mur-20210506
false000071742300007174232021-05-062021-05-06

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): May 06, 2021
MURPHY OIL CORPORATION
(Exact name of registrant as specified in its charter)
Delaware1-859071-0361522
(State or other jurisdiction of incorporation)(Commission File Number)(I.R.S. Employer Identification No.)
9805 Katy Fwy, Suite G-200
Houston,Texas77024
(Address of principal executive offices, including zip code)
(281)
675-9000
Registrant’s telephone number, including area code
Not applicable
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
 Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $1.00 Par ValueMURNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).                                             Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.                                               
    



Item 2.02.   Results of Operations and Financial Condition
The following information is furnished pursuant to Item 2.02, “Results of Operations and Financial Condition.”
On May 6, 2021 Murphy Oil Corporation issued a news release announcing its financial and operating results for the quarter ended March 31, 2021.    The full text of this news release is attached hereto as Exhibit 99.1.
Item 9.01.  Financial Statements and Exhibits
(d)Exhibits



Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
MURPHY OIL CORPORATION
Date: May 6, 2021
By:
/s/ Christopher D. Hulse
Christopher D. Hulse
Vice President and Controller



Exhibit Index
Exhibit
No.
101. INSXBRL Instance Document
101. SCHXBRL Taxonomy Extension Schema Document
101. CALXBRL Taxonomy Extension Calculation Linkbase Document
101. DEFXBRL Taxonomy Extension Definition Linkbase Document
101. LABXBRL Taxonomy Extension Labels Linkbase Document
101. PREXBRL Taxonomy Extension Presentation Linkbase


Document

EXHIBIT 99.1

MURPHY OIL CORPORATION ANNOUNCES FIRST QUARTER 2021 RESULTS

Executes Successful Financial Transactions and Operations,
Achieving First Step in Delevering
HOUSTON, Texas, May 6, 2021 - Murphy Oil Corporation (NYSE: MUR) today announced its financial and operating results for the first quarter ended March 31, 2021, including a net loss attributable to Murphy of $287 million, or $1.87 net loss per diluted share. Excluding total after-tax charges of $297 million, comprised primarily of $128 million of non-cash asset impairments on the non-operated Terra Nova asset, $121 million unrealized non-cash mark-to-market losses on crude oil derivative contracts and $29 million cost of early redemption of debt, adjusted net income was $10 million, or $0.06 net income per diluted share.
Unless otherwise noted, the financial and operating highlights and metrics discussed in this commentary exclude noncontrolling interest. 1
Highlights for the first quarter include:
• Issued $550 million of 6.375 percent senior notes due 2028, and used proceeds and cash to redeem $576 million of senior notes due 2022
• Monetized the King’s Quay floating production system and fully repaid borrowings under the $1.6 billion senior unsecured credit facility
• Achieved total debt reduction of $233 million, or 8 percent, for the quarter from year-end 2020
• Produced 155 thousand barrels of oil equivalent per day, above the midpoint of guidance, with 88 thousand barrels of oil per day
• Acquired additional working interests in the non-operated Lucius field for $20 million, with expected payout in approximately one year
• Announced changes to the compensation program, including establishing a free cash flow metric and adding a greenhouse gas emissions reduction metric to the company’s Annual Incentive Plan
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Subsequent to the first quarter, commenced drilling:
• The first well in the Khaleesi, Mormont, Samurai drilling program in the Gulf of Mexico, remaining on track for first oil in mid-2022
• The non-operated Silverback exploration well in the Gulf of Mexico, which will test a play-opening trend near existing Murphy-operated assets
“Murphy is off to a great start for the year, completing strategic financial transactions that delevered our balance sheet and extended our maturity profile. I am especially proud of our operational accomplishments across all of our assets, with a significant beat on oil production despite the severe winter storm in February. We remain in full execution mode on all of our Gulf of Mexico projects. Further, I am proud to see our exploration opportunities progress, with wells starting now in the Gulf of Mexico and later this year in Brazil,” said Roger W. Jenkins, President and Chief Executive Officer.
FIRST QUARTER 2021 RESULTS
The company recorded a net loss, attributable to Murphy, of $287 million, or $1.87 net loss per diluted share, for the first quarter 2021. This includes a realized after-tax loss on crude oil derivative contracts of $48 million. Adjusted net income, which excludes both the results of discontinued operations and certain other items that affect comparability of results between periods, was $10 million, or $0.06 net income per diluted share for the same period.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations attributable to Murphy was $255 million, or $18.65 per barrel of oil equivalent (BOE) sold. Adjusted earnings before interest, tax, depreciation, amortization and exploration expenses (EBITDAX) from continuing operations attributable to Murphy was $267 million, or $19.51 per BOE sold.
First quarter production averaged 155 thousand barrels of oil equivalent per day (MBOEPD) with 57 percent oil and 63 percent liquids. Details for first quarter results can be found in the attached schedules.
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FINANCIAL POSITION
During the first quarter, Murphy issued $550 million of 6.375 percent senior notes due 2028. Proceeds, along with cash on hand, were used to redeem $259 million of senior notes due June 2022 and $317 million of senior notes due December 2022, totaling $576 million.
Overall, Murphy has reduced its total debt by $233 million, or 8 percent, from year-end 2020. Total debt of $2.756 billion consists of long-term, fixed-rate notes with a weighted average maturity of 7.7 years and a weighted average coupon of 6.3 percent.
Murphy had approximately $1.8 billion of liquidity, comprised of the $1.6 billion senior unsecured credit facility and approximately $231 million of cash and cash equivalents, at the end of the first quarter.
“As announced in March, we sold our 50 percent interest in the King’s Quay floating production system for $268 million in proceeds, which were used to fully repay borrowings on our credit facility. This transaction, in conjunction with our senior notes offering and redemption earlier in the month, allowed us to realize a meaningful debt reduction during the first quarter, completing the first step in our delevering goal and setting a path for further reductions later this year with current commodity prices,” stated Jenkins.
OPERATIONS SUMMARY
Onshore
The onshore business produced approximately 80 MBOEPD in the first quarter.
Eagle Ford Shale – Production averaged 30 MBOEPD with 74 percent oil volumes during the quarter. Murphy brought online 16 operated wells in Karnes and achieved an average gross 30-day (IP30) rate of approximately 1,400 BOEPD, with the two best wells achieving approximately 2,000 BOEPD IP30 rates in the Lower Eagle Ford Shale. Most significantly, a three-well pad targeting the Austin Chalk zone has meaningfully outperformed Murphy’s expectations, with production averaging approximately 1,400 BOEPD IP30 rate.
Murphy also had 12 non-operated Karnes wells and four non-operated Tilden wells come online during the quarter.
Tupper Montney – In the first quarter, natural gas production averaged 234 million cubic feet per day (MMCFPD). The company brought online four wells as planned.
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Kaybob Duvernay – First quarter production averaged 9 MBOEPD with 74 percent liquids volumes. No activity is scheduled to occur in 2021.
Offshore
The offshore business produced 76 MBOEPD for the first quarter, comprised of 79 percent oil. This excludes production from noncontrolling interest and an asset held for sale.
Gulf of Mexico – During the quarter, production averaged 71 MBOEPD, consisting of 78 percent oil. Murphy completed certain operated and non-operated subsea equipment repairs as previously disclosed, and all wells were brought back online. Additionally, the non-operated Lucius 918 #3 and Lucius 919 #9 wells in Keathley Canyon came online during the quarter, and the non-operated Kodiak #3 well (Mississippi Canyon 727) was completed, with first oil achieved in the second quarter 2021.
Murphy increased its working interest in the Lucius field to 12.7 percent from 9.2 percent for $20 million, providing incremental production of approximately 1.1 MBOEPD for the quarter with an expected payback time of approximately one year. Major projects continued to progress, with the drilling program launching at Khaleesi, Mormont, Samurai in early second quarter. In addition, the first producer well for the St. Malo waterflood was brought online during the first quarter, and drilling began on the final well of the four-well campaign in early second quarter.
Canada – Production averaged 5 MBOEPD in the first quarter, comprised of 100 percent oil. Operations at the Terra Nova field have remained offline since December 2019. During first quarter 2021, Murphy recorded a non-cash after-tax impairment charge of $128 million on the asset due to the current status of operating and production plans. Partners continue to evaluate options that could support a long-term production plan.
EXPLORATION
Gulf of Mexico – Subsequent to quarter-end, Murphy and its operating partner spud the Silverback exploration well (Mississippi Canyon 35).
“In late April, our partner spud the Silverback well in the Gulf of Mexico. This well will test an attractive new play-opening trend and, if successful, could provide additional high-potential opportunities to our large adjacent acreage position,” stated Jenkins.
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CAPITAL EXPENDITURE AND PRODUCTION GUIDANCE
Murphy maintains its 2021 capital expenditures (CAPEX) guidance of $675 to $725 million and is tightening full year 2021 production to the range of 157 to 165 MBOEPD. Full year production is forecast to be comprised of approximately 54 percent oil and 60 percent total liquids volumes. Production for second quarter 2021 is estimated to be in the range of 160 to 168 MBOEPD. Both production and CAPEX guidance ranges exclude Gulf of Mexico noncontrolling interest (NCI).
CAPEX by Quarter ($ MMs)
1Q 2021A* 2Q 2021E 3Q 2021E 4Q 2021E FY 2021E
$230$190$160$120$700
Accrual CAPEX, based on midpoint of guidance range and excluding NCI
* Excludes King’s Quay CAPEX of $17 million, includes $20 million Lucius working interest acquisition
“We remain on track for executing our 2021 program within our original stated capital guidance,” stated Jenkins. “I am pleased with the success we have achieved in the first quarter, especially with capital efficiencies and production, along with our offshore projects moving forward according to plan. This allows us to focus on generating free cash flow to continue delevering and return cash to shareholders through our longstanding dividend.”
CONFERENCE CALL AND WEBCAST SCHEDULED FOR MAY 6, 2021
Murphy will host a conference call to discuss first quarter 2021 financial and operating results on Thursday, May 6, 2021, at 9:00 a.m. EDT. The call can be accessed either via the Internet through the Investor Relations section of Murphy Oil’s website at http://ir.murphyoilcorp.com or via the telephone by dialing toll free 1-888-886-7786, reservation number 41671800.
FINANCIAL DATA
Summary financial data and operating statistics for first quarter 2021, with comparisons to the same period from the previous year, are contained in the following schedules. Additionally, a schedule indicating the impacts of items affecting comparability of results between periods, a reconciliation of EBITDA and EBITDAX between periods, as well as guidance for the second quarter and full year 2021, are also included.
1In accordance with GAAP, Murphy reports the 100 percent interest, including a 20 percent noncontrolling interest (NCI), in its subsidiary, MP Gulf of Mexico, LLC (MP GOM). The GAAP financials include the NCI portion of revenue, costs, assets and liabilities and cash flows. Unless
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otherwise noted, the financial and operating highlights and metrics discussed in this news release, but not the accompanying schedules, exclude the NCI, thereby representing only the amounts attributable to Murphy.
ABOUT MURPHY OIL CORPORATION
As an independent oil and natural gas exploration and production company, Murphy Oil Corporation believes in providing energy that empowers people by doing right always, staying with it and thinking beyond possible. Murphy challenges the norm, taps into its strong legacy and uses its foresight and financial discipline to deliver inspired energy solutions. The company sees a future where it is an industry leader who is positively impacting lives for the next 100 years and beyond. Additional information can be found on the company’s website at www.murphyoilcorp.com.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified through the inclusion of words such as “aim”, “anticipate”, “believe”, “drive”, “estimate”, “expect”, “expressed confidence”, “forecast”, “future”, “goal”, “guidance”, “intend”, “may”, “objective”, “outlook”, “plan”, “position”, “potential”, “project”, “seek”, “should”, “strategy”, “target”, “will” or variations of such words and other similar expressions. These statements, which express management’s current views concerning future events or results, are subject to inherent risks and uncertainties. Factors that could cause one or more of these future events or results not to occur as implied by any forward-looking statement include, but are not limited to: macro conditions in the oil and gas industry, including supply/demand levels, actions taken by major oil exporters and the resulting impacts on commodity prices; increased volatility or deterioration in the success rate of our exploration programs or in our ability to maintain production rates and replace reserves; reduced customer demand for our products due to environmental, regulatory, technological or other reasons; adverse foreign exchange movements; political and regulatory instability in the markets where we do business; the impact on our operations or market of health pandemics such as COVID-19 and related government responses; other natural hazards impacting our operations or markets; any other deterioration in our business, markets or prospects; any failure to obtain necessary regulatory approvals; any inability to service or refinance our outstanding debt or to access debt markets at acceptable prices; or adverse developments in the U.S. or global capital markets, credit markets or
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economies in general. For further discussion of factors that could cause one or more of these future events or results not to occur as implied by any forward-looking statement, see “Risk Factors” in our most recent Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K that we file, available from the SEC’s website and from Murphy Oil Corporation’s website at http://ir.murphyoilcorp.com. Murphy Oil Corporation undertakes no duty to publicly update or revise any forward-looking statements.
NON-GAAP FINANCIAL MEASURES
This news release contains certain non-GAAP financial measures that management believes are useful tools for internal use and the investment community in evaluating Murphy Oil Corporation’s overall financial performance. These non-GAAP financial measures are broadly used to value and compare companies in the crude oil and natural gas industry. Not all companies define these measures in the same way. In addition, these non-GAAP financial measures are not a substitute for financial measures prepared in accordance with GAAP and should therefore be considered only as supplemental to such GAAP financial measures. Please see the attached schedules for reconciliations of the differences between the non-GAAP financial measures used in this news release and the most directly comparable GAAP financial measures.
Investor Contacts:
Kelly Whitley, kelly_whitley@murphyoilcorp.com, 281-675-9107
Megan Larson, megan_larson@murphyoilcorp.com, 281-675-9470


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MURPHY OIL CORPORATION
SUMMARIZED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Three Months Ended
March 31,
(Thousands of dollars, except per share amounts)
20212020
Revenues and other income
Revenue from sales to customers$592,527 600,558 
(Loss) gain on crude contracts(214,385)400,672 
Gain on sale of assets and other income1,843 2,498 
Total revenues and other income379,985 1,003,728 
Costs and expenses
Lease operating expenses147,164 209,148 
Severance and ad valorem taxes9,231 9,422 
Transportation, gathering and processing 42,912 44,367 
Exploration expenses, including undeveloped lease amortization11,780 20,126 
Selling and general expenses29,503 36,772 
Depreciation, depletion and amortization198,278 306,102 
Accretion of asset retirement obligations10,492 9,966 
Impairment of assets171,296 967,530 
Other expense (benefit)21,079 (45,188)
Total costs and expenses641,735 1,558,245 
Operating loss from continuing operations(261,750)(554,517)
Other income (loss)
Interest and other income (loss)(5,341)241 
Interest expense, net(88,100)(41,097)
Total other loss(93,441)(40,856)
Loss from continuing operations before income taxes(355,191)(595,373)
Income tax benefit(88,159)(91,533)
Loss from continuing operations(267,032)(503,840)
Income (loss) from discontinued operations, net of income taxes208 (4,862)
Net loss including noncontrolling interest(266,824)(508,702)
Less: Net income (loss) attributable to noncontrolling interest20,614 (92,598)
NET LOSS ATTRIBUTABLE TO MURPHY$(287,438)(416,104)
LOSS PER COMMON SHARE – BASIC
Continuing operations$(1.87)(2.68)
Discontinued operations— (0.03)
Net loss$(1.87)(2.71)
LOSS PER COMMON SHARE – DILUTED
Continuing operations$(1.87)(2.68)
Discontinued operations— (0.03)
Net loss$(1.87)(2.71)
Cash dividends per Common share0.125 0.25 
Average Common shares outstanding (thousands)
Basic153,953 153,313 
Diluted153,953 153,313 

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MURPHY OIL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
Three Months Ended
March 31,
(Thousands of dollars)
20212020
Operating Activities
Net loss including noncontrolling interest$(266,824)(508,702)
Adjustments to reconcile net loss to net cash provided by continuing operations activities
(Income) loss from discontinued operations(208)4,862 
Depreciation, depletion and amortization198,278 306,102 
Previously suspended exploration costs 717 97 
Amortization of undeveloped leases4,602 7,478 
Accretion of asset retirement obligations10,492 9,966 
Impairment of assets171,296 967,530 
Deferred income tax benefit(88,867)(81,373)
Mark to market loss (gain) on contingent consideration14,923 (59,151)
Mark to market loss (gain) on crude contracts153,505 (358,302)
Long-term non-cash compensation12,124 9,805 
Net (increase) decrease in noncash working capital(9,052)107,827 
Other operating activities, net36,780 (13,482)
Net cash provided by continuing operations activities237,766 392,657 
Investing Activities
Property additions and dry hole costs(240,545)(354,834)
Property additions for King's Quay FPS(17,734)(21,296)
Proceeds from sales of property, plant and equipment268,023 — 
Net cash provided (required) by investing activities9,744 (376,130)
Financing Activities
Borrowings on revolving credit facility 140,000 170,000 
Repayment of revolving credit facility (340,000)— 
Retirement of debt(576,358)(3,570)
Debt issuance, net of cost541,980 (613)
Early redemption of debt cost(34,177)— 
Distributions to noncontrolling interest(36,006)(32,399)
Cash dividends paid(19,287)(38,392)
Withholding tax on stock-based incentive awards(3,794)(7,094)
Capital lease obligation payments(178)(168)
Net cash (required) provided by financing activities(327,820)87,764 
Cash Flows from Discontinued Operations 1
Operating activities— (1,202)
Investing activities— 4,494 
Financing activities— — 
Net cash provided by discontinued operations— 3,292 
Effect of exchange rate changes on cash and cash equivalents574 (3,298)
Net (decrease) increase in cash and cash equivalents(79,736)100,993 
Cash and cash equivalents at beginning of period310,606 306,760 
Cash and cash equivalents at end of period$230,870 407,753 
1 Net cash provided by discontinued operations is not part of the cash flow reconciliation.
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MURPHY OIL CORPORATION
SCHEDULE OF ADJUSTED INCOME (LOSS) (unaudited)
Three Months Ended
March 31,
(Millions of dollars, except per share amounts)
20212020
Net loss attributable to Murphy (GAAP)$(287.4)(416.1)
Discontinued operations (income) loss(0.2)4.9 
Loss from continuing operations(287.6)(411.2)
Adjustments (after tax):
Impairment of assets128.0 692.7 
Mark-to-market loss (gain) on crude oil derivative contracts121.3 (283.1)
Early redemption of debt cost29.2 — 
Mark-to-market loss (gain) on contingent consideration11.8 (46.7)
Charges related to Kings Quay transaction3.9 — 
Unutilized rig charges2.2 2.8 
Foreign exchange losses (gains)0.9 (4.0)
Inventory loss— 3.8 
Total adjustments after taxes297.3 365.5 
Adjusted income (loss) from continuing operations attributable to Murphy$9.7 (45.7)
Adjusted income (loss) from continuing operations per average diluted share$0.06 (0.30)
Non-GAAP Financial Measures
Presented above is a reconciliation of Net (loss) income to Adjusted (loss) income from continuing operations attributable to Murphy.  Adjusted (loss) income excludes certain items that management believes affect the comparability of results between periods.  Management believes this is important information to provide because it is used by management to evaluate the Company’s operational performance and trends between periods and relative to its industry competitors.  Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company’s financial results.  Adjusted (loss) income is a non-GAAP financial measure and should not be considered a substitute for Net (loss) income as determined in accordance with accounting principles generally accepted in the United States of America.
Amounts shown above as reconciling items between Net (loss) income and Adjusted (loss) income are presented net of applicable income taxes based on the estimated statutory rate in the applicable tax jurisdiction.  The pretax and income tax impacts for adjustments shown above are as follows by area of operations and exclude the share attributable to non-controlling interests.
Three Months Ended
March 31, 2021
(Millions of dollars)
Pretax
Tax
Net
Exploration & Production:
United States
$22.7 (4.8)17.9 
Canada 171.3 (43.3)128.0 
Total E&P
194.0 (48.1)145.9 
Corporate:
191.7 (40.3)151.4 
Total adjustments
$385.7 (88.4)297.3 
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MURPHY OIL CORPORATION
SCHEDULE OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION
AND AMORTIZATION (EBITDA)
(unaudited)
Three Months Ended
March 31,
(Millions of dollars, except per barrel of oil equivalents sold)
20212020
Net loss attributable to Murphy (GAAP)$(287.4)(416.1)
Income tax benefit(88.2)(91.5)
Interest expense, net88.1 41.1 
Depreciation, depletion and amortization expense ¹188.3 286.2 
EBITDA attributable to Murphy (Non-GAAP)(99.2)(180.3)
Impairment of assets ¹171.3 866.4 
Mark-to-market loss (gain) on crude oil derivative contracts153.5 (358.3)
Mark-to-market loss (gain) on contingent consideration14.9 (59.2)
Accretion of asset retirement obligations10.5 10.0 
Unutilized rig charges2.8 3.5 
Foreign exchange losses (gains)1.3 (4.7)
Discontinued operations (income) loss(0.2)4.9 
Inventory loss— 4.8 
Adjusted EBITDA attributable to Murphy (Non-GAAP)$254.9 287.1 
Total barrels of oil equivalents sold from continuing operations attributable to Murphy (thousands of barrels)13,670 17,071 
Adjusted EBITDA per barrel of oil equivalents sold$18.65 16.82 
1 Depreciation, depletion, and amortization expense used in the computation of EBITDA excludes the portion attributable to the non-controlling interest (NCI). Impairment of assets used in the computation of Adjusted EBITDA excludes the portion attributable to the non-controlling interest.
Non-GAAP Financial Measures
Presented above is a reconciliation of Net (loss) income to Earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA.  Management believes EBITDA and adjusted EBITDA are important information to provide because they are used by management to evaluate the Company’s operational performance and trends between periods and relative to its industry competitors.  Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company’s financial results.  EBITDA and adjusted EBITDA are non-GAAP financial measures and should not be considered a substitute for Net (loss) income or Cash provided by operating activities as determined in accordance with accounting principles generally accepted in the United States of America.    
Presented above is adjusted EBITDA per barrel of oil equivalent sold. Management believes adjusted EBITDA per barrel of oil equivalent sold is important information because it is used by management to evaluate the Company’s profitability of one barrel of oil equivalent sold in that period.   Adjusted EBITDA per barrel of oil equivalent sold is a non-GAAP financial metric.


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MURPHY OIL CORPORATION
SCHEDULE OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION
AND AMORTIZATION AND EXPLORATION (EBITDAX)
(unaudited)
Three Months Ended
March 31,
(Millions of dollars, except per barrel of oil equivalents sold)
20212020
Net loss attributable to Murphy (GAAP)$(287.4)(416.1)
Income tax benefit(88.2)(91.5)
Interest expense, net88.1 41.1 
Depreciation, depletion and amortization expense ¹188.3 286.2 
EBITDA attributable to Murphy (Non-GAAP)(99.2)(180.3)
Exploration expenses11.8 20.1 
EBITDAX attributable to Murphy (Non-GAAP)(87.4)(160.2)
Impairment of assets ¹171.3 866.4 
Mark-to-market loss (gain) on crude oil derivative contracts153.5 (358.3)
Mark-to-market loss (gain) on contingent consideration14.9 (59.2)
Accretion of asset retirement obligations10.5 10.0 
Unutilized rig charges2.8 3.5 
Foreign exchange losses (gains)1.3 (4.7)
Discontinued operations (income) loss(0.2)4.9 
Inventory loss— 4.8 
Adjusted EBITDAX attributable to Murphy (Non-GAAP)$266.7 307.2 
Total barrels of oil equivalents sold from continuing operations attributable to Murphy (thousands of barrels)13,670 17,071 
Adjusted EBITDAX per barrel of oil equivalents sold$19.51 17.99 
1 Depreciation, depletion, and amortization expense used in the computation of EBITDAX excludes the portion attributable to the non-controlling interest. Impairment of assets used in the computation of Adjusted EBITDAX excludes the portion attributable to the non-controlling interest.
Non-GAAP Financial Measures
Presented above is a reconciliation of Net (loss) income to Earnings before interest, taxes, depreciation and amortization, and exploration expenses (EBITDAX) and adjusted EBITDAX. Management believes EBITDAX and adjusted EBITDAX are important information to provide because they are used by management to evaluate the Company’s operational performance and trends between periods and relative to its industry competitors.  Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company’s financial results.  EBITDAX and adjusted EBITDAX are non-GAAP financial measures and should not be considered a substitute for Net (loss) income or Cash provided by operating activities as determined in accordance with accounting principles generally accepted in the United States of America. 
Presented above is adjusted EBITDAX per barrel of oil equivalent sold. Management believes adjusted EBITDAX per barrel of oil equivalent sold is important information because it is used by management to evaluate the Company’s profitability of one barrel of oil equivalent sold in that period.  Adjusted EBITDAX per barrel of oil equivalent sold is a non-GAAP financial metric.

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MURPHY OIL CORPORATION
FUNCTIONAL RESULTS OF OPERATIONS (unaudited)

Three Months Ended
March 31, 2021
Three Months Ended
March 31, 2020
(Millions of dollars)
RevenuesIncome
(Loss)
RevenuesIncome
(Loss)
Exploration and production
United States1
$490.3 119.0 511.5 (696.0)
Canada104.0 (124.3)89.7 (6.9)
Other— (6.9)1.8 (52.3)
Total exploration and production594.3 (12.2)603.0 (755.2)
Corporate(214.3)(254.8)400.7 251.4 
Revenue/loss from continuing operations380.0 (267.0)1,003.7 (503.8)
Discontinued operations, net of tax — 0.2 — (4.9)
Total revenues/net loss including noncontrolling interest$380.0 (266.8)1,003.7 (508.7)
Net loss attributable to Murphy(287.4)(416.1)
1 Includes results attributable to a noncontrolling interest in MP Gulf of Mexico, LLC (MP GOM).

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MURPHY OIL CORPORATION
OIL AND GAS OPERATING RESULTS (unaudited)
THREE MONTHS ENDED MARCH 31, 2021, AND 2020
(Millions of dollars)
United
States 1
Canada
Other
Total
Three Months Ended March 31, 2021
Oil and gas sales and other operating revenues$490.3 104.0 — 594.3 
Lease operating expenses116.1 30.8 0.3 147.2 
Severance and ad valorem taxes8.9 0.3 — 9.2 
Transportation, gathering and processing28.5 14.4 — 42.9 
Depreciation, depletion and amortization149.6 44.8 0.5 194.9 
Accretion of asset retirement obligations9.0 1.5 — 10.5 
Impairment of assets— 171.3 — 171.3 
Exploration expenses
Dry holes and previously suspended exploration costs0.7 — — 0.7 
Geological and geophysical0.6 — 0.2 0.8 
Other exploration0.6 — 5.0 5.6 
1.9 — 5.2 7.1 
Undeveloped lease amortization2.3 0.1 2.2 4.6 
Total exploration expenses4.2 0.1 7.4 11.7 
Selling and general expenses5.5 4.1 1.4 11.0 
Other21.5 3.1 (3.5)21.1 
Results of operations before taxes147.0 (166.4)(6.1)(25.5)
Income tax provisions (benefits)28.0 (42.1)0.8 (13.3)
Results of operations (excluding Corporate segment)$119.0 (124.3)(6.9)(12.2)
Three Months Ended March 31, 2020
Oil and gas sales and other operating revenues$511.5 89.7 1.8 603.0 
Lease operating expenses178.2 30.6 0.3 209.1 
Severance and ad valorem taxes9.1 0.3 — 9.4 
Transportation, gathering and processing34.6 9.8 — 44.4 
Depreciation, depletion and amortization247.5 52.0 0.5 300.0 
Accretion of asset retirement obligations8.6 1.4 — 10.0 
Impairment of assets927.8 — 39.7 967.5 
Exploration expenses
Dry holes and previously suspended exploration costs0.1 — — 0.1 
Geological and geophysical1.3 — 3.7 5.0 
Other exploration0.8 0.2 6.5 7.5 
2.2 0.2 10.2 12.6 
Undeveloped lease amortization5.1 0.2 2.2 7.5 
Total exploration expenses7.3 0.4 12.4 20.1 
Selling and general expenses3.7 4.4 1.6 9.7 
Other(45.7)0.2 (1.2)(46.7)
Results of operations before taxes(859.6)(9.4)(51.5)(920.5)
Income tax provisions (benefits)(163.6)(2.5)0.8 (165.3)
Results of operations (excluding Corporate segment)$(696.0)(6.9)(52.3)(755.2)
1 Includes results attributable to a noncontrolling interest in MP GOM.
14


MURPHY OIL CORPORATION
PRODUCTION-RELATED EXPENSES
(unaudited)

Three Months Ended
March 31,
(Dollars per barrel of oil equivalents sold)
20212020
Continuing operations
United States – Eagle Ford Shale
Lease operating expense
$10.80 10.47 
Severance and ad valorem taxes
3.13 2.42 
Depreciation, depletion and amortization (DD&A) expense
28.45 25.03 
United States – Gulf of Mexico
Lease operating expense 1
12.30 15.03 
Severance and ad valorem taxes0.08 — 
DD&A expense
10.37 16.58 
Canada – Onshore
Lease operating expense
5.72 4.45 
Severance and ad valorem taxes
0.08 0.06 
DD&A expense
8.90 9.65 
Canada – Offshore
Lease operating expense 2
17.00 19.53 
DD&A expense
16.00 12.09 
Total oil and gas continuing operations
Lease operating expense 10.11 11.41 
Severance and ad valorem taxes
0.63 0.51 
DD&A expense
13.62 16.70 
Total oil and gas continuing operations – excluding noncontrolling interest
Lease operating expense 3
9.75 11.05 
Severance and ad valorem taxes
0.67 0.55 
DD&A expense
13.78 16.76 
1 For the three months ended March 31, 2021, lease operating expense (LOE) per barrel of oil equivalents (BOE) sold for the U.S. Gulf of Mexico excluding cost associated with well workovers was $8.41. Workovers for the three months ended March 31, 2021 principally relate to St. Malo.
2 For the three months ended March 31, 2021 and 2020, Canada Offshore LOE per BOE excluding the costs associated with the Terra Nova life extension project was $9.17 and $5.29, respectively.
3 For the three months ended March 31, 2021, total LOE per BOE excluding NCI and costs associated with Gulf of Mexico well workovers was $8.09. Workovers for the three months ended March 31, 2021 principally relate to St. Malo.



15


MURPHY OIL CORPORATION
OTHER FINANCIAL DATA
(unaudited)

Three Months Ended
March 31,
(Millions of dollars)
20212020
Capital expenditures for continuing operations
Exploration and production
United States $211.1 245.4 
Canada30.6 108.2 
Other5.6 20.9 
Total247.3 374.5 
Corporate3.8 3.5 
Total capital expenditures - continuing operations 1
251.1 378.0 
Charged to exploration expenses 2
United States1.9 2.2 
Canada— 0.2 
Other5.2 10.2 
Total charged to exploration expenses - continuing operations7.1 12.6 
Total capitalized $244.0 365.4 
1 For the three months ended March 31, 2021 and 2020, includes noncontrolling interest (NCI) capital expenditures of $3.6 million and $10.3 million, respectively. Also, for the three months ended March 31, 2021 and 2020, includes capital expenditures associated with the King’s Quay project of $17.2 million and $28.8 million, respectively. King’s Quay was sold to ArcLight Capital Partners, LLC (ArcLight) on March 17, 2021 for proceeds of $267.7 million which reimburses the Company for previously incurred capital expenditures.
2 Excludes amortization of undeveloped leases of $4.6 million and $7.5 million for the three months ended March 31, 2021 and 2020, respectively.

16


MURPHY OIL CORPORATION
CONSOLIDATED BALANCE SHEETS
(unaudited)

(Millions of dollars)March 31,
2021
December 31,
2020
ASSETS
Current assets
Cash and cash equivalents$230.9 310.6 
Accounts receivable278.8 262.0 
Inventories66.6 66.1 
Prepaid expenses37.6 33.9 
Assets held for sale77.4 327.7 
Total current assets691.3 1,000.3 
Property, plant and equipment, at cost
8,216.7 8,269.0 
Operating lease assets911.9 927.7 
Deferred income taxes433.6 395.3 
Deferred charges and other assets30.8 28.6 
Total assets$10,284.3 10,620.9 
LIABILITIES AND EQUITY
Current liabilities
Accounts payable$538.3 407.1 
Income taxes payable17.4 18.0 
Other taxes payable18.0 22.5 
Operating lease liabilities103.0 103.8 
Other accrued liabilities174.6 150.6 
Liabilities associated with assets held for sale14.1 14.4 
Total current liabilities865.4 716.3 
Long-term debt2,755.6 2,988.1 
Asset retirement obligations904.1 816.3 
Deferred credits and other liabilities691.3 680.6 
Non-current operating lease liabilities829.8 845.1 
Deferred income taxes138.7 180.3 
Total liabilities6,184.7 6,226.7 
Equity
Common Stock, par $1.00
195.1 195.1 
Capital in excess of par value914.3 941.7 
Retained earnings5,062.8 5,369.5 
Accumulated other comprehensive loss(575.6)(601.3)
Treasury stock(1,661.4)(1,690.7)
Murphy Shareholders' Equity3,935.2 4,214.3 
Noncontrolling interest164.4 179.8 
Total equity4,099.6 4,394.1 
Total liabilities and equity$10,284.3 10,620.9 

17


MURPHY OIL CORPORATION
PRODUCTION SUMMARY
(unaudited)
Three Months Ended
March 31,
Barrels per day unless otherwise noted20212020
Continuing operations
Net crude oil and condensate
United StatesOnshore22,165 31,033 
Gulf of Mexico 1
64,363 78,730 
CanadaOnshore6,288 6,833 
Offshore4,589 5,138 
Other70 344 
Total net crude oil and condensate - continuing operations97,475 122,078 
Net natural gas liquids
United StatesOnshore3,933 5,585 
Gulf of Mexico 1
4,679 6,670 
CanadaOnshore1,233 1,401 
Total net natural gas liquids - continuing operations9,845 13,656 
Net natural gas – thousands of cubic feet per day
United StatesOnshore22,016 31,962 
Gulf of Mexico 1
72,658 81,950 
CanadaOnshore253,697 266,848 
Total net natural gas - continuing operations348,371 380,760 
Total net hydrocarbons - continuing operations including NCI 2,3
165,382 199,194 
Noncontrolling interest
Net crude oil and condensate – barrels per day(9,174)(12,020)
Net natural gas liquids – barrels per day(354)(559)
Net natural gas – thousands of cubic feet per day 2
(4,159)(5,091)
Total noncontrolling interest(10,221)(13,428)
Total net hydrocarbons - continuing operations excluding NCI 2,3
155,161 185,767 
1 Includes net volumes attributable to a noncontrolling interest in MP GOM.
2 Natural gas converted on an energy equivalent basis of 6:1.
3 NCI – noncontrolling interest in MP GOM.
18


MURPHY OIL CORPORATION
PRICE SUMMARY
(unaudited)
Three Months Ended
March 31,
20212020
Weighted average Exploration and Production sales prices
Continuing operations
Crude oil and condensate – dollars per barrel
United StatesOnshore$57.41 $46.46 
Gulf of Mexico 1
58.78 47.07 
Canada 2
Onshore52.84 37.61 
Offshore59.39 57.27 
Other— 65.55
Natural gas liquids – dollars per barrel
United StatesOnshore21.25 10.79 
Gulf of Mexico 1
23.87 8.28 
Canada 2
Onshore35.92 15.96 
Natural gas – dollars per thousand cubic feet
United StatesOnshore3.27 1.85 
Gulf of Mexico 1
3.39 2.01 
Canada 2
Onshore2.26 1.62 
1 Prices include the effect of noncontrolling interest share for MP GOM.
2 U.S. dollar equivalent.


19


MURPHY OIL CORPORATION
COMMODITY HEDGE POSITIONS (unaudited)
AS OF MAY 4, 2021
CommodityTypeVolumes
(Bbl/d)
Price
(USD/Bbl)
Remaining Period
AreaStart DateEnd Date
United StatesWTI ¹Fixed price derivative swap45,000 $42.77 4/1/202112/31/2021
United StatesWTI ¹Fixed price derivative swap20,000 $44.88 1/1/202212/31/2022
1 West Texas Intermediate
Volumes
(MMcf/d)
Price
(CAD/Mcf)
Remaining Period
AreaCommodityTypeStart DateEnd Date
MontneyNatural GasFixed price forward sales at AECO203 C$2.554/1/20215/31/2021
MontneyNatural GasFixed price forward sales at AECO241 C$2.576/1/202112/31/2021
MontneyNatural GasFixed price forward sales at AECO231 C$2.421/1/20221/31/2022
MontneyNatural GasFixed price forward sales at AECO221 C$2.412/1/20224/30/2022
MontneyNatural GasFixed price forward sales at AECO250 C$2.405/1/20225/31/2022
MontneyNatural GasFixed price forward sales at AECO292 C$2.396/1/202212/31/2022
MontneyNatural GasFixed price forward sales at AECO201 C$2.361/1/202312/31/2023
MontneyNatural GasFixed price forward sales at AECO147 C$2.411/1/202412/31/2024

20


MURPHY OIL CORPORATION
SECOND QUARTER 2021 GUIDANCE
Oil
BOPD
NGLs
BOPD
Gas
MCFD
Total
BOEPD
Production – net
U.S.  – Eagle Ford Shale28,300 5,000 27,400 37,900 
– Gulf of Mexico excluding NCI 57,400 5,100 68,800 74,000 
Canada – Tupper Montney— — 236,400 39,400 
– Kaybob Duvernay and Placid Montney5,400 1,000 18,200 9,400 
– Offshore3,300 — — 3,300 
Total net production (BOEPD) - excluding NCI 1
160,000 to 168,000
Exploration expense ($ millions)$20
FULL YEAR 2021 GUIDANCE
Total net production (BOEPD) - excluding NCI 2
157,000 to 165,000
Capital expenditures – excluding NCI ($ millions) 3
$675 to $725
¹ Excludes noncontrolling interest of MP GOM of 9,500 BOPD of oil, 600 BOPD of NGLs, and 4,600 MCFD gas.
² Excludes noncontrolling interest of MP GOM of 8,800 BOPD of oil, 500 BOPD of NGLs, and 4,300 MCFD gas.
³ Excludes noncontrolling interest of MP GOM of $30 MM.

21