SEC Filing - Murphy Oil Corporation

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SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ---------- FORM 8K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported) April 24, 2002 ------------------------------ Murphy Oil Corporation - -------------------------------------------------------------------------------- (Exact name of Registrant as Specified in Charter) Delaware 1-8590 71-0361522 - -------------------------------------------------------------------------------- (State or Other Jurisdiction (Commission File Number) (IRS Employer of Incorporation) Identification No.) 200 Peach Street, P.O. Box 7000, El Dorado, Arkansas 71731-7000 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code (870) 862-6411 --------------------------- Not applicable - -------------------------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report)

Item 5. Other Events and Regulation FD Disclosure On April 24, 2002, Murphy Oil Corporation (the "Company") announced that net income in the first quarter of 2002 was $2.5 million, $.06 per diluted share, as compared to net income of $97.8 million, $2.16 per diluted share, in the first quarter a year ago. Cash flow from operating activities, excluding changes in noncash working capital items, totaled $98.9 million for the current quarter, $2.15 per share, as compared to $203.6 million, $4.49 per share, in the same quarter last year. The Company's news release is attached to this report as Exhibit 99.1. Item 7. Financial Statements and Exhibits (c) Exhibits 99.1 News Release, dated April 24, 2002 announcing the Company's earnings and certain other financial information for the three-month period ended March 31, 2002. 2

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 By: /s/ Walter K. Compton ------------------------------ Name: Walter K. Compton Title: Secretary April 26, 2002 3

EXHIBIT INDEX Exhibit No. Description - ----------- ----------- 99.1 News release dated April 24, 2002. 4

EXHIBIT 99.1 MURPHY OIL ANNOUNCES QUARTERLY EARNINGS EL DORADO, Arkansas, April 24, 2002 -- Murphy Oil Corporation (NYSE: MUR) announced today that net income in the first quarter of 2002 was $2.5 million, $.06 per diluted share, compared to net income of $97.8 million, $2.16 per diluted share, in the first quarter a year ago. Cash flow from operating activities, excluding changes in noncash working capital items, totaled $98.9 million for the current quarter, $2.15 per share, compared to $203.6 million, $4.49 per share, in the same quarter last year. Significantly lower oil and North American natural gas sales prices were the primary reasons for reduced earnings from the Company's exploration and production operations, which generated a $20.7 million profit in the current quarter compared to $80.6 million in the first quarter of 2001. The Company's average natural gas sales price in North America declined by 65% and averaged $2.28 per thousand cubic feet in the first quarter of 2002 compared to $6.56 in the 2001 quarter. The Company's crude oil and condensate prices averaged $19.76 per barrel in the current quarter, a decrease of 13% from the 2001 period. Murphy's first quarter 2002 oil production and natural gas sales volumes were both quarterly records. Crude oil and gas liquids production averaged 74,292 barrels per day in the first three months of 2002, an increase of 8% from the same period of 2001. Higher oil production was due to start up of the Terra Nova field more....

Page Two offshore eastern Canada. The Company's natural gas sales averaged 309 million cubic feet per day in 2002, up 24% from the 2001 period as higher gas production at the Company's Ladyfern field in western Canada more than offset lower production in the Gulf of Mexico. A $4 million increase in exploration expense in the 2002 quarter was attributable to more dry hole expense. The Company's refining and marketing operations lost $13.7 million in the just completed quarter due to weak refining margins in both the United States and United Kingdom. Earnings from these and former Canadian pipeline operations totaled $19.6 million in the 2001 quarter. U.S. results in the current quarter included an after-tax gain of $3.5 million from sale of the Company's 22% interest in Butte Pipe Line. Crude oil processed by the Company's U.S. refineries averaged 112,468 barrels per day in the current quarter compared to 146,592 barrels per day in the first quarter of 2001. U.S. petroleum product sales totaled 157,504 barrels per day in the first quarter of 2002, down from 164,556 in the 2001 quarter. The 2002 crude processing and sales volumes were adversely affected by downtime for repairs at both U.S. refineries. Crude oil refined and petroleum products sold in the U.K. were higher in the 2002 quarter as comparable volumes in the prior year's first quarter were reduced by downtime for maintenance at the Milford Haven refinery. Corporate functions reflected a loss of $4.5 million in the current quarter compared to a loss of $2.4 million in the first quarter of 2001. Claiborne P. Deming, President and Chief Executive Officer, commented, "Oil and natural gas sales prices and downstream margins are showing improvement early in the second quarter. Currently, we expect earnings for the second quarter of 2002 to be between $.25 and $.75 per share, based on expected average production of 122,000 barrels of oil equivalent a day. more...

Page Three Exploration expense for the quarter could range from $28 to $50 million as we expense the remaining costs of the first well and drill our second well on Block K, offshore Malaysia, and we redrill the deepwater Annapolis well, offshore Nova Scotia. In other areas, we continue significant development projects at our Medusa and Front Runner deepwater Gulf of Mexico discoveries and the West Patricia discovery in Block SK 309, offshore Malaysia. In addition, the expansion of our Meraux refinery is proceeding well." Summary financial data and operating statistics for the first quarter of 2002 with comparisons to 2001 are contained in the attached tables. The public is invited to access the Company's conference call to discuss first quarter 2002 results on Thursday, April 25, at 12:00 p.m. CDT either via the Internet through the Investor Relations section of Murphy's website at http://www.murphyoilcorp.com or via the telephone by dialing 1-800-240-6709. The telephone reservation number for the call is 461787. The forward-looking statements reflected in this release are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. No assurance can be given that the results discussed herein will be attained and certain important factors that may cause actual results to differ materially are contained in Murphy's January 15, 1997 Form 8-K report on file with the U.S. Securities and Exchange Commission. ####

MURPHY OIL CORPORATION FUNCTIONAL RESULTS OF OPERATIONS (Unaudited) (Millions of dollars) - ------------------------------------------------------------------------------------------------------------------ Three Months Ended Three Months Ended March 31, 2002 March 31, 2001 - ------------------------------------------------------------------------------------------------------------------ Revenues Income Revenues Income - ------------------------------------------------------------------------------------------------------------------ Exploration and production United States $ 33.0 (2.6) 96.6 31.1 Canada 120.6 17.8 120.6 28.1 United Kingdom 45.5 13.2 50.3 20.1 Ecuador 5.6 .8 10.1 3.8 Malaysia - (8.0) - (1.2) Other international .6 (.5) .5 (1.3) - ------------------------------------------------------------------------------------------------------------------ 205.3 20.7 278.1 80.6 - ------------------------------------------------------------------------------------------------------------------ Refining and marketing United States 548.4 (11.5) 706.2 15.0 United Kingdom 85.1 (2.2) 78.5 1.8 Canada - - 161.1 2.8 - ------------------------------------------------------------------------------------------------------------------ 633.5 (13.7) 945.8 19.6 - ------------------------------------------------------------------------------------------------------------------ 838.8 7.0 1,223.9 100.2 Intersegment transfers elimination (9.9) - (38.2) - - ------------------------------------------------------------------------------------------------------------------ 828.9 7.0 1,185.7 100.2 Corporate 1.0 (4.5) 3.7 (2.4) - ------------------------------------------------------------------------------------------------------------------ Total revenues/net income $ 829.9 2.5 1,189.4 97.8 ==================================================================================================================

MURPHY OIL CORPORATION OIL AND GAS OPERATING RESULTS (Unaudited) - ----------------------------------------------------------------------------------------------------------------------------------- United Synthetic United King- Oil - (Millions of dollars) States Canada dom Ecuador Malaysia Other Canada Total - ----------------------------------------------------------------------------------------------------------------------------------- Three Months Ended March 31, 2002 - ----------------------------------------------------------------------------------------------------------------------------------- Oil and gas sales and other operating revenues $ 33.0 98.9 45.5 5.6 - .6 21.7 205.3 Production expenses 14.0 20.1 11.4 3.3 - - 12.9 61.7 Depreciation, depletion and amortization 9.8 34.8 9.8 1.3 .3 .1 2.1 58.2 Exploration expenses Dry holes 5.0 12.4 - - 5.7 - - 23.1 Geological and geophysical 2.0 7.8 - - .4 - - 10.2 Other .4 .6 .2 - 1.6 (.1) - 2.7 - ----------------------------------------------------------------------------------------------------------------------------------- 7.4 20.8 .2 - 7.7 (.1) - 36.0 Undeveloped lease amortization 2.5 3.5 - - - - - 6.0 - ----------------------------------------------------------------------------------------------------------------------------------- Total exploration expenses 9.9 24.3 .2 - 7.7 (.1) - 42.0 - ----------------------------------------------------------------------------------------------------------------------------------- Selling and general expenses 3.9 3.3 .8 .2 - 1.2 .1 9.5 Income tax provisions (benefits) (2.0) 3.0 10.1 - - (.1) 2.2 13.2 - ----------------------------------------------------------------------------------------------------------------------------------- Results of operations (excluding corporate overhead and interest) $ (2.6) 13.4 13.2 .8 (8.0) (.5) 4.4 20.7 =================================================================================================================================== - ----------------------------------------------------------------------------------------------------------------------------------- Three Months Ended March 31, 2001 - ----------------------------------------------------------------------------------------------------------------------------------- Oil and gas sales and other operating revenues $ 96.6 94.4 50.3 10.1 - .5 26.2 278.1 Production expenses 12.2 18.1 7.2 4.4 - - 15.2 57.1 Depreciation, depletion and amortization 10.3 18.2 9.8 1.8 .1 .1 2.1 42.4 Goodwill amortization - .8 - - - - - .8 Exploration expenses Dry holes 15.5 3.4 .1 - - - - 19.0 Geological and geophysical 3.7 7.4 - - .3 .1 - 11.5 Other .3 .7 .2 - .8 .3 - 2.3 - ----------------------------------------------------------------------------------------------------------------------------------- 19.5 11.5 .3 - 1.1 .4 - 32.8 Undeveloped lease amortization 2.0 3.2 - - - - - 5.2 - ----------------------------------------------------------------------------------------------------------------------------------- Total exploration expenses 21.5 14.7 .3 - 1.1 .4 - 38.0 - ----------------------------------------------------------------------------------------------------------------------------------- Selling and general expenses 3.8 2.1 .6 .1 - 1.4 - 8.0 Income tax provisions (benefits) 17.7 17.8 12.3 - - (.1) 3.5 51.2 - ----------------------------------------------------------------------------------------------------------------------------------- Results of operations (excluding corporate overhead and interest) $ 31.1 22.7 20.1 3.8 (1.2) (1.3) 5.4 80.6 ===================================================================================================================================

MURPHY OIL CORPORATION SUMMARIZED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Thousands of dollars, except per share amounts) Three Months Ended March 31, --------------------------------- 2002 2001 -------------- --------------- Revenues $ 829,903 1,189,385 -------------- --------------- Costs and expenses Crude oil, products and operating expenses 686,082 913,211 Exploration expenses 42,021 37,961 Selling and general expenses 22,362 21,046 Depreciation, depletion and amortization 70,689 54,232 Amortization of goodwill - 788 Interest expense 9,542 9,744 Interest capitalized (4,817) (3,586) -------------- --------------- 825,879 1,033,396 -------------- -------------- Income before income taxes 4,024 155,989 Income tax expense 1,490 58,153 -------------- --------------- Net income $ 2,534 97,836 ============== =============== Net income per Common share Basic $ 0.06 2.17 Diluted 0.06 2.16 Dividends per Common share $ .375 .375 Average Common shares outstanding (thousands) Basic 45,509 45,056 Diluted 45,903 45,315 MURPHY OIL CORPORATION SUMMARIZED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Thousands of dollars) Three Months Ended March 31, --------------------------------- 2002 2001 -------------- --------------- Net income $ 2,534 97,836 Cash flow hedges (376) 2,177 Net loss from foreign currency translation (4,996) (51,439) -------------- --------------- Comprehensive income (loss) before cumulative effect of accounting change (2,838) 48,574 Cumulative effect of accounting change on other comprehensive income - 6,642 -------------- --------------- Comprehensive income (loss) $ (2,838) 55,216 ============== ===============

MURPHY OIL CORPORATION SUMMARIZED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Thousands of dollars) Three Months Ended March 31, ----------------------------- 2002 2001 ------------ ------------ Operating Activities Net income $ 2,534 97,836 Adjustments to reconcile net income to net cash provided by operating activities Depreciation, depletion and amortization 70,689 54,232 Provisions for major repairs 4,579 5,500 Expenditures for major repairs and dismantlement costs (2,104) (2,449) Dry holes 23,112 19,005 Amortization of undeveloped leases 6,062 5,230 Goodwill amortization - 788 Deferred and noncurrent income tax charges (benefits) (264) 16,966 Pretax gains from disposition of assets (5,736) (86) Net (increase) decrease in operating working capital other than cash and cash equivalents (66,189) 29,862 Other 32 6,568 ------------ ------------ Net cash provided by operating activities 32,715 233,452 ------------ ------------ Investing Activities Property additions and dry holes (204,860) (179,649) Proceeds from sale of assets 27,877 2,266 Other (145) (92) ------------ ------------ Net cash required by investing activities (177,128) (177,475) ------------ ------------ Financing Activities Increase (decrease) in notes payable 156,992 (10) Decrease in nonrecourse debt of a subsidiary (4,051) (3,070) Proceeds from exercise of stock options and employee stock purchase plans 18,058 1,495 Cash dividends paid (17,057) (16,896) ------------ ------------ Net cash provided (required) by financing activities 153,942 (18,481) ------------ ------------ Effect of exchange rate changes on cash and cash equivalents (1,052) (4,898) ------------ ------------ Net increase in cash and cash equivalents 8,477 32,598 Cash and cash equivalents at January 1 82,652 132,701 ------------ ------------ Cash and cash equivalents at March 31 $ 91,129 165,299 ============ ============

MURPHY OIL CORPORATION OTHER FINANCIAL DATA (Unaudited, except for December 31, 2001) (Millions of dollars) March 31, Dec. 31, 2002 2001 ------------- -------------- Working capital $ 112.5 38.6 Total assets 3,438.1 3,259.1 Long-term debt Notes payable 572.3 416.1 Nonrecourse debt 100.6 104.7 Stockholders' equity 1,504.8 1,498.2 Three Months Ended March 31, ------------------------------ 2002 2001 ------------- -------------- Capital expenditures Exploration and production United States $ 74.9 43.8 Canada 77.1 111.2 Other international 25.1 8.2 ------------- -------------- 177.1 163.2 ------------- -------------- Refining and marketing United States 40.2 27.1 International .1 1.2 ------------- -------------- 40.3 28.3 ------------- -------------- Corporate .3 1.9 ------------- -------------- Total capital expenditures 217.7 193.4 ------------- -------------- Charged to exploration expenses* United States 7.4 19.5 Canada 20.8 11.5 Other international 7.8 1.8 ------------- -------------- Total charged to exploration expenses 36.0 32.8 ------------- -------------- Total capitalized $ 181.7 160.6 ============= ============== * Excludes amortization of undeveloped leases of $6 million and $5.2 million, respectively, in 2002 and 2001.

MURPHY OIL CORPORATION STATISTICAL SUMMARY Three Months Ended March 31, ------------------------- 2002 2001 ---------- ---------- Net crude oil, condensate and gas liquids produced - barrels per day 74,292 69,054 Crude oil and condensate United States 5,718 5,231 Canada - light 2,912 2,662 - heavy 9,722 13,000 - offshore 19,759 8,953 - synthetic 11,342 10,352 United Kingdom 18,892 20,673 Ecuador 4,184 5,837 Natural gas liquids United States 467 272 Canada 1,157 1,922 United Kingdom 139 152 Net crude oil, condensate and gas liquids sold - barrels per day 80,208 65,754 Crude oil and condensate United States 5,763 5,231 Canada - light 2,912 2,662 - heavy 9,722 13,000 - offshore 21,436 7,155 - synthetic 11,342 10,352 United Kingdom 23,067 18,695 Ecuador 4,207 6,352 Natural gas liquids United States 422 272 Canada 1,157 1,922 United Kingdom 180 113 Net natural gas sold - thousands of cubic feet per day 309,290 248,799 United States 101,294 124,844 Canada 199,486 106,006 United Kingdom 8,510 17,949 Total net hydrocarbons produced - equivalent barrels per day* 125,840 110,521 Total net hydrocarbons sold - equivalent barrels per day* 131,756 107,221 * Natural gas converted on an energy equivalent basis of 6:1.

MURPHY OIL CORPORATION STATISTICAL SUMMARY (Continued) Three Months Ended March 31, -------------------------- 2002 2001 ----------- ---------- Weighted average sales prices Crude oil and condensate - dollars per barrel (1) United States $ 20.20 27.42 Canada (2) - light 17.86 25.03 - heavy 13.39 9.43 - offshore 21.95 27.05 - synthetic 21.23 28.17 United Kingdom 20.73 27.10 Ecuador 14.84 17.75 Natural gas liquids - dollars per barrel (1) United States $ 14.18 28.02 Canada (2) 11.23 26.93 United Kingdom 15.10 25.50 Natural gas - dollars per thousand cubic feet United States (1) $ 2.60 7.21 Canada (2) 2.12 5.79 United Kingdom (2) 2.96 2.53 Refinery inputs - barrels per day 154,512 178,694 United States 117,729 151,654 United Kingdom 36,783 27,040 Petroleum products sold - barrels per day 191,318 189,097 United States 157,504 164,556 Gasoline 96,903 86,306 Kerosine 8,448 12,381 Diesel and home heating oils 35,725 42,700 Residuals 13,044 17,880 Asphalt, LPG and other 3,384 5,289 United Kingdom 33,814 24,541 Gasoline 12,848 9,378 Kerosine 2,656 2,584 Diesel and home heating oils 13,856 7,403 Residuals 2,812 2,522 LPG and other 1,642 2,654 (1) Includes intracompany transfers at market prices. (2) U.S. dollar equivalent.