Oct. 30, 2019 barrels_per_day $ / bbl	Dec. 31, 2019 USD ($)	Sep. 30, 2020 bbl / d	Sep. 30, 2019 USD ($) bbl / d OffsettingPosition contract Acquisition $ / bbl	Sep. 30, 2018 barrels_per_day contract $ / bbl	Jun. 30, 2020 $ / bbl	Dec. 31, 2018 item
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Number of foreign currency derivatives \| contract				0	0
Amount of loss reclassified to interest expense				$ 2.2
Number of businesses acquired (in acquisitions) \| Acquisition				2
Number of offsetting positions (in positions)				0			0
Scenario, Forecast
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative loss		$ 0.7
Commodity derivative contracts
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Daily production commitment (barrels per day)				35,000	21,000
Average Forward Price (in dollars per barrel) \| $ / bbl				60.51	54.88
Interest Rate Swap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Loss deferred for fair value of interest rate derivative contracts, net of tax				$ 6.1
Income taxes on deferred loss on fair value of interest rate derivative contracts				$ 1.6
Notes Due 2022
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Debt instrument term				10 years
Subsequent Event \| Commodity derivative contracts
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Daily production commitment (barrels per day)	45,000		35,000
Average Forward Price (in dollars per barrel) \| $ / bbl	56.42					57.59

Financial Instruments and Risk Management (Fair Value of Derivative Instruments Not Designated as Hedging Instruments) (Details) - Not Designated as Hedging Instrument - Commodity derivative contracts - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Accounts Payable
Derivatives, Fair Value [Line Items]
Liabilities	$ 104,358
Accounts Receivable
Derivatives, Fair Value [Line Items]
Accounts receivable		$ 3,837

Financial Instruments and Risk Management (Recognized Gains and Losses for Derivative Instruments Not Designated as Hedging Instruments) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Not Designated as Hedging Instrument \| Commodity derivative contracts \| Gain (loss) on crude contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on crude contracts	$ 63,247	$ (2,223)	$ 121,163	$ (69,349)

Financial Instruments and Risk Management (Carrying Value of Assets and Liabilities Recorded at Fair Value on Recurring Basis) (Details) $ in Thousands	1 Months Ended	9 Months Ended
	Oct. 30, 2019 barrels_per_day $ / bbl	Sep. 30, 2020 bbl / d	Sep. 30, 2019 USD ($) bbl / d $ / bbl	Sep. 30, 2018 barrels_per_day $ / bbl	Jun. 30, 2020 $ / bbl	Dec. 31, 2018 USD ($)
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets			$ 104,358			$ 3,837
Liabilities			153,187			61,575
Fair Value, Measurements, Recurring \| Commodity derivative contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets			104,358			3,837
Fair Value, Measurements, Recurring \| Nonqualified employee savings plans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities			15,499			13,845
Fair Value, Measurements, Recurring \| Contingent consideration
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities			137,688			47,730
Fair Value, Measurements, Recurring \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets			0			0
Liabilities			15,499			13,845
Fair Value, Measurements, Recurring \| Level 1 \| Commodity derivative contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets			0			0
Fair Value, Measurements, Recurring \| Level 1 \| Nonqualified employee savings plans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities			15,499			13,845
Fair Value, Measurements, Recurring \| Level 1 \| Contingent consideration
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities			0			0
Fair Value, Measurements, Recurring \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets			104,358			3,837
Liabilities			0			0
Fair Value, Measurements, Recurring \| Level 2 \| Commodity derivative contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets			104,358			3,837
Fair Value, Measurements, Recurring \| Level 2 \| Nonqualified employee savings plans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities			0			0
Fair Value, Measurements, Recurring \| Level 2 \| Contingent consideration
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities			0			0
Fair Value, Measurements, Recurring \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets			0			0
Liabilities			137,688			47,730
Fair Value, Measurements, Recurring \| Level 3 \| Commodity derivative contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets			0			0
Fair Value, Measurements, Recurring \| Level 3 \| Nonqualified employee savings plans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities			0			0
Fair Value, Measurements, Recurring \| Level 3 \| Contingent consideration
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities			$ 137,688			$ 47,730
Commodity derivative contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Average Forward Price (in dollars per barrel) \| $ / bbl			60.51	54.88
Oil and Gas Delivery Commitments and Contracts, Daily Production			35,000	21,000
Subsequent Event \| Commodity derivative contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Average Forward Price (in dollars per barrel) \| $ / bbl	56.42				57.59
Oil and Gas Delivery Commitments and Contracts, Daily Production	45,000	35,000

Accumulated Other Comprehensive Loss (Components of Accumulated Other Comprehensive Loss) (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

Accumulated Other Comprehensive Income (Loss) [Line Items]

2019 components of other comprehensive income (loss):

^[1]

$ (609,787)

Before reclassifications to income and retained earnings

36,927

10,033

$ (13,782)

$ 37,355

46,960

$ (75,525)

Foreign Currency Translation Gains (Losses)

(562,827)

Accumulated Other Comprehensive Income (Loss) [Line Items]

2019 components of other comprehensive income (loss):

(419,852)

Before reclassifications to income and retained earnings

36,927

36,927

Retirement and Postretirement Benefit Plan Adjustments

(382,925)

Accumulated Other Comprehensive Income (Loss) [Line Items]

2019 components of other comprehensive income (loss):

(182,036)

Before reclassifications to income and retained earnings

8,277

8,277

Reclassifications before taxes, included in net periodic benefit expense

(173,759)

10,598

Reclassifications, income tax expense

2,321

Deferred Loss on Interest Rate Derivative Hedges

Accumulated Other Comprehensive Income (Loss) [Line Items]

2019 components of other comprehensive income (loss):

(7,899)

Before reclassifications to income and retained earnings

1,756

1,756

Reclassifications before taxes, included in net periodic benefit expense

$ (6,143)

(6,143)

2,223

Reclassifications, income tax expense

$ 467

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

Business Segments (Segment Information) (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

Dec. 31, 2018

^[1]

$ 11,783,667

$ 11,052,587

817,077

$ 490,511

^[2]

2,191,573

$ 1,287,763

^[2]

Assets/revenue/income from continuing operations

1,111,702

93,943

^[2]

1,307,713

307,715

^[2],[3]

11,766,500

817,100

490,500

2,191,600

1,287,800

Discontinued operations, net of tax

158,300

56,100

280,100

121,500

17,200

953,400

37,800

1,027,600

186,200

Corporate

1,151,200

63,400

(2,100)

125,600

(61,400)

Exploration and production | Operating Segments

300

(49,300)

(97,000)

(96,700)

10,615,300

753,700

492,600

2,066,000

1,349,200

Exploration and production | Operating Segments | United States

158,000

105,400

377,100

218,200

8,149,500

656,800

357,800

1,734,300

971,700

Exploration and production | Operating Segments | Canada

170,800

91,600

420,000

200,300

2,212,500

95,000

114,900

323,800

357,600

Exploration and production | Operating Segments | Other

(9,100)

12,500

(7,500)

46,700

253,300

1,900

19,900

7,900

19,900

$ (3,700)

$ 1,300

$ (35,400)

$ (28,800)

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

Leases (Narrative) (Details)	9 Months Ended
Leases (Narrative) (Details)	Sep. 30, 2019
Minimum
Remaining lease terms	1 year
Period in which leases have termination option	1 month
Maximum
Remaining lease terms	17 years

Leases (Summary of Lease Related Expenses) (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2019

Sep. 30, 2018

^[1]

Sep. 30, 2019

Sep. 30, 2018

^[1]

Interest on lease liabilities

$ 62,260

$ 178,164

Amortization of asset

420

202

Sublease income

(395)

(1,034)

Net lease expense

118,693

300,404

Variable lease expense

9,000

22,800

Property, plant and equipment

147,632

$ 83,751

416,460

$ 253,820

53,117

108,679

Asset retirement obligations

37,400

86,200

3,024

3,000

Lease operating expenses

Selling and general expense

10,900

33,300

2,700

9,044

Other Operating Income (Expense) [Member]

1,000

3,100

$ 1,011

$ 1,905

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

Leases (Schedule of Maturity of Lease Liabilities) (Details) $ in Thousands	Sep. 30, 2019 USD ($)
Operating Leases
2019	$ 53,597
2020	136,283
2021	57,190
2022	54,955
2023	54,453
Remaining	471,202
Total future minimum lease payments	827,680
Less imputed interest	(253,403)
Present value of lease liabilities	574,277
Finance Leases
2019	267
2020	1,069
2021	1,069
2022	1,069
2023	1,069
Remaining	5,610
Total future minimum lease payments	10,153
Less imputed interest	(1,985)
Present value of lease liabilities	8,168
Total
2019	53,864
2020	137,352
2021	58,259
2022	56,024
2023	55,522
Remaining	476,812
Total future minimum lease payments	837,833
Less imputed interest	(255,388)
Present value of lease liabilities	582,445
Minimum lease payments for leases signed but not yet commenced	$ 272,600
Lease duration for leases signed but not yet commenced	20 years

Leases (Summary of Lease Term and Discount Rate) (Details)	Sep. 30, 2019
Weighted average remaining lease term:
Operating leases	11 years
Finance leases	10 years
Weighted average discount rate:
Operating leases	4.80%
Finance leases	4.70%

Leases (Summary of Other Lease Information) (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2019 USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 140,424
Operating cash flows from finance leases	306
Financing cash flows from finance leases	510
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$ 31,281

Acquisition (Narrative) (Details)
$ in Thousands

1 Months Ended

3 Months Ended

9 Months Ended

Jun. 30, 2019

USD ($)

Dec. 31, 2018

USD ($)

MMBoe

Sep. 30, 2019

USD ($)

Sep. 30, 2018

USD ($)

^[1]

Sep. 30, 2019

USD ($)

Sep. 30, 2018

USD ($)

^[1]

May 31, 2019

MMBoe

Income (loss) from continuing operations before income taxes

$ 750,337

$ 475,458

$ 2,060,127

$ 1,330,399

177,116

$ 73,968

318,800

$ 30,347

LLOG Exploration Offshore L.L.C. and LLOG Bluewater Holdings, L.L.C.

Cash consideration paid to PAI

Proved reserves | MMBoe

$ 1,226,300

$ 1,226,261

Income (loss) from continuing operations before income taxes

126,400

159,800

29,200

34,300

LLOG Exploration Offshore L.L.C. and LLOG Bluewater Holdings, L.L.C. | Sales Thresholds 2019 to 2022

Contingent consideration, maximum

200,000

LLOG Exploration Offshore L.L.C. and LLOG Bluewater Holdings, L.L.C. | First Oil from Development Projects

Contingent consideration, maximum

50,000

Petrobas America Inc

Cash consideration paid to PAI

Proved reserves | MMBoe

$ 775,413

Percentage of interest in subsidiary transferred

20.00%

Income (loss) from continuing operations before income taxes

263,700

710,200

$ 99,600

$ 369,700

Petrobas America Inc | Sales Thresholds 2019 to 2022

Contingent consideration, maximum

$ 150,000

MP Gulf Of Mexico LLC

Parent ownership interest

80.00%

Petrobas America Inc | MP Gulf Of Mexico LLC